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☆ Canada clears C$20 billion Rogers-Shaw deal to create No.2 telecom company
▼ + stars: | 2023-03-31 | by ( Reuters Staff | ) www.reuters.com time to read: +2 min

(Reuters) -Canada on Friday granted the final approval for Rogers Communications Inc’s C$20 billion ($15 billion) buyout of Shaw Communications Inc, clearing the deal that will create the country’s No. FILE PHOTO: Ethernet cables are seen in front of Rogers and Shaw Communications logos in this illustration taken, July 8, 2022. Freedom Mobile’s proposed C$2.85 billion sale to Quebecor-owned Videotron has been crucial in addressing the antitrust concerns over the deal, given the overlap between Rogers and Shaw’s wireless divisions. It is the biggest in the Canadian telecoms industry since BCE’s spinoff of its stake in Nortel Networks in a transaction valued at C$88.7 billion in 2000. Canada’s top telecom company by market value is BCE Inc.U.S.-listed shares of Shaw were up 3% in premarket trading.

☆ Canada clears C$20 billion Rogers-Shaw deal with tough conditions
▼ + stars: | 2023-03-31 | by ( Aditya Soni | Chavi Mehta | ) www.reuters.com time to read: +3 min

The deal was opposed by consumer advocates and politicians on worries it could lead to higher prices due to an overlap between Rogers and Shaw’s wireless divisions. Rogers made 21 conditions, including setting up a western headquarters in Calgary, creating 3,000 new jobs in Western Canada and investing C$5.5 billion to expand 5G coverage and services. If it breaches the commitments, Rogers will have to pay a fine of as much as C$1 billion, Champagne said at a news conference in Ottawa. And it’s subject to arbitration.”Champagne said if wireless prices do not go lower, he would seek further legislative and regulatory powers. The combined company will benefit from Rogers’ strong presence in urban Ontario and Shaw’s dominance in the sparsely populated regions of Western Canada.

☆ Canada's decision on Rogers-Shaw deal may come on Friday
▼ + stars: | 2023-03-31 | by ( Reuters Staff | ) www.reuters.com time to read: +1 min

(Reuters) - Canadian Minister of Innovation, Science and Industry Francois-Philippe Champagne is set to rule on Rogers Communications Inc’s C$20 billion ($15 billion) deal to buy Shaw Communications Inc on Friday, The Globe and Mail reported on Thursday, citing two sources. FILE PHOTO: Ethernet cables are seen in front of Rogers and Shaw Communications logos in this illustration taken, July 8, 2022. The announcement relates to the minister’s review of the takeover deal, The Globe and Mail reported. Both Rogers and Shaw did not immediately respond to a Reuters request for comment on the report. Champagne’s approval is needed to transfer spectrum licenses of Freedom Mobile unit to Quebecor’s Videotron.

☆ Canada's decision on Rogers-Shaw deal may come on Friday -source
▼ + stars: | 2023-03-31 | by ( Reuters Staff | ) www.reuters.com time to read: +2 min

(Reuters) -The Canadian government is set to announce on Friday a decision on Rogers Communications Inc’s C$20 billion ($15 billion) bid for Shaw Communications Inc, a person familiar with the matter told Reuters on Thursday. FILE PHOTO: Ethernet cables are seen in front of Rogers and Shaw Communications logos in this illustration taken, July 8, 2022. The announcement is about the government’s decision on whether to allow the transfer of Shaw’s wireless licences to Quebecor Inc’s Videotron Ltd., which has agreed to acquire Shaw’s Freedom Mobile wireless carrier for C$2.85 billion, the source told Reuters. To address the issue, Rogers and Shaw agreed to sell Freedom Mobile to Quebecor, which is also expected to close by March 31. Rogers, Shaw and Quebecor did not immediately respond to a Reuters request for comment.

