Netflix Inc. experienced its strongest beginning to a year since 2020, surpassing expectations by attracting a higher number of new subscribers. This was attributed to a robust lineup of original content and measures taken to address password sharing. According to a statement released on Thursday, the company added 9.33 million customers in the first quarter of 2024, nearly doubling the average analysts’ estimate of 4.84 million. Netflix’s customer growth spanned across global markets, with notable strength observed in the US and Canada.

These new subscriptions contributed to the company exceeding forecasts for both revenue and earnings. Despite the growth, Netflix shares were down 4.6 percent to $582.70 at 6:03 p.m. New York time. They were up 25 percent this year through the close of regular trading Thursday.

Expectations for Netflix’s first quarter had soared in recent days, as one analyst after another published rosy forecasts. In its letter to investors Thursday, the company said subscriber gains will be lower this period, while revenue will increase 16 percent. Netflix also said it will stop reporting paid quarterly membership and revenue per subscriber, starting with the first quarter of 2025. Those metrics have long been the primary way Wall Street evaluated the company’s performance, but Netflix has tried to shift the focus to traditional measures like sales and profit. Management will continue to report major subscriber milestones.

“The movement to no longer disclose quarterly subscriptions from next year will not go down well,” Paolo Pescatore, founder and analyst at PP Foresight, said in an email. “More so given the subscriber growth that the streaming king has seen over the last year.”

Netflix has rebounded from a slowdown in 2021 and 2022 to grow at its fastest rate since the early days of the coronavirus pandemic. That is due in large part to its crackdown on people who were using someone else’s account. The company estimated more than 100 million people were using an account for which they didn’t pay. While executives at Netflix feared a backlash from customers, the company has been able to convince millions of moochers to pay for access.

Those new customers have had plenty to watch. Netflix has delivered a new hit every couple of weeks so far this year, including limited series such as “Fool Me Once” and “Griselda,” the dramas “The Gentleman” and “3 Body Problem,” and the reality show “Love Is Blind.” The streaming service accounts for about 8 percent of TV viewing in the US — and is a leading TV network in most of the world’s major media markets.

“With more than two people per household on average, we have an audience of over half a billion people,” the company said in its letter. “No entertainment company has ever programmed at this scale and with this ambition before.” The recent growth has lifted Netflix shares back toward record highs, giving the company a market value of more than $260 billion. It set an all-time closing high of $691.69 in November 2021.

Some analysts worry that Netflix is once again trading at a valuation that far exceeds the fundamentals of the business. The company delivered sales of $9.33 billion, rising 15 percent and beating estimates of $9.26 billion. Net income grew to $2.33 billion, or $5.28 a share, also above projections. Those figures are below companies with smaller market values, the boost from the crackdown on account sharing is temporary, and Netflix executives have been reluctant to put a firm timetable on when that growth would stop.

Yet even skeptical analysts have been impressed with the company’s recent performance, lifting their price targets for investors. To sustain its growth going forward, Netflix has also introduced a cheaper, advertising-supported version of its service targeting cost-conscious customers. It’s also begun to invest in live programming, including stand-up specials, wrestling, and an upcoming boxing match.

About 40 percent of Netflix’s new customers are selecting the advertising option in markets where it’s available, the company said.

Sony Pictures Entertainment and Apollo Global Management are discussing making a joint bid for Paramount Global, according to a person familiar with the matter. The companies have yet to approach Paramount, which is in exclusive deal talks with Skydance Media, an independent studio led by David Ellison, though some investors have urged Paramount to explore other options. The competing bid, which is still being structured, would offer cash for all outstanding Paramount shares and take the company private, the source said.

Sony would hold a majority stake in the joint venture and operate the media company, and its library of films, including such classics as “Star Trek,” “Mission: Impossible” and “Indiana Jones,” and television characters like SpongeBob SquarePants, according to the source. Sony Pictures Entertainment Chairman Tony Vinciquerra, a veteran media executive with deep experience in film and television, would likely run the studio and take advantage of Sony’s marketing and distribution.

Apollo would likely assume control of the CBS broadcast network and its local television stations because of restrictions on foreign ownership of broadcast stations, the source said. Sony’s parent corporation is headquartered in Tokyo. The Sony-Apollo discussions. Paramount and Sony declined comment. Apollo could not be reached for comment.

The private equity firm previously made a $26 billion offer to buy Paramount Global, whose enterprise value at the end of 2023 was about $22.5 billion. A special committee of Paramount’s board elected to continue with its advanced deal talks with Skydance, rather than chase a deal “that might not actually come to fruition,” said two people with knowledge of the board’s action. The board committee is evaluating the possible acquisition of the smaller independent studio in a stock deal worth $4 billion to $5 billion. Skydance is negotiating separately to acquire National Amusements, a company that holds the Redstone family’s controlling interest in Paramount, according to a person familiar with the deal terms. That transaction is contingent upon a Skydance-Paramount merger.

