Business News - part 10

Sony Restructuring, Cutting 5,000 Jobs After $1 Billion Loss

Sony Restructuring, Cutting 5,000 Jobs After $1 Billion Loss

BUSINESS

  • Sony to sell PC business and make TV unit a subsidiary after a tough fiscal year
  • Sony to cut 5,000 jobs to save $1 billion in annual costs
  • Sony to now focus on mobile business

Japanese electronics giant Sony Corp. has decided to restructure after a rough fiscal year, ending March 31, when it predicts a net loss of $1.08 billion. This comes three months after the company predicted a $294 million profit, and marks the company’s fifth loss in six years.

Sony plans to sell its PC business, make its television business a subsidiary by the end of July and slash 5,000 jobs worldwide by the end of the fiscal year, with the cuts expected to save $1 billion in annual costs. These positions were not included in the 10,000 job cuts Sony announced last year.

Read more »

Automaker Toyota Anticipates Best-Ever Profit End of Current Fiscal Year

Automaker Toyota Anticipates Best-Ever Profit End of Current Fiscal Year

BUSINESS

  • Toyota expects weak yen as well as aggressive cost-cutting and marketing efforts to push operating profits to higher than pre-recession figure
  • Yen valued at less than 25% of value of US dollar great factor in increased demand for export-based Japanese car makers, including Toyota
  • Analysts tempering positive outlook with possible challenges

Car manufacturer Toyota Motor Corporation anticipates operating profit will be valued at 1.9 trillion Japanese yen ($18.8 billion) for the fiscal year ending in March.

The yen’s ongoing weakness also boosted Toyota’s third quarter earnings to a higher-than-anticipated 600 billion yen operating profit, almost five times greater than third quarter earnings a year prior.

Read more »

Distilled Spirits Giant Diageo Sees Sales Growth Hampered By Lower Demand In Emerging Markets

Distilled Spirits Giant Diageo Sees Sales Growth Hampered By Lower Demand In Emerging Markets

BUSINESS

  • Diageo sees lower sales due to government and economic instability in China, other fast-growing markets
  • Sales growth in first half of fiscal year much lower than predicted at 1.8% vs 3.5%
  • Diageo to cut costs by 200 million pounds before 2017

London-based Diageo, the largest distilled spirits business worldwide reported lower net sales gains in the most recent period. The drop was triggered by decreasing demand in emerging markets, including Nigeria, China, Thailand, Argentina and Venezuela, which account for roughly 42% of Diageo’s sales.

In the first half of the fiscal year, the company renowned for Smirnoff vodka, Johnnie Walker whisky and Guinness beer recorded a 1.8% sales increase, falling short of the 3.5% increase estimated by analysts.

Read more »

Anheuser-Busch InBev Buys Craft Brewery Blue Point Brewing

Anheuser-Busch InBev Buys Craft Brewery Blue Point Brewing

BUSINESS

  • Terms of deal not disclosed
  • Blue Point a top-50 craft beer
  • Last InBev deal to expand its market

Anheuser-Busch InBev, the largest brewer in the United States, has agreed to buy Blue Point Brewing Company, a top-50 US craft brewery, for an undisclosed amount, although the deal could be worth as much as $24 million, according to Brewhound.

The acquisition will help InBev capitalize on the popularity of craft beer. Known for independent spirit and creativity, Blue Point was founded in 1998 in Patchogue, NY. It is the 34th-largest craft brewery and will continue to operate in Patchogue.

Read more »

Lenovo Purchases Motorola From Google For $3 Billion

Lenovo Purchases Motorola From Google For $3 Billion

BUSINESS

  • Lenovo buys Motorola to expand its North American presence
  • Google paid $12.5 billion for Motorola 
  • Lenovo fourth-largest smartphone manufacturer in 2013; it will be third, behind Samsung and Apple, once Motorola deal is complete

Chinese computer manufacturer Lenovo Group Ltd., the world's largest PC maker, has agreed to purchase Google’s Motorola Mobility handset unit for $2.91 billion to help it expand in North America.

