News Breaks
November 21, 2018
08:33 EDT GOOG
theflyonthewall.com: Verily collaboration more favorable to DexCom after revision, says Stephens
Stephens analyst Chris Cooley said DexCom’s (DXCM) revised agreement with Alphabet’s (GOOGL) Verily makes DexCom the preferred CGM partner while also replacing the former royalty agreement with an enhanced equity stake. The revised pact “solidifies the long-term potential of the collaboration while setting-up a more favorable EBITDA profile” for DexCom, contends Cooley, who keeps an Overweight rating and $170 price target on DexCom shares. :theflyonthewall.com
06:28 EDT GOOG
theflyonthewall.com: Amended Verily agreement ‘major win’ for DexCom holders, says Piper Jaffray
After talking with management, Piper Jaffray analyst JP McKim believes the amended collaboration and license agreement with Alphabet’s (GOOG, GOOGL) Verily “seems like a no brainer” and is a “major win for the long term value” of DexCom (DXCM) shareholders. The royalty payments from the original agreement have been eliminated and those would have been at least a 500 basis point headwind on the margin profile of DexCom’s business, McKim tells investors in a research note. He expects the company to release some longer term margin targets at its analyst day and says “removing this future headwind is a major win.” Further, DexCom is now the preferred continuous glucose monitoring supplier into Onduo’s Type 2 diabetes management program, says the analyst. He reiterates an Overweight rating on the shares with a $157 price target. :theflyonthewall.com
05:28 EDT GOOG
theflyonthewall.com: iQIYI announces DRM partnership with Google
iQIYI (IQ) announced that it is partnering with Google (GOOG) in the field of Digital Rights Management, or DRM, to incorporate Google’s Widevine DRM technology into its Multi-DRM system, which has already earned recognition by ChinaDRM Lab, China’s most prestigious DRM organization. iQIYI has been a consistent leader in the application of DRM in China, and is the first Chinese internet video platform to incorporate Google Widevine DRM on its platform for use on the Chrome browser. DRM technology is the system used globally to securely distribute content, and is widely deployed in the entertainment industry to protect film media and other IP. Google Widevine is the native DRM solution for the Google Chrome browser and Android platform. With a leading encryption system for secure distribution and protection of video playback on any consumer device, Widevine DRM is deployed by nearly every major online video service. iQIYI’s use of Widevine DRM will enhance protection of licensed content on its platform, with the added benefit of allowing users accessing iQIYI via Chrome on both Windows and MacOS to enjoy a high-definition viewing experience. :theflyonthewall.com
05:01 EDT GOOG
theflyonthewall.com: DexCom, Alphabet’s Verily amend collaboration and license agreement
DexCom (DXCM) and Verily, an Alphabet (GOOG, GOOGL) company, announced last night an amendment to their collaboration and license agreement surrounding the ongoing development efforts between the companies. “The revised terms are intended to reinforce the companies’ mutual product development goals, while expanding options for future collaborations,” said the companies. “The agreement also accelerates Dexcom’s efforts to advance into the Type 2 diabetes space and improves its future profitability,” they added. In consideration of Verily’s performance of its obligations under the joint development plan, the licenses granted to Dexcom and the amendment of the original agreement, Dexcom will make an upfront payment, as well as potential future milestone payments upon the achievement of certain goals, as follows: Dexcom will make an initial payment of $250M in shares of its common stock. The issuance of shares of common stock is subject to customary closing conditions, including expiration of any waiting period under the Hart-Scott-Rodino Act, and, if these conditions are not met, Dexcom would be obligated to make this payment in cash; Additional milestone payments of up to $280M may become due and payable by Dexcom upon the achievement of future product launch and revenue milestones. Dexcom may make up to $275M of these milestone payments in shares of its common stock, subject to customary closing conditions. They companies added: “Agreement strengthens product development timelines for the second generation CGM system. Dexcom will continue to evaluate near-term opportunities for the first generation product, and the company’s focus shifts to commercializing the s econd generation offering; Agreement structure increases synergy with Verily’s Onduo franchise, where Dexcom will be the preferred CGM device supplier into Onduo’s Type 2 diabetes management program.” :theflyonthewall.com
November 20, 2018
18:19 EDT GOOG
theflyonthewall.com: Google expands Moffett Park presence again, SVBJ says
Google is once again expanding its Moffett Park footprint with another corporate campus acquisition, the Silicon Valley Business Journal reports. Even prior to the last deal, the company had already spent nearly $1B on property and started submitting plans for redevelopment in Sunnyvale’s Moffett Park area, the report notes. Reference Link :theflyonthewall.com
11:06 EDT GOOG
theflyonthewall.com: White House asks for comment on possible emerging technology export restrictions
In an advance notice of proposed rulemaking published to the Federal Register, the Department of Commerce’s Bureau of Industry and Security asked for public comment on criteria for identifying emerging technologies that are essential to U.S. national security. The representative general categories of technology for which Commerce currently seeks to determine whether there are specific emerging technologies that are essential to the national security of the United States include Biotechnology; Artificial intelligence and machine learning technology; Position, Navigation, and Timing technology; Microprocessor technology; Advanced computing technology; Quantum informati on and sensing technology; Logistics technology; 3D printing; and Robotics, among others, according to the publication of the request for comments. Reference Link :theflyonthewall.com
06:13 EDT GOOG
theflyonthewall.com: Google to invest $690M to build new data center in Denmark, Reuters reports
Google will invest $690M in constructing a new data center in Frederica, Denmark, that will employ 150 to 200 employees once it is finished in 2021, Reuters reports, citing the company’s Danish business. The company has also decided to actively pursue new green investment opportunities and is evaluating a number of projects within onshore and offshore wind energy and solar energy.Reference Link :theflyonthewall.com