Technology Roundup – NetEase Cloud Music, UMG set licensing deal; SoftBank forms $555M firm for public stocks

科技精选——网易云音乐与环球音乐达成全新战略合作;软银成立资管公司
Published on: August 11, 2020
Author: Amy Liu

NetEase Cloud Music, UMG set licensing deal

NetEase Cloud Music (NTES +0.5%) and Universal Music Group (VIVHY +3%) have reached a multi-year licensing deal.

That will allow for direct distribution of UMG’s music on the Cloud Music platform and associated digital services in China.

The two will also work together on campaigns and initiatives to promote both domestic artists in China and UMG’s global roster.

SoftBank forms $555M firm for public stocks

Masayoshi Son says SoftBank (OTCPK:SFTBF,OTCPK:SFTBY) has created an asset management company with $555M in capital to invest in public stocks.

Son, who will own 33% of the firm, says the company is already making investments, picking up shares of Facebook and Apple.

Earlier today, SoftBank reported a first quarter profit 1.26T yen, an improvement on last quarter’s 1.44T yen loss.

SoftBank previously reported a record annual operating loss after writing off investments in WeWork and Uber.

Coca-Cola European Partners, IBM team up on hybrid cloud environment

Coca-Cola European Partners (NYSE:CCEP) has signed a multiyear agreement with IBM (NYSE:IBM) to accelerate its transformation to an open hybrid cloud environment using Red Hat OpenShift and Red Hat Enterprise Linux.

As part of the agreement, IBM Services will help CCEP transform to a IBM hybrid cloud environment, including the use of IBM public cloud, and several large SAP workloads. IBM will also provide with a consolidated view and single point of control over its entire IT infrastructure.

A key priority for CCEP is to streamline its existing IT infrastructure to create a platform for standardized business processes, data and technology.

IBM’s Multicloud Management capability will be used to allow the legacy systems, private and public clouds, to be integrated and managed from a single dashboard.

StoneCo slips 2.8% after reaching deal to acquire Linx

StoneCo (NASDAQ:STNE) falls 2.8% in after-hours trading after it agrees to combine its Brazilian operations with Linx (NYSE:LINX), a provider of retail management software in Brazil.

STNE shares lose only a fraction of their 11% gain in regular session trading after the potential combination was reported earlier in the day.

Essentially, STNE is buying Linx. Each Linx common share will be contributed to STNE in exchange for one newly issued STNE class A preferred share and one STNE newly issued class B preferred share.

Immediately after the merger, each STNE class A preferred share will be redeemed for a cash payment of R$30.39 (US$5.65) and each STNE class B share will be redeemed for 0.0126774 Stone class A share.

The exchange ratio represents a total consideration of R$33.7625 (US$6.27) for each Linx share, when calculated using Stone’s share price as of Aug. 7, 2020.

The deal will help accelerate StoneCo’s strategy to help Brazilian merchants of all sizes to manage their businesses more effectively through technology, StoneCo said.

Chinese smartphone demand plunge could hurt Apple – Evercore

Smartphone shipments in China dropped 35% Y/Y in July, the third sequential decline and higher than the prior two mid-teen drops, according to Evercore analyst analyst Amit Daryanani.

Daryanani expects Apple (NASDAQ:AAPL) to “modestly outperform the broader market” but says “outsized” iPhone growth “is unlikely given the high penetration rates (everyone that wants an iPhone has one).”

The analyst thinks iPhone revenue bottomed out in FY19 and expects some growth into FY22 as iPhone X users upgrade.

Evercore maintains an Outperform rating on Apple with a $440 price target.

Apple shares are down 2.5% to $439.79.