Hedgefund News Wrap: Week Ending 02/18/2016

IBM MAKES $2.6 BILLION DEAL

(Bloomberg Business) – IBM released news that it will acquire Truven Health Analytics for a whopping $2.6 billion in an effort to grow its Watson Health business.

Interestingly, this is the fourth health data-related acquisition that IBM has completed in the less than a year. The purchase of Truven’s cloud-based data repository grants IBM with access to 2,500 employees and 8,500 clients, including U.S. federal and state government agencies. Overall, the Watson Health business now has health-related data on approximately 300 million patient lives, mostly in the U.S.

IBM is very familiar with partnerships these days, including Apple, Medtronic, Johnson & Johnson and CVS Health, amongst others.

Read the entire article at Bloomberg Business
More coverage: New York Times and Tech Crunch

MOVE OVER DISH, NETFLIX AND HULU ARE TAKING OVER

(Nasdaq) – More and more households are divorcing $100+ monthly payments for cable and shacking up with cheaper subscription services like Netflix and Hulu to get their TV fix.

DISH Network Corp. reported a decline in fiscal 2015 profit, hurt by expenses, a drop in pay-TV subscribers and a wireless airwaves auction-related expense. The second largest U.S. satellite TV provider said net income attributable to the company fell about 21 percent from a year ago to $747.1 million, $1.61 per share. That comes in short of the average analyst estimate of $1.97 per share, according to Thomson Reuters.

While revenue grew about 3 percent, 2016 will be a huge year for cable providers in a race to keep their customers from jumping to cheaper alternatives.

Read the entire article at Nasdaq
More coverage: Bloomberg Business and Reuters

WALMART LEFT IN THE DUST 

(The New York Times) – The giant discount retailer, WalMart, has released that 4th quarter profit fell almost eight percent, as Amazon tests drones to take over even more of the consumer pie.

They reported earning $4.57 billion, or $1.43 per share in the three-month period that ended January 31, compared to $4.97 billion, or $1.53 per share, in the same period one year ago. At the same time, “Wally World” announced last month that 269 stores are closing, affecting 16,000 workers.

“This past year has been a year of investment, operational improvement and change, even while we delivered solid growth,” said Doug McMillon, Walmart’s president and chief executive. “We do see an underlying strength in our Walmart U.S. business that wasn’t there a year ago.”

Read the entire article at The New York Times
More coverage: CBS News