In the News:
You Have Content, We Want Content…
On Sunday, AT&T (T) announced that it is buying DirecTV (DTV) for $95 per share, or $49 billion. The purchase gives the telecommunications company a larger base of video subscribers and increases its ability to compete against Comcast (CMCSA). The deal is an example of how big television and telecommunications are joining forces in an ever changing media landscape. While growth is slowing in areas like pay TV and wireless subscriptions, explosive growth is happening in streaming video.
The purchase will not only allow AT&T to obtain a larger role in the pay TV market, but it could also help the company free up bandwidth in its telecommunications network if it moves U-verse subscribers over to satellite service. At the same time, DirecTV gains a new vehicle to deliver its content – mobile phones. AT&T is the second largest wireless carrier next to Verizon (VZ). The companies expect the deal to close within the next 12 months following government approval.
Move over $7 to $10 fees per trade; there’s a new free trade app on its way. Robinhood promises users no account minimums and free trading. The app is still in its test phase; however, nearly 340,000 subscribers have signed up on the company’s website to gain early access. The roll out process is reminiscent of the early days of Gmail, Gilt Groupe and the Mailbox app, where there’s a hint of exclusivity, and if you refer more friends, you can move up the wait list.
Darden Restaurants Inc. (DRI) have agreed to sell its Red Lobster seafood chain to private equity firm Golden Gate Capital for $2.1 billion in cash. Darden expects the net cash proceeds of about $1.6 billion from the sale, of which about $1 billion would be used to retire debt.
The sales comes as Darden, the biggest U.S. operator of full-service restaurants, has been battling competition from “fast-casual” restaurants such as Chipotle Mexican Grill and Panera Bread. Red Lobster same-restaurant sales have fallen in five of the last six quarters. Investors showed their disappointment Darden only sold off one of its struggling restaurants on Friday as the stock tumbled on Friday closing down $2.20.
In The Markets:
Asian markets started of the week down as slowdown concerns in the world’s second-largest economy offset Friday’s positive handoff from Wall Street.
European shares closed mixed Friday after a day filled with concerns remaining about slow growth, low inflation and hefty valuations.
US markets end the week higher after trading in negative territory most of Friday after a mixed bag of economic reports came out. DJIA: +45.98 16492.79 NASDAQ: +21.30 4090.59 S&P 500: +7.05 1877.90
In Dinner or Drink:
Red Lobster Cheese Biscuits
Red Lobster Recipe INGREDIENTS
• 2 cups Bisquick
• 2/3 cup milk
• 1/4 teaspoon garlic powder
• 1/2 cup shredded sharp cheddar cheese
• 1/4 cup butter
• 1/2 teaspoon garlic powder
• 1/4 teaspoon Old Bay Seasoning
• 1/4 teaspoon kosher salt
• 1/2 teaspoon parsley flakes
Red Lobster Recipe INSTRUCTIONS
Heat oven to 450.
Mix Bisquick, garlic powder, milk and cheese until well blended.
Drop dough by spoonful onto ungreased cookie sheet.
Bake 8-10 minutes.
Combine butter, garlic powder, old bay, parsley and salt.
Melt in microwave for 20 seconds…
Word Of The Day…
Dividends: A taxable distribution of a portion of a company’s earnings that is declared by a company’s board of directors and distributed to its shareholders at a declared date.