The day’s business news at a glance
Cellphone-focused video service Quibi planned
There’s yet another new streaming service coming in the next year.
Quibi’s twist is that it’s focused on short videos for cellphones. Spokeswoman Gina Stikes confirmed Monday that Quibi will launch in April 2020 and cost $5 a month with ads and $8 a month without ads.
It’s run by big names — Jeffrey Katzenberg, the former Disney chairman and co-founder of DreamWorks Animation, and Meg Whitman, the former head of eBay and Hewlett-Packard — and it has attracted top Hollywood stars to make videos.
It would enter an increasingly crowded market of subscription streaming video services, including upcoming offerings from Disney, Apple and AT&T.
Private equity firm buying Shutterfly for $1.74 billion
Private equity firm Apollo Global Management is buying online photo publishing company Shutterfly for $51 per share.
Apollo will pay $1.74 billion for the 20-year-old company, which became popular offering its users prints and photobooks of their favorite shots.
California-based Shutterfly’s stock closed at $50.25 on Monday.
Shutterfly bought competitor’s Kodak’s online photo business for $23.8 million in 2012 and bought school photography company Lifetouch for $825 million last year.
Apollo will also buy photo printing company Snapfish and merge it with Shutterfly.
Apollo has bought more than 150 companies, including security company ADT, entertainment restaurant Chuck E. Cheese’s and telecom firm Charter Communications.
US employers hired record number of people in April
U.S. employers hired the most people on record in April, while the number of open jobs was largely unchanged, evidence that the job report remains solid.
The Labor Department said businesses filled 5.9 million jobs in April, 4.2% more than in March and the most since records began in December 2000.
Hudson’s Bay exec leads bid to take retailer private
A group of shareholders of Hudson’s Bay Co. is making an offer to take the struggling department store chain private. The proposal is being led by Executive Chairman Richard Baker, Rhone Capital LLC, WeWork Property Advisors, Hanover Investment SA and Abrams Capital Management LP.
The offer values the company $7.12 per share. That’s a 48% premium to the company’s closing share price on the Toronto Stock Exchange on Friday.
Court rules against oil drilling platform workers
The Supreme Court has ruled against workers on oil drilling platforms off California who argued they should be paid for the off-work time they spend on the platform, including sleeping.
The high court said Monday that federal law applies to the workers and doesn’t require them to be paid for non-working time spent at their work location.
US stocks climb after
US suspends tariffs
Technology companies and banks helped power stocks higher on Wall Street Monday as investors welcomed news that the U.S. and Mexico averted a trade war and potentially damaging tariffs. The latest gains extend the market’s winning streak to a fifth day. That follows the strongest week for stocks since November in what has been a marked turnaround for the market after escalating trade tensions fueled a turbulent skid in May. Several large deals also helped put investors in a buying mood.