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The development throws up a major roadblock for Skydance, a movie studio that has been negotiating a complicated deal to merge with Paramount for months. Many Paramount investors have come out against that deal, saying it would enrich Shari Redstone, the company’s board chair, at the expense of other shareholders. The 30-day period for exclusive talks with a special committee of Paramount’s board expires at the end of Friday. The company could wait for Paramount to re-engage in negotiations, could make a higher bid or could walk away. The company is wary of being used by Paramount to drive up the price for another bidder.

Persons: Shari, David Ellison Organizations: Paramount, Hollywood, MTV, Nickelodeon, RedBird Capital Partners, Sony Pictures Entertainment, Apollo Global Management

Sony Pictures Entertainment and the private equity giant Apollo Global Management have formally expressed interest in acquiring Paramount for roughly $26 billion, according to two people familiar with the matter, a move that adds drama to an already chaotic deal making process. The nonbinding expression of interest, sent in a letter this week, comes as Paramount approaches an agreed-upon Friday deadline for the expiration of an exclusive negotiating period with Skydance, a Hollywood studio run by the tech scion David Ellison. Paramount has been in talks with Skydance for months, discussing a complicated transaction that would involve a merger and an investment from the private equity firm Redbird Capital Partners. The new, joint expression of interest would make Sony a significant majority and controlling shareholder and Apollo a minority shareholder. The proposed all-cash acquisition may appeal to Paramount shareholders who have come out against the Skydance deal over concerns it benefits the company’s controlling shareholder, Shari Redstone, at the expense of others.

Persons: David Ellison, Skydance, Shari Redstone Organizations: Sony Pictures Entertainment, Apollo Global Management, Paramount, Redbird Capital Partners, Sony Locations: Apollo

Paramount is preparing to announce the departure of its chief executive, Bob Bakish, as soon as next week, according to three people with knowledge of the matter, a sudden development that would come even as company is exploring a merger. Ms. Redstone grew frustrated with what she saw as his inability to get important deals across the finish line, including a sale of the Showtime and BET cable channels, the people said. The company is in talks to merge with Skydance, a media company controlled by the tech scion and Hollywood producer David Ellison. It is also negotiating a lucrative deal to keep channels like Nickelodeon and MTV on the Charter cable system. The Wall Street Journal earlier reported that Paramount’s board was considering replacing Mr. Bakish.

Persons: Bob Bakish, Bakish’s, Shari Redstone, David Ellison, Bakish Organizations: Paramount, Showtime, BET, Nickelodeon, MTV, Street

The Federal Trade Commission on Monday sued to block Tapestry’s $8.5 billion acquisition of Capri, a blockbuster fashion tie-up that would bring together Coach, Kate Spade, Michael Kors and Versace. The lawsuit is a rare move by the agency to block a fashion deal, given that the industry does not suffer from a lack of competition. In her time as the chair of the F.T.C., Lina Khan has prioritized taking on the power of big business in suits across industries. The agency has moved to block the supermarket merger between Kroger and Albertsons; Meta’s acquisition of the virtual reality start-up Within; and Microsoft’s bid for the gaming giant Activision. failed to block Microsoft’s deal and Meta’s acquisition, both of which closed last year.

Persons: Kate Spade, Michael Kors, Versace, Lina Khan, ” Henry Liu, ” Organizations: Federal Trade Commission, Kroger, Albertsons, Activision, “, Competition Locations: Capri, ’

☆ F.T.C. Said to Consider Blocking Major Fashion Merger
▼ + stars: | 2024-04-17 | by ( Lauren Hirsch | More About Lauren Hirsch | ) www.nytimes.com time to read: +1 min

The Federal Trade Commission is preparing to sue to block a luxury fashion mega merger, Tapestry’s $8.5 billion takeover of Capri Holdings, two people with knowledge of the matter said. The F.T.C.’s five commissioners are expected to meet next week to discuss the case, a move that could precede a formal vote on whether to file a lawsuit, the people said. The people, who were not authorized to discuss the deliberations, said that it was still possible that the agency could opt not to sue. Monopoly cases in the fashion industry are rare, because there is no shortage of new labels looking to undercut legacy brands. “It is the paradigmatic part of the economy where there is ample competition,” said Howard Hogan, the chair of the fashion, retail and consumer practice at the law firm Gibson Dunn.

