In the news this morning, Bank of America agrees to a settlement with Fannie Mae, Nvidia plans to announce a new handheld video game console, Hostess is in talks to sell its bread brands, Retalix shareholders approve the company's acquisition by NCR and Netflix signs a deal with Warner Brothers television.
Bank of America
Bank of America (BAC) will pay $3.6 billion to Fannie Mae in connection with claims related to residential mortgage loans for the nine years that ended at the close of 2008. The bank will also repurchase $6.75 billion of residential mortgage loans from Fannie Mae. The settlement will reduce the bank's fourth-quarter income by about $2.7 billion. Bank of America also said it plans to sell about $306 billion in residential mortgage servicing rights to Nationstar Mortgage Holdings and Walter Investment Management.
Chipmaker Nvidia (NVDA) will announce plans to make a handheld video game console at the Consumer Electronics Show in Las Vegas. The console features a 5-inch touch screen and controls that include joysticks and buttons. The console uses the company's new Tegra 4 processor, runs Google's (GOOG) Android operating system and is designed to connect with PCs.
Bankrupt Hostess Brands is in talks to sell its bread business according to the Wall Street Journal. The Journal reports that hostess is in talks with Flowers Foods (FLO) and Grupo Bimbo SAB over the sale of its bread brands, which include Nature's Price for as much as $350 million.
Shareholders of Retalix (RTLX) approved a $30 per share acquisition of the company by NCR Corp. (NCR). The deal still needs to be approved by regulators and cannot become effective until at least 30 days after shareholder approval according to Israeli law.
Netflix (NFLX) signed a deal with Warner Bros. Television Group, which is a unit of Time Warner (TWX). The deal will allow Netflix subscribers to access prior seasons of some Warner Brothers television shows, including “Revolution,” “Longmire” and “The Following” as well as other shows and possibly future shows.