‘billion’ Tagged Posts

Salesforce takes aim at e-commerce with $2.8 billion Demandware buy

(Reuters) - Cloud-based software maker Salesforce.com Inc. said yesterday that it will buy Demandware Inc., whose software is used by companies to ...


Salesforce takes aim at e-commerce with .8 billion Demandware buy

(Reuters) – Cloud-based software maker Salesforce.com Inc. said yesterday that it will buy Demandware Inc., whose software is used by companies to run e-commerce sites, for about $ 2.8 billion

The transaction will help agents open a new front, as it attempts to take more market share from traditional software vendors like Oracle Corp. and SAP AG, both of which already offers cloud-based e-commerce services.

The e-commerce market is growing at a blistering pace as retailers expand their online presence, promoting the demand for software that helps management functions such as payment processing and inventory management.

Salesforce se cash offer of $ 75.00 per share represents a 56.3 percent premium to Tuesday’s closing Demandware.

The high premium that several bidders were probably on the table for Demandware, Stifel Nicolaus & amp; amp; Co. analyst Thomas Roderick said, Adobe Systems Inc. and Oracle cites other possible contenders.

“We are not winning any transaction, it is only the agreement that we can actually be done,” chief executive officer Marc Benioff told CNBC in an interview.

shares Demandware, which about 21 percent has fallen in recent years, has 55.9 percent to $ 74.81 on Wednesday. Shares of Salesforce, considered a barometer for the cloud computing industry, an edge down 0.3 percent.

Demandware, whose customers include Lands’ End Inc., L’Oreal SA and Marks & amp; amp; Spencer Group Plc, reported sales growth of over 30 percent for the last 10/4

“I think Salesforce CRM effectively won the war -. They need to be in terms of innovation and they should have the broadest, deepest portfolio … it was a blindekol for them, “has Wedbush Securities analyst Steve Koenig.

Global spending on digital marketing platforms is expected to grow annually more than 14 percent to about $ 8.5 billion in 2020, Salesforce said, referring to research firm Gartner.

The transaction is expected to close in the second quarter, Salesforce’s ended July is expected from the company in 2017 to increase sales by about $ 100 million- $ 120 million.

Salesforce fiscal 2017 sales forecast of $ 8.16 billion- $ 8.20 billion in May.

But agent said it now expects an adjusted profit of 93 cents-95 cents per share for the full year, compared with its previous estimate of $ 1 – $ 1.02

BofA Merrill Lynch financial advisor Salesforce is for the transaction, while Goldman Sachs is advising Demandware

(Reporting by Anya George Tharakan and Kshitiz Goliya in Bangalore; Editing by .. Saumyadeb Chakrabarty and Shounak Dasgupta)

Snapchat’s daily video views triple to 6 billion: report


Snapchat's daily video views triple to 6 billion: report

The Financial Times said Snap Chat confirms the 6 billion figure, but declined further comment.

Facebook said last week that it doubled the daily view video from 4 billion to 8 billion in April, according to the report, which points out that the social networking groups fighting for eyeballs in the video segment is rapidly growing.

daily video viewing numbers Facebook consist of positions both desktop and mobile while Snap Chat necessarily made entirely of smartphone users, notes the report.

Snap Chat CEO Evan Spiegel said, may be that the company plans an IPO, but did not specify when it would happen. In 2013, Snap Chat rejected offer $ 3 billion from Facebook to acquire the company

(Reporting by Edward Krúdy; Editing by Andrea Ricci).

Exclusive: Verizon eyes roughly $100 billion bid for Verizon Wireless stake


Exclusive: Verizon eyes roughly 0 billion bid for Verizon Wireless stake

Verizon Communications Inc. has hired advisers to prepare for a possible total of 100 billion dollars cash and stock to offer complete control over Verizon Wireless joint take venture partner Vodafone Group Plc two people familiar with the situation said on Wednesday .