Persons: ’, Kate Spade, Capri’s Versace, Michael Kors, Louis Vuitton’s, ”, Howard Hogan, Gibson Dunn Organizations: Federal Trade Commission, Capri Holdings, Gucci, Monopoly Locations: American

As Paramount, the media company that’s the home of the “Top Gun” franchise and Nickelodeon, was preparing to enter exclusive talks to sell itself to the media company Skydance, another suitor emerged. Apollo Global Management, the investment firm, told Paramount over the weekend that it was interested in acquiring the entire company for more than $26 billion, including the value of Paramount’s debt, according to two people with knowledge of the matter. It had previously submitted an $11 billion offer to acquire just the Paramount movie studio. Paramount decided not to engage with Apollo’s overture, the people said, with one person explaining that doing so could have derailed its advancing negotiations with Skydance, which became exclusive this week. Apollo said in a letter to Paramount that it was interested in buying out all the company’s shareholders in cash, which could be enticing as the board seeks to strike a deal that not only pleases Shari Redstone, who controls Paramount, but also the company’s common shareholders.

Persons: Apollo’s, Apollo, Shari Redstone Organizations: Paramount, Nickelodeon, Apollo Global Management, CBS, Skydance

Paramount, home to one of Hollywood’s most storied movie studios as well as CBS and cable networks like Nickelodeon, has been discussing entering into exclusive talks with the media company Skydance for a potential deal, according to four people with knowledge of the discussions. Apollo Global Management, an investment firm with more than $500 billion under management, has submitted an $11 billion offer to acquire the Paramount movie studio. Byron Allen, whose Entertainment Studios owns the Weather Channel, has also expressed interest in acquiring Paramount. Ms. Redstone, the controlling shareholder of Paramount, began negotiating with Skydance to sell her stake in the company last year. She controls Paramount through National Amusements, a holding company that owns her voting stock in Paramount.

Persons: Shari Redstone, Byron Allen Organizations: Paramount, CBS, Nickelodeon, Apollo Global Management, Entertainment Studios, Weather, Skydance, National

☆ Macy’s Rejects Takeover Bid, but Remains ‘Open to Opportunities’
▼ + stars: | 2024-01-22 | by ( Lauren Hirsch | More About Lauren Hirsch | ) www.nytimes.com time to read: 1 min

The retailer Macy’s rejected a $5.8 billion takeover bid late Sunday that valued the struggling department store chain at roughly 20 percent above its closing share price on Friday, but suggested it was “open to opportunities.”The bidders, Arkhouse Management and Brigade Capital, are seeking to acquire Macy’s stock they do not already own at $21 a share and have threatened to take the offer to shareholders. With a potential hostile bid looming, questions are rising over how Arkhouse and Brigade could pull off a deal and whether additional suitors could appear, potentially setting off a bidding war. In a statement released Sunday night, Macy’s board questioned whether the investment firms had the money to finance the deal, which it said “lacks compelling value.” It noted that the bid was accompanied by a letter with “numerous” untraditional stipulations.

Persons: Macy’s Organizations: Arkhouse Management, Brigade

It was the first Davos gathering since 2020 without any Covid-related restrictions, as fears about the pandemic almost completely receded. Here are some of the big takeaways from the five-day conference, which ended Friday. Many of the meeting spaces on the main street of Davos billed themselves as places to learn about A.I. Attendees also discussed potential risks of A.I., including job losses, widening social inequality and the rapid spread of misinformation. One industrial executive mused in a private discussion about whether the cost of retraining workers whose jobs were altered by A.I.

Persons: Sam Altman, OpenAI, Mustafa Suleyman, Aidan Gomez Organizations: Economic Locations: Davos, Switzerland, Cohere

In recent years, Shein has gained popularity among U.S. consumers, particularly teenagers and young adults, for its wide variety of low-priced trendy apparel and accessories. But Shein has also faced claims that it has copied designs and unevenly benefited from a U.S. trade rule that allows it to avoid paying custom fees. In April, two members of Congress asked the Securities and Exchange Commission to require Shein, as a condition of its expected offering, to certify through an independent party that it doesn’t use Uyghur forced labor. It has also teamed up with Forever 21, the fast-fashion mall stalwart, which could lead to more Shein apparel in brick-and-mortar locations. In June, a trip that it hosted for influencers at some of its warehouses in China was widely panned on social media as being tone-deaf.

