ROW SALE: Global Eagle Acquisition Corp. is purchasing in-flight Wi-Fi provider Row 44 Inc. in a $430 million deal that will pair it with a German company that provides entertainment content to air travelers. Global Eagle in Los Angeles is buying all of Westlake Village-based Row 44, and taking an 86 percent stake of Advanced Inflight Alliance AG in Munich. Global Eagle licenses movies, games and TV shows to airlines. Row 44 provides Wi-Fi services to about 400 aircraft flown by a handful of airlines, including Southwest.
TAX MEASURES: California voters approved Proposition 30, Gov. Jerry Brown’s tax initiative, which would raise income taxes on wealthy earners and hike the statewide sales tax by a quarter-cent. It is expected to raise about $6 billion a year for the state budget. But voters rejected another tax measure, Proposition 38, which would have raised billions of dollars a year for public schools. That initiative, which would have raised income taxes on most Californians based on a sliding scale, was bankrolled by wealthy civil rights attorney Molly Munger, daughter of L.A. financier Charlie Munger.
PROP DEFEATED: California voters defeated Proposition 32, which would have prohibited unions from spending members’ dues, typically collected through paycheck deductions, for political activities. The measure, backed by business and Republican interests, also would have applied to corporations, but was not expected to have the same impact since businesses typically do not take such payroll deductions from their employees.
SODA TAX: El Monte voters overwhelmingly defeated a tax measure that would have imposed a 1-cent-per-ounce charge on sodas and other sugar-sweetened beverages. Opponents, including local business owners, residents and the beverage industry, argued that Measure H would hurt business and drive customers to neighboring communities.
AEROSPACE LAYOFFS: Pratt & Whitney Rocketdyne last week laid off 100 workers, most of them from its Canoga Park facility, as the aerospace contractor seeks to cut costs in the face of declining government spending on space programs. The facility employed about 1,100 people. Layoffs have been anticipated at the rocket engine maker, which is in the process of being sold for $550 million to GenCorp Inc. in Sacramento.
TEMPORARY HOME?: The Long Beach Board of Harbor Commissioners has approved the $14.3 million purchase of a 176,000-square-foot building at 4801 Airport Plaza Drive for the Port of Long Beach administration’s move. The former Boeing Co. office building, near the Long Beach Municipal Airport, is designed to be a temporary headquarters for the port until a facility closer to the waterfront can be obtained. It replaces a 1950s-era building that is not up to current earthquake codes.
CABLE DEAL: After a multiweek standoff, Cox Cable reached an agreement to carry the new local TV home for the Los Angeles Lakers, Time Warner Cable’s SportsNet channel. The deal includes SportsNet and a Spanish-language version, called Deportes. Time Warner is still negotiating with satellite broadcasters DirecTV and Dish Network to carry the local channel.
OXY ADDITION? L.A.’s Occidental Petroleum Corp. reportedly is among oil companies vying for Yates Petroleum Corp., a New Mexico company that is one of the nation’s largest private oil companies. Sources told the Wall Street Journal that bids were due by the end of last week for the company, which is expected to fetch between $2 billion and $3 billion.
DOLE DEAL: The Federal Trade Commission has signaled it will not block Dole Food Co. Inc.’s pending $1.7 billion sale of its global packaged fresh food and Asia fresh food units to Itochu Corp. Westlake Village-based Dole, the world’s largest fruit and vegetable producer, wants to sell its Dole Packaged Foods LLC and Dole Asia Holdings Pte Lit. to Itochu in Tokyo.
DREAMLINER ARRIVES: The first Boeing 787 Dreamliner, flown by United Airlines and filled with paying passengers, landed at Los Angeles International Airport last week. Boeing Co. in Chicago lauds the aircraft as being not only more comfortable for passengers but a money-saver for airlines because its new airframe should make it more fuel efficient. The United version of the Dreamliner offers 36 seats in business class and 183 in coach.
EARNINGS: Walt Disney Co. reported fiscal fourth quarter net income of $1.24 billion, up 14 percent from the same period a year earlier. Revenue for the Burbank-based media company rose 14 percent to $1.2 billion. … Lions Gate Entertainment Corp. reported fiscal second quarter net income of $75.5 million compared with a net loss of $25.3 million in the same period a year earlier. Revenue for the Santa Monica film and television studio rose 97 percent to nearly $707 million. … DirecTV reported third quarter net income of $565 million, up 7.5 percent. Revenue for the El Segundo satellite TV provider rose 8 percent to $7.4 billion. … Manhattan Bancorp reported third quarter net income of $2.6 million, compared with a net loss of $967,000 in the same period a year earlier. Interest income rose 36 percent to $4.7 million, with noninterest income up 579 percent to $12.7 million. … Live Nation Entertainment Inc. reported third quarter net income of $57.9 million, up 12 percent. Revenue for the Beverly Hills event and artist promoter rose 10 percent to $1.96 billion.
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