CLOUDY NOT BAD DAVID, ALEXANDRA. ALL RIGHT, BILL. THANKS A MULTI-BILLION DOLLAR DEAL PUTS OMAHA JOBS IN JEOPARDY. THANKS FOR JOINING US. I’M DAVID EARL AND I’M ALEXANDRA STONE THE RUMOR DEAL CONFIRMED TODAY PENDING GOVERNMENT APPROVAL CHARLES SCHWAB WILL BY TD AMERITRADE. IT’S A TWENTY SIX DOLLAR DEAL. THAT WOULD CREATE A GIANT IN THE STOCK INDUSTRY AND LIKELY LEAVE A HOLE IN OMAHA’S CORPORATE COMMUNITY OUR TEAM COVERAGE STARTS WITH KETV NEWSWATCH 7S. DE’LON DILLARD DILLARD IN WEST OMAHA TONIGHT. DAVID ALEXANDER GOOD EVENING. TD AMERITRADE HEADQUARTERS OPENED UP THIS NEW BUILDING HERE IN 2013 AND MANY OF THE PEOPLE WHO WORK HERE THIS EVENING ARE WONDERING WHAT WILL HAPPEN TO THEIR JOBS. NOW, LET’S BREAK DOWN WHAT WE KNOW RIGHT NOW. HERE’S WHAT WE KNOW ONCE THIS DEAL IS DONE. THE CORPORATE HEADQUARTERS WILL BE IN WEST LAKE TEXAS. THAT’S JUST OUTSIDE OF FORT WORTH HERE IN OMAHA WHERE HUNDRED PEOPLE ARE EMPLOYED NOW. IT’S STILL UNCLEAR. HOW MANY JOBS WILL REMAIN HERE IN OMAHA SWAP. SPOKESPERSON SAYS THAT SAYS THAT THE COMPANY HAS NOT PROVIDED THAT SPECIFIC INFORMATION YET, BUT SWAP NOTES THERE WILL BE COST SAVINGS THROUGH THE NATION OF OVERLAPPING AND DUPLICATE ROWS AND THOSE REAL ESTATE AND ADMINISTRATIVE CHANGES. THOSE DETAILS WILL BE SHARING LATER. NOW TD AMERITRADE IS TELLING ITS EMPLOYEES THE MOVE WILL HAVE AN IMPLANT IN IMPACT ON OUR PEOPLE. IT SAYS BLUNTLY WE EXPECT THERE WILL BE WORKFORCE REDUCTIONS WHAT TD AMERITRADE SAYS IT BELIEVES A LARGE NUMBER OF IT OF HIS ASSOCIATES WILL CONTINUE ON WITH SCHWAB POST INTEGRATION, BUT THERE THERE WILL BE LIKELY SEVERAL PEOPLE WHO WILL NOT CONTINUE NOW PENDING APPROVAL FROM REGULATORS. WIDE EXPECTS THE DEAL TO BE FINALIZED IN THE SECOND HALF OF 2024. NOW TD AMERITRADE SAYS IT’S BUSINESS AS USUAL HERE. BUT OF COURSE FOR MANY OF THE PEOPLE WHO ARE WORKING HERE IS PROBABLY ANYTHING BUT REPORTING LIVE TONIGHT IN WEST O
Charles Schwab confirms plans to buy Omaha-based TD Ameritrade in $26 billion deal
Charles Schwab is buying rival TD Ameritrade for $26 billion, a blockbuster deal accelerated by massive disruption in the online brokerage industry. Competitive pressure has already forced brokerages to make it free for customers to trade U.S. stocks online, and Schwab’s proposal would combine two of the biggest players in the industry.The tie-up announced Monday would create a company so big, however, that it may draw sharp scrutiny from antitrust regulators, analysts say. Together the companies would have more than $5 trillion in client assets.By itself, Schwab may control close to half the market for acting as a custodian for money managed by registered investment advisers, for example, while TD Ameritrade may control about 15% to 20%, according to Kyle Voigt, an analyst with Keefe, Bruyette & Woods.Local reaction: In a release posted on its website, Charles Schwab said it expects the transition to close in the second half of 2020. It would begin integration efforts shortly after that. That is expected to take between 18 and 36 months.Charles Schwab also said job cuts are expected. It will eliminate roles that overlap and duplicate positions. It did not release specifics about those cuts, saying it wouldn't have that information until the integration process.In a statement Monday, Nebraska Governor Pete Ricketts, a former COO of Ameritrade, said “Today’s announcement by TD Ameritrade creates significant uncertainty for the thousands of Nebraskans who have loyally worked for the company through the years. As Governor and the former COO of Ameritrade, I am anxious to see what their decision means for the people of Nebraska."Ricketts continued: “In the coming days, I will work to personally make the case to Schwab to stay committed to Omaha. Our cost of doing business is incredibly competitive and our people are the most hardworking in the nation. We can help Schwab be successful and take their business to the next level as they compete nationally and internationally.”Once combined, Charles Schwab said it will relocate both companies to Schwab's new campus in Westlake, Texas. Currently, TD Ameritrade is based out of Omaha, Neb.Mayor Jean Stothert released the following statement: “I have asked to speak personally to the CEO of TD Ameritrade to understand how the merger will impact employees and the company’s presence in Omaha in the future. Unfortunately, he is not available today to talk to me, so the information I have comes only from media reports.Our concern is for the employees. While we don’t yet know the impact on the Omaha workforce, we are prepared to work with our partner, the Greater Omaha Chamber, to assist employees in any capacity we can. There are excellent career opportunities in Omaha and if this merger requires unexpected transitions to new employment, TD Ameritrade employees will have the resources and support they need.”David G. Brown, President and CEO, Greater Omaha Chamber released the following statement: “TD Ameritrade is a dynamic company and a valued contributor to the Omaha business community. We’re proud of their growth and contributions to their industry, and the success they’ve had from their home here in Omaha. Success that has been fueled by an experienced, hard-working