“Temptation Operation”
Just days after the merger of PGA and LIV Golf was announced, a group of Saudi investors and power brokers, including Crown Prince Mohammed bin Salman, have converged on France this week for a potential multi-trillion dollar investment. Looking for some further deals.
First stop: a major tech event in Paris. Vivatech’s “Invest in Saudi Arabia” booth, which includes Elon Musk and high-end billionaire Bernard Arnault in the program, has an extraordinary presence. The booth, which will be funded by the Saudi Ministry of Investment, will serve as a kind of billboard to announce the country’s ambitions and is a means to help entrepreneurs attract Western investors and future business partners. Vivian Walt wrote in Dealbook.
The surge in oil revenues has already pushed the country’s sovereign wealth fund, chaired by Crown Prince Mohammed, to about $35 billion U.S. assets alone (including shares in Uber, PayPal, and Electronic Arts) have an obligation to diversify the economy beyond fossil fuels.
Deputy Minister for Investor Assistance Badr Al-Badr told Dealbook that Saudi Arabia has about $3.2 trillion in investment capital by 2030, adding: There is an opportunity for
Saudi Arabia has eyes on all fronts. Saudi Arabian football clubs have made their fortunes by signing European stars and are reportedly looking for more players. And at last month’s Cannes Film Festival, the kingdom, which had banned cinemas for decades until 2017, announced a $180 million donation. In funding filmmakers.
A kingdom overflowing with cash is building a new public image. Saudi investors say the investment community rarely mentions the country’s long record of human rights abuses. This includes the Saudi role in the 2018 murder of journalist Jamal Khashoggi, which the CIA found was likely carried out with Prince Mohammed’s knowledge. bottom. Since then, Saudi Arabia has closed a number of deals and investor interest has grown rapidly. Private equity and venture capital firms They are seeking funding from Saudi Arabia, especially as China’s ban is tightening.
Iron’s grip on the power of the Saudi royal family is still undiminished. Prince Mohammed is said to have the final say on investment strategies, and the country’s wealth gives him influence beyond business.
As part of a week-long visit to France, the crown prince, who owns a $300 million chateau near Paris, had lunch with President Emmanuel Macron at the Elysee Palace on Friday, discussing Saudi Arabia’s potential role in Ukrainian peace talks. We are going to talk about
Saudi officials and executives will also gather on Monday for a day-long investment summit. Agenda: Riyadh wants to host the 2030 World Expo, whose governing body is headquartered in the French capital.
Our final destination is the Paris Air Show next week. Prince could announce bulk purchase of Airbus planes, according to Reported by French newspaper Le Figarocalled his visit a “seduction operation.”
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Goldman Sachs’ role in the end of Silicon Valley Bank is reportedly being investigated. Fed and SEC The Wall Street Journal reports that Goldman is investigating its role in buying the securities books of tech financial firms, advising them on their destined capital raises. First reported by DealBook in March, Goldman is the latest to come under pressure over its dual role following the collapse of Silicon Valley Bank.
BlackRock has taken a big step into cryptocurrency. The investment management giant made the following move on Thursday: Create a Spot Bitcoin ETF, using Coinbase as the custodian of the fund. This is a move by BlackRock to embrace cryptocurrencies more closely as the SEC cracks down on the industry.agency has not yet approved Any Spot Bitcoin ETF
China is said to be planning a new stimulus package. Beijing is Considering potential billions of dollars in new infrastructure spending Rules for people to invest in new properties are also being relaxed, according to The Wall Street Journal. Such a move would follow the Chinese government’s efforts to revive an economy that had unexpectedly stalled despite the end of pandemic restrictions.
Disney’s CFO resigns. Christine McCarthy plans to take “family sick leave” on July 1 before helping to select a successor. She helped Disney weather the pandemic, but her conflicts with then-CEO Bob Chapek escalated, prompting Bob Iger to ask her to return to the top of the media giant.
Is the IPO market ready to reopen?
kava stockThe Mediterranean-oriented fast-casual restaurant chain doubled in trading debut on Thursday, taking its valuation to about $4.9 billion. The achievement has many on Wall Street wondering if the largely frozen initial public offering market will finally open up, and what companies will benefit from it.
