DealBook Briefing: Can Disney’s Bob Iger Ever Stage Down?

And here’s a lighter take on the Disney-Fox talks, courtesy of Paul Pendergass, formerly DealBook’s “Jack Flack” columnist.


Today’s DealBook Briefing was compiled by Andrew Ross Sorkin found in New York, and Michael J. de la Merced and Amie Tsang in London.



UnitedHealth leads even more upheaval in health care.

UnitedHealth’s $4.9 billion takeover of a physician group from DaVita might not be as large as CVS’s offer for Aetna. Nonetheless it highlights how fast traditional boundaries in health care are dissolving.

UnitedHealth offers been disrupting the market for a long time. It already owns a pharmacy gain manager and an outpatient offerings provider. Nowadays the DaVita division will give it a health care provider network.

Reed Abelson of the NYT quoted Craig Garthwaite, a health economist at Northwestern’s Kellogg School of Control, on integration:

“There’s no chance that the prevailing companies, be they medical center or perhaps insurers, have the right construction of assets to reach your goals” at turning health care into a organization where the parties can easily produce better outcomes at a lower cost, he said.

Critics’ corner

• Brooke Sutherland and Max Nisen write, “Regular diversification with small offers may be the kind of approach that can win this competition.” (Gadfly)

• Charley Grant writes, “With cheap credit easily available and UnitedHealth’s sparkling long-term returns as an inducement, the recipe for succeeding in health care is pretty very clear.” (Heard on the Street)

Extra credit: Barclays and Goldman Sachs will each lend CVS $20 billion as part of the Aetna takeover, the kind of big offer lending that was traditionally the province of JPMorgan Chase, based on the WSJ.


May be the tax overhaul starting to fray at the seams?

A lot continues to be being changed. And not everything is going well.

While Senate Majority Innovator Mitch McConnell is open to keeping even more generous state and local tax deductions, a deal with Senator Susan Collins of Maine to greatly help prop up the Affordable Care Act has been all but rejected by House Republicans, potentially jeopardizing her final vote.

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Meanwhile, Republicans are considering cuts to sociable welfare courses like Social Secureness, Medicaid and Medicare to greatly help pay for the bill – unpopular movements that would come prior to the 2018 midterm elections.

“Holy crap, what’s this?”: That’s what Greg Jenner, a former top tax official found in George W. Bush’s Treasury Division, said of the tax legislation to Politico, describing how the new rules could possibly be gamed.

How the business community is responding

Some analysts increasingly see no reason for investors to put additional money into the currency markets because of the tax legislation, since businesses probably won’t spend as very much on buybacks as people think.

Meanwhile, Citigroup says that it expects a $20 billion hit to its profits under the proposal, though it nonetheless plans to return lots of $60 billion to shareholders over another three years.

But among the private equity world’s most important moguls is OK with the expenses:


The Washington flyaround

· House Republican leaders consider they have the votes to avert a government shutdown. (Politico)

· Behind President Trump’s decision to identify Jerusalem as the administrative centre of Israel: frustration from supporters like Sheldon Adelson. (NYT)

· Michael Flynn told a former organization associate that monetary sanctions would be “ripped up” found in the Trump administration’s initial days, relating to a good whistle-blower. (NYT)

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· Senator Elizabeth Warren is normally in the same camp as Mr. Trump on megadeals, an alliance that puts additional pressure on big mergers. (Breakingviews)


Tech’s big giants will be turning on one another.

Spats like the 1 between Alphabet and Amazon – where YouTube was first pulled from Amazon’s Fire Tv set and Echo Show devices, and Amazon then appeared to stop selling Alphabet’s Nest devices – highlight a growth in the stakes as these companies battle for consumers’ thoughts and money.

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It’s consumers who may lose out, the press analyst Dan Rayburn told the WaPo.

But Shira Ovide of Gadfly thinks that, in at least one case, tech companies must do even more backbiting. She’s urging Twitter and Snapchat to team up against Facebook:

Snapchat’s rocky road in its first 9 months as a open public company has got some echoes to Twitter’s rocky road since its initial open public offering in 2013. It’s scary out there for every single company on its own.

Who hacked Uber? A 20-year-old Florida man appears to have led the breach that resulted in the theft of an incredible number of riders’ data – and then have been paid to keep tranquil, according to Reuters.

