Business
2024-04-26-alphabet-sankey

Alphabet’s record Q1

Search and Cloud continue to deliver, as Alphabet announces its first-ever dividend

William Coulman, David Crowther
4/26/24 10:45AM

Alphabet arguably posted the pick of the big tech earnings yesterday, reporting more than $80bn in revenue and a record $25.5bn in operating income. What really got investors going, however, was the news that the company would pay its first-ever dividend alongside a $70bn share buyback plan, sending shares up more than 10% and taking Alphabet into the coveted $2 trillion market cap club.

Reports of the death of Google Search…

… might be exaggerated. Or, at least, early.

In recent years, a number of articles — including a particularly sharp one from Ed Zitron just this week — have outlined the demise of Google Search. While it may be harder than ever to find what you’re looking for on Google, that hasn’t translated into any discernible impact on the search giant's bottom line (yet). The search engine raked in over $46bn in ad sales in Q1 alone... translating to ~$20m of revenue every hour.

Plugging more sponsored results at the top of the Google search bar might make for a worse user experience, but, for now, it also means more money for the company, which is spending a fortune on staying competitive in the AI race. Indeed, the cherry on top was the stellar performance of Google Cloud, which as a division tripled its operating profit, boosted by a rise in demand for all-things-AI (server infrastructure etc).

Why the company has decided to start paying a dividend now is somewhat curious. Maybe it’s run out of suitable ideas to invest that money into… or maybe it’s just so profitable it can do both: pay a dividend and invest for the future.

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Nia Warfield
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Paramount Skydance reportedly preparing an Ellison-backed Warner Bros. Discovery takeover bid, sending shares soaring

Paramount Skydance is preparing a majority cash bid for Warner Bros. Discovery, The Wall Street Journal reported, sending shares of both companies surging. The Journal’s sources say the deal is backed by the Ellison family, led by David Ellison.

WBD shares were up 30% on the report, while Paramount Skydance jumped 8%.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

Exclusive | Paramount Skydance Prepares Ellison-Backed Bid for Warner Bros. Discovery

Exclusive | Paramount Skydance Prepares Ellison-Backed Bid for Warner Bros. Discovery

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

Max Knoblauch
9/10/25
As tariffs take root, August new vehicle prices climb by the most in more than 2 years

According to data from Cox Automotive, 17 vehicle brands raised prices of their new vehicles by more than 3% in August.

Ford Issues Recalls On Some Of Its Mach-E Mustangs And Aviators
Nia Warfield
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Netflix taps Amazon to sell streaming ads in new partnership

Starting this fall, brands will be able to access Netflix’s premium ad slots using Amazon’s buying tech.

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Millie Giles
WITHDRAWALS
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Bank branches are still closing at breakneck speed in the US

Institutions like Chase and Wells Fargo closed 76 locations in just six weeks over the summer, per the OCC.

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Nia Warfield
9/9/25

Fox and News Corp slide as investors digest $3.3 billion Murdoch succession settlement

Fox and News Corp shares dropped on Tuesday after Rupert Murdoch’s heirs agreed to a $3.3 billion settlement to resolve a long-running succession drama.

Under the deal, Prudence, Elisabeth, and James Murdoch will each receive about $1.1 billion, paid for in part by Fox selling 16.9 million Class B voting shares and News Corp selling 14.2 million shares. The stock sales will raise roughly $1.37 billion on behalf of the three heirs.

The new trust for Lachlan Murdoch will now control about 36.2% of Fox’s Class B shares and roughly 33.1% of News Corp’s stock, granting him uncontested voting authority over both companies for the next 25 years. Originally, the Murdoch trust was designed to hand over voting control of Fox and News Corp to Prudence, Elisabeth, Lachlan, and James after his death.

Investors are weighing the trade-off. Clear leadership under Lachlan may resolve conflict internally, but the share dilution, executed at a roughly 4.5% discount, means long-term investors now hold slightly less clout than before.

Both companies’ stocks were trading close to all-time highs prior to the announcement.

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