Briefs: Ama­zon takes aim at YouTube; Sta­ples backs away from its $6.3 bil­lion bid for Of­fice De­pot

Bloomberg Businessweek (Asia) - - CONTENTS - By Karen Weise

Royal Dutch Shell, Cono­coPhillips, and other oil giants have aban­doned more than $2.5 bil­lion in Arc­tic drilling leases. They ini­tially bought the claims at U.S. govern­ment auc­tions, bet­ting the re­gion would hold the next big oil dis­cov­ery. The sharp de­cline in oil prices com­bined with the high cost of work­ing in the area have made their prospects un­prof­itable. Ama­ will let peo­ple post videos to its web­site and earn money from ad­ver­tis­ing, royalties, and other sources, pit­ting it against Google’s YouTube. Ama­zon has long let au­thors self-pub­lish e-books. Part­ners for the video ser­vice in­clude Condé Nast En­ter­tain­ment, HowStuffWo­rks, and Sa­muel Gold­wyn Films. Sta­ples called off its pro­posed $6.3 bil­lion ac­qui­si­tion of Of­fice De­pot af­ter a fed­eral judge said unit­ing the two big­gest U.S. of­fice sup­pli­ers would hurt com­pe­ti­tion for busi­ness cus­tomers. In block­ing the deal, U.S. Dis­trict Judge Em­met Sul­li­van handed a vic­tory to the Fed­eral Trade Com­mis­sion, which ar­gued that the merged com­pany would re­sult in higher prices for com­pa­nies buy­ing sup­plies in bulk. Shares in Gap plunged 13 per­cent on May 10 af­ter the re­tailer posted dis­ap­point­ing same-store sales, a sign that a long-promised come­back hasn’t ma­te­ri­al­ized. Re­naud La­planche, CEO of Lend­ingClub, re­signed from the on­line lender af­ter an in­ter­nal re­view found abuses tied to the sale of loans and a fail­ure to dis­close his per­sonal in­ter­est in an in­vest­ment fund. The U.S. Se­cu­ri­ties and Ex­change Com­mis­sion’s en­force­ment unit is re­view­ing the mat­ter.

“We still think that the sub­scrip­tion chan­nel model is go­ing to dom­i­nate the mar­ket­place for cer­tainly the next five years.”

—Robert Iger, Walt Dis­ney, on a May 10 earn­ings call

JAB Hold­ings plans to take Krispy Kreme Dough­nuts pri­vate in a $1.35 bil­lion deal. JAB has been buy­ing up cof­fee hold­ings, such as Stump­town Cof­fee Roast­ers and Keurig.

CEO Wis­dom

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