Verizon is acquiring Yahoo
Wall Street is a bit shaky this morning after a record-breaking week. All three major averages (^DJI, ^GSPC, ^IXIC) are slightly lower as investors get ready to tackle the next round of earnings and some Monday M&A action.
Verizon, Yahoo deal
Verizon communications (VZ) officially announced it’s buying Yahoo (YHOO). The deal is worth about $4.8 billion dollars, and includes Yahoo’s core internet business and some real estate.
M&A Monday
In other merger news, shares of Carmike Cinemas (CKEC) got a nice pop in early trading after AMC Entertainment (AMC) raised its buyout offer for its smaller rival by 10% to $1.2 billion in cash and stock. AMC CEO Adam Aron called this the best and final offer.
SolarCity (SCTY) rose in early trading. The solar panel maker and Tesla (TSLA) are close to hammering out the terms of a merger, according to Reuters. It’s unclear yet whether SolarCity will be able to land a go-shop provision, which will allow it to press for other bids. Elon Musk is the founder and a major shareholder of both companies.
Ericsson’s (ERIC) US-listed shares got a nice pop in early trading. The Swedish mobile telecom gear maker’s CEO stepped down amid shareholder pressure after reporting a big drop in profit for the second quarter.
Sprint (S) posted revenue that topped analysts’ estimates, and earnings came in line with forecasts as it added more wireless users than expected in its fiscal first quarter.
Nintendo’s shares dive
After enjoying the boost of “Pokemon Go,” shares of Nintendo are plummeting. The stock fell almost 18% after the company said “Pokemon Go” would have a small impact on its earnings. Even with the decline, Nintendo’s shares are still up 60% since the game first launched. Nintendo is set to report its first-quarter results this week.
Shakeup at the DNC
The chairman of the Democratic National Convention, Debbie Wasserman Schultz, is resigning. She’s stepping down after leaked emails suggest officials went out of their way to weaken Bernie Sanders’s presidential campaign. Wasserman Schultz says she’d step down by the end of the week … but will still open and close the Democratic National Convention.