IT major Infosys announced its acquisition of in-tech, a prominent engineering R&D services provider specializing in the German automotive industry, on Thursday in an exchange filing. This 450 million euro acquisition will help the IT company expand its footprint in Europe. The acquisition is expected to be wrapped up in the first half of the financial year 2025, subject to customary closing conditions and regulatory approvals, the company said. Infosys has already received approvals from regulatory authorities in Germany, Romania, Austria, India, and “such other regulatory approvals as may be required”.

Headquartered in Germany, in-tech is one of the fastest-growing engineering R&D services providers, playing a pivotal role in driving digitization across the automotive, rail transport, and smart industry sectors. The company focuses on areas such as e-mobility, connected and autonomous driving, electric vehicles (EVs), off-road vehicles, and railroad solutions. The German firm offers a comprehensive suite of services, including system design, methodical consulting, advanced electronics platform development, and validation of automotive-specific software and hardware systems.

“Together with in-tech, Infosys Topaz, an AI-first set of services, solutions, and platforms, and recently acquired InSemi’ semiconductor’s expertise, we have successfully created deeper capabilities for the next phase of automotive innovation in the arena of software-defined vehicles. We are excited to welcome in-tech and its leadership team into the Infosys family,” said Dinesh Rao, executive vice president, and co-delivery head at Infosys.

“Together we now cover the entire end-to-end process, a step that is crucial to fully meet our customers’ needs. With access to more talent and expertise, we gain incredible strength and scale in our delivery capability, enabling us to successfully implement even more ambitious projects,” added Tobias Wagner, CEO of in-tech.

Infosys also reported its results for the financial year 2023-24 (FY24) on Thursday. Infosys reported a net profit increase of 8.9 percent to Rs 26,233 crore from Rs 24,095 crore recorded at the end of FY23 and its annual income from operations went up by 4.7 percent to Rs 1,53,670 crore in FY24 from Rs 1,46,767 crore in FY23.

With investor confidence in the Indian market continuing to grow on the back of a resilient consumer base, stabilizing economic indicators, manageable inflation, and healthy industrial growth, the first quarter of calendar year 2024 (January-March) witnessed increased deal activity in the consumer and retail space with 102 deals at USD 1,748 million. This reflects a positive outlook and indicates that opportunities for investment are ripe, particularly in the food and beverages, FMCG, retail, and digital growth sectors, as shown by the Grant Thornton Bharat Consumer and Retail Dealtracker report.

However, the consumer industry reported a decline in M&A activity compared to Q4 2023 with volumes declining to 14 deals from 17 deals in Q4 2023. This is potentially an outcome of the impending elections leading the businesses to adopt a cautious approach, coupled with sluggishness in consumer spending, leading to slow revenue growth. Mergers and acquisitions activity saw 14 deals at USD 925 million. While M&A volumes declined, values shot up by 196 per cent, whereas a contrasting trend was witnessed in the private equity space where values declined by 66 per cent.

Domestic deals led the sector activity both in terms of deal volumes and values driven by Tata group’s acquisitions of Organic India and Capital Foods collectively valuing USD 843 million. The PE space saw 88 deals at USD 823 million, with activity marking the highest volumes since Q3 2022 while values took a hit. The Q1 2024 period witnessed 2 IPOs valued at USD 105 million and muted QIP activity compared to 8 IPOs and 2 QIPs in Q4 2023.

Softening global commodity prices, easing economic pressures (including manageable inflation of around 5-6 per cent and positive industrial growth of 3.8 per cent) had a positive impact on the industry. This, coupled with a thriving consumer industry, is creating fertile ground for a resurgence of PE deals targeting Indian consumer businesses. As a result, investor optimism is also returning to the Indian M&A and PE landscape. Investors are also attracted to established brands and innovative startups catering to the growing demand for healthy snack options.

The retail sector recorded the highest quarterly volumes since Q3 2022 with a marginal increase in values by 6 per cent over the previous quarter, and M&A contributed a majority share of 53 per cent of the overall deal values. Overall, Q1 2024 witnessed only two high-value deals of USD 100 million, valued at USD 843 million, as compared to four high-value deals valued at USD 1,215 million in Q4 2023 covering both M&A as well as PE. These four deals contributed to 74 per cent of the overall values in the last quarter.

In M&A activity, while the inbound section stayed muted, Indian companies remained relatively active making outbound acquisitions in the US and France, particularly in the food processing segment. While PE activity recorded the highest quarterly volumes since Q3 2022 with 88 deals valued at USD 823 million, volumes increased by only 16 per cent and values declined by 66 per cent over the previous quarter. This was due to an increased number of small ticket transactions in the quarter. The small value deals of USD 7 million contributed to 52 per cent of PE deal volumes. Late-stage companies raising their Series B rounds or above contributed significantly to the deal activity.

Toshiba Corp., according to a report from Nikkei, is embarking on a significant restructuring endeavor, aiming to slash approximately 5,000 jobs, representing about 10% of its workforce in Japan. This strategic move reflects a shifting attitude towards layoffs in a nation historically resistant to such measures due to stringent labor regulations and cultural norms, juxtaposed against the backdrop of persistent labor shortages.

