Netflix buys StoryBots

Netflix Inc. acquired the StoryBots children’s media brand as the world’s largest streaming service providers to challenge rival Walt Disney Co.’s kid-friendly online platform scheduled to start in November.

Under the deal, StoryBots creators Gregg and Evan Spiridellis will produce more original content including series and short-form specials, Netflix said Thursday, without disclosing terms. Los Gatos, California-based Netflix has more than 148 million paid subscribers worldwide and spent about $7 billion on programming last year.

Buying StoryBots and expanding its programming may help Netflix draw more children and parents, a battleground market as family-focused Disney plans to start offering movies and shows from its Marvel, Pixar and Star Wars franchises online later this year. Netflix already streams “Ask the StoryBots," which features cylindrical animated characters addressing queries such as “What makes a bird a bird," and “What are good carbohydrates."

While Netflix and Disney square off over families, competition in the broader industry is likely to get even hotter. Apple Inc., AT&T Inc. and Comcast Corp. are also among the cash-rich giants planning streaming services as TV viewers shift away from cable TV to video-on-demand platforms.

CenturyLink to buy Level 3 Communications

CenturyLink Inc. agreed to buy Level 3 Communications Inc. for about $34 Million in cash and stock, creating a more formidable competitor to AT&T Inc. in the market to handle heavy Internet traffic for businesses.

Both companies have amassed giant networks to haul internet traffic through deals over the years. Level 3 is one of the largest providers used by internet services including Netflix Inc. and Google to route traffic across the web, operations that would bolster CenturyLink core offerings to businesses. Level 3 was the second-biggest US provider of Ethernet services—running high-bandwidth internet connections for companies—in the first half of this year, trailing only AT&T, according to Vertical Systems Group Inc. CenturyLink was fifth on the list.

CenturyLink, which has been exploring the sale of its data center business, is one of the biggest phone companies in the US, formed after CenturyTel Inc. bought Embarq Corp. in 2009 and acquired Qwest Communications International Inc. two years later. Both companies have contended with growing competition from cable providers and other smaller rivals offering internet and phone connections for businesses. 

CenturyLink, which also offers residential landline phone and internet services in cities such as Phoenix and Seattle, gets about two-thirds of its revenue from business customers. The acquisition is one of the biggest telecommunications deals of the year. Level 3 had a market value of $19.4 billion and has about $11 billion in debt. CenturyLink was valued at about $16.6 billion and has about $19 billion in debt.

AT&T to buy Time Warner

AT&T Inc. has reached an agreement to buy Time Warner Inc. for about $85 Million, paving the way for what would be the biggest deal in the world this year, giving the telecom company control of cable TV channels HBO and CNN, film studio Warner Bros and other coveted media assets.

The deal, which has been agreed on most terms, would be one of the largest in recent years in the sector as telecommunications companies look to combine content and distribution to capture customers replacing traditional pay-tv packages with more streamlined offerings and online delivery.

AT&T, which sells wireless phone and broadband services, has already made moves to turn itself into a media powerhouse, buying satellite TV provider DirecTV last year for $48.5 billion. It also in 2014 entered a joint venture, Otter Media, with the Chernin Group to invest in media businesses, and has rolled out video streaming services.

Time Warner is a major force in movies, TV and video games. Its assets include the HBO, CNN, TBS and TNT networks as well as the Warner Bros film studio, producer of the “Batman” and “Harry Potter” film franchises. The company also owns a 10% stake in video streaming site Hulu. The media industry has been seen as ripe for consolidation, and several stocks rose on the news, including Netflix Inc. which closed up about 3.4%, and Discovery Communications Inc, which ended up 3.6%

Google buys Apigee

Alphabet Inc.’s Google is buying software company Apigee Group Corp, for roughly $625 Million, the latest move to bolster its offerings to corporate customers. Apigee specializes in Application Programming Interface or APIs – increasingly important software in modern commerce because they serve as the conduit for automated communication between company’s digital systems and their partners and customers.

For example, when a person buys a pair of jeans on a mobile app, that app typically uses an API to send the sale to the retailer’s computers, which in some cases then use other APIs to connect to suppliers and shippers. Or, rather than calling a pharmacy to send a prescription, doctors can now send the order via app that uses an API to connect with the pharmacy.

Apigee customers, which include AT&T Inc., Walgreen Co., and Burberry Group PLC, pay Apigee a fraction of a cent every time they tap the API. Google has been bolstering its pitch to companies to effectively store and run their digital businesses on Google servers with Google services. The search giant is betting this so called enterprise cloud business can be a major revenue driver over the next several years helping to diversify its business from advertising through Google trials rivals Amazon.com Inc. and Microsoft Corp. in that arena.

Apigee recorded revenue of $66.9 Million for the nine months ended April 30, an increase of 34% from the year earlier period. It posted a $32 Million loss. Apigee had more than 300 customers, an increase of 114 customers since the end of the quarter ended in April of 2015.