Stock Market Today: A $16 Billion Beam Buyout and a Record Run for Disney's "Frozen"

Why Beam, Disney, and Scripps Networks stocks are on the move today.

Jan 13, 2014 at 9:00AM

Expect a flat start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) lost 19 points in premarket trading this morning. Through the first seven trading days of the year, the Dow is down 0.8%. Still, investors shouldn't read much into that weak start, as stocks have traded down over the same time period in one out of every three years going back to 1896.

Meanwhile, news is breaking this morning on a few stocks that could see heavy trading in today's session, including Beam (NYSE:BEAM), Disney (NYSE:DIS), and Scripps Networks Interactive (NYSE:SNI).

Beam today announced that it had agreed to be purchased by Japanese food and beverage behemoth Suntory. The deal was struck for $83.50 a share in cash, or 25% above Beam's closing price on Friday. Together, the two companies expect to log annual alcohol sales of more than $4 billion as Beam brands such as Maker's Mark and Jim Beam join with Suntory's dominant Japanese whisky brands like Yamazaki and Hakushu to cover the third largest share in the global market for premium spirits. Suntory plans to fund the $16 billion purchase with cash on hand, along with financing from the Bank of Tokyo. Beam's stock is up 24.6% in premarket trading.

Disney's Frozen posted another solid showing at the box office, taking in $15 million over the weekend. That haul was impressive for a number of reasons, including the fact that it's the best result ever booked for an animated film seven weeks out from release. Frozen has now collected $318 million in domestic receipts, enough to topple The Lion King as Disney's best-performing animated film of all time. It's also the first film developed by Disney's in-house studio to outperform a Pixar release (Monsters University). Disney's stock is up 0.8% in premarket trading.

Finally, Discovery Communications (NASDAQ:DISCA) won't buy Scripps Networks, as the two companies have ended their merger talks, according to The Wall Street Journal. While Scripps' portfolio of popular lifestyle channels like HGTV and Food Network seemed to make it a good fit for Discovery, the family that controls much of Scripps' stock didn't want to sell at this time. The two companies can now turn their attention back to their individual growth plans, which include international expansion in both cases. Scripps' stock is down 2% in premarket trading.

Start 2014 off right
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Fool contributor Demitrios Kalogeropoulos owns shares of Walt Disney. The Motley Fool recommends Beam, Scripps Networks Interactive, and Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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