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Pre-Market: Google Will Buy Twitch for $1 Billion; AstraZeneca Rejects Pfizer's Third Offer

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AT&T will buy DirecTV for $48.5 billion.

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Stock futures pointed toward a lower open on Monday. Before the opening bell, Dow Jones (INDEXDJX:.DJI) futures fell 0.19% to 16,433. Futures on the S&P 500 (INDEXSP:.INX) were down 0.17% to 1,871.60. Nasdaq (INDEXNASDAQ:.IXIC) futures moved lower, falling 0.16% to 3,577.

Stocks

Google (NASDAQ:GOOG) subsidiary YouTube will acquire the popular video game-streaming company Twitch for over $1 billion, reports Variety. Twitch allows users to upload and watch live gameplay streamed from Sony (NYSE:SNE) Playstation 4 and Microsoft (NASDAQ:MSFT) Xbox One consoles. The service has over 45 million monthly users, 1 million members who upload videos, and content deals with blogs including CBS (NYSE:CBS) Interactive-owned Gamespot, AOL (NYSE:AOL)-owned Joystiq, and independently owned Destructoid. According to a recent study, Twitch has higher broadband traffic during peak hours than Google does. While YouTube already features gameplay videos, Twitch will bring popular streaming channels under Google's wing.

Meanwhile, Google also made more news over the weekend when its Motorola Mobility division and competitor Apple Inc (NASDAQ:AAPL) agreed to settle all of their patent lawsuits against each other. The companies released a joint statement last Friday in which they said the companies will work together in some areas of patent reform. The deal does not apply to Apple's litigation with Samsung (OTCMKTS:SSNLF). 

AT&T (NYSE:T) will acquire DirecTV (NASDAQ:DTV) for $48.5 billion, which, pending regulatory approval, would combine the telecom providers U-Verse TV subscribers with DirecTV's customer base for a total of 26 million video customers. If the acquisition goes through, AT&T will boast the biggest subscriber base in the pay TV space, larger than Comcast (NASDAQ:CMCSA) will be if it completes its acquisition of Time Warner Cable (NYSE:TWX) announced in February. Shares of AT&T fell 3.10% before the open.

AstraZeneca (NYSE:AZN) rejected a third and final buyout offer from Pfizer (NYSE:PFE), saying the $117 billion proposal was still too low. Specifically, AstraZeneca said Pfizer failed to factor in the value of its experimental medicine pipeline, and that an acceptable offer would have to be more than $94 per share for the board to be able to recommend the buyout to shareholders. The offer currently stands at about $92.50. Shares of AstraZeneca fell 10.24% in pre-market trading. Pfizer rose 2.30%.

Walgreen (NYSE:WAG) is reportedly weighing a $17.6 billion takeover of England's biggest pharmacy store chain, Alliance Boots. Boots operates over 3,300 stores in Europe, the Middle East, and Asia, and has a tax domicile in Switzerland. By acquiring Boots, Walgreen could move its tax domicile offshore, saving the billions of dollars  a year it shells out to the US government.

Economy

There are no events scheduled on today's economic calendar, save a panel featuring San Francisco Fed President John Williams and Dallas Fed President Richard Fisher at 12:10 p.m. Later this week we can expect a a speech from Fed Chairwoman Janet Yellen on Wednesday, the PMI Manufacturing Flash Index and leading indicators on Thursday, and new home sales on Friday.

Global Markets

Asian stocks retreated overnight as the continued slowdown in China's housing market stirred caution among investors. Chinese home prices climbed in 44 out of 70 cities tracked by Beijing in April, dropping from 55 cities in March. In Japan, machinery orders rose 19.6%, their most since 1996, a sign of continued recovery and possibly growth. In Europe, stocks declined, led by AstraZeneca. Italian and Spanish bonds fell, while commodities were driven higher by nickel and oil. Indian shares continued to rally following a change in leadership in the country. Russian President Vladimir Putin will travel to China this week, news of which has fueled the longest rally of Russia's state-owned Gazprom (OTCMKTS:OGZPY) since 2006. The visit has driven speculation that Putin will strike a gas supply agreement with China. 

Twitter: @brokawbrokaw
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