talent pool. A group of people who would continue to support strong, energetic growth for the newly formed organization, or any other organization here in Omaha that will be lucky enough to put their services to use.We believe there is always opportunity in change, and there is no doubt that these highly skilled employees will find themselves contributing to the Omaha community in one way or another. Whether they are connected to a new player in town or augment another organization’s existing workforce, there is a path to employment if that is what the future holds.We will, of course, work with the city of Omaha and state of Nebraska to help address any workforce challenges that might occur from this situation. Together, we can put the power of our membership and business community to work connecting people with jobs here in the region.” To view the full release from the Charles Schwab website, click here.To view the full release from TD Ameritrade, click here.
NEW YORK —
Charles Schwab is buying rival TD Ameritrade for $26 billion, a blockbuster deal accelerated by massive disruption in the online brokerage industry.
Competitive pressure has already forced brokerages to make it free for customers to trade U.S. stocks online, and Schwab’s proposal would combine two of the biggest players in the industry.
The tie-up announced Monday would create a company so big, however, that it may draw sharp scrutiny from antitrust regulators, analysts say. Together the companies would have more than $5 trillion in client assets.
By itself, Schwab may control close to half the market for acting as a custodian for money managed by registered investment advisers, for example, while TD Ameritrade may control about 15% to 20%, according to Kyle Voigt, an analyst with Keefe, Bruyette & Woods.
Local reaction:
In a release posted on its website, Charles Schwab said it expects the transition to close in the second half of 2020. It would begin integration efforts shortly after that. That is expected to take between 18 and 36 months.
Charles Schwab also said job cuts are expected. It will eliminate roles that overlap and duplicate positions. It did not release specifics about those cuts, saying it wouldn't have that information until the integration process.
In a statement Monday, Nebraska Governor Pete Ricketts, a former COO of Ameritrade, said “Today’s announcement by TD Ameritrade creates significant uncertainty for the thousands of Nebraskans who have loyally worked for the company through the years. As Governor and the former COO of Ameritrade, I am anxious to see what their decision means for the people of Nebraska."
Ricketts continued: “In the coming days, I will work to personally make the case to Schwab to stay committed to Omaha. Our cost of doing business is incredibly competitive and our people are the most hardworking in the nation. We can help Schwab be successful and take their business to the next level as they compete nationally and internationally.”
Once combined, Charles Schwab said it will relocate both companies to Schwab's new campus in Westlake, Texas. Currently, TD Ameritrade is based out of Omaha, Neb.
Mayor Jean Stothert released the following statement:
“I have asked to speak personally to the CEO of TD Ameritrade to understand how the merger will impact employees and the company’s presence in Omaha in the future. Unfortunately, he is not available today to talk to me, so the information I have comes only from media reports.
Our concern is for the employees. While we don’t yet know the impact on the Omaha workforce, we are prepared to work with our partner, the Greater Omaha Chamber, to assist employees in any capacity we can.
There are excellent career opportunities in Omaha and if this merger requires unexpected transitions to new employment, TD Ameritrade employees will have the resources and support they need.”
David G. Brown, President and CEO, Greater Omaha Chamber released the following statement:
“TD Ameritrade is a dynamic company and a valued contributor to the Omaha business community. We’re proud of their growth and contributions to their industry, and the success they’ve had from their home here in Omaha. Success that has been fueled by an experienced, hard-working talent pool. A group of people who would continue to support strong, energetic growth for the newly formed organization, or any other organization here in Omaha that will be lucky enough to put their services to use.
We believe there is always opportunity in change, and there is no doubt that these highly skilled employees will find themselves contributing to the Omaha community in one way or another. Whether they are connected to a new player in town or augment another organization’s existing workforce, there is a path to employment if that is what the future holds.
We will, of course, work with the city of Omaha and state of Nebraska to help address any workforce challenges that might occur from this situation. Together, we can put the power of our membership and business community to work connecting people with jobs here in the region.”
To view the full release from the Charles Schwab website, click here.
To view the full release from TD Ameritrade, click here.