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Netflix's splitting drama
Netflix announced that it will divide its video-streaming business and its DVD-delivery business. CEO Reed Hastings announced the move in an apologetic blog post in which he explained that the split was ultimately the reason for the price increase that got so many people worked up when it was announced. The company said the DVD-by-mail business will be named Qwikster and will be a wholly owned subsidiary of Netflix. Not giving a full explanation for the price increase that raised rates as much as 60% was a mistake, Hastings said, adding that the split was done to ensure that Netflix didn't take too long in the transition from physical to digital media. Read more at The Wall Street Journal.
GM's deal puts pressure on automakers
After General Motors
The deal will give leverage for workers dealing with Chrysler, whose negotiations may become more heated as its CEO returns to the table on Tuesday. More than 11% of Chrysler's employees work on entry-level salaries, compared with GM's 5% -- making an increase for Chrysler a bigger burden. Ford
AT&T keeps pushing
In hopes of winning support for its acquisition of T-Mobile, AT&T
Obama's trillion-dollar plan
President Obama announced his plan to reduce the deficit by $3 trillion over the next the next decade. The plan includes a tax increase for people making more than $1 million, known as the Buffett Rule. The president's aides said only half of the savings would come from he increased taxes. The Republican-controlled House has already announced that it will oppose any tax increase, while the president said he will veto any legislation that would take funding from Medicare and Medicaid. Obama's proposals were met with skepticism from politicians and the business world, claiming Washington doesn't have a clear strategy on how to tackle the country's mounting debt. Medicare and Medicaid have been pointed to as a main cause for the increasing expenses. Read more at Reuters.
Tyco to split in three
So there you have it -- the top financial stories for this afternoon. If you're interested in getting all the news and commentary on these stocks, sign up for My Watchlist -- it's free!
Michelle Zayed doesn't own any stocks mentioned. The Motley Fool owns shares of Ford Motor. Motley Fool newsletter serviceshave recommended buying shares of Netflix, Ford, General Motors, and AT&T. Motley Fool newsletter serviceshave recommended buying puts in Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insightsmakes us better investors. The Motley Fool has a disclosure policy.