June 9th - The Week Ahead

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The week ahead of us 🔍

Here’s a look at earnings coming up this week…it’s pretty quiet…

• Tuesday: Oracle

• Wednesday: Broadcom, Dave & Buster’s

• Thursday: Adobe, RH, Signet

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The Main Story🤯 

Gamestop and “Roaring Kitty”. Keith Gill hosted his much anticipated first livestream in 3 years and left investors disappointed on his lack of substance. As he started talking, the stock tanked, falling nearly 40% on Friday.

Gill’s main “thesis” provided on the live stream was a bet on management, which was generally vague relative to the deep work he did 3-4 years ago. “It becomes a bet on the management. In particular, of course, Ryan, fu**ing Cohen.” Gill said. Far from the “Deep Value” to be expected from someone associated with the handle “DeepFu**ingValue” on Reddit.

On Thursday Gill’s position had bloomed to $586M between his stock holdings and unexercised options. Then on Friday morning, Gamestop filed to sell up to 75 million additional shares on the heels of “Roaring Kitty” announcing his live stream and the stock price rising 47%. Gill is now estimated to be worth $311M following Friday’s plunge.

There’s been no update on E*Trade, who has been evaluating kicking Gill off their platform as a result of the situation.

Headlines 🔍

• The Tesla Shareholder Vote on Elon Musk’s $56B Pay Package takes place this week: Musk is expected to win the June 13th vote, but if for some reason he didn’t, it may mean him deprioritizing his focus on the Company. After a Delaware Judge voided the moonshot package initially, it’s up to shareholders to figure out whether Musk deserves this comp package. Key Tesla Investors like Cathie Wood voiced their support:

• Private credit fund Hayfin is pursuing a management buyout instead of a sale. Previously, MetLife and Eldridge were among the asset managers who were circling Hayfin, with a $1.3 Billion valuation floated

• TNT Remains In Talks For Possible Fourth NBA Rights Package: A 4th package rights may play out, and TNT parent Warner Bros Discovery has the option to match Amazon’s and NBC’s hefty offers

• PIMCO is starting a creditor group to lay the groundwork for a liability management exercise at iHeart Media. Five years after breaking out of Chapter 11, the media group continues to struggle in the face of falling listenership and shrinking advertising revenue. Restructuring-born conflicts have become increasingly common place as investors have gotten more aggressive in their bids to secure an improved recovery

• With the help of BDT & MSD partners, the owner of the Philadelphia Eagles is considering selling a minority stake in the NFL team. 30 years after the Lurie family initially invested $185mm in the franchise, the 2023 Super Bowl Runner-Up may be valued north of $7.5B

• Juul is coming back! Here’s the details:

• Caitlin Clark vows to use Olympics snub as motivation to make 2029 team

• Wyoming’s Teton Pass road collapses in landslide” ‘Catastrophic failure’

• Starting an internship? Here’s High Yield Harry’s Advice for Finance Interns piece from last year.

M&A Transactions💭 

Trachte, manufacturer of preassembled and modularized metal control buildings, has reached a definitive agreement to be acquired for $695.0M by nVent Electric (NYS: NVT). Baird Partners and Harris Williams advised on the sale.

See Tickets, developer of self-service ticketing platform, was acquired for $325.1M by CTS Eventim (ETR: EVD).

La Triveneta Cavi, manufacturer of low and medium-voltage cables, was acquired for $563.5M by Nexans (PAR: NEX). Banca Finint advised on the sale.

Investis Holdings, provider of real estate services in Switzerland, has entered into a definitive agreement to be acquired for $264.6M by PHM Group.

GoCanvas, developer of a cloud-computing SaaS platform, has reached a definitive agreement to be acquired for$700.0M by Nemetschek Group (ETR: NEM). Moelis advised on the sale.

GE Licensing Unit of GE Aerospace (NYS: GE) has reached a definitive agreement to be acquired for $429.0M by Dolby Laboratories (NYS: DLB). Houlihan Lokey advised on the sale.

The Electron Device Business Unit of CPI International was acquired for $1.39B by TransDigm Group (NYS: TDG).

Bitstamp, operator of an online trading marketplace, has reached a definitive agreement to be acquired for $200.0M by Robinhood (NAS: HOOD).

Shenghuo Pharmaceutical Group, developer of cardiovascular and cerebrovascular drugs, has reached a definitive agreement to be acquired for$250.18M by KPC Pharmaceuticals (SHG: 600422).

Prima Capital Advisors, provider of an investment advisory and asset management services, was acquired for $170.0M by Blue Owl Capital (NYS: OWL). Morgan Stanley advised on the sale.

PowerSchool Group (NYS: PWSC), provider of a cloud-based software, has reached a definitive agreement to be acquired for $5.6B by Bain Capital. Centerview Partners and Goldman Sachs advised on the sale.

Gardant, provider of financial services, has entered into a definitive agreement to be acquired for $249.24M by doValue (MIL: DOV).

Mr. Zuber Issa has reached a definitive agreement to acquire the Forecourt Business and Some Food Service Locations of EG Group for $228.0M.

Private Placement Transactions💭

Versamet, operator of a diverse metals royalty company, has raised $104.2M of venture funding led by B2Gold and Sandstorm Gold Royalties.

Space Pioneer Technology, developer of spacecraft and aerospace propulsion systems, has raised $209.53M of Series C+ venture funding from Shanghai Deyue Investments, Hefei Ruicheng Venture Capital, Zhongcai Tenghua Private Equity, CSC Investment, Jundu Investment, and Hongfu Investment.

Noteworthy Chart 🧭

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