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All articles tagged with #corporate finance

WBD weighs rival Paramount bid against Netflix deal amid higher offer
business1 day ago

WBD weighs rival Paramount bid against Netflix deal amid higher offer

Warner Bros. Discovery says Paramount Skydance has submitted a higher bid and its board will review it under the Netflix deal. If Paramount’s offer is deemed superior, Netflix will have four days to improve its bid; Netflix previously agreed to acquire WBD’s studio and streaming assets for $27.75 per share (~$72 billion in assets, ~$82.7 billion enterprise value). Paramount’s tender values WBD at $30 per share in a hostile bid. If Paramount wins and Netflix doesn’t raise its bid, a $2.8 billion breakup fee would be paid. A combined Paramount-WBD would merge HBO Max with Paramount+, with CNN and CBS News under one umbrella, both deals needing regulatory approval amid antitrust concerns.

via CNBC|
#business#corporate-finance#entertainment-news
AI Boom Promises Massive Financial Windfall for Wall Street
finance1 year ago

AI Boom Promises Massive Financial Windfall for Wall Street

Wall Street bankers, including those from Morgan Stanley, are eyeing significant profits from the current excitement surrounding artificial intelligence, with major private capital firms like Apollo Global Management and Blackstone also involved. These firms are increasingly challenging traditional banks' dominance in corporate finance, as the AI sector is projected to reach a $1 trillion valuation.

via Bloomberg|
#ai#corporate-finance#finance
MicroStrategy Expands Bitcoin Holdings to $23B with New $2B Purchase
cryptocurrency1 year ago

MicroStrategy Expands Bitcoin Holdings to $23B with New $2B Purchase

MicroStrategy has increased its Bitcoin holdings to 279,420 BTC, valued at nearly $23 billion, after purchasing 27,200 BTC for approximately $2.03 billion. The company funded these purchases by selling shares, reflecting a strong commitment to Bitcoin despite its high market price. MicroStrategy's Bitcoin yield was 7.3% from October 1 to November 10, and its return on investment has surpassed 100%. The firm remains the largest corporate holder of Bitcoin, significantly ahead of other companies like Marathon Digital and Riot Platforms.

via Cointelegraph|
#bitcoin#corporate-finance#cryptocurrency
GameStop Surges After Raising $933M in Stock Sale
business1 year ago

GameStop Surges After Raising $933M in Stock Sale

GameStop shares surged up to 25% in late trading after the company raised nearly $1 billion through a share sale program, capitalizing on recent trading flurries. The funds will be used for general corporate purposes, including potential acquisitions and investments. Despite the stock jump, GameStop's underlying business continues to struggle as gamers increasingly opt for digital downloads over physical store visits.

via Yahoo Finance|
#business#corporate-finance#gamestop
corporate-finance2 years ago

"AbbVie's Immunology Drug Sales Beat Expectations Despite Humira Decline"

AbbVie reported a decrease in full-year and fourth-quarter 2023 financial results, with diluted EPS and net revenues declining. The company announced definitive transaction agreements to acquire ImmunoGen and Cerevel Therapeutics, strengthening its oncology and neuroscience portfolios. AbbVie provided adjusted diluted EPS guidance for 2024 and reaffirmed expectations for high single-digit compound annual revenue growth rate through 2029, raising outlooks for certain product revenues. The company also announced positive clinical trial results for various therapies and a research collaboration with BigHat Biosciences.

via AbbVie|
#abbvie#acquisitions#corporate-finance
"Brex's Staff Reduction Raises Concerns Amid High Burn Rate and Rapid Growth"
business2 years ago

"Brex's Staff Reduction Raises Concerns Amid High Burn Rate and Rapid Growth"

Fintech giant Brex, valued at $12.3 billion, is laying off 20% of its staff, with the CTO transitioning to an advisor role. This comes after reports of high cash burn, with the company reducing its monthly burn but still facing significant annual costs. The layoffs follow previous staff reductions in 2022 and 2020, and affected employees will receive severance.

via Fortune|
#brex#business#cash-burn
The Grim Reality of a Debt-Fueled M&A Boom
business2 years ago

The Grim Reality of a Debt-Fueled M&A Boom

Companies that relied on cheap credit to fund large mergers and acquisitions (M&A) during the boom times are now facing challenges in delivering on their promises and servicing their debt loads in a new environment of higher interest rates and weakening consumer demand. An analysis of 75 of the largest corporate acquisitions over the past five years, totaling nearly $1.3 trillion, reveals that less than half of the companies have managed to reduce leverage ratios since their acquisitions. Almost a third of the firms now have leverage ratios above 3.5, compared to 16 at the time of the acquisitions. The need to refinance debt and deliver on synergies or earnings growth is becoming a concern, especially as cash buffers erode, sales decline, and the risk of recession looms. Companies such as Walgreens, Rogers Communications, and International Flavors & Fragrances have seen their creditworthiness slide, while others, like Warner Bros. Discovery and SAP, continue to seek smaller bolt-on acquisitions. However, caution is advised as higher interest rates may lead to downgrades and mistakes in dealmaking.

via Yahoo Finance|
#business#corporate-finance#credit-ratings