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Dell, VMware may unveil reverse merger plans; Intel mulls AR unit stake sale

Top News

* Dell Technologies Inc. could announce plans today to explore a possible reverse merger with VMware Inc., along with other options such as an initial public offering or divestiture of assets, Reuters reports, citing sources. VMware could form a special committee of its board to consider a merger with Dell, sources said.

* Intel Corp. is considering plans to sell a majority stake in its augmented reality business, Bloomberg News reports, citing people familiar with the plan. The AR division is valued at nearly $350 million by Intel, sources said. The company is reportedly looking for multiple backers to invest in the unit.

* Discovery Networks International President and CEO Jean-Briac Perrette said in an interview that the company will use its Total Video system to track media consumption in three categories: video, users and engagement across screens. Total Video, according to Perrette, seeks to garner data that is "reflective of the way people consume content in general and sports in particular today." He said it is also "part of Discovery's promise to the IOC" that its deal would deliver "more countries, more people and more screens" to the Games from 2018 through 2024.

* Apple Inc. CEO Tim Cook says the futuristic iPhone X is the most popular model of its iconic smartphone, and expressed optimism at the effects of the U.S. tax reform. On a Feb. 1 earnings call, Cook said that Apple's flagship $1,000 iPhone X model has been the company's top-selling phone since its November 2017 launch, and has also been the best-selling iPhone worldwide.

Technology

* Microsoft Corp.'s 12% year-over-year revenue growth in its fiscal second quarter was driven in part by a significant surge in the company's cloud-computing business. The company's Intelligent Cloud segment revenue grew 15% year over year to total $7.80 billion, with 98% revenue growth in Azure, the cloud platform that competes with Amazon.com Inc.'s Amazon Web Services.

* A new agreement with Samsung Electronics Co. Ltd. could help Qualcomm Inc. ease some of its regulatory and legal scrutiny, but the company remains locked in a long-running dispute with Apple. Speaking during a Jan. 31 conference call to discuss earnings, Qualcomm executives said they are eager to make peace with Apple — but only on the right terms.

Internet & OTT

* Comcast Corp.'s digital media company Awesomeness will offer DreamWorksTV on Amazon.com Inc.'s Amazon Channels, TechCrunch.com reports. The subscription service, costing $4.99 per month, is reportedly aimed at kids aged 6 through 12.

* Google Inc.'s YouTube TV rolled out an app on Apple TV, Multichannel News reports, citing a tweet. YouTube TV initially supported Apple TV via AirPlay.

* Hulu LLC unveiled a new live and personalized interface for the Winter Olympics from Pyeongchang, South Korea, Multichannel News reports. The new experience, which will be connected to NBCUniversal Media LLC's coverage of the event, will let users select their favorite sports and also access replays of events.

TV Networks

* Sports-focused streaming TV service fuboTV further expanded its local TV coverage by adding 23 more local NBC (US) stations and two CBS (US) affiliates. The new NBC stations offered by fuboTV include KARE in Minneapolis; KGW in Portland, Ore.; KHNL in Honolulu; KING in Seattle; KOB in Albuquerque, N.M.; and KPNX in Phoenix, according to a post on the fuboTV website.

* CBS Corp. and Viacom Inc. boards formed separate special committees of independent directors to explore a potential merger between the two companies. "There can be no assurance that this process will result in a transaction or on what terms any transaction may occur," the companies said in separately issued statements.

* Sony Corp. promoted Kenichiro Yoshida, its current CFO and executive deputy president, to CEO and president of the company, effective April 1. Yoshida will replace Kazuo Hirai, Sony's current CEO and president, who will become chairman on the same date, the company said. In addition, Sony's current Chief Strategy Officer Hiroki Totoki will succeed Yoshida as CFO, while business executive Toru Katsumoto will become executive vice president and take charge of the company's research and development platform.

* Cumulus Media Inc. struck a deal with Merlin Media regarding the operation and sale of WKQX-FM and WLUP-FM in Chicago. Cumulus will no longer be required to buy the Chicago stations for about $50 million, and Cumulus and Merlin will temporarily extend the local marketing agreement under which Cumulus has been operating the stations while Merlin conducts a sale process for the stations, the company said.

Multichannel

* CenturyLink Inc. will hire 150 employees for its new outbound sales center in Monroe, La. The new center will help the company serve small business customers in the U.S., according to a news release.

* British mobile operator Vodafone Group Plc moved to reassure investors that its Indian merger would succeed where its Australian tie-up in 2009 with Hong Kong's Hutchison Whampoa disappointed. The $23.2 billion megamerger between the Indian operations of Vodafone and Idea Cellular Ltd. will combine India's second- and third-largest operators to create an industry giant with more than 390 million customers and a 43% market share.

The day ahead

Early morning futures indicators pointed to a lower opening for the U.S. market.

In Asia, the Hang Seng decreased 0.12% to 32,601.78, and the Nikkei 225 declined 0.90% to 23,274.53.

In Europe, around midday, the FTSE 100 was down 0.34% to 7,464.61, and the Euronext 100 was down 1.04% to 1,048.25.

On the macro front

The employment situation report, the consumer sentiment report, the factor orders report and the Baker-Hughes Rig Count report are due out today.

Featured news

The Daily Dose Europe: TDC, MTG strike $2.5B deal; TF1, Orange end distribution agreement: TDC A/S has cut a deal to acquire Modern Times Group's broadcasting and entertainment business, while TF1 Group and Orange SA fail to extend their distribution agreement.

The Daily Dose Asia-Pacific: Amazon, HBO strike Japan license deal; SK Telecom to launch streaming service: Amazon Prime Video in Japan reached a deal with HBO (US) to offer roughly 50 original series on its streaming service, while SK Telecom Co. Ltd. is partnering with South Korean entertainment labels to launch a music streaming platform.

Featured research

Economics of Advertising: NBA up, NFL down in December 2017 telecast ratings: Live ratings for the NFL continued to slide while the NBA saw an uptick during the final month of 2017, based on data from comScore's TV Essentials.

Economics of TV & Film: Kagan Box Office Report – Week 4: Weekly box office went back to its declining ways in 2018 as week four box office was down 11.4% from $217.1 million in 2017 to $192.3 million in 2018 despite a solid opening weekend from "Maze Runner: The Death Cure."

Multichannel Trends: Top telcos' 2017 results point to increasingly broadband-centric model: DIRECTV NOW's net adds in the fourth quarter of 2017 were more than enough to offset the legacy multichannel sub losses from Verizon Communications Inc. and AT&T Inc. Meanwhile, both companies are pushing deeper into fiber.

Economics of TV & Film: Coming to PPV/VOD in February: HBO officially set a date of May 5 for the rematch of boxers Canelo Álvarez and Gennady Golovkin.

Wireless Investor: American Tower warms to small cells: Two deals signed at the end of 2017 indicate American Tower is taking outdoor small cells more seriously.

Technology: Spain remains fertile ground for OTT, connected devices: Spain's increasing pool of connected devices coupled with its increasing broadband penetration rate and low multichannel subscribership marks it as a large market with plenty of opportunity for OTT providers.

The Daily Dose is updated as of 7 a.m. ET. Some external links may require a subscription.