Verizon, which already owns 55 percent of Verizon Wireless, has a proposal for Vodafone not yet filed, but the two banks and legal advisors hired for a possible bid, the sources said.

Verizon hopes to reach an amicable agreement on talks with Vodafone but is willing to take as the British company is not involved in the negotiations, one of the sources. Public auction

There is no guarantee that Vodafone will be in a contract or offer is realized according to the same sources. Interested

In the last decade, Verizon has little secret of his desire to his British partner of the joint venture, which is made to buy the No. 1 U.S. mobile operator. The sources said that Verizon is ready to aggressively push an agreement.

Verizon, taking advantage of the historically low interest rates and the strong share price, is convinced that the company could raise about $ 50 billion in bank financing, the sources rate. Use He plans to pay for the rest of the contract with its own shares, they added. The sources requested anonymity because the talks are confidential.

is expected to be held before the annual meeting of shareholders, one of the sources. Governance of Verizon

to discuss the details of a possible buyout Verizon Wireless next week at a meeting scheduled

Verizon spokesman Bob Varettoni declined to comment, but the statement said the U.S. telephone earlier this month, which he said it would be a buyer of their company Verizon Wireless Vodafone.

Verizon Wireless and Vodafone were not immediately available for comment Wednesday.

The challenge Verizon Wireless is about two-thirds of the market capitalization of Vodafone in the intended use. The company also offers Vodafone exposure to the U.S. market in full swing. But Vodafone has studied what to do with his involvement as CEO Vittorio Colao streamlines a company built on the foundations of the aggressive expansion.

Analysts said the sale of its stake in Verizon Wireless, Vodafone will be distributed to the shareholders, the purchase of fixed assets in Europe and to make the company an attractive takeover target for other telecom giants like AT & possible money back , T Inc.

For Verizon Communications, which is based on the activities of Verizon Wireless for growth, ownership give him much more flexibility because of the cash generated by the mobile business.

New Street analyst Jonathan Chaplin said he expects to ask Vodafone more but $ 100 billion was a good starting point.

“This is a good time for both parties to seriously consider a transaction. Vodafone is likely to ever get a better multiple than now,” said Chaplin. “Growth (Verizon Wireless) is likely to slow down over time, especially as Sprint and T-Mobile USA and AT & T better. “

Verizon came close to a deal in 2004 when Vodafone tried to buy AT & T Wireless, Cingular but lost sales at auction. This Agreement may Vodafone would bring its brand across the Atlantic and should be 45 percent to sell in Verizon Wireless.

If an agreement were to happen now, it would come at a time where the telecommunications industry has recently experienced a new round of consolidation efforts. MetroPCS Communications Inc. shareholders voted to approve a merger with Wednesday No.4 U.S. wireless provider T-Mobile USA, a subsidiary of Deutsche Telekom AG.

The merger came after 2011 effort Deutsche Telekom to sell to AT & T T-Mobile for $ 39 billion has been blocked by the U.S. antitrust supervisors. Verizon would likely encounter similar obstacles redemption of Verizon Wireless.

Meanwhile, Dish Network Corp., the supplier of the U.S. satellite No.2, last week offered to buy wireless carrier Sprint Nextel Corp. for $ 25 billion in cash and 5 shares, challenge a proposed between Sprint and Japan’s Softbank Corp.

BUILDING TAX transaction

One of the major obstacles to an agreement was up here hoping that Vodafone a tax bill of $ 20 billion to make if its interest, which means that Verizon would have to pay to sell it for the British company to make the effort a high price.

But according to the sources of a transaction is structured to achieve a final tax assessment likely $ 5000000000 or less.

According to the plan, Verizon would the U.S. holding company to acquire Verizon Vodafone importance of the British band wireless and certain other assets in countries like Germany and Spain have the sources said. This structure would order from Verizon enjoying a provision of the tax in the Netherlands called substantial relief for shareholders, they said.

exempted under certain conditions for capital gains realized on the sale of shares in companies in which the seller owns at least 10 percent of the stock and the amount of stock owned for at least a year, according to Robert Willens, an expert from New York accounting and tax and a professor at Columbia Business School.

