Corporate News & Events: June 12 - 16, 2017
Amazon’s announced $13.7 billion acquisition of Whole Foods was the most market-influencing event of the week, surpassing even market reaction to the Fed interest rate hike. To be fair, everyone expected the Fed decision. Despite talk about Whole Foods needing to do something because of its poor performance, the Amazon deal came unexpectedly. We covered it in the Executive Summary so we’ll only note it again here because of its stock market and potential supermarket buying behavior impacts. Will Amazon disrupt grocers as it has retail? Seems like a good bet that it will.
Jeff Immelt is stepping down as head of GE, retiring at the end of the year. The current president of GE Healthcare, John Flannery, will be the new Chairmen and CEO.
McDonalds announced it plans to hire 250,000 employees this summer. It further said it will use Snapchat to lure millennial job seekers.
Verizon completed its $4.48 billion acquisition of Yahoo. Marissa Mayer is out, but she’s leaving with a $23 million severance agreement (what used to be called a “golden parachute”). Yahoo will be combined with AOL brands under a new subsidiary, called Oath. Former AOL CEO Tim Armstrong will head Oath, which will house over 50 media and technology brands.
In closing, the last item for the week is for sports fans. The Golden State Warriors won their second NBA championship in three years. They beat the Cleveland Cavaliers in five games, avenging their loss a year ago when they blew a 3-1 lead. This was the first time in NBA history that the same two teams met in the championship playoffs for three straight years. (Sports fans probably knew all that already. Maybe this is really for those of us who were too focused on watching the market.)
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