Today in business: 5 things you need to know

1. AMERICAN AIRLINES, US AIRWAYS, CLOSE IN ON MERGER

American Airlines and US Airways are reportedly in the final stages of a merger agreement that would create the world's largest airline. If the deal is completed, it would represent the culmination of years of consolidation in the industry, with airlines joining forces to cut costs and elbow out price-cutting competitors. With a merger, there would be only three other major airlines in the U.S.: United Continental, Delta, and Southwest. [Wall Street Journal]

………………………………………………………………………………

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

2. MAJOR SHAREHOLDER SUES APPLE

Greenlight Capital, a hedge fund that owns a significant stake in Apple, on Thursday sued the tech giant, saying it should disburse more of its huge hoard of cash to shareholders. The hedge fund's chief, David Einhorn, is demanding that Apple deal with its "cash problem" by giving preferred stock with a generous yield to shareholders, a move that would boost the stock's value. It's just the latest sign of discord at Apple, which has seen its share price drop over concerns that the company's growth is slowing. [Reuters]

………………………………………………………………………………

3. EUROPEAN LEADERS MEET TO HASH OUT BUDGET

European Union officials descended on Brussels for a two-day summit to produce a budgetary framework for the union for the next seven years. The forum is expected to be a contentious affair, with more euro-skeptic countries like Britain demanding increased budget cuts. [Irish Times]

………………………………………………………………………………

4. SONY ANNOUNCES SURPRISE LOSS

Sony announced a loss for the fourth quarter, surprising analysts who had expected the struggling electronics giant to receive a boost from a weak yen. It is the eighth straight quarter that Sony has posted a loss, though the company's share price has recently climbed in anticipation of the debut of the PlayStation 4 later this month. [Bloomberg]

………………………………………………………………………………

5. NEW YORK TIMES CO. REPORTS STRONG PROFIT

The New York Times Company reported a profit of $177 million in the fourth quarter, up significantly from $59 million the previous year. The jump was attributed to asset sales and subscription growth, even as advertising revenue declined. [New York Times]