Morning Beat: VMware, Inc. (VMW), Citigroup Inc (C), and EBay Inc (EBAY)
VMware, Inc. (NYSE:VMW) has teamed up with Tianjin-based Sugon for the formation of its first joint venture in China. Located in Chongqing municipality, the joint venture, VMsoft, will pursue opportunities in cloud computing. The startup will also specialize in selling virtualization software among other services.
VMware owns a 49% stake in the joint venture that boasts an investment package of about $50 million. Launched in April, the venture has already unveiled two products; Cloudview SVM Edition 2.0 cloud management software and Cloud Virtual 6.2.
Expansion into China is part of VMware, Inc. (NYSE:VMW) plan of accruing some market share, as China is poised to outsize the US as the largest market for information technology by 2026.
Citigroup Inc (NYSE:C) in a research note says the downturn in the commodities market is over. The investment bank says prices are unlikely to return to lows seen in the first three months of the year. Analysts at the bank have since boosted their forecasts for metals and grains going forward.
According to the forecast, the bank expects oil prices to climb to $50 a barrel by the third quarter. Initially, the analysts expected the same to happen in the fourth quarter. Gold, on the other hand, should stabilize above the $1250 an ounce mark.
Given that gold has dipped this month, analysts at the bank believe it is the right time to buy at the current dip. Citigroup Inc (NYSE:C) has also raised its corn forecast by 10 cents a bushel to $3.70 as it also maintains that wheat will average just under $4.70 a bushel by the end of the year.
EBay Inc (NASDAQ:EBAY) has acquired Spain’s Ticketbis in a deal that values the online ticket marketplace at$165 million. Once the transaction is complete, the e-commerce giant plans to integrate the acquisition into its own ticket marketplace StubHub. The deal should close mid-2016.
The acquisition should expand StubHub footprint outside the US and into 47 new marketplaces. It needs to be seen if Ticketbis will help address some of the challenges that StubHub has faced in the recent past. There have been allegations of a proliferation of fake tickets on the site and a lack of enough checks.
Netflix, Inc. (NASDAQ:NFLX) has confirmed that it is poised to be the exclusive streaming service for all Walt Disney Co (NYSE:DIS) and Pixar movies. Starting September, the streaming giant says it will also have exclusive streaming rights for Marvel and Lucasfilm content. The deal only covers streaming in the US.
According to a deal inked with Disney in 2012, all titles will be available on the streaming service during the same window when they are made available on pay-TV channels. The exclusive rights is big a coup for Netflix, Inc. (NASDAQ:NFLX) given that it is expected to give it an advantage over its fierce rivals HBO, HULU, and Amazon Prime Video.
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