Business in brief: Pending home sales hit nine-year high
WASHINGTON – More Americans signed contracts to purchase homes in May, as pending sales climbed to their highest level in more than nine years.
The National Association of Realtors said Monday that its seasonally adjusted pending home sales index rose 0.9 percent to 112.6 last month. The index has increased 10.4 percent over the past 12 months, putting it just below the April 2006 level – which was more than a year before the housing bust triggered the recession.
The steady job growth coupled with low but rising mortgage rates has created greater urgency to buy homes. The gains reflect both a stronger economy but also the pressures to purchase a home before both prices and the cost of borrowing become potentially unaffordable.
Completed sales of existing homes jumped 5.1 percent last month to a seasonally adjusted annual rate of 5.35 million, the Realtors said last week. Median home prices climbed 7.9 percent over the past 12 months to $228,700, about $1,700 shy of the July 2006 peak.
Microsoft, AOL strike deal on digital ads
SAN FRANCISCO – Microsoft is handing off some its digital advertising business to AOL and selling its street-image mapping operation to Uber, as the giant software company tries to focus on activities more relevant to its core business.
AOL, meanwhile, is adopting Microsoft’s Bing search engine, replacing Google as the default option for visitors who want to search the Internet on AOL websites. That means Microsoft will get a share of revenue from advertising that’s tied directly to Internet searches performed on AOL.
But Microsoft, based in Redmond, Washington, will let AOL take over the selling of other types of advertising on Microsoft websites and apps, including MSN, Skype and Xbox. An AOL Inc. spokeswoman said the New York-based online media company will extend job offers to all 1,200 people who worked in Microsoft’s advertising business.
Hyundai in, GM out as official NFL sponsor
DETROIT – The National Football League is getting a new official automotive sponsor: Hyundai.
The Korean automaker announced the sponsorship deal Monday, replacing General Motors Co. The deal gives Hyundai the ability to use NFL trademarks in its marketing and access to big events year-round such as the Super Bowl, playoffs and the widely watched draft of college players.
Hyundai Motor Co. wouldn’t disclose how much it’s paying, but it’s likely close to what GM spent, about $25 million per year.
General Motors’ GMC brand had been an official NFL sponsor, but the company confirmed that it has decided not to renew the deal.
Discovery wins rights to Olympic broadcasts
LONDON – U.S.-based media giant Discovery Communications Inc. secured the European broadcast rights for four Olympics through 2024 on Monday in a landmark deal worth $1.45 billion.
The parent company of the Discovery Channel and Eurosport won the rights to the games of 2018, 2020, 2022 and 2024, and also agreed to collaborate with the IOC on its new year-round Olympic Channel.
The International Olympic Committee said the deal covers all platforms, including free television, subscription and pay TV, internet and mobile phones in 50 countries across the continent.
Last year, NBC struck a record $7.75 billion deal with the IOC to extend its exclusive U.S. rights through 2032.