How Fox’s burden got even lighter
Fox News’ payment of $787.5 million to settle widespread defamation claims by Dominion Voting Systems, including the size of the amount, is still controversial.
But more evidence suggests that the eye-popping numbers that the Dominion and its owners still claim as victories may not be as high for Rupert Murdoch’s media empire as it seems. Fox shares have moved little since the deal was announced on Tuesday.
Fox will receive a tax deduction from the settlement. lever news coverageUS tax law allows companies to write off at least a portion of settlement fees as part of the cost of doing business. (There are some exceptions, such as those involving allegations of sexual harassment or abuse under non-disclosure agreements. Fox News has paid settlements involving them in the past.)
It’s unclear how much Fox will save, but a spokesperson confirmed the tax credits are valid. Lever News estimates the company could benefit from tax savings of up to $213 million.
That’s likely to infuriate Fox’s critics even more. We already thought Murdoch and his company had done better than expected. Considering you don’t have to suffer embarrassing public testimony by stars like Murdoch or Tucker Carlson.
In fact, according to media commentator Brian Stelter, Donald Trump — unsubstantiated allegations of election fraud related to the Dominion lawsuit — Appeared on Fox News next week.
The Dominion owner still claims he is injured. Staple Street Capital, which bought a majority stake in a voting machine maker for just $38.3 million in 2018, Amazing 1,500% return in that transaction. But while Dominion may be in a position to win new business now that Fox News has admitted to airing some false claims against it, Staple Street executives said the company still ” caused irreparable damage” According to circumstances.
That said, Dominion didn’t end in a legal battle. It’s suing other people who have accused it of election fraud, including news outlet Newsmax and his MyPillow founder Mike Lindell.
How the Settlement Worked: both Washington Post and wall street journal Jerry Roscoe was the mediator and at the 11th hour negotiated a settlement that seemed impossible for months. Mr. Roscoe had about 50 conversations with Fox and Dominion representatives by his count. All of it took place while on vacation in Romania and included conversations that took place while on buses and boats.
“Everyone on the tour bus wondered why this obnoxious man was always calling,” he told the Journal.
this is what is happening
Tesla’s stock price is plunging amid price cuts. The electric car maker’s shares are down more than 7% in premarket trading after reporting first-quarter earnings that fell 24% year-on-year. The culprit was a price-cutting campaign to protect market share against surging competitors, but Elon Musk noted that Tesla’s price margins remain among the best in the industry.
Janet Yellen is expected to warn China about “unfair” economic policies. In Thursday’s speech, the Treasury secretary stands poised to seek a “constructive and fair” economic relationship with China. But while Yellen aims to mend strained relations with Beijing, perhaps saying Washington isn’t trying to stifle China’s growth, she could reiterate US concerns about security. Highly sexual
The US economy is generally stable. data from Fed’s Latest Beige Book A survey released Wednesday showed that economic activity did not change much after the Silicon Valley Bank collapse, but price inflation eased slightly. It suggests not deviating from the interest rate policy.
Microsoft plans to remove Twitter as an advertising platform. The tech giant says Microsoft Advertising users Manage your Twitter account Starting next week via the service, citing that the price for using the social network’s API, the technological gateway to content, has been significantly increased.
An abortion drug maker has sued the FDA to protect access to the drug. GenBioPro, which manufactures a generic version of mifepristone, is trying to keep the agency from complying with an upcoming court order seeking to withdraw mifepristone from the market. has extended the moratorium on a lower court ruling restricting access to mifepristone to Fridays.
The clock ticks on the debt arrangement
House Republicans Want Vote next week at the earliest On Chairman Kevin McCarthy’s Debt Consolidation Plan. The proposal, announced Wednesday, would raise the borrowing limit by $1.5 trillion or suspend it until March, pushing the so-called X-date, which runs out of money for the government to pay the bills, into the middle of the presidential primary. may push up. season.
The market is watching McCarthy’s disappointing bills. Wall Street experts say the stock market has plunged and borrowing costs have plummeted on fears that the country will default on a multi-month debt ceiling battle between the Republican-controlled House of Representatives and the Obama administration. I vividly remember 2011 when .
