BUSINESS NEWS MARCH 28TH, 2016
LATEST UPDATE CRASHING IPHONES
PANDORA FOUNDER RETURNS, STOCKS PLUMMET
Pandora founder Tim Westergren returned to his company as CEO, much to the chagrin of his investors. On Monday, after the announcement, shares tumbled 10%. Pandora has fallen in the eyes of the music streaming world to giants Spotify and Apple. Most investors hoped for a sale, but with the return of the founder as CEO, that sale is most likely off the table. Anthony DiClemente, analyst at Nomura Securities, said that Westergren is not the kind of person who cut costs and sell his business.
DELL STRUCK A DEAL TO SELL ITS IT SERVICES UNIT TO JAPAN'S NTT DATA
Dell announced it is selling its IT services unit to NTT Data of Japan for more than $3 billion.The sale of Dell Services marks the first and largest transaction the computer maker has taken on since it disclosed in December that Dell was considering divestitures to help offset its buyout of storage giant EMC, said Dell spokesman David Frink. However, Frink cautioned that it's not fair to speculate that there will be more divestitures to come or that this will be the last, as the company moves forward with its EMC buyout deal that is valued at roughly $60 billion.
TATA TO BUY OUT ARUN BHATIA FROM AIRASIA INDIA
Businessman Arun Bhatia is set to exit AirAsia India, ending an acrimonious partnership in which he alleged that the low-fare airline he jointly owns with Tata Sons Ltd and Malaysia’s AirAsia Berhad was controlled from overseas. The airline, which started operations in June 2014, is a three-way joint venture with Tata Sons, AirAsia and Bhatia’s Telestra Tradeplace Pvt. Ltd holding 41.06%, 49% and 9.94% respectively. Tata Sons, the Tata group holding company, said on Monday that it will buy a 7.94% stake from Bhatia; two Tata Sons executives—AirAsia India chairman S. Ramadorai and director R. Venkataramanan—will buy 0.5% and 1.5%, respectively, from him in their personal capacity.