Persons: Shein, ” Shein Organizations: Securities and Exchange Commission, influencers Locations: U.S, Xinjiang, China

The 2022 climate law has accelerated investments in clean-energy projects across the United States. It has also delivered financial windfalls for big banks, lawyers, insurance companies and start-up financial firms by creating an expansive new market in green tax credits. The law, signed by President Biden, effectively created a financial trading marketplace that helps smaller companies gain access to funding, with Wall Street taking a cut. The law created a wide range of tax incentives to encourage companies to produce and install solar, wind and other low-emission energy technologies. But the Democrats who drafted it knew those incentives, including tax credits, wouldn’t help companies that were too small — or not profitable enough — to owe enough in taxes to benefit.

Persons: Biden Locations: United States

Rory McIlroy, the esteemed golfer who was among the most outspoken opponents of his sport’s swelling ties to Saudi Arabia, has resigned from the PGA Tour’s board. The tour confirmed his departure in a statement on Tuesday night. Mr. McIlroy, the men said, was “instrumental in helping shape the success of the tour, and his willingness to thoughtfully voice his opinions has been especially impactful.”Mr. McIlroy’s agent did not respond to a message seeking comment. The decision by Mr. McIlroy came about five months after the tour, following secret negotiations, struck an agreement with Saudi Arabia’s sovereign wealth fund to try to create a joint company that would end golf’s money-fueled war for supremacy. Most board members, including Mr. McIlroy, had no knowledge of the agreement or the talks that led to it until shortly before it was announced in June and upended the duel between the tour and LIV Golf, the league Saudi Arabia built with a blend of billions of dollars and marquee defections from the PGA Tour.

Persons: Rory McIlroy, “, Rory —, —, Jay Monahan, Edward D, Mr, McIlroy, ” Mr, LIV Golf Organizations: PGA, PGA Tour Locations: Saudi Arabia, Saudi

Big donors to universities have long expected special treatment, like preference for their children’s applications. Universities helped create the expectation that donations come with influence. Like most nonprofits, U.S. universities foster relationships with some donors by offering them seats on the board of the trustees. The job comes with real power: Trustees vote on decisions like tenure and the selection of the university president. The question is how far the influence of individual donors should extend.

Persons: don’t, ” Edward Rock, “, Yale, ” Organizations: Universities, New York University

☆ WeWork Skips $95 Million in Interest Payments
▼ + stars: | 2023-10-02 | by ( Lauren Hirsch | More About Lauren Hirsch | ) www.nytimes.com time to read: +1 min

WeWork said on Monday that it would not make two sets of interest payments totaling about $95 million, a move meant to jump-start negotiations with its lenders at the same time it tries to cut costs with its landlords. The missed interest payments will undoubtedly spur speculation of a bankruptcy filing. But WeWork says it has the cash on hand, and the company has a 30-day grace period to make the payments, which were due Monday. At the end of June, it had $205 million in cash and access to a credit line worth $475 million. “I believe they will absolutely understand our decision to enter into the grace period,” WeWork’s interim chief executive, David Tolley, said in an interview.

Persons: WeWork, ”, David Tolley

Some deal makers wonder whether tennis, which has already confirmed initial talks with Saudi Arabia, will be the fund’s next target. “Of all the important sports around the world, I think tennis is clearly the one with the greatest opportunity for financial growth and the most unrealized value,” Maria Sharapova, the retired tennis star, told DealBook. Despite the popularity of tennis, the sport brings in only 1.3 percent of earnings from global media sports rights. That’s partly because tennis is made up of myriad entities — including the Women’s Tennis Association; the U.S. Tennis Association; and independent tournaments. The independently operated organizations make scheduling tournaments difficult and diminish bargaining power for sponsorship and media deals.

Persons: Novak Djokovic, Coco Gauff, Aryna Sabalenka, ” Maria Sharapova, DealBook Organizations: U.S, Saudi Arabia’s Public Investment Fund, Women’s Tennis Association, U.S . Tennis Association Locations: Saudi Arabia, U.S

In a deal that shows the ever-growing convergence of fashion and fame, François-Henri Pinault, the French billionaire and chief executive of the luxury goods company Kering, said on Thursday that his family office had bought a majority stake in one of Hollywood’s biggest talent agencies, Creative Artists Agency. Mr. Pinault’s family office, Artémis, already has investments that include the auction house Christie’s and a stake in Puma, and like them, CAA will be managed separately from Kering, which owns such brands as Gucci, Saint Laurent and Balenciaga. The announcement comes as talent — actors, singers, filmmakers — has become a uniquely powerful tool in selling products. There is now a growing race among fashion brands to lock in relationships with the next big name. “There’s no separation between fashion and entertainment any more,” said Robert Burke, the eponymous founder of a luxury consultancy, calling the deal a “natural, if unprecedented, evolution.”