Kava’s stock soared 117 percent. It closed at $43.78. That’s almost double the price at which the company, which had already raised its price range, quoted its stock at the time of its offering. Performances like this are reminiscent of the rosy days of IPOs, when investors eagerly bid for fast-growing but often unprofitable companies.
Kava is also among them. The 12-year-old company is not yet profitable, but it is expanding rapidly, from 22 locations in 2016 to 263 locations today, and by 2030, he will have 1,000 locations. We aim to reach the
Some people wonder why they are so excited about the IPO market, currently in that state slowest pace since 2009. Perhaps investors are willing to bet on riskier stocks again, even though the Fed says rate hikes aren’t over yet. (Consider that the shares of Kava rivals Chipotle and Sweetgreen have rebounded spectacularly this year.)
Cava’s success is particularly encouraging for other restaurant chains, including Panera and the parent company of Fogo de Champs, which are about to go public.
But other high-profile recently-listed companies, such as Tylenol maker Kenview, have also seen their stocks languish after promising debuts.
Call for “urgent public hearings” on AI
California Democrat Rep. Maxine Waters, a longtime congressional financial watchdog, has called on Republicans to immediately call hearings on how banks and other financial firms are using artificial intelligence in their businesses. We are asking you to schedule, Emily Fritter writes in her dealbook.
Waters worries about the impact of AI on consumers. The top Democrat on the House Financial Services Committee is urging financial services companies to explore how this technology enables “complex consumer and investment decisions with minimal human direction.” requested to the committee.
she Was chosen The explosive popularity of chatbots powered by generative AI, such as ChatGPT, Microsoft Bing’s AI capabilities, and Google’s Bard, has captivated the imagination of the business world and the general public.
The tech industry says there could be some oversight. In Senate testimony last month, Sam Altman, CEO of ChatGPT developer OpenAI, urged Congress to regulate this new generation of AI tools. “If this technology doesn’t work out, I think it could go quite the wrong way,” he said at the time. “We want to work with the government to prevent that from happening.”
Waters echoed that concern. Recognizing the potential of AI to expand consumer financial access, she added in her letter: Introducing integrated consumer and investor protection. “
Her call may get some attention. Rep. Patrick McHenry, a North Carolina Republican who chairs the panel, said: Express privacy concerns about rapidly evolving technology.
Spotify breaks away from loyalty
Spotify and Archwell, the media company founded by Prince Harry and Meghan Markle, announced Thursday that they are ending an exclusive content partnership that has lasted two and a half years.
The news speaks to tensions between the two, but perhaps more importantly, the changing outlook for what was supposed to be one of Spotify’s landmark undertakings.
Only one podcast has been produced under contract with Archewell. At the time of her debut in 2020, Meghan’s “archetype” topped the charts in several countries.
Depending on who you talk to, the deal ended because Prince Harry and Meghan wanted it. Expand beyond Spotify’s walled garden — as well as other podcasters like the Obamas and Brené Brown — or because they are could not produce enough Content for Spotify. Either way, it’s unlikely the couple will get the full $20 million signing bonus.
And it’s a reminder that Spotify’s big bet on podcasts didn’t pay off. The company wants to move beyond streaming music, a business that provides huge, permanent money to labels. spent more than $1 billion Podcasts include $400 million for studios Gimlet and The Ringer, and hundreds of millions in deals with the likes of Prince Harry and Meghan Markle (not to mention a reported $200 million for Joe Rogan). stomach).
Since then, Spotify has cut headcount in the division, discontinued the Gimlet and Parcast brands, and focused more on providing podcasting tools than building subscribers with Spotify-exclusive shows.
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With Citigroup’s latest 5,000 job cuts plan, Wall Street job cuts this year will be Over 11,000. (FT)
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Carlyle’s new CEO Harvey Schwartz Loans identified As the best way to increase the wealth of an investment company. (Bloomberg)
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bank of america While pledging to invest $500 million in minority- and women-led foundations, the NFL is in debt $78 million from black- and minority-owned financial institutions. (CNBC)
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