BUSINESS NEWS FEBRUARY 23RD, 2016
BLOOMBERG: TIME OPEN TO BUY YAHOO
Last week, Yahoo officially declared its company up for sale, including its web search, various news sites and email. Time Inc has expressed interest in buying the Silicon Valley company. One of the options Time is looking at is the acquisition of Yahoo through a Reverse Morris Trust transaction, which would be tax free. Reports say that, after the acquisition, current CEO Marissa Mayer would no longer be a part of Yahoo. Time has been trying to increase its presence in the world of digital media through the buying of online companies, including MySpace. Time shares were down 1.5% this morning.
FREE COLLEGE DRAWS AMERICAN STUDENTS
America is notorious for its high college costs. Despite financial aid and scholarships, it is still difficult for students to make ends meet. Without room and board, the average tuition at a public college is nearly $10,000 and for private colleges, it is over $30,000 per year. However, across the pond, most college is free, with rent being one of the only costs. Chelsea Workman, a student who went to Ohio State University for two years, decided to go to the University of Deggendorf in Germany because the cost was so low. Free college in America is something that has been a cornerstone of Senator Bernie Sanders’ campaign. Whether or not it will come to be a reality remains to be seen.
BILL GATES TAKES NUANCED VIEW OF APPLE V. FBI
Headlines have reported that Bill Gates took the side of the FBI in the encryption battle between the government and Apple. However, the tech mogul has refuted these reports, saying that the fight is not clear cut. Gates believes that the FBI have a right to not be blind sided, and they need to have some visibility with regard to terror. Unlocking the phone of the San Bernardino shooter would do that. Furthermore, Gates says that the FBI’s request is no different from when a police agency requests information from phone companies. Information is information, according to the former Microsoft CEO.
BRITISH OIL POISED TO FALL
With oil dropping and surging more than Republican candidates in the polls, the British oil industry has warned that it could be on the verge of collapse. As prices are stuck at approximately $30 a barrel, most companies in the North Sea are set to lose nearly 43% of profits. Spending on oil projects is forecasted to drop below 1 billion euros, as opposed to a typical year of 8 billion euros. Despite an agreement between Saudi Arabia and Russia to freeze oil production, oil prices are unlikely to jump. Even more worrying for the British oil industry is the production costs. Whereas Saudi Arabia produces oil at just $9.90 per barrel, British manufacturers need $52 to pump out a barrel of oil.