In today’s top stories, Apple has announced a multibillion-dollar deal with Broadcom to build 5G components on US shores, pushing Broadcom’s shares up as much as 3% mid-day Wednesday. Elsewhere, Uber is to offer its services via a fleet of robotaxis built by former rival Waymo, while Netflix has begun its crackdown on password-sharing in the UK and US. Animated GIF search engine Giphy has been sold by Meta to Shutterstock for just $53m. Lastly, shares in Swedish video gaming company Embracer plunged more than 45% on Wednesday after a $2bn deal with a strategic partner fell through overnight.
Uber users to ride Waymo cars
Ride-hailing firm Uber [UBER] is to offer its services, including food delivery, via a fleet of robotaxis built by Alphabet’s [GOOGL] autonomous driving unit Waymo. The initial phase of the multiyear partnership will roll out in Phoenix, Arizona. Back in 2017, Waymo and Uber were locked in a high-profile battle. Waymo alleged that a company set up by a former engineer had been acquired by Uber to steal trade secrets. The two parties reached a $245m settlement in 2018.
Netflix begins password crackdown
Streaming giant Netflix [NFLX] has begun its crackdown on password-sharing in the UK and US. Users can pay an extra £4.99 or $7.99 to allow other households to access their account. According to Kantar, a crackdown in Spain contributed to a loss of a million users in the first quarter. “Monitoring the next few quarters to see how many of these consumers decide to re-subscribe will be vital to Netflix strategy in this space,” said Dominic Sunnebo, a global insight director at Kantar.
Apple-Broadcom US-made chip deal
Apple [AAPL] has announced a multibillion-dollar deal with Broadcom [AVGO] to build 5G components on US shores. “We’re thrilled to make commitments that harness the ingenuity, creativity, and innovative spirit of American manufacturing,” said Apple CEO Tim Cook in a press release. The deal is part of the iPhone maker’s $430bn five-year investment in the US economy and domestic chip industry announced back in 2021. Broadcom’s shares were up as much as 3% mid-day Wednesday.
Giphy sold to Shutterstock
Animated GIF search engine Giphy has been sold by Meta [META] to Shutterstock [SSTK] for just $53m. The social media giant paid $400m for Giphy back in 2020, but had been ordered by the UK Competition and Markets Authority to sell it, on the grounds that it “would limit choice for UK social media users and reduce innovation in UK display advertising”. Shutterstock CEO Paul Hennessy said the acquisition would help the business to expand beyond marketing and advertising and into “casual conversations”.
Embracer shares plunge on lost deal
Shares in Swedish video gaming company Embracer [EMBRAC-B.ST] plunged more than 45% on Wednesday after a $2bn deal with a strategic partner fell through overnight. The forecast for FY23/24 profits has been cut from SEK10.3bn–13.6bn to SEK7bn–9bn. “Investors may take some time to rebuild confidence with management,” analysts at Svenska Handelsbanken wrote in a note to clients seen by Bloomberg, adding that the news is “a major reset of expectations”.
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