Monday, April 15, 2013

Morning Brief: Google reaches deal with European regulators; Dish Network bids on Sprint Nextel; Greece reaches deal with European lenders, confirms job losses

The New York Times reported yesterday that Google had reached a deal with European regulators in which the search giant will have to "clarly label search results from it own properties. The changes will effect results for shopping and flights, where competitors claimed that Google's search results favored their own results to the detriment of competitors such as Yelp of TripAdvisor.

Dish Network has reportedly bid on Sprint Nextel. Dish is said to be offering a cash and stock deal worth $25.2 billion. The bid is an attempt to defeat Softbank's efforts to acquire the carrier.

"The DISH proposal clearly presents Sprint shareholders with a superior alternative to the pending SoftBank proposal," said Charlie Ergen, Chairman of DISH Network in a statement on the bid. "Sprint shareholders will benefit from a higher price with more cash while also creating the opportunity to participate more meaningfully in a combined DISH/Sprint with a significantly-enhanced strategic position and substantial synergies that are not attainable through the pending SoftBank proposal."

Greece, too, has reached a deal, but at tremendous cost. Today Finance Minister Yannis Stournaras said that a deal has been struck with the troika – the European Commission, the European Central Bank and the International Monetary Fund – which sets the requirements that must be met by the Greek government to continue to receive bailout funding.

"Fiscal performance is on track to meet the program targets, and the government is committed to fully implement all agreed fiscal measures for 2013-2014 that are not yet in place," the government said in a statement. Reaching the agreement means the release of €2.8 billion in funds, along with €7.2 billion for the recapitalization of Greek banks.

Greek Prime Minister Antonis Samaras confirmed that by the end of next year 15,000 state positions will be eliminated, with 4,000 to go this year. Overall, one-fifth of all state employment will be eliminated by the agreement, some 150,000 jobs in total by 2015.