Sony bought Ericsson's 50% stake in their Sony Ericsson mobile phone venture for $1.5 billion on Thursday in cash, ends a partnership started in 2001 that created the world's sixth largest mobile phone maker. The deal allows Sony to integrate smartphones into its line-up of network-connected consumer electronics devices and is also a signal of where the company sees opportunity - principally competing against Apple (AAPL) and Samsung in smartphone and tablet sales. Of his strategy in the deal, Sony chief executive Sir Howard Stringer said, "We can more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions that seamlessly connect with one another and open up new worlds of online entertainment."
About joint venture buyouts, Bible of EisnerAmper added that because deals can get done quickly, they may be a leading indicator for larger mergers and acquisitions, which are recovering with deals like Kinder Morgan's (KMI) $21.3 billion purchase of El Paso (EP). "My personal view, I think were probably a good year away from some level of confidence for both producers and consumers in the economy that will lead us to more normal times," said Bible.
Clued in company watchers found last Monday's announcement that Peabody Energy would assume 100% of a previously shared $4.7 billion partnership to buy coal miner Macarthur with ArcelorMittal as a stunning reversal from days earlier when the venture looked complete. "I was definitely surprised. I didn't see that Arcelor would drop out," said Meredith Bandy an analyst at
BMO Capital Markets
(BMO). Bandy added about the deal, "at current rates of production it's a very full price that they are paying. Long term at Macarthur you are looking at 9 million tons of
Mittal said in its walk away that the price of the partnership "exceeds what is appropriate to allocate to a business that ArcelorMittal does not fully control." It's a signal that though Mittal absented a 50-50 bet on coal production and prices, putting a partner in all hands on the deck, they too might jump into deals.For ventures suffering from falling commodity prices, today's still confidence lacking market may be a deterrent. For instance, natural gas prices are still well below levels earlier in the year. "In general I would say that many gassy
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV