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☆ Sony and Apollo in Talks to Acquire Paramount
▼ + stars: | 2024-05-05 | by ( Benjamin Mullin | Lauren Hirsch | ) www.nytimes.com time to read: +1 min

Paramount has decided to formally open negotiations with a bidding group led by Sony Pictures Entertainment and the private equity giant Apollo, according to three people familiar with the matter. The move comes after a period of exclusive talks with the Hollywood studio Skydance lapsed on Friday night. A special committee of Paramount’s board of directors met Saturday and signed off on beginning deal talks with Sony and Apollo, which last week submitted a letter of interest valuing the company at $26 billion, the people said. The committee also decided to push for further negotiations with Skydance, a studio founded by the technology scion David Ellison. Any deal between the Sony group and Paramount faces hurdles.

Persons: David Ellison Organizations: Paramount, Sony Pictures Entertainment, Hollywood, Sony, Skydance, Nickelodeon, MTV, CBS, Paramount Pictures Locations: Japan, United States

Paramount’s proposed merger with Skydance has been the most tumultuous media deal in years. Now it has taken yet another turn after the exclusivity period for negotiations expired without an agreement in hand. Paramount shareholders grumbled that granting exclusivity was a mistake, and that the company should have engaged with Apollo instead. This week, the special committee told Skydance that it was letting the exclusivity period lapse. But it does allow Paramount to open up negotiations with Apollo and Sony Pictures Entertainment, which joined Apollo’s bid.

Persons: Paramount’s, Skydance, David Ellison — Organizations: Apollo Global Management, Paramount, Skydance, Apollo, Sony Pictures Entertainment

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

But this year’s event will be the first without Munger, who died in November at age 99 — and comes amid growing questions about Berkshire post-Buffett, who’s 93. Buffett will have a different crew answering questions alongside him on Saturday. Berkshire’s vice chairmen, Greg Abel and Ajit Jain, will be on hand for much of the day. Shareholders most likely will be focused on what Abel, Buffett’s appointed successor as C.E.O. In Buffett’s annual letter to investors, he noted challenges to Berkshire’s biggest businesses, including the BNSF railroad (falling shipment volumes) and its utility business (forest fires).

Persons: Warren Buffett, Charlie Munger, Munger, Buffett, Greg Abel, Ajit Jain, Abel, Buffett’s Organizations: Berkshire, Shareholders Locations: Berkshire, Omaha, Woodstock, America

ImageHERE’S WHAT’S HAPPENINGExxon Mobil strikes an agreement to win regulatory approval of its $60 billion megadeal. Elsewhere, shares in Shell were up after the producer reported $7.7 billion in adjusted quarterly earnings, beating analyst expectations. The U.S. imposes sanctions on Chinese companies over military support for Russia’s war effort. The Biden administration announced on Wednesday nearly 300 sanctions, including on more than a dozen Chinese businesses, aimed at disrupting Moscow’s full-scale invasion of Ukraine. The culprit: pressure on prices, amid growing competition from Eli Lilly’s Zepbound, supply constraints and scrutiny from lawmakers.

Persons: Scott Sheffield, Biden, Janet Yellen, Antony Blinken, Eli Lilly’s Zepbound, James Comer, Comer Organizations: Labor Department, Exxon Mobil, Natural Resources, Wall Street, Novo Nordisk, Republican, European Commission Locations: Shell, U.S, Ukraine, Danish, Kentucky, iRobot

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

A flicker of hope for the weed businessFor years, the dreams of the cannabis industry looked like they might go up in smoke, with the U.S. government classifying marijuana as a drug as dangerous as heroin. But the multibillion-dollar industry now has some hope that could change. The bet is that this will give the industry a new lease on life — though it shouldn’t expect big changes immediately. Shares in Tilray, a giant in the industry, jumped 39 percent on Tuesday, while those in Canopy Growth leaped nearly 79 percent. That’s welcome news for investors in both companies: Canopy Growth’s stock is down 97 percent over the past five years, while those in Tilray are down 95 percent.

