Big U.S. corporate takeovers drive "Merger Monday"
NEW YORK - The more than $52 billion worth of deals announced on Monday morning made it the busiest "merger Monday" this year, as two large U.S. corporate takeovers underscored increasing CEO interest in pursuing transformational transactions to boost growth and cut costs.
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JPMorgan CEO: ‘Work to Do’ on Controls, Compliance
NEW YORK — JPMorgan Chase, the country’s biggest bank by assets, says its first-quarter earnings soared, even as revenue fell slightly. The bank made $6.1 billion in the first quarter, after stripping out payments to preferred shareholders. That was up 34 percent from the same period a year ago, when it made $4.6 billion. On a per-share basis, that amounted to $1.59. That blew away the estimates of analysts polled by FactSet, who had been expecting $1.39. Revenue and profit fell in its retail banking business, but increased in investment banking. JPMorgan funded $53 billion in mortgages, a jump of 37 percent from a year ago. But profits in the mortgage unit fell 31 percent, and the bank said profit margins were lower. Revenue was $25.8 billion, after stripping out the effect of an accounting charge. That beat analysts’ estimates of $25.7 billion, though it was down 3 percent from the same period a year ago. In many respects, it’s been a difficult year for the New York-based bank. ...
A Year Later, Instagram Hasn’t Made a Dime. Was it Worth $1 Billion?
A picture’s worth much more than a thousand words to Facebook. Last April — a year ago today, in fact — the social media giant agreed to buy the quickly growing photo-sharing social network Instagram for a cool $1 billion (the final price, a mixture of cash and stock, was $715 million because Facebook shares tumbled before the deal was finalized). The sky-high purchase price, well above Instagram’s $500 million valuation at the time, led some to wonder if Facebook was helping to fuel another tech bubble. A year later, the jury’s still out on whether Instagram will one day reap huge profits, but the company is laying groundwork to put the monetization machine in motion. By many metrics, Instagram has had an impressive year under Facebook. The photo-sharing network had about 30 million users at the time of the buyout. Today there are more than 100 million monthly active users posting more than 40 million photos per day. The company has doubled its staff to more than 25 employees, ...
JC Penney Ousts CEO Ron Johnson
(NEW YORK) — J.C. Penney’s board of directors has ousted CEO Ron Johnson after only 16 months on the job as a risky turnaround strategy backfired and led to massive losses and steep sales drops. In a statement issued late Monday, the department store chain said that it has rehired Johnson’s predecessor Mike Ullman, 66, who was CEO of the department store chain for seven years until November 2011. The announcement comes as a growing chorus of critics including a former Penney CEO Allen Questrom called for his resignation as they lost faith in turnaround strategy. Penney reported dismal fourth-quarter results in late February that capped the first full year of a transformation plan where Penney amassed nearly a billion dollars in losses and its revenue tumbled almost 25 percent to $12.98 billion. (MORE: JCPenney Would Be Doing Great If the Stores Were Less Like JCPenney) Under Johnson, 54, Penney embarked upon a strategy that included ditching coupons and most of its sales events in ...
J.C. Penney ousts CEO Ron Johnson
J.C. Penney Co. Chief Executive Ron Johnson, whose stalled turnaround cost Penney almost $1 billion in losses last year, is out.