Persons: Henri Pinault, Pinault’s, Saint Laurent, Balenciaga, —, “, ”, Robert Burke Organizations: Creative Artists Agency, Mr, Puma, CAA, Gucci Locations: Kering

As they do every summer, publicly traded companies posted their second-quarter results while Americans were baring their bodies on the beach. But this year, the timing was apt. On several earnings calls in August, chief executives reassured investors that the Ozempic revolution had not left them in the dust, and that they could somehow share in the blazing success of new diabetes and weight loss drugs. “We will continue to study this,” Michael Johnson, the chief executive of the nutritional supplement maker Herbalife, told investors. “And when we see an opportunity to capitalize on it, we will.”In theory, that opportunity — both for making profits and for losing fortunes — could be vast not only for the companies behind these drugs but also for some in completely different industries.

Persons: baring, ”, Dan R, “, ” Michael Johnson, — Locations: Chard

☆ Wall Street Moguls Win Important Backer in Their Fight Over Hedge Fund Sale
▼ + stars: | 2023-08-31 | by ( Lauren Hirsch | More About Lauren Hirsch | ) www.nytimes.com time to read: +1 min

A coterie of high-profile investors, including Bill Ackman of Pershing Square, Boaz Weinstein of Saba Capital Management and Marc Lasry of Avenue Capital Group, is pushing to buy Sculptor Capital, the successor to the storied hedge fund Och-Ziff — even though the fund has already agreed to sell itself to another investment firm. On Thursday, they gained an important supporter. That deal would value the firm’s class A shares at $11.15, around 18 percent more than they were worth the day it was announced. But shares of the hedge fund have fallen significantly over a longer period, dropping 60 percent over the past two years. The consortium’s most recent offer for Sculptor, disclosed on Wednesday, would value it at about $12.76 for each of its class A shares.

Persons: Bill Ackman, Boaz Weinstein, Marc Lasry, Ziff —, Robert Shafir, Sculptor’s Organizations: Pershing, Saba Capital Management, Avenue Capital, Sculptor Capital, Rithm

As valuations for National Basketball Association and National Football League teams have leaped beyond the reach of even some billionaires, pickleball offers, by comparison, a more affordable opportunity. Valuations of pickleball teams reportedly range anywhere from $1 million to $10 million. Pickleball proponents say the sport will eventually develop its own celebrity players. He pointed out that while pingpong has long been played by millions of people in multiple countries, it hasn’t become a commercial success. “I think that pickleball is going to confront some of the same issues,” he said.

Persons: pickleball, ”, Patrick Rishe, St . Louis, it’s, David Levy, Levy, Andre Agassi, John McEnroe, ” Andrew Zimbalist, DealBook, pingpong, hasn’t, “ Organizations: National Basketball Association and National Football League, Washington, Washington University, Turner, Horizon, ESPN, Smith College Locations: St .

Paramount said on Monday it had reached a deal to sell Simon & Schuster, one of the biggest and most prestigious publishing houses in the United States, to the private-equity firm KKR, in a major changing of the guard in the books business. The deal, for $1.62 billion, will put control of the cultural touchstone behind authors like Stephen King and Bob Woodward in the hands of a financial buyer with an expanding presence in the publishing industry. While private equity investors have had a significant footprint in the book business — different firms have owned literary agencies, publishing houses and the retailer Barnes & Noble — the acquisition of one of the largest publishers in the country vastly increases the hold of financial interests in the business. Richard Sarnoff, who leads KKR’s media, entertainment and technology group, is a familiar name to many in the publishing industry and his involvement is encouraging, said several publishing executives on Monday. Mr. Sarnoff has held multiple positions at Bertelsmann, the company that owns Penguin Random House, and served as chairman of the Association of American Publishers, a trade group.