☆ Canada set to approve Rogers takeover of Shaw with transfer -Globe and Mail
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +2 min

March 31 (Reuters) - Canada is set to approve on Friday a transfer of wireless licenses that will finally settle Rogers Communications Inc's (RCIb.TO) C$20 billion ($15 billion) bid for Shaw Communications Inc (SJRb.TO), the Globe and Mail reported. Rogers and Shaw agreed to sell Freedom Mobile to Quebecor for C$2.85 billion to win government approval for the merger. The minister will approve the transfer of Shaw's licenses to Quebecor's Videotron Ltd with a number of conditions attached, as well as financial penalties associated with breaking those conditions, the Globe and Mail said. The sale of Freedom Mobile to Quebecor is expected to close by March 31. Rogers in February extended the deadline for the deal to March 31 for the fourth time, as the companies awaited the final nod from Champagne.

☆ Factbox: Canada clears Rogers-Shaw deal but with conditions
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +2 min

March 31 (Reuters) - Canada on Friday granted the final approval for Rogers Communications Inc's (RCIb.TO) C$20 billion ($15 billion) buyout of Shaw Communications Inc (SJRb.TO), clearing the deal that will create the country's No. 2 telecoms company. Minister of Innovation, Science and Industry Francois-Philippe Champagne agreed to the transfer of wireless licenses held by Shaw's Freedom Mobile unit to Quebecor Inc's (QBRb.TO) Videotron under some conditions. CONDITIONS ACCEPTED BY ROGERS* Will have to create 3,000 new jobs in Western Canada and maintain them for a minimum of 10 years after the closing date* Invest at least C$2.5 billion to enhance its 5G network in Western Canada, and C$3 billion in additional network service expansion projects* Expand access to low-cost broadband internet plans and launch a new low-cost mobile offering for low-income Canadians* Invest C$1 billion to expand broadband internet access, at speeds of at least 50/10 megabits per second, and 5G mobile service in areas where it is not currently available* Establish a western headquarters in Calgary and maintain it for a minimum of 10 years after the closing date* To report to Innovation, Science and Economic Department and to the public every year on specific progress it has made towards commitments in the agreement* Will have to offer wireless plans to Shaw Mobile customers at Shaw's current prices for 5 years after deal close* To pay C$100 million for every year in which any "material element" of any commitment is not metCONDITIONS ACCEPTED BY VIDEOTRON* Will need to offer plans that are comparable to those currently available in Quebec, and offer options at least 20% cheaper than that of major players* Cannot transfer Freedom Mobile licenses for 10 years* Will have to expand its 5G wireless network in Freedom Mobile's pre-existing operating territory within 2 years* Will increase data allotments of existing Freedom Mobile customers by 10% as a near-term bonus, while investing to bring down prices overall* Will expand mobile service into the Canadian province of Manitoba via the use of a signed Mobile Virtual Network Operator (MVNO) agreement and offer plans comparable to what it offers in Quebec* To pay C$25 million for every year in which any "material element" of any commitment is not metCompiled by Eva Mathews in Bengaluru; Edited by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ Japan foreign minister Hayashi to visit Beijing on Saturday
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +2 min

TOKYO, March 31 (Reuters) - Japan Foreign Minister Yoshimasa Hayashi said on Friday he will visit Beijing for two days from Saturday to discuss a range of issues, including the detention of an Astellas Pharma Inc (4503.T) employee. Hayashi told reporters he will meet with Chinese Foreign Minister Qin Gang during the visit for "an honest and frank discussion to create a constructive and stable relationship". Hayashi's visit to China follows leadership-level talks held on the sidelines of an international summit last November, the first between the two countries in almost three years. At the time, Japanese Prime Minister Fumio Kishida said he conveyed his concerns over China's increasing maritime military presence but also said the two leaders agreed to reopen diplomatic channels of communications including a visit by Japan's foreign minister to China in the near future. Reporting by Sakura Murakami and Rocky Swift; Editing by Shri Navaratnam and Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

The deal was opposed by consumer advocates and politicians on worries it could lead to higher prices due to an overlap between Rogers and Shaw's wireless divisions. Rogers reaffirmed its conditions, including setting up a western headquarters in Calgary, creating 3,000 new jobs in Western Canada and investing C$6.5 billion to upgrade connectivity. If it breaches the commitments, Rogers (RCIb.TO) will have to pay a fine of as much as C$1 billion, Champagne said at a news conference in Ottawa. Champagne said if wireless prices do not go lower, he would seek further legislative and regulatory powers. Rosa Addario, a spokesperson for internet advocacy group OpenMedia, said the concessions sought by the government were unlikely to result in lower prices.

