Tuesday headlines include: eBay spinning off PayPal, News Corp. buying Move, Walmart saying Tracy Morgan is partially to blame for injuries sustained in an accident, the SEC fines Bank of America for capital calculation problems and Apple's new iPhone will go on sale in China on October 17.
Online marketplace eBay (EBAY) announced Tuesday that it will spin its PayPal unit into a separate company. The move will see the payment processor become a separate, publically traded company. Spinning off PayPal has been a demand of activist investor Carl Icahn for a while. John Donahoe, the company's current CEO will step down after the separation, but will likely stay on the board of at least one of the companies.
News Corp. (NWSA) said Tuesday that it plans to buy Move (MOVE) for $950 million, or $21 per share. That is a 37 percent premium to the online real estate listing company's Monday closing price. REA Group, an Australian firm that is 61.6 percent owned by News corp. will take a 20 percent stake in Move for about $200 million.
A Monday court filing made by Walmart (WMT) says that comedian Tracy Morgan and the other passengers in a limousine that was hit by a Walmart truck in June are partly at fault for their injuries because they were not wearing seatbelts. Morgan and the other plaintiffs, including the family of James McNair, are seeking a jury trial and punitive and compensatory damages.
Bank of America
The Securities and Exchange Commission finished its probe of a $4 billion capital error made by Bank of America (BAC) earlier this year. Regulators blamed the bank for poor record keeping and internal controls and fined it $7.65 million. The SEC credited the company for finding the error on its own and for cooperating with the investigation.
The new iPhone 6 and 6 Plus will go on sale in China on October 17. Much of the world will be able to get Apple's (AAPL) newest phone on Sept. 19, but licensing hurdles are delaying the start of sales in mainland China.