All of a sudden, Netflix’s soaring valuation looks too lofty. (Media companies may even be reconsidering their expensive fightback efforts.)
But Matthew Ball of Redef makes a compelling point: “The company doesn’t want to be a leader in video, or even the leader in video — it wants to monopolize the consumption of video; to become TV.” That involves taking risks investors don’t like, perhaps for a long time.
The Navajo Nation wanted to buy Remington — and abandon its AR-15s
Two months ago, Andrew suggested that someone should buy Remington, one of America’s biggest gun makers, and overhaul it. The Navajo Nation tried, offering up to $525 million. This was Native American tribe’s plan, according to Andrew’s latest column:
It intended to shift the company away from its consumer business, including curtailing the sale of the AR-15-style weapons frequently used in mass shootings, to focus on police and defense contracts. The tribe planned to use profits from those businesses to invest in research and development of advanced “smart guns.”
Remington replied that it wasn’t considering third-party takeover offers. The Navajo Nation may or may not bid again. But it’s worth asking why investors like Franklin Templeton and JPMorgan Chase weren’t interested — and what could change their minds.
Uber faces federal scrutiny over sex discrimination
The ride-hailing giant has been trying to move on from its bro-tastic past for nearly a year now. It’s slow going.
Jack Nicas of the NYT reports that the Equal Employment Opportunity Commission began investigating Uber last August. Among the regulator’s concerns: whether the company systematically paid women less than men and discriminated against them in hiring.
At Fortune’s Brainstorm Tech conference yesterday, Dara Khosrowshahi, the C.E.O., said that the company’s culture “can change, but it cannot change in the matter of months.”
The world’s biggest investor worries about trade
President Trump is showing little respect for geopolitical order. (The latest instance: alienating allies yesterday by cozying up to Vladimir Putin.) And his administration has filed claims at the World Trade Organization against China, the European Union and others. So his trade wars may soon get nastier — and Larry Fink, the C.E.O. of BlackRock, is starting to fret:
“If we do see these tariff increases come to pass and if they are sustained over time, I think it would be proper to recalibrate forecasts of G.D.P. and earnings growth. And then the markets would probably fall.”
Elsewhere in trade: Beijing is shoring up investment in its economy as it prepares for a prolonged fight with America. The chief of the Chinese e-commerce company JD.com says he can help customers find cheaper alternatives to American goods. And how the battle is giving pistachio farmers a leg up, at least in Iran.
Ulrich Lehner resigned as chairman of ThyssenKrupp, which has worries over its planned merger with Tata Steel. (Bloomberg)
The speed read
• Under pressure from an activist investor, Barclays may expand its U.S. bank. (WSJ)
• Didi Chuxing is reportedly planning to spin off its car services unit, raising up to $1.5 billion. (CNBC)
• As Sonos prepares to go public this week, it’s hoping to avoid the pitfalls of other recent hardware I.P.O.s. (FT)
Politics and policy
• A federal appeals court decision, backed by Judge Brett Kavanaugh, ruled that hospitals can seek more money from Medicare. (NYT)
• A federal judge temporarily blocked deportations of immigrant families reunited after separation at the border. (Politico)
• The official leave campaign in the U.K.’s Brexit referendum has been fined and referred to police for breaking electoral law. (Sky News)
• Microsoft will help Walmart, a fellow rival of Amazon, improve its services using cloud computing and A.I. (WSJ)
• An investment loophole let China invest aggressively in U.S. tech start-ups. (WSJ)
• Russian hackers used some of America’s own servers against it while meddling in the 2016 presidential election. (Bloomberg)
• A start-up called Zignal promises to use A.I. to protect banks from bot attacks. (Zignal)
Best of the rest
• Venture capital cash is drying up in China — another sign of a slowing economy. (NYT)
• On Prime Day, Jeff Bezos became the richest man in modern history, worth an estimated $150 billion. (Amazon’s systems wobbled as the day’s buying surge began.)
• Banks have the Trump tax breaks to thank for their boom. (Bloomberg)
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