Disney (DIS, Financial) has taken a significant step in expanding its global media footprint by signing a non-binding term sheet to merge its Indian operations with those of Reliance Industries, creating what will be India's largest media and entertainment business. Under the agreement, Reliance will hold a 51% stake in the merged entity, with Disney retaining 49%. This strategic move comes after Disney's Indian operations faced losses, particularly due to the loss of streaming rights for cricket matches. The completion of the deal is anticipated in February, pending regulatory approvals.
FedEx (FDX, Financial) has announced a plan to repurchase $1B of its shares, signaling confidence in its financial health and a commitment to enhancing shareholder value. The logistics giant has entered into an accelerated share repurchase agreement with Mizuho Markets Americas, with an initial delivery of approximately 3.2 million shares. The transaction is expected to be finalized by February 2024, and the news has already had a positive impact on FedEx's pre-market trading.
Manchester United (MANU, Financial) has reached an agreement to sell a 25% stake to British billionaire Jim Ratcliffe for $1.3 billion, valuing the club at approximately $5.4 billion. This deal ends months of speculation over the club's ownership and includes an additional $300 million for future investments in the club's facilities. Bristol Myers Squibb (BMY, Financial) also made headlines with its agreement to acquire RayzeBio for approximately $4.1 billion, aiming to enhance its oncology franchise.
Apple (AAPL, Financial) faces a new challenge as the Biden administration has allowed a ban on the import and sales of certain Apple Watch models in the U.S. This follows a decision by the International Trade Commission regarding a patent infringement dispute with Masimo (MASI). Apple, which can still appeal the ban, has seen a slight uptick in its shares in pre-market trading despite the setback.
Micron Technology (MU, Financial) has settled an intellectual property lawsuit with Fujian Jinhua Integrated Circuit, a state-backed Chinese competitor. This settlement is part of Micron's broader efforts to improve relations with China, even as the U.S. imposes export restrictions on key technology areas. The agreement includes the dismissal of all lawsuits between the two companies, potentially opening the door for Micron to expand its presence in the Chinese market.
The Centers for Disease Control and Prevention (CDC) has reported that the Omicron subvariant JN.1 has become the dominant COVID-19 strain in the U.S. Despite its high transmissibility, the World Health Organization has classified it as a "variant of interest" with a low risk to public health. The CDC's data also indicates a recent spike in COVID-related hospitalizations.
The S&P CoreLogic Case-Shiller Home Price Index revealed that home price growth remained strong in October, with the HPI composite for 20 cities showing a 0.6% month-over-month increase. Detroit and San Diego were among the fastest-growing markets, suggesting that homeowners may see further appreciation in the coming months.
Financial participants were net sellers of fund assets, including both exchange-traded and conventional funds, with a total outflow of $42.8 billion for the week ending December 20. Tax-exempt bond funds saw modest inflows, while money market funds experienced the largest outflows. Equity-focused ETFs, however, saw an influx of cash, led by the SPDR S&P 500 ETF Trust (SPY, Financial) and the iShares Russell 2000 ETF (IWN, Financial).