Persons: Biden Organizations: U.S, Justice Locations: Tilray

Paramount’s cloudy futureThe boardroom intrigue at Paramount Global — the drama that has gripped the corporate world — just got messier. Bob Bakish is out as C.E.O., replaced by three subordinates who will form an “office of the C.E.O.” His departure caps a year of rising tension between him and Shari Redstone, Paramount’s controlling shareholder, who is pushing for a deal with David Ellison’s Skydance. Bakish’s exit removed an executive who didn’t support that transaction, but it doesn’t resolve all of the big questions hanging over the company’s future. Why Bakish was pushed out: Redstone picked the low-profile company veteran to lead Paramount after years of internal strife, but they still ended up clashing.

Persons: Bob Bakish, ”, Shari Redstone, David Ellison’s Skydance, Bakish Organizations: Paramount Global, Redstone, Paramount

☆ Stocks could have further to fall in May after this month’s market woes
▼ + stars: | 2024-04-30 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

The S & P 500 is down by more than 3% this month, though it has still registered a more than 6% advance for the year. But many investors worry stocks have further to go before finding a durable bottom. They say stocks look overvalued even after the recent pullback, and they cite troubling headwinds for equities. 'Sell in May and go away' May has a reputation as a historically weak month for stocks. Carson Group's Ryan Detrick noted that stocks have actually been higher in May during the last nine out of 10 years.

Persons: Mark Luschini, Janney Montgomery Scott, Jeff Hirsch, he's, It's, Hirsch, Carson Group's Ryan Detrick, we've Organizations: Investors, Dow Jones Industrial, Dow, Treasury Bond ETF

☆ 'Sell in May and go away' is a catchy adage, but probably not a good idea
▼ + stars: | 2024-04-30 | by ( Bob Pisani | ) www.cnbc.com time to read: +2 min

It's not just that it has been a down month (down 3.0% for the S & P 500, breaking a 5-month win streak). However, weaker does not mean down. The S & P, even in the weakest five months, was still up almost 2%. The bottom line: market timing is always a tricky affair. Many of these timing maxims could be trumped by an even better one: "It's time in the market that matters, not market timing."

Persons: It's, Nicholas Colas, Jeff Hirsch, it's Organizations: Dow, Stock Locations: It's, DataTrek

☆ Paramount’s Chief Executive, Bob Bakish, Steps Down
▼ + stars: | 2024-04-29 | by ( Benjamin Mullin | Lauren Hirsch | ) www.nytimes.com time to read: +1 min

Bob Bakish, the chief executive of Paramount, is stepping down effective immediately, the company announced on Monday, a stunning shake-up in the top ranks of the company as it considers a major merger. Mr. Bakish, 60, will be replaced by an “office of the C.E.O.” run by three executives: Brian Robbins, head of the Paramount movie studio; George Cheeks, chief executive of Paramount’s CBS division; and Chris McCarthy, chief executive of Showtime and MTV Entertainment Studios. Like many media companies, Paramount has struggled in recent years to get its streaming business off the ground as audiences for its cable channels have diminished. In recent months, the company has been in discussions to merge with Skydance, a media company run by the tech scion and Hollywood executive David Ellison. Shari Redstone, Paramount’s controlling shareholder, has already signed off on a potential deal for her stake, but the company’s directors have yet to reach an agreement for the whole company.

Persons: Bob Bakish, Bakish, Brian Robbins, George Cheeks, Chris McCarthy, Bakish’s, David Ellison, Shari Redstone Organizations: Paramount, Paramount’s CBS, Showtime, MTV Entertainment Studios

☆ Skydance Offers Paramount a Deal Sweetener: A $3 Billion Cash Infusion
▼ + stars: | 2024-04-29 | by ( Benjamin Mullin | Lauren Hirsch | ) www.nytimes.com time to read: +1 min

With the fate of Paramount hanging in the balance, its leading suitor has just upped the ante. Skydance also offered to give Paramount shareholders a larger stake in the combined company than it had initially proposed. The vociferous pushback by investors, combined with the complicated nature of the transaction, means the Skydance deal could still fall apart, people familiar with the process said. Paramount has been in deal discussions with the movie studio Skydance for months, after Ms. Redstone decided late last year to consider a sale for her media empire. Since then, the company has entertained interest from suitors including Apollo, the private-equity giant, and Skydance, which is proposing a merger.

