KKR nears $4 billion deal for Broadcom unit
Amazon joins Dow Jones Industrial Average index
Amazon.com is joining the ranks of one of Wall Street's oldest and most exclusive stock indexes: The Dow Jones Industrial Average.
The e-commerce pioneer will officially take its position among the 30-company Dow before the open of trading Monday, replacing drugstore operator Walgreens Boots Alliance.
S&P Dow Jones Indices opened the door to Amazon's inclusion in the Dow and Walgreens' exit to rebalance the index in light of a 3-for-1 stock split by another Dow company, Walmart.
Seattle-based Amazon will share membership in the Dow with the likes of Apple, Boeing, JPMorgan Chase and Coca-Cola.
It's a measure of 30 stocks of established, well-known companies. These stocks are sometimes known as “blue chips,” which are supposed to be on the steadier and safer side of Wall Street.
The roster has changed many times since the Dow began in May 1896 as the U.S. economy has transformed. Out, for example, was Standard Rope & Twine, and in recently have been big technology companies.
Apple, Intel and Microsoft are some of the newereconomy names currently in the Dow. Before Amazon, the most recent additions to the Dow were Salesforce. com, Amgen and Honeywell International in August 2020. They replaced Exxon Mobil, Pfizer and Raytheon Technologies, now known as RTX.
AT&T customers getting a $5B credit for outage
AT&T customers will receive a billing credit after a widespread outage of its wireless network interrupted service for hundreds of thousands of subscribers, the company said Sunday.
Customers will get a $5 credit on their wireless accounts, the average cost of a full day of service, according to the telecommunication company's website. The cost of reimbursing customers is “fully manageable while achieving the 2024 business objective we have set for ourselves and our stated financial guidance,” John Stankey, AT&T's chief executive officer, wrote in a letter to employees on Sunday.
The disruption occurred because of “an incorrect process” while AT&T was expanding its wireless network. The outage lasted from the early hours of Thursday morning New York time to the afternoon.
“Every AT&T customer deserves a connectivity experience they can feel confident in and that's exactly what we're going to deliver,” Stankey said in his letter.
KKR & Co. is nearing a deal worth about $4 billion to buy a software business from Broadcom Inc., according to people with knowledge of the matter.
The acquisition could be announced as soon as Monday, said the people, who asked not to be identified because the details haven't been made public.
Broadcom is selling its so-called end-user computer unit, which it inherited as part of its $61 billion acquisition of software maker VMware Inc. in 2023. The business provides software enabling users to access desktops and applications remotely.
A representative for KKR declined to comment. Broadcom didn't immediately respond to a request for comment. Reuters reported the companies were nearing an agreement earlier.
San Jose-based Broadcom has outlined plans to divest a second VMware asset it deemed as non-core. The other is a security software business called Carbon Black, which Bloomberg News reported could be valued at about $1 billion including debt. Broadcom completed its takeover of VMware in November.
Compiled from Associated Press and Bloomberg reports.