Verizon Chief Financial Officer Fran Shammo said last week that he was convinced that they could buy without significant tax implications. Vodafone game He did not say how it would work.

“The proposed tax of $ 5000000000 legislation is in line with our estimate of the taxes they have to pay for individual international issues of Vodafone subsidiary which owns Verizon Wireless, “said Chaplin.


Verizon shares have risen has easily surpassed his young colleagues this year about 20 percent so far its wireless business in terms of profitability and growth of the customer, and the face of rising hope that it will buy the rest. Verizon Wireless

investors say that the conditions for an agreement have improved after the successful acquisitions Verizon’s stock prices and the low interest rates.

Any agreement that such an important part of the stock includes, however, mean dilution for the shareholders of Verizon Communications.

If the contract is for $ 100 billion, Chaplin said it would increase Verizon Communications in 2014 to finance. earnings per share by 25 percent, even after diluting the stock Verizon payments and interest on the part of the agreement by debt

“It would be the largest investment ever to be in debt but we think it could be done, “said Chaplin.

The sources said that Verizon has not launched a formal fundraising effort, but barriers to raise money for a deal.

So far no money this year, Vodafone shares rose about 23 percent after trailing in the last months of 2012. Recent acquisitions have been attributed by analysts to sell hopes participation in Verizon.

Dell to go private in landmark $24.4 billion deal


Dell to go private in landmark .4 billion deal

Michael Dell Inc. Dell, private $ 24.4 billion in the biggest leveraged buyout since the financial crisis, an agreement that allows the billionaire chief executive to try to restore the computer business struggling to survive without a investigation of Wall Street.

The transaction, which requires shareholder approval, would end a run of 24 years on public procurement for a company that is designed in a dormitory and quickly reached the top personal computing industry worldwide – must be an also-ran in the last ten years, the price of PC crumbled and customers moved to tablets and smartphones.

Dell executives said Tuesday that the company will stick to a strategy of expanding the supply of software and services for large enterprises, with the goal of becoming a full-service provider of business services in the form of very profitable IBM. He downplayed speculation that Dell might spin off the PC business with low margins on which he made his name.

Dell did not elaborate on what he would do differently as a private entity to skeptics who say that he missed the shift from industry to high tablet computers, smart phones to convince consumer devices and high power electronic devices such as music players and game consoles. Sources of knowledge of the matter said card Dell has any recapitalization of a dissolution of the company before the path of LBO, but not extensive.

“A Dell is probably private costs aggressively, in our opinion. Restructuring But we think that only postpones the inevitable, creating a value trap,” Critical Inc. said analyst Cindy Shaw. “Dell must do more than reduce the cost structure. Needs innovate.”

The transaction will be financed by cash and shares of Michael Dell, money from private equity firm Silver Lake, a loan of $ 2 billion, Microsoft Corp., and debt financing from a consortium of banks. The price of $ 13.65 per share represents a premium of 25 percent of Dell’s stock price before the news of an agreement during flight in January.

The company will now carry a 45-day “go-shop” where others can offer higher.

“While we hope for a better price high, we hope that the Board Dell does a good job in making an open offer to a third party and consider all strategic options done,” said Bill Nygren Who manages the 7.3 Billion Oakmark Fund and $ 3.2 billion Oakmark Select Fund, a position of 250 million Dell. “Should we hear evidence to the contrary, we will make a ruckus.”

Some competitors Dell took pot shots at the agreement in unusually sharp comments that show how the battle is fierce in a standardized PC industry, which has struggled to a decrease in the turnover times worldwide.

Hewlett-Packard Co., which has suffered from years of turmoil faced with challenges in the PC industry, said in a statement that many Dell would “allow existing customers and innovation on the sidewalk,” and promised every opportunity.

