Apple skips a few beats in streaming battle 1 Jul 2016 The $535 bln iPhone maker may be mulling a purchase of Tidal, rapper Jay Z's online music service, to bolster its own. Meanwhile Spotify says Apple is harming it by rejecting an app upgrade. Apple has the clout to fend off rivals, but adding Tidal won't help get its rhythm back.
Review: To have and have not, Brazil-style 1 Jul 2016 In "Brazillionaires," Alex Cuadros explores Latin America's biggest economy through its wealthiest citizens, whose fortunes he tracked as a reporter. It's a tale of boom, bust and back-scratching among moguls and politicos that sheds a telling light on the nation's current woes.
Accountability flows from failed pipeline merger 1 Jul 2016 Nearly half of the Williams board – including the chair and two activists – quit after they failed to oust CEO Alan Armstrong. The departing directors supported the pipeline group's collapsed sale to ETE, which Armstrong had opposed. It's an uncommon win for oil-patch governance.
Skullcandy frenzy only mild music to investor ears 1 Jul 2016 The headphone maker's IPO in 2011 attracted considerable hype, fetching a valuation of over two times revenue. Since then, sales have stalled and profit margins shrunk. Despite at least three potential suitors now, long-term Skullcandy shareholders will be singing the blues.
Mondelez can stomach a richer bid for Hershey 30 Jun 2016 The confectioner rejected a lowball offer from Cadbury's parent. Mondelez could pay $26 bln without hurting its shareholders or incurring excessive debt. The jubilant reaction from investors to the initial bid may tempt CEO Irene Rosenfeld to sweeten the terms of her offer.
Guest view: Changing the definition of growth 30 Jun 2016 It's time to reconsider the all-consuming focus on GDP to concentrate on what underpins development, argues David Cruickshank of Deloitte. Measuring social progress can help countries identify and improve the factors upon which economic stability and prosperity depend.
Hershey makes tempting but sticky takeover target 30 Jun 2016 The $25 bln confectioner belongs with Mondelez's Cadbury. CEO Irene Rosenfeld may sniff sweet opportunity as the charitable trust that blocked past Hershey bids is roiled by scandal, and rival Kraft Heinz is still digesting its mega-deal. But it won't come cheaply.
Lions Gate-Starz mashup is classic Malone 30 Jun 2016 The media mogul's fingerprints are all over the "Hunger Games" studio's $4.4 bln deal to buy the pay-TV operator: a complex structure, new non-voting stock and more influence for John Malone at Lions Gate. Starz shareholders, receiving a lowish premium, shouldn't be surprised.
Puerto Rico law just first step in fiscal fix 30 Jun 2016 The U.S. Senate late on Wednesday passed a framework for the territory to restructure some $70 bln of debt. Puerto Rico, however, also faces an economic crunch and a healthcare crisis. Giving it a version of the Chapter 9 bankruptcy process is only chapter 1 in its rehab.
Once-touted Rio Olympics may leave sour hangover 30 Jun 2016 The Brazilian city won the 2016 Games when ex-President Lula was in his pomp, trying to brand his country as a rising world power. That's now history. A scramble will get venues ready and visitors will enjoy the hosts' fabled warmth. But that won't hide the grim national decline.
Stress-test failures a warning for European banks 29 Jun 2016 Deutsche and Santander again botched the Fed's exams. It's embarrassing, though more surprising for the German lender. The problem for Europe's financial giants is they have to set up U.S. holding companies by July 1 – bringing more of them into a process as alien as baseball.
Rough ride ahead for the descendants of Mad Men 29 Jun 2016 A damning report backed by P&G and other brand advertisers combined with a potential pullback in marketing during uncertain times spells trouble for big agencies. With revenue per employee slowing at stalwarts like WPP, job cuts on Madison Avenue look inevitable.
Monsanto’s bid defense withers on the vine 29 Jun 2016 The U.S. seedmaker’s disappointing third-quarter performance makes it hard to see how Monsanto can lure chemical group Bayer into sweetening an already frothy $62 bln offer. The suitor may be willing to look past a cyclical dip, but its negotiating position now looks stronger.
GE’s 50 billion reasons not to be a SIFI 29 Jun 2016 That's the dollar amount of market cap the U.S. conglomerate has added since it said it would wind down the finance arm that watchdogs said posed a systemic financial risk. Relative to the market and rivals, the gain is bigger still. Complacent mega-bank shareholders, take note.
Lending Club financial innovations skipped culture 28 Jun 2016 The cratered online loan marketplace says its founder and ex-CEO inflated loan volumes on top of other failings. Only 18 months after its IPO, the supposed disruptor is retrenching. To move fast and break things is risky in finance – especially so when mixed with self-dealing.
McKesson finds skilled surgeons to revive tech arm 28 Jun 2016 The $40 bln drug distributor is carving out its languishing healthcare IT business and merging it with one owned by LBO firms Blackstone and Hellman & Friedman. Cost cuts and attentive management should help make it more valuable. Only excessive debt might impede a full recovery.
America’s top cops can still take a bite out of VW 28 Jun 2016 The German carmaker will pay a record $15 bln for its emissions scandal. It’s a lot of money but in line with regulatory tallies. But a criminal case is still pending that offers to test the Department of Justice’s pledge to better hold individuals liable for company misconduct.
SolarCity governance torched by bid mini-committee 28 Jun 2016 The clean-energy company could find only two directors independent enough to assess Tesla’s $2.8 bln takeover offer. And one of them is a venture capitalist whose firm has backed Elon Musk’s companies. This lack of proper board engineering shortchanges SolarCity shareholders.
Lyft mulls trip out of capital destruction 28 Jun 2016 The $5.5 bln ride-hailing app has hired Frank Quattrone’s Qatalyst – an adviser with a knack for selling tech firms at hefty premiums. With rivals Uber and Didi raising and burning billions in an attempt to gain control of markets, M&A discretion may prove wiser than valor.
Bank stress exams may test investor patience 28 Jun 2016 Results are due this week from the Fed on how 33 financial institutions performed in a simulated bad economic downturn. Countercyclical factors included this year could mean even banks that ace the tests will be required to keep more profit rather than pay out bigger dividends.