YouTube launches music service
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YouTube is launching a $10 a month music subscription service called YouTube Music Premium. It will allow users to listen to ad-free music, download files, and watch YouTube Originals, including recent hits like the Karate Kid-inspired series, "Cobra Kai." With Music Premium, YouTube is taking aim at streaming music giants, Spotify and Apple Music. Morningstar's Ali Mogharabi: "A couple of things to keep in mind. One is, again, the huge user base, or viewer, or listener base they have. Two is the more aggressive strategies that they're pursuing in terms of actually monetizing the users. So, besides advertising, implementing subscription models. And, three, course, you know they've got, I don't know if you're aware, but they've got Leeor Cohen and he's got a lot of knowledge within the entire music space, a lot of connections, a lot of respect out there by the artists and record labels. So, I do think the overall strategy and the market that they're trying to tap into further looks pretty attractive." Streaming services are a cash cow for the music industry according to the 2018 IFPI's Global Music Report. Last year, total recording music revenues rose to $17 billion, up eight percent from 2016.
Xerox scraps $6.1 bln Fujifilm deal
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Photocopy giant Xerox has ditched a controversial plan to sell itself to Japan's Fujifilm for $6.1 billion dollars, bowing instead to activist investors Carl Ichan and Darwin Deason. Those two had opposed a deal with Fujifilm and by abandoning the plan Xerox will hand control to new management. It's the latest turn in months of back-and-forth over the future of the U.S. company that also saw a major clearout of the company's board. Both sides had agreed in January to a complex deal that would have merged Xerox into their Asia joint venture, Fuji Xerox, and then handed Fujifilm the reins. Icahn and Deason have a 15 percent stake in Xerox and the January deal pushed them to pick a fight for a better deal, because they say Xerox was being undervalued. Now the company is expected to go up for auction at a higher price. However Fujifilm was quick to dispute Xerox's right to terminate the deal and may seek damages. Analysts also told Reuters they believe the two firms are too intertwined to be separated. Fujifilm handles all of Xerox's global contracts and the U.S. firm no longer even makes its own office copiers, relying on Fuji Xerox instead.
Apple nears $1 trillion valuation mark
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Apple is getting closer to becoming the first $1 trillion U.S. public company. The stock market values it at $964 billion. The iPhone maker's shares recently surged after it unveiled its budget to buy back $100 billion worth of shares. Also adding fuel: the move by Warren Buffett's Berkshire Hathaway to significantly boost its stake in the company. Around a dozen Wall Street analysts have set price targets that would catapult Apple's stock past the $1 trillion mark. But if Apple gets there, it could soon get eclipsed. Amazon is number 2 with a market capitalization exceeding $780 billion. Its stock is hotter, surging 70 percent over the last 12 months, compared to Apple's 24 percent rise during that period. If Apple's stock keeps growing at last year's pace, the company's valuation would hit $1 trillion in September. But Amazon would reach that mark the following month and soon overtake Apple. Boosting Amazon's momentum: more consumers keep flocking online to do their shopping and more businesses keep moving their IT departments to the cloud.