Wall Street Brief: Amazon Talking to Texas Instruments, Softbank Takes Stake in Sprint
Softbank (SFTBF.PK) announced it will purchase a 70 percent stake in Sprint (NYSE:S) for $20.1 billion. This represents Japan’s greatest overseas acquisition since around 2000. Softbank will buy $8 billion in newly-issued stock and $12.1 billion in existing shares but the deal doesn’t require Sprint to raise its 49 percent share in Clearwire (NASDAQ:CLWR); market watchers had hoped this would happen as the shares rose last week on the rumors.
Amazon (NASDAQ:AMZN) is in talks to purchase Texas Instrument’s (NYSE:TXN) cellular-chip operations which could be valued at billions of dollars, reported Calcalist. Texas Instruments, who has its chips in Kindle devices and Barnes & Nobles’ (NYSE:BKS) Nooks, previously said it will invest less than in the past to support customers’ plans for smartphones and tablets.
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ING (NYSE:ING) is undergoing negotiations with Holland’s government and the European Commission to pay back EUR 4.5 billion of state aid it received after the 2008 financial crisis. ING has already returned the majority of the EUR 10 billion it received but it is getting rid of assets worldwide to increase cash to pay for the bailout and follow EU conditions.
UBS (NYSE:UBS) will cut IT costs from 3.6 billion Swiss francs ($3.8 billion) annually to 2.4 billion Swiss francs by 2015; it will also slash thousands of jobs worldwide, reported TagesAnzeiger this weekend. UBS has 8,200 IT employees with 3,200 of them in Switzerland.
Providence Equity Partners sold its 10% stake in Hulu back to the company for $200 million in a deal that gave it a $2 billion value and Hulu CEO $40 million. Hulu will take a loan to fund the transaction that has News Corp. (NASDAQ:NWS), Comcast (NASDAQ:CMCSA) and Disney (NYSE:DIS) as the other owners.