Mergers, Acquisitions and Divestitures

Subterms

    More stories

    • 138 Shares179 Views

      in Elections

      The Guardian in Talks to Sell The Observer to Tortoise Media

      by

      The Observer, first published in 1791, could be bought by Tortoise Media, an outlet founded by a British media veteran that began publishing in 2019.The parent company of The Guardian said on Tuesday that it was in formal talks to sell The Observer, Britain’s oldest surviving Sunday newspaper, to the start-up Tortoise Media.A deal would signal that Guardian Media Group is willing to shed a pillar of the British media landscape — The Observer has run in print since 1791 — as it increasingly focuses on news of worldwide interest, delivered digitally.In an internal memo to employees, leaders of Guardian Media said that Tortoise had approached them with a “compelling” offer to buy The Observer. The approximately 70 employees of the Sunday publication were told about the talks on Tuesday.A final deal could be reached within about three months, according to a person briefed on the talks, who was not authorized to discuss the details publicly. The negotiations are ongoing and may not end in an agreement.For years, The Guardian, which was founded in Manchester in 1821, has sought to establish itself as a global media company. It established a digital U.S. edition in 2007, and has sought to expand aggressively across the Atlantic.Executives at The Guardian said that a deal to sell The Observer, which the company bought in 1993, would allow their company to focus even more on international expansion.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 125 Shares119 Views

      in Elections

      How Swing State Politics Are Sinking a Global Steel Deal

      by

      As the Biden administration nears a decision to block the proposed acquisition of U.S. Steel, the debate over national and economic security is being dwarfed by presidential politics.The Biden administration has spent the past three years promoting a policy of “friend-shoring,” which aims to contain China and Russia by forging closer ties with U.S. allies like Europe and Japan.That policy appears to stop at the state lines of Pennsylvania.As the administration nears a decision to block the proposed acquisition of the Pittsburgh-based U.S. Steel by Japan’s Nippon Steel, the traditional debate over national security and economic security is being dwarfed by a more powerful force: presidential politics.Legal experts, Wall Street analysts and economists expressed concern about the precedent that would be set if President Biden uses executive power to block a company from an allied nation from buying an American business. They warn that scuttling the $15 billion transaction would be an extraordinary departure from the nation’s culture of open investment — one that could lead international corporations to reconsider their U.S. investments.“This was a purely political decision, and one that stomps on the Biden administration’s stated focus on building alliances among like-minded countries to advance the economic competition with China,” said Christopher B. Johnstone, a senior adviser and the Japan chair at the Center for Strategic and International Studies. “At the end of the day, it represents pure protectionism that draws no apparent distinction between our friends and our adversaries.”Administration officials such as Treasury Secretary Janet L. Yellen, who leads a government panel that is reviewing the steel deal, have espoused the benefits of deepening economic ties with U.S. allies to make supply chains more resilient. Those sentiments are being disregarded in the heat of an election year, where domestic political dynamics take priority.The Biden administration has been under pressure to find a way to justify blocking the Nippon acquisition amid backlash against the deal from the powerful steelworkers’ union. The labor organization believes that Nippon, which has pledged to invest in Pennsylvania factories and preserve jobs, could jeopardize pension agreements and lay off employees.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 88 Shares169 Views

      in Elections

      Edgar Bronfman Jr. Drops Pursuit of Paramount

      by

      Mr. Bronfman had frantically put a bid together over the last week even as Paramount raised questions about his financing.Edgar Bronfman Jr. abandoned his pursuit of Paramount on Monday, dropping his 11th-hour bid roughly a day before the deadline to submit a final offer for the owner of CBS and MTV.Mr. Bronfman’s decision to suspend his bid all but ensures that Paramount will be acquired by Skydance, an up-and-coming Hollywood studio that has spent most of this year courting, cajoling and cudgeling Paramount into a deal. Skydance reached an $8 billion merger agreement in July, but that deal included a “go shop” window that allowed Paramount to seek other buyers.In a statement, Mr. Bronfman said his bidding group had notified a special committee of Paramount’s board of directors Monday that the group would drop its pursuit, adding that it was “a privilege to have the opportunity to participate” in the deal-making process.Mr. Bronfman said in a statement that “Paramount’s best days are ahead.” Mike Blake/Reuters“While there may have been differences, we believe that everyone involved in the sale process is united in the belief that Paramount’s best days are ahead,” Mr. Bronfman said. “We congratulate the Skydance team and thank the special committee and the Redstone family for their engagement during the go-shop process.”Mr. Bronfman said in his statement that Paramount was “an extraordinary company,” calling it “an unrivaled collection of marquee brands, assets and people.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 100 Shares189 Views

      in Elections

      Who Is Edgar Bronfman Jr., Paramount’s 11th-Hour Suitor?

