Rupert Murdoch has withdrawn his proposal to merge WSJ parent company News Corp. and Fox News parent company Fox Corp. Murdoch proposed re-combing the two parts of his media empire in October and established special board committees to review the deal. Murdoch said the transaction isn't optimal for the company's shareholders at this time. More: - Murdoch is the executive chairman of News Corp. and chairman of Fox Corp.
- Lachlan Murdoch, his son, serves as co-chairman of News Corp. and executive chairman and chief executive of Fox.
- According to securities filings, the Murdoch family trust holds a ~39% voting stake in News Corp. and a ~42% voting stake in Fox Corp.
- According to sources, Murdoch believed combining both firms would give the new entity a stronger balance sheet to pursue acquisitions.
- News Corp has explored other strategic options besides the proposed merger with Fox Corp., including selling its digital assets.
- The company held talks to sell Realtor.com's parent company Move Inc. to CoStar Group.
- News Corp. shares rose 5.4%, and Fox Corp. rose more than 2% by midday trading on Tuesday.
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According to sources, Elon Musk and his team have been exploring raising up to $3B in equity financing to pay down some of Twitter’s debt. The social media company added $13B in debt to complete Musk’s $44B takeover of the company. Last month Musk’s representatives discussed selling up to $3B in new Twitter shares. More: - If successful, proceeds from the funds would be used to pay down the unsecured portion of Twitter’s debt load, which carries the highest interest rate.
- Twitter’s unsecured bridge loans total about $3B and have an interest rate of 10% plus the secured overnight financing rate.
- Twitter’s first quarterly interest payment is due at the end of this month.
- The company’s annual total interest expense is about $1.25B.
- Musk’s advisers had hoped to reach a deal for the new capital at the initial takeover price by the end of 2022.
- According to a recent securities filing, Fidelity wrote down its stake in Twitter by 56%.
- The firm was one of the co-investors that backed Musk’s $44B Twitter takeover.
- Twitter has $6.5B in term loans and $3B in secured bridge loans, and they carry an interest rate of 4.75% and 6.75%, respectively, plus the overnight financing rate.
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The U.S. Justice Department has filed a second antitrust lawsuit against Google, seeking to break up the company’s online ad business. This is the first lawsuit filed under the Biden administration. In an October 2020 lawsuit, the DOJ under the Trump administration accused Google of using its monopoly power to cut off competition in the internet search sector. More: - The DOJ’s 2020 lawsuit is expected to go to trial in September.
- Google’s ad business earned $54.5B from Search, YouTube, Google Network ads, and other advertising in the quarter ended Sept. 20.
- The tech giant is scheduled to release its December quarter earnings next week.
- Several states have joined the DOJ in its latest lawsuit, including California, Colorado, Connecticut, New Jersey, New York, Rhode Island, Tennessee, and Virginia.
- Google is also facing three other antitrust lawsuits from various state attorneys general, including one focused on the company’s ad business led by Texas AG Ken Paxton.
- Last week, Google announced it would lay off 12,000 employees.
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Walmart announced it is raising its minimum hourly wage from $12 to $14 starting next month. The wage bump brings Walmart, the nation’s largest private employer, closer to rivals like Amazon, Target, and Costco. The new wage applies to Walmart’s U.S. store and warehouse workers. More: - According to a Walmart spokeswoman, the current average hourly wage at Walmart is around $17.
- The federal minimum wage is $7.25 an hour, which was last raised in 2009.
- More than half the states in the U.S. plan to lift their minimum wages in the coming year.
- With the tight labor market, several businesses have had to raise wages to attract and retain workers.
- The unemployment rate fell to 3.5% in December.
- According to the Labor Department, the average hourly wage for nonsupervisory retail workers rose 4% to $19.93 in December compared to last year.
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Johnson & Johnson released its Q4 and full-year 2022 earnings on Tuesday, reporting a 25% decline in its Q4 earnings. The healthcare-products company posted $23.7B in Q4 sales, down 4.4% YoY. The company pointed to fewer vaccine sales. Q4 net income was $3.52B, or $1.33 a share. J&J generated $94.94B in full-year sales, up 1.3% YoY. More: - The company posted $17.94B in full-year net earnings, or $6.73 a share, down ~14% YoY.
- J&J’s Consumer Health unit, which includes its Band-Aid brand and Tylenol, earned $3.77B in Q4, up 1% YoY, and $14.95B for the year, down 0.5% YoY.
- J&J plans to spin off its Consumer Health this year and has named the new independent entity Kenvue.
- Its Pharmaceutical unit posted $13.16B in Q4 revenue, down 7.4% YoY, and $52.56B for the year, up 1.7% YoY.
- J&J’s MedTech unit, which includes its medical devices, posted $6.78B in revenue for the quarter, down 1.2% YoY, and $27.43B in revenue for the year, up 1.4% YoY.
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Ford is in talks with Chinese EV maker BYD Co. to sell its manufacturing plant in Saarlouis, Germany. According to sources, officials from Ford’s management team in Germany will travel to China next week to discuss the deal. The terms of the sale weren’t disclosed. More: - Ford produces its Focus compact model vehicle at the plant.
- The U.S. automaker plans to end vehicle production at the plant in 2025.
- A Ford spokesperson said the company is investigating various options for the future and sustainable use of the Saarlouis location.
- They added that Ford is in ongoing discussions with several potential buyers.
- The news comes a day after Ford announced plans to cut 3,200 jobs across Europe and move some of its product development work to the U.S.
- Ford plans to cut up to 2,500 jobs in product development and up to 700 in administrative roles.
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- 3M and Spotify have both announced layoffs this week. Spotify plans to cut 6% of its workforce, or about 600 workers. 3M said it is cutting 2,500 jobs amid decreased sales.
- Mattress maker Serta Simmons Bedding filed for Chapter 11 bankruptcy on Monday after being unable to cut down its debt. Serta said the bankruptcy filing would allow it to continue operating while it fixes its balance sheet.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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