Monday’s Headlines: 2U Reportedly Pondering A Buyout
1. Shares of 2U closed on Friday up nearly 5% following a report that the online education company has been working with advisers to explore ways to improve performance, including a possible sale. Shares of 2U have lost more than half their value in the past year, with the stock hit by an August announcement that the company was reducing its near-term growth expectations in order to combat a rise in competition in the sector. The most likely option, according to analysts, is that 2U will likely be exploring a buyout option. Read here for the full story.
2. U.S. electric car pioneer Tesla has agreed to buy a property on the outskirts of Berlin, bringing it a step closer to opening its first European factory, local authorities said on Sunday. The 300-hectare property is expected to create 7,000 jobs in the region and give Tesla models the coveted ‘Made in Germany’ tag it needs to compete in one of the world’s largest car manufacturing regions. The agreement states a preliminary property price of 40.91 million euros ($45.36 million) and has been largely welcomed by politicians, unions and industry groups, however, some 250 locals did protest the move, fearing the factory could endanger local wildlife. Read the full story here.
3. Shares in workspace-collaboration software company Slack fell more than 2% by market close on Friday following reports of Microsoft’s new global ad campaign for competitor ‘Teams’. The tech giant will aim to sell “The Power of Teams,” juxtaposing old-school conference room meetings, complete with packets of printed-out charts and spilled coffee as phones are passed, versus what the company pitches as a new way of working. Microsoft is a major global advertiser, spending $1.6 billion in global advertising in the fiscal year 2019, and boasts more than 20 million users on its ‘Teams’ service. Get the full report here.