Disney revenue up on 'Black Panther'
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Walt Disney reported a 9 percent rise in quarterly revenue. Its superhero movie "Black Panther" was a box-office hit. And more people went to Disney's parks and resorts. The company's CEO Bob Iger said on a conference call with investors that he is confident Disney's deal to buy media assets from Twenty-First Century Fox will go forward. Disney shares rose after hours. CFRA's Tuna Amobi: "The earnings were pretty, very encouraging. I think they demonstrated that the business has some momentum, especially on the theme parks and film studio. The deal with Fox, you know, came up, and I think, as you can expect, I think the company, Bob Iger, remains extremely positive on the deal. One thing that I was hoping that he would address, was the potential rival bid from Comcast, which, understandably, he did not address. But, just listening to him, you get the sense that they are as committed as ever to acquiring these assets. And I would not be surprised at all, based on, you know, the reaction that Disney would, probably, come up with some type of response that could actually spark a bidding war." Comcast said it's planning to make a counter offer for Fox assets. But, Reuters sources said, only if a federal judge lets another deal go through - AT&T's acquisition of Time Warner for $85 billion.
Starbucks to sell rights to Nestle
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Starbucks is selling the rights to sell its packaged coffee and tea in grocery and retail stores around the world to Nestle for more than $7 billion. The deal includes brands such as Starbucks Reserve and Teavana. Nestle will also sell Starbucks coffee in its coffee pods. Overall, the deal gives Nestle access to Starbucks's business with annual sales of nearly $2 billion. Technomics' David Henkes: "I think when, you look at Starbucks, what they're gaining is global distribution. They're gaining the ability to focus on their coffee cafe business, while still expanding through distribution that Nestle is able to bring to the table. I think, from Nestle's perspective, what they're gaining is a powerhouse brand. Certainly, they have Nespresso and Nescafé, which is strong globally. It's not quite as strong in the United States, and so, what they're gaining here in the U.S., is a strong partner and a powerhouse brand that helps them accelerate their growth, and positions in well against competition." Nestle and Starbucks are teaming up as their competitor - JAB Holdings - has also made a series of deals, like buying Keurig Green Mountain. Other big players are growing as well, including Italy's Lavazza, which is now the world's No. 3.