The Smart Trader

by
Joe Expert

Comcast Corporation has officially launched the regulatory review process for its proposed $45.2 billion acquisition of Time Warner Cable (TWC). USA’s largest cable company issued a filing with the Federal Communications Commission Tuesday specifying the benefits of merging with TWC. Both companies claim the merger would help towards increased competition in high-speed internet and cable TV services; thus benefitting advertisers, small businesses and ultimately consumers. Executive Vice President at Comcast, David Cohen, alluded to the obsolete “traditional boundaries between media, communications and technology” in advocating the merger. To date, the merger has met with opposition on a number of fronts (as predicted here - Comcast acquisition..).

by
Joe Expert

Google Inc. today completed its long awaited 2-for-1 stock split on a frantic day at the NASDAQ stock exchange. Prior to the split, Google had two share classes in existence; Class A shares, holding one vote and Class B shares, carrying ten votes. Naturally, Class B shares were and remain predominantly held by Google’s co-founders, Larry Page and Sergey Brin. This is represented in the fact that they hold a 55.7% majority voting stake in the world’s third largest company, despite owning less than 16% of its stock. So what’s actually changing? Put simply, Google has decided to split Class A shares into two, hence creating a new Class C share. Here’s how it’s going to work:
 

by
Joe Expert

PricewaterhouseCoopers LLP is being sued for at least $1 billion as a result of alleged professional malpractice towards MF Global Holdings Ltd in 2011. PwC has come under fire as MF Global’s administrator identified the auditor’s consultancy as “flatly erroneous” in its recent bankruptcy plan. MF Global was a major global financial derivatives broker prior to its October 2011 downfall. The firm also provided over the counter products such as CFDs, FX and spread betting. Spread betters may recall SpreadEx.com’s acquisition of MF Global’s client list in early 2013 as the firm began to unwind.

by
Joe Expert

Facebook Inc. announced on Tuesday that it has reached a $2 billion agreement to buy Oculus VR, the maker of a virtual reality headset. The acquisition, coming hot on the heels of Facebook’s landmark $19 billion takeover of WhatsApp Inc. (Facebook buys WhatsApp..), marks its first foray into hardware products. The deal will be comprised of $400 million in cash and $1.6 billion worth of Facebook stock (equating to 23.1 million shares). In addition, a further $300 million cash and stock incentive could be earned on “the achievement of certain milestones”.