1. Charter reaches deal to end Disney blackout
Disney and Charter Communications on Monday reached a deal that will end a blackout of Disney channels, including ESPN and ABC, from the nearly 15 million subscribers to Charter's Spectrum pay-TV service. Under the agreement, Charter will pay higher rates for Disney TV channels in exchange for the ability to provide Disney+ and ESPN+ streaming services to its customers. Ad-supported Disney+ service will be included in Spectrum's popular TV Select video packages, and ESPN+ will be offered to Charter customers paying for extra sports channels. Disney executives acknowledged they had made concessions, but said the higher prices the entertainment giant would get for its channels made them worthwhile.
The Wall Street Journal
2. Qualcomm extends deal to supply Apple
Qualcomm shares surged Monday after the semiconductor maker announced it had reached a deal to supply Apple with 5G chips for "smartphone launches in 2024, 2025 and 2026." Qualcomm's stock rose about 4% Monday afternoon. Apple shares rose 0.4%. The agreement to extend a relationship that had been set to expire at the end of this year comes as Apple faces increased challenges to make iPhones in China and tries to diversify its supply chain. Before the extension, the latest iPhone, due to be released Tuesday, was to be the last one with a Qualcomm modem chip. UBS analysts estimated Qualcomm's 2022 chip sales to Apple at $7.26 billion.
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.
Latest Videos From
Bloomberg, Reuters
3. UAW vows to negotiate with automakers '24/7' as strike deadline nears
United Auto Workers President Shawn Fain said Monday the union was "ready to negotiate in Detroit 24/7" before a deadline in four days to avoid a potential strike of 146,000 autoworkers. The UAW gave its demands to the Detroit Three automakers — Chrysler's Stellantis, Ford, and General Motors — seven weeks ago. Stellantis said Monday it planned to make a counteroffer after the UAW presented a revised proposal on Sunday. The union had rejected previous offers from the automakers. The current labor deal ends Sept. 14 at 11:59 p.m. ET. "We are on a good path and remain committed to reaching a tentative agreement without a work stoppage that would negatively impact our employees and our customers," Stellantis told employees in a Monday email.
Reuters
4. Stock futures drop slightly after rising Monday
U.S. stock futures slipped early Tuesday following Monday's gains. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the Nasdaq were down 0.2% at 7 a.m. ET. Oracle shares dropped 9% in overnight trading after the database software company reported better-than-expected quarterly earnings but fell short of the revenue expectations from analysts surveyed by LSEG, formerly Refinitiv. The Dow and the S&P 500 rose 0.3% and 0.7%, respectively, on Monday. The tech-heavy Nasdaq jumped 1.1%. Tesla shares surged 10% after a Morgan Stanley upgrade. Investors are awaiting inflation data due later in the week that could offer hints of the Federal Reserve's next move in its effort to fight inflation by raising interest rates.
CNBC
5. Smucker agrees to buy Hostess in $5.6 billion deal
J.M. Smucker, which sells jellies and Jif peanut butter, agreed Monday to buy Hostess Brands, maker of Twinkies, Ho Hos and Ding Dongs, in a $5.6 billion deal. The acquisition values Hostess at $34.25 per share, roughly 50% above its stock price before talk of the possible takeover surfaced a few weeks ago, according to The New York Times. Smucker CEO Mark Smucker said the purchase would add "an iconic sweet snacking platform" to the company's line of products. Analysts at JPMorgan Chase said the deal, which transfers $900 million in Hostess debt to Smucker, appeared to be better for Hostess than Smucker, given the price tag. Smucker shares fell 7% on Monday.
The New York Times