Google will maintain nearly all of its 17,000 patent rights associated with the unit to maintain control of technology licensed to smartphone manufacturers using Google's Android operating system.

Read more »

Facebook Launches Customizable News Reader App Called “Paper”

Facebook Launches Customizable News Reader App Called “Paper”

BUSINESS

  • Paper first app developed by Facebook Creative Labs unit
  • High degree of app customization to provide Facebook with more user data, allow for better targeted advertising
  • Paper to compete with Yahoo ‘Summly’; available for download on iOS devices in US only

Social network Facebook is celebrating its 10th birthday by launching a news reader app called Paper.

With the Paper app, users see longer posts, videos and photos - all based on personal preferences. Content is organized into sections similar to a real newspaper, and users can read content as well as share it.

Read more »

Starwood Reveals Pilot Project Using Smartphones as Hotel Room Keys

Starwood Reveals Pilot Project Using Smartphones as Hotel Room Keys

BUSINESS

  • Starwood Preferred Guests to have access to Starwood app enabling them to open their hotel room, check-in using Bluetooth technology
  • Pilot project to begin at the hotel group’s Manhattan and Cupertino locations, with expected implemented at all Starwood’s W and Aloft hotels by 2015
  • Starwood to address potential drawbacks including security issues and ability to produce multiple keys for guests

Starwood Hotels and Resorts Worldwide recently revealed that this year its W and Aloft hotels will use a mobile check-in process—a pilot project. Guests will thus download a companion Starwood app that will allow them to check-in remotely and employ their phones to enter their rooms, foregoing the use of traditional room keys or even front desk services.

While the exact start date for this technology is unknown, the hotel group reported that a minimum of two locations, in Manhattan and Cupertino, California, will have the wireless keys by late March. Starwood asserted that its 121 other W and Aloft hotels will use mobile check-in and entry by 2015.

Read more »

Smartphones: 1 Billion Shipped Worldwide In 2013

Smartphones: 1 Billion Shipped Worldwide In 2013

BUSINESS

  • Smartphones make up 55.1% of all phones shipped
  • Growth driven by lower prices
  • Samsung in top spot with a 31% market share and 313.9 million units shipped

Global smartphone shipments reached 1 billion for the first time in 2013, according to a report by research group International Data Corp., marking a 38.4% increase from 2012. The firm had forecast 1.01 billion units.

Smartphones accounted for 55.1% of all mobile phones shipped last year, or a near 42% jump. During the fourth quarter, some 284.4 million units were shipped.

Read more »

Google Buys UK Artificial Intelligence Company DeepMind For $500 Million

Google Buys UK Artificial Intelligence Company DeepMind For $500 Million

BUSINESS

  • DeepMind specializes in machine learning and algorithms for games and e-commerce as well as simulations
  • How Google will use service unclear
  • Tech companies eager to use artificial intelligence

American technology giant Google has purchased British artificial intelligence startup DeepMind for a reported $500 million, possibly the search engine’s largest European acquisition to date.

Google’s London office confirmed the deal, but has refused to verify the purchase price.

Read more »

Chinese PC Leader Lenovo To Buy IBM’s Low-End Server Division For $2.3 Billion

Chinese PC Leader Lenovo To Buy IBM’s Low-End Server Division For $2.3 Billion

BUSINESS

  • Lenovo’s IBM acquisition intended to offset diminishing PC sales by tapping into enterprise business segment
  • IBM’s sale of low-performing x86 division to facilitate shift from hardware to  software and services sector
  • Closure of deal pending approval by US regulatory board

China-based PC maker Lenovo will purchase International Business Machine Corp’s (IBM’s) low-end server division for $2.3 billion, marking China’s largest technology transaction to date.

The deal follows Lenovo’s acquisition of the struggling ThinkPad business in 2005 at a $1.75 billion price tag, a move that eventually boosted Lenovo to global PC leader by 2012.

Read more »

Share

Follow

Browse our categories

Browse our archives

ReportLinker is an award-winning market research solution that finds, filters and organizes the latest industry data so you get all the market research you need - quickly, in one place.