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Microsoft and Nokia Announce Deal; Verizon’s $130 Billion Buyout; CBS and TWC Settle Fight

Dan Berman
Hot Stock Minute
Microsoft and Nokia Announce Deal; Verizon’s $130 Billion Buyout; CBS and TWC Settle Fight

Microsoft (MSFT) has come calling with an offer Nokia (NOK) can't refuse. It's buying the Finnish company's handset division as part of a $7.2-billion deal. Microsoft CEO Steve Ballmer helped announce the acquisition. Keep in mind this is less than two weeks after it became public that he'll be retiring soon.Shares of Microsoft have been trading 5% lower in the premarket on this news. Nokia has been up as much as 42-percent. What does this reaction say about what each company stands to gain and lose? Yahoo! Finance Editor-in-Chief Aaron Task has more in the video above.

It's not nearly as much of a surprise, but actually a much bigger deal: Verizon (VZ) has now agreed to buy Vodafone's (VOD) stake in Verizon Wireless.The arrangement calls for Verizon to pay $130-billion for Vodafone's 45% stake in the joint venture. It's the biggest corporate play since 2000, and among the largest in history. If all goes according to schedule, the transfer should be complete by early next year. Vodafone shares jumped 8% last week as word of the deal began to surface. Verizon spiked as well, but then shed nearly all its gains.

CBS (CBS) owned stations are back on Time Warner Cable (TWC). Programming was restored at 6pm last night following the announcement of an agreement. It ends a month-long blackout in a battle over subscription fees, and comes just in time for the start of football season. Terms of the deal have not been released. Shares of CBS were down 6% over the past month but are up 30% year-to-date. Time Warner Cable shed 8% in the past month, but it up 8% year-to-date.

Tomorrow's the day Samsung is expected to unveil its smartwatch dubbed Galaxy Gear. Samsung will show off the arm candy at an event in Berlin. Perhaps most notably, the company beats Apple (AAPL) to the punch with a wearable computer. Samsung is also expected to showcase a new Galaxy Note phone at the event.


Microsoft is down 5% in early trading. As we told you at the top of the show, the software-maker is buying Nokia's handset and services business. Nokia has jumped, rising as much as 42%. Prior to this morning, shares of Microsoft have been up 21% year-to-date. They gained about 5% last week as investors digested the news of Ballmer's impending departure.

Jarden (JAH) has shown a burning desire for Yankee Candle, agreeing to buy the company for $1.75-billion. You may not know Jarden by name, but it owns Sunbeam, Mr. Coffee, and Crock-Pot, as well as camping-gear company Coleman and Marmot clothing. Yankee Candle is currently owned by Madison Dearborn. It acquired the chain back in 2006 for $1.6-billion, so not an outstanding profit there. As for Jarden, its stock has been up 21%nyear-to-date. The company has a market cap of nearly $5-billion.

Raytheon (RTN), the maker of the Tomahawk missile, is getting added attention. If the U.S. does in fact attack Syria, the Tomahawk is likely to be the weapon of choice used in the mission. Keep in mind, President Obama said over the weekend that he is going to Congress for a vote on any military action. Shares of Raytheon are up 29% this year. They hit an all-time high just pennies short of $88 a share about 10-days ago.

H&R Block (HRB) is one of the few companies reporting today. It releases numbers after the closing bell. The tax-preparer is expected to post losses of 37-cents a share. That's a penny better than last year on revenue that's risen almost $2-million. Alarming as the numbers may seem, keep in mind this is for H&R Block's off-season. In fact 60% of analysts rate the stock a buy. But some of the upside may already be gone. Shares have risen 48% since the start of the year.