Persons: Skydance, Shari, Redstone Organizations: Paramount

Why Elon Musk went to ChinaJust days after Secretary of State Antony Blinken traveled to Beijing and warned China about unfair trade practices, Elon Musk landed in the Chinese capital. 2 official may have paid off: Musk reportedly cleared two obstacles to introducing a fully autonomous driving system in the world’s biggest car market. Musk is betting big on self-driving, and China is key. Tesla last week reported its worst quarter in two years as a price war hurts profit. Fully autonomous driving is also crucial.

Persons: Elon Musk, Antony Blinken, Tesla, China’s, they’ve, Musk, ” Organizations: Elon Locations: China, Beijing

An effort to give Trump more say on ratesThis week, investors had planned to examine the latest inflation data, due out at 8:30 a.m. Eastern on Friday, for clues about when the Fed would start cutting interest rates. The Wall Street Journal reports that allies of Donald Trump are devising ways of watering down the central bank’s independence if he is re-elected president. But it also raises questions about whether such a plan is possible — or whether Trump’s Wall Street supporters would back it. Among the most consequential would be asserting that Trump had the authority to oust Jay Powell as Fed chair before Powell’s term is up in 2025. While Trump gave Powell the job in 2017, he has since soured on his pick for raising rates, and has publicly said he wouldn’t give Powell a second term.

Persons: Donald Trump, Trump, Jay Powell, Powell, wouldn’t Organizations: Trump, Street Journal, Wall

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

☆ I worried my grandmother wouldn't accept my name change because I'm nonbinary. She showed me a side of her I never knew.
▼ + stars: | 2024-04-25 | by ( Kaden Hirsch | ) www.businessinsider.com time to read: +5 min

As a queer, nonbinary person, I've had to come out to my grandmother several times. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . I was afraid coming out to my grandmother would harm our relationshipGrowing up, I had always gravitated towards my grandmother because I felt she understood me. After realizing I'm nonbinary, I came out to my grandmother a second timeOver the COVID-19 pandemic, I realized I identified as nonbinary. AdvertisementOne day during a visit at her apartment, my grandma told me about her aunt who lived on the Lower East Side.

Persons: I've, —, I'm nonbinary, you'll, wasn't Organizations: Service Locations: Manhattan, Harlem

Meta’s A.I. But for investors, that’s not enough — and that’s a warning to other tech giants set to announce their own financial results in the coming days. That makes clear that while Wall Street loves the opportunities that A.I. The company plans to spend $35 billion to $40 billion this year — much of that on the technology — up from a forecast of $30 billion to $37 billion. It also expects second-quarter revenue to come in at $36.5 billion to $39 billion, below analyst estimates.

Persons: Meta’s, Meta, that’s, Mark Zuckerberg Organizations: Facebook, Wall, Meta

The winners from the TikTok battleThe countdown to TikTok disappearing from the United States is about to start. The Senate overwhelmingly passed legislation to force the divestment of the video app by its Chinese owner, ByteDance, within a year or be banned. Barring the app from U.S. shores could take months, or even years — if it actually happens. The road ahead is complicated, and any disruptions to the app could bolster its American rivals. Analysts at Bernstein have estimated that, should TikTok be banned, Meta could draw up to 60 percent of TikTok’s American ad revenue, while YouTube could take another 25 percent or so.

Persons: Biden, Bernstein Organizations: Google, Meta, YouTube Locations: United States

Campus unrest spreadsTop American colleges are in turmoil, with dozens of pro-Palestinian student protesters having been arrested at N.Y.U. and Yale amid new worries about antisemitism on campus. The latest: Police were called in to break up pro-Palestinian protests at N.Y.U. Harvard shut Harvard Yard and Columbia will make classes at its main campus hybrid until next week. Encampments were growing at other schools, including M.I.T., the University of Michigan and the University of California, Berkeley.

