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Just Eat Takeaway CEO Defends $7.3 Billion Grubhub Deal

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Just Eat Takeaway CEO Defends $7.3 Billion Grubhub Deal

In a telephonic conversation on Thursday, investors and analysts questioned Just Eat Takeaway.com NV about the company’s plan of acquiring Grubhub Inc, a US-based company, for a whopping $7.3n in an agreement that’ll develop one of the largest meal-delivery platforms online across the world.

The analysts said that the agreement complicates investment case for Just Eat Takeaway soon after the acquisition, but it’s a necessary move to widen the firm’s global reach, particularly in a vital market like the United States.

The shares of Just Eat Takeaway fell by 1.3 percent to 84.40 Euros in Amsterdam, extending the 13 percent drop on Wednesday. Meanwhile, Grubhub closed two percent higher in NYC on Wednesday.

On the phone call, Just Eat Takeaway CEO, Jitse Groen said that the company aims at making this combination a successful one. The combined firm will be operating in 25 nations, with 70mn active customers, Groen added.

In an email, Barry Norris, CEO, Grubhub shareholder Argonaut Capital Partners said that his firm considers Groen’s company as one of the best managed firms in the food-delivery sector. However, he added that he is not ruling out a counterbid for his company by Uber or any new suitor. The deal with Just Eat Takeaway is an upgrade or a better move to the apparent Uber bid, said co-Chief Investment Officer of Caledonia, Michael Messara.

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China’s Huawei and ZTE officially designated ‘national security threats’ by the FCC

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China’s Huawei and ZTE officially designated ‘national security threats’ by the FCC

The US FCC (Federal Communications Commission) has designated China’s ZTE and Huawei as national security risks officially. This implies that the two firms cannot utilize an $8.3bn government subsidy initiative, called the Universal Service Fund for purchasing, maintaining or supporting any services or equipment from these two telecommunications giants.

With these new orders and considering the overwhelming evidence, the FCC has designated ZTE and Huawei national security threats to the communications networks and the future 5G technology of American, said Ajit Pai, Chairman, FCC through a statement.

The orders formalize a unanimous vote casted by the FCC in last November wherein the regulator had declared both these firms as threat to national security.

ZTE and Huawei are yet to comment on the matter.

This move is yet another major blow to ZTE and Huawei, adding on the nation’s bigger campaign in the last eighteen months against these companies. In 2019, Huawei was placed on a United States blacklist known as Entity List. Later, a new ruling in the month of May focused to cut off the company from major semiconductor supplies.

Meanwhile, the Donald Trump administration also has been making efforts to convince the other nations to boycott Huawei from rolling out its 5G network.

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Disney’s Splash Mountain to get new theme amid calls to ditch racist history

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Disney’s Splash Mountain to get new theme amid calls to ditch racist history

Amid calls to ditch racist stereotypes in famous culture, Disney now is giving a new theme to its Splash Mountain ride which will be based on its first Black-princess centered movie ‘The Princess and the Frog.’

The decision comes following a petition asking Disney to forgo the original or initial inspiration meant for Splash Mountain, i.e. the 1946 movie ‘Song of the South.’ It was a controversial movie since the beginning, with the critics considering it an underrated portrayal of labor or slavery.

The movie is basically a live-action narrator, a Black man known as Uncle Remus, played by the second African-American James Baskett. He did not attend the movie’s premiere held at a theatre in Atlanta where the Blacks were asked to sit in balcony separately.

The movie hasn’t been available on the home video across the United States and is also not included in Disney+.

The petition demanded Disney to base the theme of Splash Mountain upon Princess Tiana’s story.

As per Disney, the firm has been thinking to change the theme since the previous year and has now finalized ‘The Princess and the Frog’ as the new theme for Splash Mountain at both, Florida’s Disney World and California’s Disneyland.

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American Airlines plans to raise $1.5 bln in stock, convertible notes sale

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American Airlines plans to raise $1.5 bln in stock, convertible notes sale

On Sunday, American Airlines Group announced its plans of raising $1.5bn by selling off shares as well as convertible notes to enhance the liquidity of the airline as the US carrier grapples with restrictions on travel triggered by COVID-19.

The airline expects to utilize a part of the proceeds to improve its liquidity position and for usual corporate purposes, said the air carrier.

The notes and stock offerings include a thirty-day option for underwriters to buy around $112.5mn of extra common stocks and around $112.5mn of extra notes respectively, said American Airlines Group in a statement.

JP Morgan, Citigroup, BofA Securities and Goldman Sachs & Co. will act as the representatives for underwriters.

Bloomberg News was the first to report about the offerings, which is expected to be due by the year 2025. After the closure of the note offering, American Airlines Group aims at getting into an all new $500mn term loan B facility by 2024.

American Airlines Group has been shelling out billions of dollars during the Q1 of this year, incurring large losses as well as implementing wide cost-cutting strategies, and also taking measures to boost its cash buffer.

Notably, on Friday, the share price of American Airlines Group fell 3 per cent to $16.

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