Verizon will buy AOL, a Picasso sells for $179 million, and fans try to pay the $1 million fine for the New England Patriots. Here are the top stories of the day for May 12, 2015.
Verizon To Buy AOL
Verizon will spend $4.4 billion to buy AOL, the telecom company announced Tuesday. The purchase price will be approximately $50 per share. The transaction will take place this summer in the form of a tender offer followed by a merger, in which AOL will become a wholly owned subsidiary of Verizon. AOL chairman and CEO TIM Armstrong will remain in his position once the deal is completed. “Verizon is a leader in mobile and OTT connected platforms, and the combination of Verizon and AOL creates a unique and scaled media platform for creators, consumers and advertisers,’’ Armstrong said in a statement.
Saying Bad Things About Airlines
The federal government issued a report late Monday saying complaints among U.S. air travelers jumped more than 55 percent in March from the previous year. The main problem was problems in-flight, according to the report. The U.S. Transportation Department said it rec3eived 1,733 complains about U.S. airlines, travel agents and tour operators in March. That number was 27 percent above the complaints in February. For the first quarter of 2015, the increase over 2014 was 15 percent overall. More than one-third of the complaints related to flight problems, including cancellations, delays and missed connections. The greater number of complaints were for American Airlines, United Airlines, Frontier Airlines and Spirit Airlines.
Gap Reports Numbers
Gap, Banana Republic and Old Navy all saw fewer shoppers in April, and Gap reported same store sales sank 15 percent in April compared to the year previous. The company said an early Easter holiday had an effect on monthly sales. However, first-quarter sales was not much better except at Old navy, which saw an increase of 3 percent over the previous year. Gap fell 10 percent and Banana Republic saw an 8 percent drop. The company said a weaker Japanese yen and Canadian dollar also had an effect on sales reports.
Picasso Painting Breaks Record
At the auction house Christies Monday night, the Picasso painting Women of Algiers brought a bid of $179.4 million, making it the most expensive purchase of a painting ever. The vibrantly colored painting, originally named Les Femmes d’Alger, depicts a harem of women. The oil on canvas painting is part of a Picasso series, in which the Spanish painter was inspired by an 1834 painting by Eugene Delacroix that currently sits in the Louvre. The same painting was sold by Christie’s in 1997 for $31.9 million. The purchaser asked to be anonymous.
Nepal Hit Again
A 7.3 magnitude earthquake hit Nepal Tuesday morning, killing at least 29 people and injuring another 1,000, according to the Nepali government. The latest earthquake hit near the town of Manche Bazaar, which is near Mount Everest. This earthquake follows the 7.8 magnitude earthquake that hit the center of Nepal on April 25. The latest earthquake was felt in northern India and Bangladesh.
Fans Try To Help Patriots
Following the National Football League’s ruling against the New England Patriots for cheating during the AFC title game last season, fans are donating funds to help pay the $1 million fine imposed on the Super Bowl champions. A fan named Michael J. Whitman launched a crowdfunding effort on gofundme.com to assist the team with its fine for deflating footballs before the game in order to make them easier to hold on to and pass. What the crowdfunding effort cannot do is help the team with the loss of the services of quarterback Tom Brady for four games or the two lost draft picks over the next two seasons, which were other parts of the penalty handed down by the league.