Alexa, run my entire life: Katherine Bindley of the WSJ tried to observe how much of her existence she could outsource to Amazon services and products. Among her conclusions: “Regardless of how well the Echo Seem functions, posing for it every morning is stressful.”


The most recent in sexual misconduct news.

• Time called “the silence breakers” – people who spoke about harassment and assaults they experienced from powerful males – as its person of the entire year. (NYT)

• Democratic senators including Chuck Schumer and Kirsten Gillibrand of New York have called after Al Franken to resign. He could announce his strategies to step down today. (The Hill)

• Six women contain filed a class-action lawsuit against the Weinstein brothers and several business associates. (NYT)

• The venture capitalist Justin Caldbeck, who possesses been accused of misconduct, tweeted support for #MeToo. It didn’t review well. (Quartz)


The buyer of this controversial Leonardo painting is revealed.

It wasn’t a good famous art collector like Steve Cohen who paid $450.3 million at auction last month for “Salvator Mundi.” It was a little-known Saudi prince without history as a major art customer, Bader bin Abdullah bin Mohammed bin Farhan al-Saud.

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From David Kirkpatrick of the NYT:

Prince Bader splurged on this controversial and decidedly un-Islamic portrait of Christ at a time when most users of the Saudi elite, including some in the royal family group, are cowering under a sweeping crackdown against corruption and self-enrichment. As it occurs, Prince Bader is normally a pal and associate of the first choice of the purge: the country’s 32-year-previous crown prince, Mohammed bin Salman.

Bitcoin: now above $14,000.

And it’s nonetheless rising. Which has Wall Street keeping a close vision on the digital currency and affiliated technologies just like the blockchain.

But Bitcoin is being hoarded like virtual gold, and which has downsides.

Here’s what Brian Armstrong of Coinbase told the NYT:

“It’s probably a bit too focused on the purchase price or people trying to make funds,” Mr. Armstrong said last week. “Finished . I’m passionate about with digital currency may be the globe having an open economic climate.”


Roger Goodell includes a new contract. What’s subsequent?

The N.F.L. finally agreed to give him a new $200 million offer, though almost all that funds is tied to economic targets. Something of an uneasy peace possesses descended after the league’s owners: Jerry Jones of the Dallas Cowboys had briefly threatened to sue over the negotiations.

More from Ken Belson of the NYT:

The committee have been working since Might on the new contract, which would take effect in March 2019. The owners were eager to finish the offer before foretells renegotiate the league’s labor and press deals begin in earnest within the next couple of years.

Caveat: The N.F.L. is definately not in the clear. Ratings are still falling, critics are still worried about player safety and some fans are still incensed about player protests.

Revolving Door

• Fraser Robinson, the most notable Uber offer maker who negotiated the company’s expense from Saudi Arabia this past year, has got stepped down. (FT)

Quote of your day

“This is nothing more than a calculated move by Philippe to oust me from the business, and limit my role in the years ahead.”

– Shari Redstone, in an email to Viacom associates, discussing Philippe Dauman, her primary rival for control of her father’s Viacom press empire.

The Speed Read

• Oliver Schmidt, a high Volkswagen recognized in the United States, was sentenced to seven years in prison for his role in the German automaker’s decade-expanded scheme to cheat on diesel emissions assessments. (NYT)

• The wealthiest 1 percent of American households very own 40 percent of the country’s wealth, according to a report based on the Survey of Consumer Finances – the best share since at least 1962. (WaPo)

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• A coalition of groupings which includes conservationists and the founder of the outdoor manufacturer Patagonia filed a lawsuit against the Trump administration to safeguard the position of the Bears Ears National Monument. (ABC)

• China says it is open for organization, but it appears to be curtailing foreign firms’ access to its consumers, in order to help Chinese businesses forge ahead found in sectors like electric autos and robots. (NYT)

• GVC Holdings, which owns online gambling systems, is in advanced foretells buy the British betting-shop operator Ladbrokes Coral for up to $5.2 billion. (Bloomberg)

• Ping A great, the world’s most significant insurer by marketplace capitalization, has emerged as the second biggest shareholder found in HSBC, relating to a submitting with the Hong Kong Stock Exchange. (FT)

• The proportion of merger and acquisition activity regarding all-share offers has dropped to a record low this year, driven by access to cheap dollars and doubts over collateral marketplace valuations in the United States. (FT)

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Adhere to Andrew Ross Sorkin @andrewrsorkin, Michael J. de la Merced @m_delamerced and Amie Tsang @amietsang on Twitter.

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