The daily business briefing: July 25, 2016
Verizon agrees to buy Yahoo for $4.8 billion, Nintendo predicts limited Pokémon Go earnings boost, and more
1. Verizon to buy Yahoo for $4.8 billion
Verizon agreed on Sunday to buy Yahoo's core internet business and some real estate in a $4.8 billion deal. The companies formally announced the deal on Monday, ending an extended bidding process as Yahoo executives struggled to revive the struggling web pioneer. The deal marks an end to Yahoo's 22-year run as an independent internet company, and caps a spectacular decline for the company, which once had a market capitalization of $125 billion.
2. Nintendo shares drop as company predicts limited Pokémon Go boost
Nintendo shares plunged by 17 percent on Monday after the company warned it would not get a huge earnings boost from its hugely popular smartphone game Pokémon Go. The company's share price had doubled since the app proved an instant hit after its release in the U.S. earlier this month. Shares of McDonald's Japan unit, which is sponsoring the Pokémon Go launch in Japan, fell by nearly 12 percent. Nintendo is scheduled to announce its second-quarter financial results on Wednesday.
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3. LVMH agrees to sell Donna Karan fashion brand
France's LVMH Moët Hennessy Louis Vuitton, the world's biggest luxury conglomerate, said Monday that it had agreed to sell fashion brand Donna Karan International to G-III Apparel Group in a deal worth $650 million. G-III Apparel, an American manufacturing and licensing company, already owns Andrew Marc, Vilebrequin, and Bass. It also holds the licenses for such brands as Ivanka Trump, Calvin Klein, and Tommy Hilfiger. The deal marks just the second time the nearly 30-year-old LVMH has sold off a fashion brand.
4. Turkey promises stability and infrastructure spending
Turkish Prime Minister Binali Yildirim said on Sunday that his government planned to set up a multibillion-dollar infrastructure fund to boost economic growth and limit fallout from a recent failed coup. He also ruled out early elections, promising stability. Yildirim also said that a purge of government enemies would soon end. "Here is what we are telling global investors: Life is back to normal in Turkey," Yildirim said.
5. Study links richest CEO pay with poorest company performance
The highest-paid CEOs often run the worst-performing companies, according to a new study by the corporate-governance research firm MSCI. The report, expected to be released as early as Monday, found that the link between high pay and low performance remained strong even when tracked over the course of many years. "The highest paid had the worst performance by a significant margin," said Ric Marshall, a senior corporate governance researcher at MSCI. He said the findings show companies should be "more conservative" with equity incentive pay awards, which now account for 70 percent of U.S. CEO compensation.
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Moon dust has earthly elements thanks to a magnetic bridgeUnder the radar The substances could help supply a lunar base
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World’s oldest rock art discovered in IndonesiaUnder the Radar Ancient handprint on Sulawesi cave wall suggests complexity of thought, challenging long-held belief that human intelligence erupted in Europe
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Claude Code: the viral AI coding app making a splash in techThe Explainer Engineers and noncoders alike are helping the app go viral
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China’s Xi targets top general in growing purgeSpeed Read Zhang Youxia is being investigated over ‘grave violations’ of the law
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Panama and Canada are negotiating over a crucial copper mineIn the Spotlight Panama is set to make a final decision on the mine this summer
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Why Greenland’s natural resources are nearly impossible to mineThe Explainer The country’s natural landscape makes the task extremely difficult
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Iran cuts internet as protests escalateSpeed Reada Government buildings across the country have been set on fire
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US nabs ‘shadow’ tanker claimed by RussiaSpeed Read The ship was one of two vessels seized by the US military
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How Bulgaria’s government fell amid mass protestsThe Explainer The country’s prime minister resigned as part of the fallout
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Femicide: Italy’s newest crimeThe Explainer Landmark law to criminalise murder of a woman as an ‘act of hatred’ or ‘subjugation’ but critics say Italy is still deeply patriarchal
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Brazil’s Bolsonaro behind bars after appeals run outSpeed Read He will serve 27 years in prison