Persons: Simon, Schuster, Stephen King, Bob Woodward, Noble, Richard Sarnoff, Sarnoff Organizations: Paramount, KKR, Barnes, Bertelsmann, Random, Association of American Publishers Locations: United States

Paramount is preparing to announce an agreement to sell Simon & Schuster, one of the country’s top publishers, to KKR, a private-equity firm, marking the end of a yearslong attempt to sell the publishing house. The deal, which values Simon & Schuster at roughly $1.62 billion, could be announced as soon as Monday, according to three people familiar with the deal who spoke on condition of anonymity on Sunday to discuss a confidential process. The deal has the potential to reshape book publishing, an industry in which Simon & Schuster is one of the most significant players in the country. Paramount (formerly ViacomCBS) put Simon & Schuster up for sale in 2020. About nine months later, it announced a deal to sell the company to Penguin Random House for $2.18 billion.

Persons: Simon, Schuster Organizations: Paramount, KKR, Penguin Random, & $

When Nikola Swann heard that Fitch Ratings had removed the United States from its list of risk-free borrowers this week, he felt a sense of satisfaction. More than a decade ago, Swann played a key role in a similar decision: He was Standard & Poor’s primary analyst for its sovereign credit rating on the United States when the agency became the first ever to downgrade the nation’s long-term credit rating amid a debt ceiling standoff in 2011. Bloomberg called the reasons for the downgrade “fundamentally political” in 2011, while others argued that it appropriately reflected a worsening debt crisis. Both a decade ago and this week, partisan politics were cited as one reason for the downgrade. S&P cited “the gulf between the political parties.” Fitch, which made the call two months after the United States narrowly avoided defaulting on its debt, cited “the repeated debt-limit political standoffs and last-minute resolutions.”

Persons: Nikola Swann, Fitch, ”, Swann, ” Fitch Organizations: Treasury Department, Bloomberg, & $ Locations: United States

The sale of Simon & Schuster appears to be nearing a suspenseful conclusion, like the final chapter of a page-turner from one of the country’s largest and most prestigious publishing houses. Second-round bids for Simon & Schuster — which publishes boldface names like Stephen King — were due earlier this week, according to three people familiar with the negotiations, who spoke on the condition of anonymity to discuss the confidential sale process. The sale process is expected to conclude in the coming weeks, the people said. A sale would put an end to years of uncertainty for Simon & Schuster, which is owned by Paramount (formerly ViacomCBS) and was initially put up for sale in early 2020. How much suitors for Simon & Schuster were willing to pay couldn’t be determined.

Persons: Simon, Simon & Schuster, Stephen King —, couldn’t Organizations: Simon &, KKR, News Corp, HarperCollins, Paramount, Penguin Random, Department of Justice

Infuriated after being blindsided by the PGA Tour’s pact with Saudi Arabia’s sovereign wealth fund, a band of leading golfers has won a series of concessions from the beleaguered circuit’s commissioner — including the elevation of Tiger Woods to the tour’s board — in a star-driven rebuke of the tour. The tour announced the changes on Tuesday, one day after dozens of top players wrote to Jay Monahan, the tour’s commissioner, and insisted on significant overhauls. The demands detailed in the Monday letter amounted to a dramatic effort to reclaim power over a circuit that got its modern start after a player rebellion in the late 1960s. The addition of Woods to the board, one of several changes agreed to by Monahan with a signed acknowledgment, would allow the players to outnumber six to five the independent board members, who come from the worlds of business and law. In addition, the players want to change the board’s rules to avoid a repeat of the negotiations with the Saudis, in which a handful of independent board members acted without the backing of players on the board.

Persons: Tiger Woods, Jay Monahan, Woods, Patrick Cantlay, Rickie Fowler, Rory McIlroy, Jon Rahm, Scottie Scheffler, Monahan Organizations: PGA Locations: Saudi

The cable company Altice USA is said to be weighing a potential sale of Cheddar News, the network once billed as “CNBC for millennials,” less than five years after buying the company. Altice USA has hired Goldman Sachs to help explore strategic alternatives for Cheddar News, according to three people with knowledge of the matter who spoke on condition of anonymity. They cautioned that Altice was still weighing its options and could decide against a sale. Representatives for Altice USA and Goldman declined to comment. Among them: Gas Station TV (which, yes, plays at the pump) and MTV’s college campus network (which Cheddar bought in 2018).

Persons: Goldman Sachs, Altice, Goldman, Patrick Drahi, Jon Steinberg Organizations: Cheddar News, CNBC, millennials, Altice USA, New York Stock Exchange, Gas Locations: USA, Altice, French, Cheddar

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