Merger will be lucrative for Viacom and CBS chief executives
The merger of Viacom Inc. and CBS Corp. will be lucrative for the top executives of both companies.
Viacom Chief Executive Bob Bakish, who will become president and CEO of the combined company, ViacomCBS, has signed a new contract ending four years after the deal closes. The contract lists salary, bonuses and other incentives worth about $31 million a year, roughly 55% higher than Bakish’s total compensation in the most recent fiscal year, the company said in a securities filing.
Acting CBS Chief Executive Joe Ianniello, who will be chairman and CEO of CBS at ViacomCBS, will receive a payout of about $70 million when the deal closes. That payment resulted from a provision in his old contract at CBS that entitled him to a lump sum if he wasn’t named CEO of the combined company in the event of a merger.
Viacom VIA, +2.24% and CBS CBS, +0.96% last week struck a deal to reunite the empire of media mogul Sumner Redstone, creating a conglomerate with a valuation of $27 billion. The deal will combine Viacom’s popular cable channels, including Nickelodeon and Comedy Central, as well as its Paramount movie and TV studio, with the CBS broadcast network and premium cable channel Showtime.
An expanded version of this report appears on WSJ.com.
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Apple TV+ spending more than $6 billion on new shows, plans to launch before Disney+: report
Apple Inc. AAPL, +1.86% has committed to spending more than $6 billion on original content for its upcoming streaming-video service, which it expects to launch within two months, the Financial Times reported Monday. That would beat the launch of rival Disney+ from Walt Disney Co. DIS, +0.07%, which is set to debut Nov. 12. Apple has not yet announced a price for its TV+ service, nor many other details. But the FT reported the first-year budget for TV+ has grown from $1 billion to more than $6 billion as it attempts to create a strong library of content to compete with a growing field of rivals. In comparison, streaming leader Netflix Inc. NFLX, +2.17% spent $13 billion on original content last year, and is expected to spend even more this year. The FT report said Apple is winning support in Hollywood with deals offering more money earlier in the production process.
Mining giant BHP pays out record dividend but profit lower than expected
BHP's profits have hit a five-year high, prompting the mining giant to pay out the largest dividend to shareholders in the company's history.
BHP's underlying earnings hit $US9.4 billion ($13.9 billion), according to the company's full-year accounts released on Tuesday, falling short of the $US9.9 billion that most analysts had been predicting. Shareholders will receive a final divdend of US78¢.
A reclaimer at the ore stockpile at the BHP Jimblebar facility in the Pilbara region of Western Australia.Credit:Tony McDonough
The result follows a surge in the price of the steelmaking material iron ore, BHP's biggest cash generator, which rose nearly 60 per cent during the six months to June, delivering a windfall to mining companies such as BHP.
BHP's result included exceptional losses, the largest of which related to the 2015 tailings dam burst at the Samarco iron ore site in Brazil which killed 19 people and saw millions of tonnes of mine waste pour into the Doce River. The company recorded a $US263 impact for decommissioning the Germano dam at Samarco.
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ST Now, News As It Happens – Aug 20, 2019
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Lumber Liquidators gets new CFO from Pier 1
Lumber Liquidators Holdings Inc. LL, -0.37% said late Monday that Nancy A. Walsh has been named its chief financial officer, effective Sept. 9. Walsh replaces interim CFO Timothy Mulvaney, who will return to his role as chief accounting officer. Walsh most recently served as Pier 1 Imports Inc. PIR, +0.00% CFO, and also held positions at other retailers. Lumber Liquidators announced the resignation of its previous CFO, Martin Agard, in March. The company was fined earlier that month by the Securities and Exchange Commission for lying to investors in connection with emissions issues with some of its flooring products.
Fabrinet stock plunges after earnings forecast comes in lower than expectations
Fabrinet FN, +1.60% shares dove in extended trading Monday after the fiber-optics company suggested its first-quarter performance will not live up to analysts’ expectations. In a fiscal fourth-quarter earnings report, Fabrinet on Monday afternoon reported net income of $33 million, or 88 cents a share, on sales of $405.1 million, up from $345.3 million a year before. After adjusting for stock-based compensation and other effects, the company claimed earnings of $1 a share, up from 81 cents a share in the same quarter the prior year. Analysts on average expected adjusted earnings of 94 cents a share on sales of $400 million, according to FactSet. For the first quarter of its new fiscal year, though, Fabrinet guided for a sequential decline, with adjusted earnings of 80 cents to 84 cents a share on sales of $386 million to $394 million. Analysts on average were expecting adjusted earnings of 95 cents a share on sales of $407 million, according to FactSet. After closing with a 1.6% advance at $56.46, shares were selling for less than $50 a share in after-hours trading Monday.