Netflix Approves AT&T-Time Warner Merger with a Catch

October 26, 2016

In a surprising move, CEO of Netflix Reed Hastings showed his support for the mega-merger between AT&T and Time Warner Inc., but only under one condition. Discover what it is right here on Sentifi.

sentifi top attentions october 26

Heathrow Airport: Campaigners will hit the government back with legal challenges

The U.K. government has officially backed a third runaway at Heathrow Airport after more than 25 years of debate, despite criticism from environmental analysts. Environmental impact is a serious concern about the expansion, and that will be one of the key issues local councils and campaigners will capitalize on to force the government to rethink its decision. The government now will draft a “National Policy Statement” which details the government’s proposal. Then it will be put out for a public consultation to give people and businesses an opportunity to review the proposal. The expansion will either cost $17 billion for the runway extension or $22 billion for the additional third runway.

Reed Hastings: Supports the AT&T-Time Warner merger on one condition

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And it’s net neutrality. In a competitive industry such as content streaming, net neutrality makes all the difference. The CEO of Netflix said the merger would be OK if Time Warner’s content won’t be given any unfair advantage. This could be difficult considering AT&T isn’t fond of net neutrality, but that doesn’t stop Hastings from remaining hopeful. “If they got there … then good things might happen,” he said.

AT&T & Time Warner Inc.: May usher in a new media industry consolidation

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In a reality where the way people watch TV is changing, media content companies are finding being standalone entities more difficult, and that’s the prime opportunity for telecom, satellite and cable providers to swoop in and make acquisitions. The biggest deal of the year, the $85.4 billion merger between AT&T and Time Warner, reflects just that. And there will be more, according to analysts, as consolidation is a way to fend off the competition from Netflix, Amazon and Hulu. Unfortunately, the deal is facing serious opposition and skepticism from politicians and investors alike.

Mark Carney: Will look at the interest rates again

The governor of the Bank of England took the recent fall in the pound’s value in an indifferent manner, but he couldn’t deny the concerns that the fall was storing up inflation. And the timing of the fall coincided with the central bank’s indication that the rate was likely to be cut to 0.1 percent. Now, the governor said the central bank will take the rates into account again to prevent further collapse on the currency as well as keep inflation in check.

Kyushu Railway: Goes public in the world’s third-largest IPO this year

A glut of buy orders has caused the company’s shares to be untraded on its market debut day. Shareholders are hopeful about the company’s fat dividends and potential for growth from its real estate business and increased tourism to Japan. The company’s IPO raised $4 billion from the Japanese government as it sold off all shares in the company.

ChemChina: Ready for concessions to clinch delayed Syngenta deal in 2017

The state-owned Chinese company is ready to offer more concessions to win the antitrust approval from the EU after the union expressed doubts. The deal is now expected to close at the end of March, a delay from the original deadline, which is the end of this year.

Under Armour: Suffers the worst stock decline in more than seven years

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The company lost 13.22 percent of its market value, the worst decline in more than seven years. What’s more shocking is the decline came after the company reported positive Q3 earnings. Its EPS came in at $0.29, higher than the estimate of $0.25. The key here is the drop in gross margin and the slow anticipated growth in future revenue, which troubled the investors. Its gross margin dropped to 47.5 percent from 48.8 percent of last year. Even though the revenue increase for 2017 and 2019 is expected to be 20 percent, it’s the lowest revenue increase since 2009.

Baker Hughes Inc.: Posted a smaller-than-expected quarterly loss

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It’s all thanks to strict cost control. The company reported an adjusted loss of 15 cents per share, lower than the 44 cents from analysts’ estimate, helping its shares jump 10 percent. It aimed to cut $650 million in cost for the year after having cut 1,400 jobs in the third quarter alone. The company had approximately 34,000 employees at the end of September. It had cut 18,000 jobs in 2015, and 6,400 jobs this year thus far.

Banca Paschi Siena: Plans to cut 2,600 jobs and shut 500 branches

The troubled Italian lender also plans to sell its business units to persuade investors to buy into a rescue plan in the form of a multibillion-euro capital increase. By 2019, the lender aims to achieve a net profit of more than $1.2 billion through accelerating investment in digital banking and focusing more on retail and small-business channels, while selling its bad-loan recovery unit and its Merchant Acquiring business activities. The initial reception from the investors was quite positive, pushing the shares up more than 20 percent.

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