The 2023 version of this battle is played out against the backdrop of a smoldering banking crisis, growing recession fears and extremely high inflation. “This year’s debt ceiling battle could increase the impact of the slowdown and even hasten the timing of the recession,” he said. Lauren GoodwinDirector of Portfolio Strategy at New York Life Investments.
What’s on your bill? Keep discretionary spending at fiscal 2022 levels, add conditions to aid programs like food stamps, and recoup funds for high-profile Democratic-backed initiatives like boosting the IRS Enforcement Fund and student loan forgiveness. increase. Unsurprisingly, the bill is considered void once it reaches the Democratic-controlled Senate.
Democrats are betting on Republican chaos. “House Republicans are in a mess and don’t have a unified agenda,” Rep. Brendan F. Boyle, a Democrat from Pennsylvania and an influential member of the House Budget Committee, told DealBook. But McCarthy’s bill is now in the works, as is the compromise framework introduced by the bipartisan party on Wednesday. problem solver caucus — and with debt ceiling deadlines approaching, Democrats may find themselves forced to compromise.
How far ahead is the X-date? If no agreement is reached, they will come As early as early June, researchers at Goldman Sachs calculated this week after reviewing “weak tax collections so far in April.” (The X-date target, which was supposed to hit August just a week ago, could change again as more tax collection data…but even there, Goldman researchers remain skeptical. Researchers Alec Phillips and Tim Krupa said, “Vote twice to raise the debt limit is harder than vote once.
Based on the current distances between parties, a single vote would be tough enough.
“He never said to me, ‘I have to prepare my children for my succession.'”
— Sydney ToledanoAmidst questions about which of the French billionaire’s children would take over as chief executive of luxury goods conglomerate LVMH, he mentioned Bernard Arnault, the former president of Christian Dior.
Fashion is outdated by EU regulators
Between glossy runway shows and dressed-up stars on the red carpet, Gucci is a company accustomed to the glare of the spotlight. But that caution may have felt uncomfortable after its Italian offices were raided by European Union antitrust officials this week.
Unannounced inspections were the latest in a series of regulatory actionsThe Times’ Elizabeth Peyton writes for DealBook as antitrust authorities step up scrutiny of the fashion industry for possible anticompetitive conduct.
In March, the European Commission, the bloc’s enforcement agency, conducted an investigation into several beauty and fragrance companies related to the supply of fragrance ingredients.
Last year, several fashion houses were raided in connection with sustainability goals set by the industry. This included changing the sales period and discounting strategies, which regulators later deemed potentially violating competition laws.
Pierre Cardin and German apparel company Ahlers faced scrutiny For licensing and distribution transactions that may have violated cross-border sales rules.
It was after a period of “relative calm” that it gained more attention. Law firm Greenberg Traurig said: in a noteThe raid underscores the European Commission’s increased focus on enforcement in the fashion sector after the coronavirus pandemic, “making sure it does not violate EU antitrust and anticompetition regulations.” The company added that it urged companies to review their business practices in order to
Gucci’s parent company Kering said it was ‘collaborating’ with regulators on Wednesday.Committee said in a statement The day before, it was investigating the activities of several fashion companies based in multiple member countries, and sent requests for information to other private brands as well.
“The European Commission is concerned that the companies involved may have violated EU antitrust rules banning cartels and restrictive business practices, including certain horizontal and vertical restrictions. .
Penalties for companies can include fines of up to 10% of global turnover.
speed lead
bargain
policy
-
Julie Hsu, who was nominated by President Biden as secretary of labor, has been in that role since March. face an uphill battle at a Senate confirmation hearing on Thursday. (CNN)
-
european parliament this morning Approved Comprehensive Cryptocurrency Law It controls transactions and anti-money laundering, making the EU its first major market. (coin desk)
-
Microsoft and Apple are among the tech companies lobbying. narrow the range Senate bill that could ban TikTok in the US (Bloomberg)
best of the rest
We appreciate your feedback. Please email your comments and suggestions to dealbook@nytimes.com.
