DealBook Today's Top Headlines - July 26, 2016: Verizon Is to Buy Yahoo's Core Business
MONDAY, JULY 25, 2016
TODAY'S TOP HEADLINES
BY AMIE TSANG
VERIZON IS TO BUY YAHOO'S CORE BUSINESSYahoo's struggle to survive alone will soon come to an end. It has agreed to sell its core internet operations and land holdings to Verizon Communications, according to people briefed on the matter. The company, which at its peak was worth $125 billion, is now being sold for $4.8 billion.Yahoo shareholders will be left with about $41 billion of investments in Alibaba, Yahoo Japan and a small portfolio of patents.
Marissa Mayer, Yahoo's chief executive, is not expected to join Verizon, but she will receive a severance payout worth about $57 million. She will have received cash and stock compensation worth about $218 million during her four years at Yahoo, according to calculations by Equilar, a compensation research firm.
The company, once a web pioneer, has now been overtaken by the likes of Facebook and Google, and will be folded into AOL, a longtime competitor that Verizon bought last year. The takeover will double the size of Verizon's digital advertising, according to Bloomberg, which earlier reported the price of the deal.
TESLA CHIEF STICKS TO HIS MISSIONElon Musk isn't short of projects. He is the top investor in the largest provider of rooftop solar power in the United States, runs a private rocket company and his Tesla cars have redefined how people think about electric vehicles. He also plans to build the world's largest battery manufacturing plant, the Gigafactory, which will be unveiled this week.
Mr. Musk wants to popularize solar power and use batteries to store energy from the sun and wind to power homes, cars and business at any time of day. His save-the-world view of business and his clean energy empire are viewed as visionary, but they are not without problems. Federal safety officials opened an investigation into the death of Joshua Brown, who was killed when his Tesla Model S smashed into a tractor-trailer. And Mr. Musk's vision matters little for Wall Street if Tesla keeps losing hundreds of millions of dollars a year.
While Henry Ford's sprawling River Rouge plant transformed the concept of mass production in the 1920s, the Gigafactory, which The New York Times visited, is likely to be more of a cultural gamechanger. "He's driving everybody else," Jeff Nesbit, former head of legislative and public affairs at the National Science Foundation under Presidents Obama and George W. Bush, said. "That's the power Musk has."
PANAMA PAPERS REVEAL USE OF SHELL COMPANIES BY AFRICAN OFFICIALSYachts, private jets, Manhattan penthouses and luxury homes in Beverly Hills, Calif. All of these luxuries have been bought using the proceeds of mineral wealth. And shell companies have helped ensure that the money has bypassed the public and enriched wealthy executives and government officials. New reports on records leaked from the Panamanian law firm Mossack Fonseca have highlighted the critical role that secret shell companies play in facilitating tax evasion, bribery and other crimes. In Africa, where these latest reports have focused, offshore finance often underlies the exploitation of mineral wealth.
Owners of the hidden companies from Nigeria alone include three oil ministers, senior employees of the national oil companies and two former state governors who were convicted of laundering ill-gotten money from the oil industry. Other shell companies were also created by the owners of diamond mines in Sierra Leone and safari companies in Kenya and Zimbabwe.
Mossack Fonseca said it should not be blamed for wrongdoing by its customers and noted that the firm had not been charged with criminal wrongdoing in nearly 40 years of operation. Read more about the latest release of Panama Papers here.
Gambling Companies Consider Bid for British Bookmaker The companies, 888 Holdings and the Rank Group, said they were considering a joint takeover of the British bookmaker William Hill in a deal that has been reported to be as much as 3 billion pounds, or about $4 billion.
Singapore Promises More Intrusive Bank Investigations After 1MDB Scandal"There is no doubt that the recent findings have made a dent in our reputation as a clean and trusted financial center," Ravi Menon, managing director of the Monetary Authority of Singapore, said on Monday.
Deutsche Bank Set for Investor Scrutiny John Cryan, the chief executive of Deutsche Bank, will try to convince investors that his efforts to turn around Europe's biggest securities firm will succeed, but that narrative is becoming harder to sell.
Battle Over Developer Highlights Risky Bank Lending in ChinaBaoneng Group, which tried a hostile takeover of the real estate developer Vanke, used $3.9 billion of so-called asset management plans, products set up for the purpose of lending to companies and backed by shares as collateral, to finance its purchase of a 25 percent stake.
Owner of Miss Sixty Said to Plan I.P.O.Trendy International Group, the Chinese fashion house that owns Miss Sixty jeans in Asia, is planning a domestic initial public offering at a valuation of about $5 billion, Bloomberg reports, citing people with knowledge of the matter.
Venture Capital Firms Invest in British Start-Ups After 'Brexit' Vote British technology companies have attracted $200 million of funding across 42 deals since the referendum on European Union membership, showing a significant slowdown from the same period last year, according to a report by Pitchbook.
Dismayed by Donald Trump, Michael Bloomberg Will Endorse Hillary ClintonMr. Bloomberg, a former mayor of New York City who chose not to run for president this year, will back Mrs. Clinton in a speech at the Democratic convention.
Researchers Who Exposed VW Gain Little Reward From SuccessThe team, at West Virginia University, often scrounges for grants. That financial pressure is unlikely to dissipate, despite uncovering the emissions fraud.