Lenovo, which largely consists of the former IBM PC unit, called “distraction financial maneuvers and major changes in the policy” of his rival with emphasis on its own stability and strong financial position.

Dell is considered a model of innovation as recently as the early 2000s, pioneered online ordered-configured PC and work closely with component suppliers and manufacturers Asian ensure production costs are extremely low. But in the fourth quarter of 2012, the share of the global PC market, Dell slipped to just over 10 percent, from 12.5 percent a year earlier as shipments plummeted 20 percent, according to IDC house.

Michael Dell returned to the company as CEO in 2007 after a short break, but was unable to restore to work so far. Dell emphasis on enterprise computing in recent years have led to results – and critics brands compete against incumbents, including IBM and HP, will not be easy, no matter what business structure


PC sales are still the majority of sales of Dell. Analysts say the restructuring has continued to focus on the business market may lead to job losses and more expensive acquisitions. The company has acquired a number of major software and service companies in recent years, looking to reconfigure as a provider of large-scale technology for large companies.

“We recognize that this process will take more time,” Chief Financial Officer Brian Gladden told Reuters. “We’re going to invest, and we must be patient in order to execute the strategy. Structure and a new private company, we have the time and flexibility to really pursue and achieve strategy-end solutions.”

Gladden said the company’s strategy would “generally remain the same” after the transaction is concluded, but “we do not control and limitations associated with operating as a public company. “

Michael Dell, who quietly built a very successful investment, even if the happiness of his eponymous company relaxed, wearing his 16 percent share of the equity Dell to contract, as well as cash from his capital MSD. Bank of America Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets provides debt financing.

Shares of Dell rose 1.2 percent to $ 13.43 in morning trading.


Analysts said Dell would be more versatile as a private company, but it will still face the same difficult market conditions. Successful Transition famous IBM hardware vendor for enterprise IT partner took place when he was trading on public markets.

There is little history that the proposed “going private makes such a transition easier. Freescale, the former semiconductor division of Motorola, was privatized in 2006 to $ 17.6 billion by a group of private equity firms Blackstone Group LP, including the Carlyle Group and TPG Capital LP. Analysts say the debt due impair its ability to compete in the chip industry is capital intensive. Freescale cut slightly less than 5 percent of the workforce in the last year he continued to restructure.


agreement would be the largest private equity-backed, leveraged buyout by Blackstone Group LP are, the Hilton hotel chain in July 2007 to more than $ 20 billion and is the 11th largest ever recorded.

The parties expect the transaction to close to the end of 2014 to the second quarter of Dell, which ends in July. Negotiations News published on January 14, but they started in the latter part of 2012. Michael Dell had the thought of going private so far in 2010 recognized .

involvement of Microsoft in the event piqued much speculation about a renewed strategic partnership, but the software company provides debt financing and Dell said that there are no conditions relating to specific business transaction. Dell has long been loyal to Microsoft Windows operating system , in the heart of the PC business had since its inception.


Microsoft will take the form of a subordinated note of 10 years, the “thing close to fairness”, with nearly 7 percent to 8 percent interest, a source familiar with the situation told Reuters.

Banking sources said the package

of debt financing for the transaction amounts to between $ 11 billion and $ 12 billion to the LBO support. financing ultimate size depends on what part of the existing notes of the company is still not resolved, the sources added. Banks must begin to reach hand to other lenders for loan syndication starting on Tuesday.

JP Morgan and Evercore Partners

were financial advisors, and Debevoise & Plimpton LLP was the legal advisor to the Special Committee of the Board of administration Dell. Goldman Sachs acted as financial advisor and Hogan Lovells as legal advisor to Dell.

Wachtell, Lipton, Rosen & , Katz was legal adviser Michael Dell. BofA Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets were the financial advisors of Silver Lake, and Simpson Thacher & Bartlett LLP is legal advisor.