Apple sales fall; Amazon swings to profit; UScellular launches strategic review

TOP NEWS IN TMT

– Apple Inc. reported revenue of $81.80 billion for the fiscal third quarter ended July 1, down from $82.96 billion in the comparable year-ago period, while net income increased to $19.88 billion from $19.44 billion. Apple CEO Tim Cook said services revenue rose to a record high of $21.21 billion in the quarter.

– Amazon.com Inc.'s second-quarter sales increased 11% year over year to $134.38 billion, while net income came in at $6.75 billion, rebounding from a net loss of $2.03 billion in the year-ago quarter.

– The boards of United States Cellular Corp. and parent company Telephone and Data Systems Inc. launched a process to explore strategic alternatives for UScellular. The companies did not set a deadline or a definitive timetable for the completion of the strategic review.

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TECHNOLOGY

– Apple, HP Inc. and Samsung Electronics Co. Ltd. are among the companies that are halting new imports of laptops and tablets to India following the country's ban on inbound shipments without a license, Bloomberg News reported, citing people familiar with the matter.

– Sprout Social Inc., which provides social media management software, acquired Tagger Media Inc., an influencer marketing and social intelligence platform, for a cash consideration of $140 million in a transaction that closed on Aug. 2. Sprout funded the acquisition with a combination of cash and a new revolving credit facility.

– Symphony Technology Group LLC and Francisco Partners Management LP are among the private equity firms vying to acquire media editing software maker Avid Technology Inc., Reuters reported, citing people familiar with the matter. A deal could reportedly be signed as early as August.

– Massachusetts securities regulators launched an investigation into the use of AI by investment firms during their interactions with investors, Reuters reported, citing a statement from Massachusetts Secretary of State Bill Galvin.

INTERNET AND OTT

– X, formerly known as Twitter Inc., aims to build a trading hub inside its app, Semafor reported, citing people familiar with the matter. In recent weeks, X reportedly reached out to financial data providers to seek proposals for financial content, real-time stock data and other features.

– French news agency Agence France Presse SA initiated legal action against X to compel the social media company to provide the "necessary elements" required for assessing the remuneration owed to AFP in relation to the distribution of its news content on Twitter.

– Social media firm Discord Inc. laid off 37 employees, or about 4% of its total workforce, as part of the reorganization of some business units, The Information reported, citing a company spokesperson. The layoffs were concentrated within the public policy, talent and marketing teams.

MEDIA

– Private equity firm KKR & Co. Inc. is in advanced talks to acquire Paramount Global's Simon & Schuster Inc. for about $1.65 billion, The Wall Street Journal reported, citing people familiar with the situation. In 2022, a federal judge blocked the publisher's sale to Penguin Random House LLC.

FILM AND TV

– The head of Walt Disney Co.'s metaverse efforts, Mike White, has left the company after its metaverse division was eliminated in March, Ad Age reported, citing a person familiar with the matter. Disney appointed White in February 2022 to lead its metaverse strategy as senior vice president of next-generation storytelling and consumer experiences.

– TEGNA Inc. Executive Vice President and CFO Victoria Harker will resign from her current position, effective Dec. 31. The company appointed Julie Heskett, senior vice president of financial planning and business operations, to serve as senior vice president and CFO, effective Jan. 1, 2024.

– Steve Bertram is leaving Entertainment One Ltd., or eOne, as president of film and television after parent company Hasbro Inc. agreed to sell the content platform to Lions Gate Entertainment Corp. for approximately $500 million, The Hollywood Reporter reported, citing an internal memo.

– Writers Guild of America negotiators are set to meet with major studios for the first time in three months today to discuss the possibility of resuming contract talks, Reuters reported, citing an email from the guild.

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