Pentagon cancels cloud contract, Universal films head to Peacock, Chobani to go public

Julie Hyman breaks down Wednesday's business headlines, including: The Pentagon canceling a $10 billion cloud contract which was subject to a legal dispute between Amazon and Microsoft, Reese Witherspoon's Media Company eyeing a potential sale with multiple suitors interested, Chobani files to go public, and Comcast deciding to streamline its Universal Pictures films quicker to Peacock.

Video transcript

JULIE HYMAN: --fight over that coveted government cloud computing contract has ended with its cancellation. The Department of Defense awarded a $10 billion contract to Microsoft. It was called the Jedi contract. But Amazon contested that choice arguing the Trump administration had unfairly favored its rival. The Pentagon now says it will solicit bids from both companies for future cloud computing contracts.

Reese Witherspoon's production company is exploring a sale. "The Wall Street Journal" reports that Hello Sunshine has garnered interest from suitors, including Apple, for a potential deal that could value it as much as $1 billion. The company owns titles, including HBO'S "Big Little Lies," "Little Fires Everywhere," and "The Morning Show," which streams on Apple.

Also in media news, Comcast's Peacock streaming service is about to get exclusive access to a slate of new movies. Universal Pictures, also owned by the media giant, will send new movies to Peacock no later than four months after the theatrical debuts. That deal begins in 2022. Upcoming movies include "Jurassic World: Dominion," and a new "Minions" installment.

And Chobani has confidentially filed paperwork for its awaited initial public offering. The yogurt maker founded by Turkish immigrant Hamdi Ulukaya in 2005 reportedly could be valued at more than $10 billion. Myles.

MYLES UDLAND: Look, you got Chobani going public. Last night, we saw Traeger Grills file for their S-1. Krispy Kreme has come public. Oatly-- Sweetgreen set to come public. Guys, we got a full meal on our hands just from the IPO market, and I'm sure Brian Sozzi knows about some other crazy food product that's set to come public that I haven't even heard of. Maybe bang energy drinks or whatever is keeping you going over there, maybe they're going to come public.

BRIAN SOZZI: Hey, good to mention, too, Myles, all these companies pretty much selling things that are inflationary in price.