Fri, Jul 13, 2018 - Page 10 News List

World Business Quick Take

Agencies

SEMICONDUCTORS

Broadcom buying CA

Semiconductor giant Broadcom Inc, which recently failed in a bid to buy US rival Qualcomm Inc, on Wednesday announced a cash deal to buy software and services firm CA Technologies for US$18.9 billion. Broadcom described CA as a major provider of information technology management software and said the acquisition would help it diversify its offerings. The deal was approved by the boards of both companies. Broadcom is to pay US$44.50 per share of CA stock; about 20 percent over the closing price for common shares at the end of formal market trading on Wednesday. The companies expect the acquisition to close in the final quarter of this year. The merger must be approved by shareholders and regulators.

MEDIA

Comcast raises Sky bid

The battle for European pay TV service Sky escalated on Wednesday as US rivals Comcast Corp and 21st Century Fox Inc took turns upping the ante in their quest to expand their media empires. The stakes now stand at £26 billion (US$34 billion) — the value of Comcast’s latest offer. That bid came after Fox raised its bid to £24.5 billion earlier in the day. Comcast’s new bid translates to £14.75 per share, or 18 percent more than its original offer. Fox is dangling £14 per share for the 61 percent of Sky that it does not own.

GAMING

Disney to air ‘Overwatch’

Fans of the Overwatch video game will soon be able to watch competitions on television under a deal announced on Wednesday by Activision Blizzard and Walt Disney Co. Disney and its ESPN channels will be exclusive partners for broadcasting Overwatch matches on television in the US, in the “most significant commitment” they have made to video games as a spectator sport, Activision Blizzard eSports league chief Pete Vlastelica said. The alliance is part of an effort to establish Overwatch eSports audiences and business models akin to those in traditional sports. Financial terms of the multiyear deal were not disclosed. Playoff games beginning this week along with finals taking place in Brooklyn on the last weekend of this month will be on Disney XD or ESPN channels, according to the programming schedule.

FINANCE

JD to raise US$1.9bn

JD Finance (京東金融) is close to snagging 13 billion yuan (US$1.9 billion) of investment from several Chinese financial services giants, gaining a clutch of influential backers in its fight against Jack Ma’s (馬雲) Ant Financial (螞蟻金服). The spinoff from online retailer JD.com Inc (京東) has signed agreements with CICC Capital (中金資本), an investment arm of Bank of China (中國銀行) and buyout firm CITIC Capital (中信資本) for a fundraising that values the nascent company at roughly 133 billion yuan, JD Finance said in a statement. It hopes to complete the round of financing this quarter.

CANADA

Central bank hikes rate

The Bank of Canada on Wednesday hiked its benchmark interest rate to 1.5 percent, the first increase since the middle of January, as the G7 tries to tame inflation. The interest rate increase of 25 basis points — as analysts forecast — put the rate at its highest point in a decade, and the bank said future hikes were expected. Inflation “is expected to edge up further to about 2.5 percent before settling back to 2 percent by the second half of 2019,” the bank said in a statement. “Higher interest rates will be warranted to keep inflation near target,” it said.

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