What You Need To Know For May 2nd, 2024

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Welcome back! Let’s get into the latest 👇️ 

Headlines 🔍

• Starbucks closed🔻down 16% yesterday after reporting revenue down 2% y/y to $8.6B, SSS down 4% y/y (with U.S. comps down 3% y/y and international comps down 6% y/y). Declining comps and weakening foot traffic is a terrible recipe for restaurants and coffee shops - showing that the average Starbucks consumer is getting stretched and that price hikes may have gone too far. Even worse, Starbucks downwardly revised guidance from full year sales growth of 7%-10% to low single digit revenue growth.

• Apollo faces serious allegations related to life insurance bets. Apollo has since denied this. Matt Levine gave the best take I’ve seen so far here.

• Blade launches Hamptons Buses that price up to $275, a significant premium to the Jitney. My advice: Take the Jitney or LIRR instead.

• beehiiv (our newsletter platform) raised a $33mm Series B at a $224mm valuation. beehiiv expects to be break-even at year end, with $22mm in ‘24E revenue.

• Proskauer claims that Unitranche security hasn’t been “Battle-tested” in the courts yet.

• Amazon reported monster earnings and the street has raised their price targets.

• Binance founder and ex-Ceo, CZ, is sentenced to 4 months in prison on charges of enabling money laundering.

• Dave and Busters to allow customers to gamble on arcade games.

• Paramount ousts their CEO as the potential Skydance merger nears: Reports noted that the outgoing CEO raised concerns that Class-B shareholders were being treated very unfairly by the potential Skydance and Shari Redstone structure. As a result, he was ultimately dismissed and replaced by a committee of three co-CEOs. We’d expect potential litigation to arise from Class-B shareholders who feel spurned.

• Peacock is raising prices by $2/month, with ad-supported plans going to $9.99/month and ad-free plans moving up to $13.99/month.

• Bill Ackman donates $10,000 to UNC Students:

• KFC owner’s sales fall for first time since 2020.

• Oil slumps toward $85 with US inventories seen rising before FED.

• The global state of industrial cybersecurity 2023.

• Cyber unicorn Claroty preparing to go public at $3.5 billion valuation.

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Layoffs ⛈️

• Barclays is laying off several hundred employees

• Tesla is cancelling summer internships

• Google laid off hundreds of “core workers”

Transactions: M&A 💭 

• WeWork, a commercial real estate company, has entered a definitive agreement to be acquired for $450.00M by Yardi Systems, Softbank Investment Advisers, and King Street Capital Management. Adam Neumann missed out on buying back WeWork :(

• Parkia, operator of car parking facilities, was acquired for $751.08M by Indigo Group.

• Only What You Need, manufacturer of plant-based protein beverages, has reached a definitive agreement to be acquired for $280.00M by Simple Good Foods (NAS: SMPL). Houlihan Lokey advised on the sale.

• Nseit, developer of digital technology solutions platform, has entered a definitive agreement to be acquired for $119.89M by Investcorp. Avendus Capital advised on the sale.

• Kin and Carta, a digital transformation business, was acquired for $299.12M by Valtech. Citigroup, Deutsche Bank, and Peel Hunt advised on the sale.

• Heartland Financial USA (NAS: HTLF), a multi-bank holding company, has reached a definitive agreement to be acquired for $2.0B by UMB Financial (NAS: UMBF). Keefe, Bruyette & Woods, and Stifel advised on the sale.

• Endomag, a magnetic sensing technology company, has reached a definitive agreement to be acquired for $310.00M by Hologic (NAS: HOLX).

• Deciphera Pharmaceuticals (NAS: DCPH), a biotechnology company, has reached a definitive agreement to be acquired for $2.4B by ONO Pharmaceutical (TKS: 4528). J.P. Morgan advised on the sale.

• Blackrock Neurotech, developer of neurotechnology platform, was acquired for $200.00M by Tether.

• Jan Becher Pernod Ricard, a producer and distributor of alcoholic beverages, was acquired for $300.00M by Maspex Group. Centerview and Eight Advisory UK advised on the sale.

• Ecolab’s Global Surgical Solutions Business Unit has entered into a definitive agreement to be acquired for $950.00M by Medline Industries.

• Dulwich College’s Singapore Business Unit has reached a definitive agreement to be acquired for $600.00M by Blackstone (NYS: BX).

• Degussa Bank, Provider of banking and financial services, was acquired for $236.05M by Oldenburgische Landesbank.

• CH&Co, provider of contract catering services, was acquired by for $594.49M by Compass Group (LON: CPG). Rothschild & Co advised on the sale.

Transactions: Private Placements 💭

• PharmEasy, operator of an online drug delivery platform, has raised $216.27M of venture funding led by Manipal Education and Medical Group at a pre-money valuation of $707.81M.

• Island, developer of an enterprise browser, has raised $175.00M of Series D venture funding led by Coatue Management and Sequoia Capital at a pre-money valuation of $2.83B.

• Enlaza Therapeutics, developer of novel protein therapeutics, has raised $100.00M of Series A venture funding led by J.P. Morgan Life Sciences Private Capital.

• Corelight, developer of a network visibility software platform, has raised $150.00M of venture funding led by Accel at a pre-money valuation of $750.00M.

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Until Next Time!