1. Chevron to buy Anadarko Petroleum in $33 billion deal
Chevron announced Friday that it would acquire oil and gas producer Anadarko Petroleum in a $33 billion cash and stock deal. The merger plan, which still must meet shareholder and regulatory approval, valued Anadarko at $65 per share. Anadarko's stock surged in pre-market trading, rising by 34 percent to $61.50. Chevron shares edged down by 1.6 percent. If approved, the deal is expected to close in late 2019. "This transaction will unlock significant value for shareholders, generating anticipated annual run-rate synergies of approximately $2 billion, and will be accretive to free cash flow and earnings one year after close," Chevron Chairman and CEO Michael Wirth said in a statement.
2. Disney sets streaming service price at $6.99 a month
Disney announced Thursday that it would launch its Disney+ video streaming service on Nov. 12. The service will give subscribers access to Disney's vast film and TV library, as well as new shows. In its first year, the service will run 10 original films and 25 original series, including three Avengers spinoffs. Subscriptions will cost $6.99 monthly, or $69.99 annually. "We are starting from a position of strength and optimism," CEO Bob Iger said. The subscription cost came in within the range analysts had predicted, at roughly half the price of Netflix's standard HD plan. Disney expects to sign up 60 to 90 million subscribers by 2024.
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3. Cain's Fed chances crumble as 4 Republicans announce opposition
Sen. Kevin Cramer (R-N.D.) on Thursday joined three other Republicans — Mitt Romney of Utah, Lisa Murkowski of Alaska, and Cory Gardner of Colorado — in opposition to President Trump's selection of Herman Cain to serve on the Federal Reserve Board. With 53 Republicans in the 100-seat Senate, three defections would be enough to sink Cain's nomination. Cain, who once ran Godfather's Pizza, served as chairman of the Federal Reserve Bank of Kansas City in the 1990s. He ran for president in 2012, pitching his so-called "9-9-9" tax plan, but his candidacy fizzled after he faced sexual harassment allegations. National Economic Council Director Larry Kudlow said the FBI is still working on Cain's background check, and that he remained Trump's pick "at the moment."
4. Uber releases long-awaited IPO prospectus
Uber on Thursday released the prospectus for its long-awaited initial public offering of stock. The ride-hailing giant is expected to set the price range for its IPO later this month ahead of an anticipated debut of its shares in May. It is expected to be the biggest IPO in years. Two weeks ago, smaller rival Lyft started selling its shares, which got off to a bumpy start. As part of Uber's filing, the company self-reported several quarters of unaudited financial documents, showing strong revenue growth but nearly $8 billion in losses over its 10 years in operation.
5. J.P. Morgan beats expectations with record first-quarter profit
J.P. Morgan Chase early Friday reported record first-quarter profit and revenue, exceeding analysts' expectations as higher interest rates boosted earnings. "We had record revenue and net income, strong performance across each of our major businesses, and a more constructive environment," CEO Jamie Dimon said in a statement. "Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy, and consumer and business confidence remains strong." The bank, the largest in the U.S. by assets, said profit rose by 5 percent to $2.65 a share, beating analysts' estimates of $2.35. J.P. Morgan is the first major lender to report earnings. Its shares rose 1.7 percent in pre-market trading.
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