Tesla Agrees to Buy SolarCity, Uber in $35 billion Deal in China

Mukesh Buch
01 Aug, 2016
New York City

BroadSoft net loss narrowed. CNA Financial net surged. Loews net swung to a loss. Tesla Motors agreed to acquire SolarCity for $2.6 billion. Uber agreed to sell its China unit in a $35 billion merger deal with Didi Chuxing. Verizon agreed to acquire Fleetmatics for $2.4 billion.

[R]2:00 PM New York – BroadSoft net loss narrowed. CNA Financial net surged. Loews net swung to a loss. Tesla Motors agreed to acquire SolarCity for $2.6 billion. Uber agreed to sell its China unit in a $35 billion merger deal with Didi Chuxing. Verizon agreed to acquire Fleetmatics for $2.4 billion.[/R]

Tollbooth Index rose 11 to 11,133.89.

Earnings Review

BroadSoft Inc ((BSFT)) fell 30 cents to $44.53 after the cloud-based software services provider said revenues in the second-quarter ending in June soared 27% from a year ago to $81.7 million.

Net loss in the quarter narrowed to $2.9 million or 10 cents per diluted share compared to $5.3 million or 18 cents per share from the same quarter last year.

CNA Financial Corp ((CNA)) rose 25 cents to $32.07 after the insurance services provider stated net written premiums in the second-quarter ending in June nearly flat from a year ago to $2.35 billion.

Net income in the quarter surged 51.4% to $209 million or 77 cents per diluted share compared to $138 million or 51 cents per share from the same quarter last year.

W. R. Grace & Co ((GRA)) jumped 3% or $2.27 to $77.14 after the specialty chemicals producer reported revenues in the second-quarter ending in June slumped 4.1% from a year ago to $390.5 million.

Net income in the quarter plunged 32.6% to $38.7 million or 55 cents per diluted share compared to $57.4 million or 78 cents per share from the same quarter last year.

Loews Corporation ((L)) slid 12 cents to $82.14 after the home improvement retailer reported revenues in the second-quarter ending in June slipped 3.8% from a year ago to $3.31 billion.

Net loss in the quarter swung to a loss of $65 million or 19 cents per diluted share compared to profit of $170 million or 11 cents per share from the same quarter last year.

Tesla Motors Inc ((TSLA)) fell $1.53 to $233.29 after the electric vehicles maker agreed to acquire the renewable energy producer SolarCity Corporation for about $2.6 billion, $200 million less than the initial offer.

SolarCity Corp stock declined 6.2% to $25.04.

Uber Technologies, Inc, the transportation services provider agreed to sell its China business to domestic rival Didi Chuxing Technology Co in a $35 billion merger.

Uber, known for its fierce competitive practices in the U.S. was forced to sell its operations in China after some of its largest shareholders urged the company chief executive Travis Kalanick to focus on other markets.

After the merger, Uber will be the largest investor in Didi and as a part of the deal, Didi will invest $1 billion in Uber Global the operations that several investment bankers have valued at least $62 billion.

Didi plans to launch an initial public offering in New York in 2017.

Verizon Communications Inc ((VZ)) dropped 1.1% or 63 cents to $54.78 after the communication and entertainment services provider agreed to acquire mobile workforce-solutions provider Fleetmatics Group PLC for $60 per share in cash or about $2.4 billion.