☆ Verizon Raises Prices on Older Cellphone Plans
▼ + stars: | 2023-03-06 | by ( Will Feuer | ) www.wsj.com time to read: 1 min

Verizon’s consumer unit has more than 90 million postpaid devices connecting to its network. Verizon Communications Inc. is raising prices on some older cellphone plans, adding $2 per phone monthly fees for customers who don’t switch to the company’s latest offerings. The company began notifying affected customers of the rate increase last week, and a spokesman said the higher price reflects “the added cost of maintaining these legacy plans.” The company, whose consumer unit has more than 90 million postpaid devices connecting to its network, declined to say how many customers are affected.

☆ Verizon Shakes Up Executive Team After Tough Year
▼ + stars: | 2023-03-03 | by ( Will Feuer | ) www.wsj.com time to read: 1 min

Verizon remains the largest U.S. cellphone carrier in terms of subscribers, but it has ceded ground over the past couple of years. Verizon Communications Inc. said its finance chief is leaving and named a new head of its consumer business, a management shuffle that sets up a contest to succeed Chief Executive Officer Hans Vestberg . The shake-up comes as Verizon ’s consumer group, its largest division, has struggled to hang on to its core subscriber base in competition from rivals AT&T Inc. and T-Mobile US Inc.

☆ Verizon finance chief Matt Ellis to depart in top management rejig
▼ + stars: | 2023-03-03 | by ( ) www.reuters.com time to read: +1 min

March 3 (Reuters) - Verizon Communications Inc finance chief Matt Ellis will leave the wireless carrier in May, it said on Friday in a slew of senior leadership changes. Senior Vice President Tony Skiadas will replace Ellis, the company said while announcing new leaders to its key verticals. Sowmyanarayan Sampath, who leads Verizon Business Group, will be executive vice president and chief executive of Verizon Consumer Group. Joe Russo, senior vice president and chief network officer, will replace Malady as president of Global Networks and Technology, which looks over 5G, 4G, Fiber and Edge computing services. In its latest quarterly report in January, Verizon forecast annual profit below expectations hurt by higher costs, tepid growth in wireless customers and high competition.

Data showed the U.S. trade deficit in goods increased moderately in January, with both imports and exports rising solidly. FEDWATCHBofA Global Research warned the Fed could even hike interest rates to nearly 6%. "We're talking about stickier inflation in the economy and higher interest rates for longer. ET, Dow e-minis were up 43 points, or 0.13%, S&P 500 e-minis were up 3.5 points, or 0.09%, and Nasdaq 100 e-minis were down 2.25 points, or 0.02%. The three main indexes are headed for monthly declines, with the blue-chip Dow (.DJI) in the red for the year.

☆ Zoom Revenue Up on Growth From Big Customers
▼ + stars: | 2023-02-28 | by ( Denny Jacob | ) www.wsj.com time to read: 1 min

Zoom Video Communications Inc. posted higher sales in the fourth quarter on strong growth from enterprise customers and forecast profit ahead of Wall Street expectations. The videoconferencing company on Monday said sales grew 4% to $1.12 billion, just ahead of the $1.1 billion expected by analysts recently polled by FactSet. Enterprise revenue rose 18% compared with last year, while online revenue, which measures individual customers, fell 10%.

☆ Futures slip as yields rise on bets of higher rates
▼ + stars: | 2023-02-28 | by ( ) www.reuters.com time to read: +3 min

The gains, however, were not enough to reverse monthly losses for the three main indexes, with the blue-chip Dow (.DJI) in the red for the year after strong economic data suggested the Federal Reserve could keep interest rates higher for longer. FEDWATCHThe yield on two-year Treasury notes , which track investors' expectations of the path of interest rates, rose to 4.8%, trading just below a near four-month high hit in the previous session. Yields are climbing higher in the U.S. and that's pushing down equity markets," said Michael Hewson, chief market analyst at CMC Markets. "We're talking about stickier inflation in the economy and higher interest rates for longer. ET, Dow e-minis were down 25 points, or 0.08%, S&P 500 e-minis were down 4 points, or 0.1%, and Nasdaq 100 e-minis were down 18.25 points, or 0.15%.

☆ Zoom jumps on AI bandwagon, forecasts upbeat 2024 profit targets
▼ + stars: | 2023-02-27 | by ( Tiyashi Datta | ) www.reuters.com time to read: +2 min

Analysts predict the AI tech will be a major driver for future growth for the tech industry, which has been grappling with slowing demand amid recessionary fears. San Jose, California-based Zoom forecast fiscal 2024 profit between $4.11 and $4.18 per share, compared with analysts' average estimate of $3.66 per share, according to Refinitiv data. On an adjusted basis, Zoom earned $1.22 per share for the fourth quarter ended Jan. 31, compared with estimates of 81 cents per share. Revenue grew 4% to $1.12 billion, above analysts' average expectation of $1.10 billion. The company, however, expects 2024 revenue between $4.44 billion and $4.46 billion, below average Street estimate of $4.60 billion.

☆ Zoom forecast annual profit above estimates, shares up
▼ + stars: | 2023-02-27 | by ( ) www.reuters.com time to read: +1 min

Feb 27 (Reuters) - Zoom Video Communications Inc (ZM.O) on Monday forecast annual profit above Wall Street estimates, benefiting from cost-cutting measures and steady demand for its video-conferencing service from the ongoing shift to hybrid work models. Shares of the San Jose, California-based company rose 6% in trading after the bell. Zoom forecast annual profit between $4.11 per share and $4.18 per share, compared with estimates of $3.66 per share, according to Refinitiv data. Revenue for the quarter ended Jan. 31 was $1.12 billion, compared with analysts' average expectation of $1.10 billion. However, the company expects fiscal 2024 revenue to be between $4.44 billion and $4.46 billion, compared with analysts' average estimate of $4.60 billion.

☆ Molson Coors Told to Stop Saying Rivals’ Beer Tastes Like Water
▼ + stars: | 2023-02-23 | by ( Patrick Coffee | ) www.wsj.com time to read: +4 min

Brewer Anheuser-Busch InBev SA has scored at least a temporary win in the long-running battle over light beer brands’ marketing claims. BBB National Programs’ National Advertising Division, an ad-industry self-regulatory group, determined that Molson Coors Beverage Co. should stop marketing its light beer products by implying that those produced by rivals have little or no flavor. Molson Coors plans to appeal, according to Chief Communications Officer Adam Collins. A final decision in the Molson Coors case should come down next month, she said. In 2019, Molson Coors sued AB InBev over a Super Bowl campaign highlighting the fact that Miller Lite and Coors Light use corn syrup in the brewing process.

While law firms sometimes negotiate fixed fees on transactions, market participants said such deals would be unlikely on transactions that faced the amount of legal uncertainty of Rogers-Shaw. The Rogers-Shaw deal is expected to be the tenth-largest deal in Canadian history since 1995, according to data from Dealogic. Law firms Lax O’Sullivan Lisus Gottlieb represented Rogers, while Davies Ward Phillips & Vineberg and Wachtell are lawyers for Shaw. None of the law firms responded to Reuters queries on the legal fee. Rogers and Shaw on Friday extended the closing deadline for the fourth time to March 31.

☆ Canada's Champagne unveils CRTC direction as Rogers-Shaw deal nears final nod
▼ + stars: | 2023-02-13 | by ( ) www.reuters.com time to read: +1 min

Feb 13 (Reuters) - Canadian Industry Minister François-Philippe Champagne said on Monday the country's broadcast and telecommunications regulator would focus on improving competition, affordability and consumer rights as part of a new policy direction. Other objectives in the policy direction to Canadian Radio-television and Telecommunications Commission (CRTC) included speeding up new infrastructure for better consumer access and improving service reliability, said Champagne, the Minister of Innovation, Science and Industry. Champagne has previously indicated support for the Rogers-Shaw deal if certain conditions were met. In January, the companies cleared a major hurdle after the Canada Competition Bureau dropped plans to oppose the deal following two defeats in courts. ($1 = 1.3337 Canadian dollars)Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ Zoom to Lay Off 15% of Staff, CEO Slashes Salary
▼ + stars: | 2023-02-07 | by ( Will Feuer | ) www.wsj.com time to read: 1 min

Zoom Video Communications Inc. is laying off 1,300 of its employees, or 15%, of its staff, becoming the latest technology company to trim its workforce as it adjusts to more normalized trends after a pandemic-fueled growth spurt. Chief Executive Eric Yuan said Tuesday he was also reducing his salary and foregoing his bonus, joining other corporate leaders across finance and tech to take pay cuts this year. He made just over $300,000 in salary for the fiscal year ended Jan. 31, 2022, and about $13,000 as part of a non-equity bonus plan.