Organizations: Palestinian, Yale, University, University of Pennsylvania, Harvard, Police, Columbia, University of Michigan, University of California Locations: N.Y.U, Columbia, Berkeley

☆ On Columbia’s Campus, a Protest Encampment Grows and Tensions Flare
▼ + stars: | 2024-04-22 | by ( Katherine Rosman | ) www.nytimes.com time to read: +1 min

With a light blue academic robe tucked under her arm, Professor Marianne Hirsch hurried to get through a security line at a Columbia University entryway on Monday morning. To pass the gates, everyone had to scan IDs, in compliance with an announcement from the university’s administration that only students and faculty would be allowed on campus. Dr. Hirsch was not on her way to a graduation ceremony, however, but to protest the university’s president, Nemat Shafik. “I am here because of her infringement on academic freedom in the congressional hearing and because of her decision to bring police on to campus to arrest students,” said Dr. Hirsch, a professor emerita in the English and Comparative Literature Department. Around and on Columbia’s campus on Monday — as protests unfolded under perfect blue skies, just hours before the beginning of the Jewish holiday of Passover — there was one sentiment shared by nearly everyone, no matter their viewpoint on the war: anger at Dr. Shafik.

Persons: Marianne Hirsch, Hirsch, Nemat Shafik, Shafik, “, ” Organizations: Columbia University, Comparative Literature Department Locations: Gaza, Israel

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, ’

Tesla investors’ nerve-racking rideTesla has hardly been keeping quiet as it prepares to announce earnings on Tuesday. These developments are the latest signs that Tesla is confronting its toughest stretch in years — and many shareholders aren’t convinced that the company and its C.E.O., Elon Musk, are taking the right steps to address it. The latest: During the weekend, Tesla cut prices of several models in China, the U.S. and Europe. Those moves came a day after Tesla voluntarily recalled nearly 4,000 Cybertrucks over a faulty accelerator pedal that could get stuck. It’s all apparently keeping Musk so busy that he canceled a trip to India, during which he was expected to meet with Prime Minister Narendra Modi and announce plans to build a factory there.

Persons: Tesla, aren’t, Elon Musk, Narendra Modi Locations: China, U.S, Europe, India

After the Indiana Fever made Caitlin Clark the W.N.B.A.’s No. In exchange for Clark’s once-in-a-generation talent, the W.N.B.A. The simplest reason the W.N.B.A. isn’t paying Clark more is that the league brings in just $200 million annually and relies on the N.B.A. The N.B.A., by contrast, brings in about $10 billion.

Persons: Caitlin Clark, ”, Clark’s, Biden, Clark Organizations: Indiana Fever, Nike

Labor painsAfter a “summer of strikes” last year that stretched from Detroit to Hollywood, unions are on a roll, flexing their growing might. Friday will bring a new test of that power as workers at a Volkswagen factory in Tennessee vote on whether to join the United Automobile Workers. Victory there would mark perhaps the first time a foreign carmaker’s U.S. plant became unionized and form a beachhead for organized labor in the anti-union South. But it could also resonate well beyond the car industry as President Biden cultivates labor in battleground states like Michigan and Pennsylvania. A yes vote would be a big win for the U.A.W.

Persons: ”, Biden, Shawn Fain, they’ve Organizations: Volkswagen, United Automobile Workers, Big, Detroit carmakers, Toyota, Tesla, Automotive News Locations: Detroit, Hollywood, Tennessee, U.S, Michigan, Pennsylvania

☆ How an Obscure Chinese Real Estate Start-Up Paved the Way to TikTok
▼ + stars: | 2024-04-18 | by ( Mara Hvistendahl | Lauren Hirsch | ) www.nytimes.com time to read: +1 min

In 2009, long before Jeff Yass became a Republican megadonor, his firm, Susquehanna International Group, invested in a Chinese real estate start-up that boasted a sophisticated search algorithm. Behind the scenes, employees of a Chinese subsidiary of Mr. Yass’s firm were so deeply involved, records show, that they conceived the idea for the company and handpicked its chief executive. They said in one email that he was not the company’s “real founder.”As a real estate venture, 99Fang ultimately fizzled. They say that 99Fang’s chief executive — and the search technology — resurfaced at another Susquehanna venture: ByteDance. ByteDance, the owner of TikTok, is now one of the world’s most highly valued start-ups, worth $225 billion, according to CB Insights, a firm that tracks venture capital.

Persons: Jeff Yass, Republican megadonor, 99Fang, Yass’s, —, Zhang Yiming Organizations: Republican, Susquehanna International Group, Mr, Susquehanna Locations: ByteDance

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