Morning Brew: Broadcom Nears $69B VMware Acquisition, Palantir Surges on Q3 Results, and Cedar Fair
CEO Hock Tan of Broadcom met with Chinese officials over the weekend to discuss the company's planned $69 billion acquisition of VMware (NYSE:VMW). The meeting took place in the U.S. during China's Foreign Minister Wang Yi's visit to Washington, DC. While the final approval for the acquisition still rests with China's State Administration for Market Regulation, the meeting reportedly resulted in a deal regarding the proposed acquisition.
Cedar Fair (NYSE:FUN) and Six Flags Entertainment Corporation (NYSE:SIX) announced a merger agreement. The combined theme park company will have a pro forma enterprise value of approximately $8 billion. Under the terms of the merger, Cedar Fair unitholders will receive one share of common stock in the new combined company for each unit owned, and Six Flags shareholders will receive 0.5800 shares of common stock in the new combined company for each share owned.
Palantir Technologies (NYSE:PLTR) saw a significant jump in pre-market trading following its Q3 results and guidance that exceeded estimates. The enterprise software maker reported an adjusted 7 cents per share as revenue rose 16.8% year-over-year to $558 million. The company also announced that its stock is now eligible to join the S&P 500 index.
Shopify (NYSE:SHOP) shares soared in pre-market trading after delivering a Q3 top and bottom line beat. The Canadian e-commerce company reported a 22% Y/Y jump in gross merchandise volume to $56.2 billion, topping estimates of $54.4 billion. The company also reported being free cash flow positive for the fourth consecutive quarter.
Uber Technologies (NYSE:UBER) and Lyft (NASDAQ:LYFT) will collectively pay $328 million as part of settlements with the New York Office of Attorney General to settle allegations that the ride-share companies withheld earnings from drivers. As part of the settlements, Uber will pay $290 million and Lyft will pay $38 million.
This article first appeared on GuruFocus.