☆ Cramer's lightning round: Zoom Video needs a merger
▼ + stars: | 2023-02-03 | by ( Krystal Hur | ) www.cnbc.com time to read: 1 min

Loading chart...Cintas Corp : "It's one of the greatest small business companies in the world." Loading chart...Zoom Video Communications Inc : "They're just not making enough money ... Loading chart...Corsair Gaming Inc : "I can't recommend Corsair Gaming because they're a ... second-rate Logitech ." Loading chart...Pioneer Natural Resources Co : "I think that PXD at $220 may be one of the best investments you can make." Disclaimer: Cramer's Charitable Trust owns shares of Pioneer Natural Resources.

Still, hedge funds piled into Shaw, betting the deal would go ahead. But now, together, the 12 hedge fund firms have made hundreds of millions over the nearly two-year period between Mar. POPULAR TRADEThe 12 hedge fund firms together owned 7.05% of Shaw's shares, or 33.6 million shares, according to Refinitiv Eikon data. Millennium, for example, is a multi-strategy firm - meaning it operates different hedge fund strategies. If the competition bureau had prevailed, analysts had predicted Shaw shares would have dropped to the pre-bid level of C$23, pointing to steep losses for the hedge funds.

Total revenue rose 0.7% to $30.55 billion in the quarter. Cable revenue grew 1.4% to $16.64 billion, narrowly missing analysts' estimates of $16.67 billion. Comcast lost 440,000 video subscribers in the quarter, fewer than Factset's estimated loss of 548,000, as the trend of cable TV cord-cutting continued. The company also lost 26,000 broadband customers in the quarter, compared with Factset's estimated loss of 40,000 customers. NBCU advertising sales grew 4% to $2.86 billion, and theme parks revenue grew 12% to $2.11 billion.

☆ Rogers' bid for Shaw boosted after court rejects antitrust effort to block deal
▼ + stars: | 2023-01-25 | by ( Maiya Keidan | ) www.reuters.com time to read: +3 min

TORONTO, Jan 24 (Reuters) - A Canadian court on Tuesday dismissed the competition bureau's effort to overturn an approval of Rogers Communications Inc's (RCIb.TO) C$20 billion ($14.9 billion) bid to buy Shaw Communications Inc (SJRb.TO). Rogers and Shaw shares extended gains on the decision, and both closed about 3% higher, while the benchmark Canadian share index (.GSPTSE) was flat. The Federal Court of Appeal in Ottawa swiftly dismissed the antitrust regulator's appeal to overturn a Dec. 30 decision by the Competition Tribunal to approve the deal. Justice David Stratas told the court that many of the points of law the antitrust agency had raised were "without merit." Shaw, Rogers and Quebecor said in a joint statement on Tuesday that "we welcome this clear, unequivocal, and unanimous decision by the Federal Court of Appeal."

☆ NYSE says manual error triggered major trading glitch
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +1 min

The glitch, which occurred on Tuesday, impacted stocks of major companies including 3M (MMM.N), Wells Fargo & Co (WFC.N) and Verizon Communications Inc (VZ.N). The NYSE, owned by Intercontinental Exchange Inc (ICE.N), said it began trading in 2,824 securities without an opening auction, which led to erroneous prices, with nearly 4,341 trades in 251 securities "busted", or nullified. The exchange also said it had erroneously triggered a sell short restriction (SSR) on about 80 securities on Tuesday. That could potentially lead to volatile trading on Wednesday but it was "nothing investors have to worry about", Stovall added. Reporting by Niket Nishant and Johann M Cherian in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

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