Must-Read Money Stories for Wednesday, Nov. 30

by November 30, 2016
Samsung Electronics is considering a radical corporate overhaul amid investor pressure in the wake of an embarrassing recall of its flagship smartphone in September. (Image "samsung phone" by Sean MacEntee via Flickr, CC by 2.0.)

Samsung Electronics is considering a radical corporate overhaul amid investor pressure in the wake of an embarrassing recall of its flagship smartphone. (Image “samsung phone” by Sean MacEntee via Flickr, CC by 2.0.)

Samsung considers split amid restructuring pressure

In the wake of a recent brand-damaging product recall and subsequent pressure to boost shareholder returns through some radical overhaul, Samsung Electronics Co. Ltd. is now considering a change to its 47-year-old corporate structure. Such a move could split Samsung—the world’s largest smartphone maker that recalled a staggering 2.5 million Galaxy Note 7 devices, its flagship product, in September—into a holding entity and operating company, the company disclosed Tuesday. Further details on the mechanics of the possible new structure or finances were not immediately available, according to Reuters, which notes public pressure for such a split came in October from one of Samsung’s largest shareholders, U.S. hedge fund Elliott Management.

Kellogg yanks ads on Breitbart

Kellogg announced Tuesday that plans were underway to terminate its advertising relationship with right-leaning news and commentary site Breitbart.com, saying efforts to ensure its media partners are “aligned with our values as a company” sometimes fall short. The controversy stems from President-elect Donald Trump’s recent naming of Steve Bannon, Breitbart’s former executive chairman, as one of his top aides, according to USA Today. Breitbart and its corporate advertisers such as Kellogg have since been facing public backlash, with angry consumers calling the site’s content racist, sexist and anti-Semitic on social media channels.

Uber defends corporate structure in EU court

Ride-hailing company Uber Technologies has shaken up the way in which U.S. consumers get from one end of town to another—and, much to the dismay of traditional taxi companies, often without regulation as a commercial transportation provider. That “not a taxi company” defense, however, may not hold up in Europe, according to the Wall Street Journal. Oral arguments were heard Tuesday in a Luxembourg court case that, by way of its ruling next year, could have worldwide implications for Uber and even others outside of the ride-hailing industry facing similar regulatory battles, such as Airbnb.

Goldman Sachs exec eyed for White House

President-elect Donald Trump, aligning himself with some promises he made on the campaign trail to fill cabinet-level positions with wealthy, private-sector business acumen, held a meeting Tuesday with Goldman Sachs Group Inc. president Gary Cohn at Trump Tower in Manhattan, according to Bloomberg. Unnamed sources told Bloomberg that Cohn is being eyed for several possible cabinet-level posts at the Treasury Department or Federal Reserve, among others. A Trump spokesman “didn’t give any hint” of confirmation when asked by Bloomberg.