Must-Read Money Stories for Wednesday, Feb. 22

by February 22, 2017
Burger King's parent announced a $1.8 billion-plan to bring Popeyes fried chicken under its umbrella, Bloomberg reports. (Image "Burger King Sign" by Mike Mozart via Flickr, CC license by 2.0.)

Burger King’s parent announced a $1.8 billion plan to bring Popeyes fried chicken under its umbrella, Bloomberg reports. (Image “Burger King Sign” by Mike Mozart via Flickr, CC license by 2.0.)

Yahoo salvages Verizon deal

After months of delays imposed by the disclosure of two massive data breaches, Yahoo Inc. has managed to salvage the planned sale of its core internet business to Verizon Wireless for $4.48 billion — a renegotiated figure that reduced the initial price tag by $350 million, or 7 percent, both companies announced Tuesday. While some analysts and investors expressed surprise that Verizon hadn’t demanded a steeper discount, unnamed sources told the Washington Post that the pair reached the decision after determining the data breaches cost Yahoo only a “minimal” number of active customers.

Wells Fargo boots four executives

Results from an ongoing internal investigation by its board of directors prompted Wells Fargo & Co. to fire four executives for their roles in the bank’s unauthorized-account scandal that unfolded last fall, the financial giant said in a statement Tuesday. The executives — which includes the head of the consumer credit solutions division and three senior managers — will forfeit some of their stock options as well as any 2016 bonuses they may have been eligible, according to USA Today. Wells Fargo, which is still under several federal and state investigations, plans to publicly release the findings of its internal probe upon completion in April.

Burger King parent scoops up Popeyes

In an attempt to boost momentum of its growth plans that have so far been sluggish, the parent company of Burger King announced Tuesday its plans to acquire fried chicken food chain Popeyes Louisiana Kitchen Inc. for $1.8 billion — a figure considered top dollar in the restaurant industry. According to data compiled by Bloomberg, Restaurant Brands International Inc. — a $27 billion fast-food enterprise that also operates coffee-and-doughnut chain Tim Hortons — is paying more than six times what Popeyes raked in as revenue for all of 2016.

Court upholds Fannie, Freddie rules

Share prices for Fannie Mae and Freddie Mac took a plunge Tuesday after a federal appeals court upheld an earlier ruling that essentially bans some investors from trying to thwart the U.S. government’s capturing of profits generated by the two mortgage guarantors’ profits, according to the Wall Street Journal. The appeals court decision stems from a 2012 revision of the government’s $188 billion Fannie and Freddie bailout four years prior, which prompted subsequent investor lawsuits claiming the feds illegally took billions of dollars from the two mortgage giants.

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