      by

      His bid to buy Paramount pits one son of a billionaire against the son of another.When the media executive Edgar Bronfman Jr. submitted his last-ditch bid on Monday to take control of Paramount, his approach was greeted with surprise and skepticism. Who would take his unconventional coalition of investors seriously, especially when an $8 billion deal with Skydance was on the table?Later in the week, the answer came emphatically: Paramount.The bid has transformed Paramount’s sale into a battle of family dynasties. Skydance’s founder, David Ellison, who is the son of the Oracle founder Larry Ellison, has struck an agreement with Shari Redstone to take over Paramount, a media empire assembled by her father. But the deal is now threatened by the bid from Bronfman — a grandson of the Seagram mogul Samuel Bronfman — whose early foray steering the family business into media several decades ago has left a cloud over his career.Bronfman, no stranger to doubters, somehow corralled billions in commitments for the bid, refined his list of investors and persuaded a special committee of Paramount’s board of directors to extend the “go shop” window in the company’s agreement with Skydance in order to consider it.The son of one billionaire is now pitted against the son of another.“He’s been craving a media empire since the 1980s, and Paramount is a great studio with a lot of upside potential,” Terry Kawaja, the founder of Luma Partners, a boutique bank, said of Bronfman.“If you’re the billionaire son of a billionaire, it’s the ultimate asset.”Across Wall Street and Hollywood, Bronfman is a polarizing figure. Depending on whom you ask, he’s either the hapless heir who steered Seagrams into a catastrophic merger with Vivendi in 2000 or the misunderstood mogul who fought his way back from a bad deal to prove his mettle with success at Warner Music Group.Bronfman’s résumé is further complicated by a conviction for insider trading in 2011 under French law, which resulted in a $6.8 million fine and a 15-month suspended sentence. At the time of his conviction, he said his trades were aboveboard.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 150 Shares169 Views

      in Elections

      Samsung Recalls 1 Million Stoves That Started 250 Fires and Killed Pets

      by

      Thirty models of Samsung stoves were part of the recall over fires started by accidental contact.A recall has been issued for more than one million Samsung stoves after hundreds of reports of them being turned on accidentally, leading to fires that injured dozens and killed at least seven pets, the Consumer Product Safety Commission said in a statement on Thursday.Customers who own one of the 30 recalled models of Samsung electric ranges that the company has been selling since 2013 will be able to get a free set of knob locks or covers to minimize the risk of ignition by accidental contact with humans or pets, the company said in a statement announcing its voluntary recall on Thursday.More than 1.1 million electric ranges were included in the recall. The ranges were involved in about 250 fires, which led to about 40 injuries. Eight of the injuries needed medical attention, and there were 18 instances of “extensive property damage,” the commission’s statement said.When asked exactly how many pets died, and why it took 11 years since the company started selling the flawed ranges before the recall was issued, a spokeswoman for the commission declined to comment, referring to Samsung and the commission’s website for questions.Christopher Langlois, a spokesman for Samsung, said consumers should be mindful of the risks of accidental contact with range knobs for any stove. They should keep their stove tops clean and clear, keep children and pets away, and make sure that stoves are turned off after cooking, the company said in a statement.Samsung is asking people who have aone of its ranges to contact the company to see if they are eligible for the free, self-install knob locks or covers that reduce the possibility of accidental ignition.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

    • 138 Shares199 Views

      in Elections

      Why Google, Microsoft and Amazon Shy Away From Buying A.I. Start-Ups

      by

      Google, Microsoft and Amazon have made deals with A.I. start-ups for their technology and top employees, but have shied from owning the firms. Here’s why.In 2022, Noam Shazeer and Daniel De Freitas left their jobs developing artificial intelligence at Google. They said the tech giant moved too slowly. So they created Character.AI, a chatbot start-up, and raised nearly $200 million.Last week, Mr. Shazeer and Mr. De Freitas announced that they were returning to Google. They had struck a deal to rejoin its A.I. research arm, along with roughly 20 percent of Character.AI’s employees, and provide their start-up’s technology, they said.But even though Google was getting all that, it was not buying Character.AI.Instead, Google agreed to pay $3 billion to license the technology, two people with knowledge of the deal said. About $2.5 billion of that sum will then be used to buy out Character.AI’s shareholders, including Mr. Shazeer, who owns 30 percent to 40 percent of the company and stands to net $750 million to $1 billion, the people said. What remains of Character.AI will continue operating without its founders and investors.The deal was one of several unusual transactions that have recently emerged in Silicon Valley. While big tech companies typically buy start-ups outright, they have turned to a more complicated deal structure for young A.I. companies. It involves licensing the technology and hiring the top employees — effectively swallowing the start-up and its main assets — without becoming the owner of the firm.These transactions are being driven by the big tech companies’ desire to sidestep regulatory scrutiny while trying to get ahead in A.I., said three people who have been involved in such agreements. Google, Amazon, Meta, Apple and Microsoft are under a magnifying glass from agencies like the Federal Trade Commission over whether they are squashing competition, including by buying start-ups.“Large tech firms may clearly be trying to avoid regulatory scrutiny by not directly acquiring the targeted firms,” said Justin Johnson, a business economist who focuses on antitrust at Cornell University. But “these deals do indeed start to look a lot like regular acquisitions.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More