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Jabong-Myntra Merger, Apple to Make Feature Films et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Nov 16, 2018 1:25 PM 3 min read
Editorial

Good evening reader,

 

The onslaught of 'sharing economy' has taken regulators by storm, who repeatedly find themselves in situations where existing laws prove insufficient. We're surrounded by the fruits of this technology-fueled disruption, changing the way we commute, eat, work, or travel.

 

Uber often pops in one's mind as its poster child. Today, however, we speak of the second one on the list i.e. Airbnb. Last valued at c. $30bn, this San Francisco-based aggregator with listings in over 191 countries and more than 81,000 cities lets hosts give their home on a short-term basis to travelers in exchange for rent (often much cheaper than hotels). 

 

So, what's the beef (oops.)?

 

Hotels were and are naturally upset. But Airbnb is now hitting the housing market itself, tempting hosts to list multiple properties for short durations, but higher yields, rather than opt for conventional tenants. In cities with a perennial housing shortage (read San Francisco and New York), that stuff is political dynamite.

 

On that introspective note, here are Today’s Top 6 Business Stories through our End Of Day Wrap Up:

 

INDIA

 

Online fashion retailer Jabong to completely integrate with Myntra, 10% of combined workforce to be laid-off.

Myntra CEO Ananth Narayanan to lead the team. According to a Livemint article, Jabong site will continue to run after the merger is completed, but its traffic will be redirected to Myntra.

 

Flipkart had acquired online fashion portal Myntra in 2014, which had acquired Jabong in 2016 from Rocket Internet for $70 million.

 

GAIL India may buy wind energy assets of debt-laden IL&FS.

GAIL India may buy 775 MW of wind energy assets from IL&FS Energy Development Co., a unit of Infrastructure Leasing & Financial Services.

 

This would be in line with IL&FS’s resolution options which involve significant capital infusion, asset sales and debt restructuring at group, business vertical or asset level.

 

Govt to unveil new industrial policy, focus on design and innovation.

According to the Department of Industrial Policy and Promotion (DIPP), the new policy shall focus on highlighting the significance of design and innovation, in addition to strengthening of intellectual property rights.

 

The proposed policy will completely revamp the Industrial Policy of 1991.

 

US/INTERNATIONAL

 

FCC approves SpaceX’s request to deploy more than 7,000 very-low-Earth orbit satellites for its Starlink network.

The regulator had earlier in March approved the launch of 4,425 SpaceX satellites as part of the company’s Starlink network mission to build a global, high-speed wireless internet network.

 

Successful completion of the plan could mean that people in rural areas or other locations where more traditional types of connections are impractical can access a network with speed of up to 1 Gbps.

 

Apple partners with Oscar-winning production company, Movie Studio A24.

Apple has signed a multiyear partnership with the production company to make feature-length films. Movie Studio A24 rose to fame with movies like oscar-winner Moonlight and Lady Bird.

 

The move signals the tech giant's foray into original content beyond TV programming and into movies.

 

FDA seeks ban on menthol cigarettes, tobacco companies likely to protest.

The US regulator is seeking a nationwide ban on menthol cigarettes, a move that would remove nearly a third of the c. 250 billion cigarettes sold in the country annually.

 

The move comes shortly after FDA announced a ban on flavoured e-cigarettes.

 

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