This initiative could mark one of the most substantial rounds of job reductions witnessed in Japan this year. The Tokyo-headquartered conglomerate intends to streamline its operations by downsizing non-core business segments, incurring a substantial one-time cost estimated at around ¥100 billion ($650 million). However, the source of this information remains undisclosed.

Traditionally, layoffs have been infrequent in Japan, given the stringent worker protection laws in place. Yet, the landscape is evolving as esteemed Japanese corporations increasingly resort to staff reduction measures amid an unprecedented labor crunch. Factors such as widespread union negotiations securing across-the-board pay hikes, heightened labor mobility, and a growing trend of employing foreign workers across various industries have contributed to this paradigm shift. Notable companies like Shiseido Co., Omron Corp., and Konica Minolta Inc. have recently announced plans for workforce downsizing.

Toshiba, once hailed as one of Japan’s foremost employers, has been actively seeking cost-cutting measures and realignment of its focus towards infrastructure and digital technology sectors. Post its delisting in December, Toshiba predominantly pursued divestitures and sought potential buyers for subsidiaries. While the company is currently formulating its midterm strategy, concrete decisions are yet to be finalized, as confirmed by a company spokesperson via email.

A stalwart in the realms of DRAM and NAND memory, laptops, and consumer appliances like rice cookers, Toshiba has grappled with a tumultuous past characterized by management blunders and corporate scandals. The repercussions of falsified financial statements in 2015 resulted in the company facing the largest penalty ever imposed in Japan’s corporate history. Moreover, Toshiba was compelled to offload its prized possession, the memory-chip business under Kioxia Holdings Corp., to offset losses stemming from an ill-fated expansion into the nuclear sector.

With the aim to turn over a new leaf in its 149-year legacy, Toshiba has been endeavoring to conclude a protracted $15 billion buyout deal. Privatization, as articulated by company executives, presents an opportunity for Toshiba to recalibrate and regain its competitive edge in the market. Beyond its renowned expertise in nuclear turbines, Toshiba has also made significant strides in cutting-edge technologies such as batteries and quantum computing. As part of its restructuring efforts, the company is poised to extend severance packages to eligible employees, as reported by Nikkei.

In essence, Toshiba’s decision to embark on a sizable workforce reduction underscores the evolving dynamics within Japan’s corporate landscape, where long-held taboos surrounding layoffs are gradually dissipating amid shifting economic realities and imperatives for sustainable growth.

Micron Technology Inc., the leading US manufacturer of computer-memory chips, is positioned to receive $6.1 billion in grants from the Commerce Department to support domestic factory projects, as part of an initiative to reestablish semiconductor production in the United States. While the award is still pending finalization, individuals familiar with the matter anticipate its announcement next week. Additionally, Micron, alongside Intel Corp. and Taiwan Semiconductor Manufacturing Co., is expected to accept loans as part of its award package.

However, the exact value of these loans is currently unknown. Micron shares gained as much as 2.6 per cent in late trading after Bloomberg reported on the planned award. The stock was already up 36 per cent this year through Wednesday’s close. President Joe Biden is scheduled to travel on April 25 to the Syracuse, New York, region as part of the announcement, the people said. Micron, based in Boise, Idaho, is building factories near Syracuse, as well as in its home state. Representatives for Micron, the Commerce Department and the White House declined to comment.

The 2022 Chips and Science Act set aside $39 billion for direct grants, as well as loans and loan guarantees worth $75 billion, to revitalize American chipmaking after decades of production shifting to Asia. Officials have unveiled six preliminary awards so far: three to firms that produce older-generation semiconductors, plus multibillion dollar packages for Intel, TSMC and South Korea’s Samsung Electronics Co. Commerce Secretary Gina Raimondo has said the agency plans to spend about $28 billion of the grant funding on leading edge projects.

After the preliminary agreement is announced, Micron would enter months of due diligence and then receive the money in tranches tied to project-specific benchmarks. Micron has pledged to build as many as four factories in New York state, plus one in Idaho. But those plans “require Micron to receive the combination of sufficient Chips grants, investment tax credits and local incentives to address the cost difference compared to overseas expansion,” Chief Executive Officer Sanjay Mehrotra said last month.

The company is proceeding with projects in China, India and Japan as well. Raimondo has said that her agency will prioritize funding projects that begin production by the end of the decade. Two of Micron’s four New York sites are on track to meet that benchmark, while the other two won’t be operational until 2041, the company said in a recent federal filing. That means that Micron’s award is likely to support only the first two New York facilities, people familiar with the matter said earlier. Computer memory and storage chips are a vital part of everything from smartphones to the biggest data centers, where they store information and help advanced logic process information. Production is primarily done in Asia.

Micron’s biggest two competitors, Samsung and SK Hynix Inc., account for the majority of that manufacturing. These companies also intend to establish factories in the United States — one for logic chips and another for advanced packaging — contributing to a surge of over $200 billion in private semiconductor investment catalyzed by the Chips Act.