Thursday's Headlines: Redfin Acquires Bay Equity
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Tesla Motors (TSLA) +3.9%
MercadoLibre (MELI) +3.8%
Trip.com Group (TCOM) +3.6%
Moving Down ⬇️
Stitch Fix (SFIX) -6.0%
Chuy's (CHUY) -5.2%
Teladoc (TDOC) -5.1%
Roku Inc. (ROKU) -4.4%
1. Redfin (RDFN) is acquiring mortgage lender, Bay Equity Home Loans, in a cash and stock deal valued at $135 million. Bay Equity provides standard and specialty mortgages as well as refinancing options for existing and new homeowners in 42 states, putting a focus on customer service — one of the reasons it was targeted by Redfin. Its business is ten times larger than Redfin’s current lending segment and the company intends to integrate its services immediately while winding down its own operations. The move will increase Redfin’s presence across the U.S., and its ambitions to become a “one-stop-shop” for real estate services. The company hopes to see an impact straight away by putting this new lending business front and center for the company’s 40 million monthly visitors. Read the full press release here.
2. Competition is heating up in the streaming sector, with Apple (AAPL) in talks to land a deal with Major League Baseball (MLB) for weekday games. The news comes off the back of Amazon (AMZN) recently landing its first sports streaming deal with the National Football League (NFL) for ‘Thursday Night Football’ for a sum of $1 billion. The iPhone maker can expect to pay a hefty sum itself — estimated to be $350 million for weekday rights — but considering Apple’s $191 billion in cash and cash equivalents, the company has the means to do so. The deal could be a risk too, as viewership for the MLB has dropped off in recent years — 2020 showed only 359,000 fans were tuning in compared to 761,000 back in 2018. That being said, sporting events can be one of the best ways to attract new viewership and it could help Apple build its media platform in the long term. Read the full story here.
3 . Facebook’s (FB) name change late last year to Meta Platforms hasn’t made it immune to a slew of scandalous headlines like it might have hoped for. Glassdoor released its ‘Best Places To Work 2022’ which saw the company fall 36 places from the number 11 spot last year to 47 this year. Similarly, CNBC’s ‘Just 100’ list — which judges companies on environmental, sustainability, and governance (ESG) — showed the company dropped almost 700 places, a far cry from its number 21 position in 2021. Many employees expressed dissatisfaction with leadership and the lack of strategic direction at the company. Leaked information of negative impacts for users, ongoing lawsuits, and content moderation are just some of the other escapades from the last 12 months, so it might want to look at internal issues before laying its undying focus on the metaverse. Read the full article here.