My first reaction to the $73bn bid from 21st Century Fox for Time Warner, which this week settled in for a prolonged fight as Time Warner blocked Fox from mounting a rapid assault on its board of directors, was to ask: what problem is Rupert Murdoch trying to solve?
Rupert Murdoch is not exactly putting his money where his mouth is with 21st Century Fox’s unsolicited $80bn offer for Time Warner. By offering non-voting Fox shares as part of the cash-and-stock bid he has made clear that he will not risk his voting grip on his family-controlled company. Read more
The other day, a business in New York mailed a dollar cheque to me across the Atlantic. It was a pretty thing – multicoloured, with an anti-fraud foil hologram – and I admired it for a while before putting it into another envelope and posting it back to a friend in New York to walk up the block and deposit. After a round trip of 7,000 miles, it reached my account three weeks late.
The global system for taxing multinational companies is broken, but no country wants to alter it too radically for fear of making it worse. That was my impression after hearing international tax experts gathered in Oxford this week to discuss reform.
Reform of corporate taxation has been thrust onto the political agenda in Europe and by controversy over the tax policies of companies such as Google and Starbucks. The ease with which they can shift intellectual property and royalty payments to low tax regimes has outraged politicians on both sides of the Atlantic.
The attempt by Pfizer to turn itself into a UK company for tax purposes by acquiring AstraZeneca has also drawn attention to the use of “tax inversion” by US companies. They want to use the cash piles held overseas to make acquisitions that allow them to change corporate nationality and reduce their taxes.
But while most countries agree that the system of global taxation in place since the 1920s is flawed, there was no consensus at the conference held by the Oxford University Centre for Business Taxation on how to fix it. Instead, most prefer to play defence. Read more
Is it worth uprooting family to move to a new city for a job? Peter Cappelli, a management professor at Wharton school at the University of Pennsylvania, is not convinced.
Assessing the broad decline in internal migration that the US has suffered in recent years, Prof Cappelli argues that the trend for people to stay put may well reflect the fact that so many jobs are transient these days. Read more
It’s the Woodstock of Capitalism, the investors’ Super Bowl, the Lollapalooza of lolly…
Tens of thousands of Berkshire Hathaway shareholders converged on Omaha, Nebraska, for the $300bn conglomerate’s annual meeting and the chance to hear in person from its legendary founder, Warren Buffett (and his droll sidekick Charlie Munger).
Stephen Foley, the FT’s US investment correspondent was there, too, to capture the wit, wisdom and sometimes wackiness on display. Read more
Oral haptics – more simply known as “mouthfeel” – is one of the food industry’s subtler (or murkier) arts. New research gives an intriguing glimpse into how snackmakers can use it to manipulate grazing customers: for better or for worse.
A group of people were offered either a hard or soft version of the same chocolate and asked to estimate how many calories it contained. They erroneously assumed that the hard version had fewer calories, when the energy content in each of the treats was actually the same. Read more
Suddenly, after a prolonged drought, fresh money is pouring into US digital news. The strange thing is where it is going.
What is Goldman Sachs up to? The bank has been behaving strangely this week. When Michael Lewis unveiled his book Flash Boys: A Wall Street Revolt , in which he alleged the equity market is “rigged” by high-frequency traders, the bank discreetly lent him support. Then it emerged that Goldman is leaving the New York Stock Exchange floor, selling Spear, Leeds & Kellogg, a broker it bought for $6.5bn in 2000.
Free business school case study in every box (Dreamstime)
Altering prices is a delicate art. When Pixar was a hardware maker in the 1980s, for instance, it realised it was charging too much for its computers. Yet a price cut failed to dispel its reputation for hawking excessively pricey kit. “The first impression stuck,” recalls Pixar co-founder Ed Catmull in his informative new book, Creativity, Inc.
But this does not mean that it is impossible to raise or lower prices successfully. The decision by Amazon to increase the price of its Prime delivery service in the US last month could be a case in point.
Pricing strategy consultant Rafi Mohammed has praised the way Amazon went about increasing the annual Prime charge from $79 to $99. Read more
Leo Strine – comforter of the corporate executive? (AP Photo/Richard Drew)
Has shareholder democracy in the US gone too far? The very idea seems risible to Europe-based corporate governance advocates, myself included, who have watched American investor rights advance in a good direction, but at a snail’s pace. But those making the case now for limiting investor powers have a strong, prominent, and eloquent ally in Leo Strine, Delaware’s chief justice. His latest Columbia Law Review article, ostensibly arguing for a pragmatic version of investor democracy, is a must-read. Read more
If you can avoid it, never get into a position where Sergio Marchionne can force you to play poker. That applies literally, as Fiat executives who fly on its (rented) corporate jet know, and metaphorically, as other companies have discovered in the past decade.
Usually limited to geeky product launches such as iPhones or high-street fashion collaborations, such as H&M’s tie-up with Karl Lagerfeld, the cronut queuers are inspired by similar motivations.
There are bonders who come to meet people who share their cake interests. And then there is the trophy value of being caught in the media and buzz. Even a humble cronut has bragging rights attached to it: “All day I waited for the flaky donut confection,” queuers will tell their children one day. Read more
Sales of George Orwell’s Nineteen Eighty-Four have risen since Edward Snowden revealed how the National Security Agency of the US gains access to telephone records and data from technology companies. So far, if people do not exactly love Big Brother, they are prepared to accept some invasion of their privacy in return for security.