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Good Morning,

Warner Bros. Discovery had a tough earnings report, banks are cautious about underwriting IPOs, Israeli bond purchases are popular in the US, Caesars reached a deal with a Vegas union to avoid a strike, American Airlines is offering $250k bonuses to former FedEx and UPS pilots, and Eli Lilly won FDA approval for a new obesity drug.

Let’s dive in.

Before The Bell

Markets

• US stocks were mixed as the S&P rose for an eighth consecutive day 

  • The S&P led indices with a 0.1% gain; The Dow lost 0.12%

• Treasury yields continued to pullback from their recent high, with the 10Y yield having its lowest close since September

Earnings

• Disney missed revenue expectations due to a decline in ad revenue but beat profit expectations thanks to profit at ESPN+, growth in theme parks, and cost-cutting measures; total Disney+ subscribers were higher than expected (CNBC)

• Arm Holdings shares fell 8% after reporting its first post-IPO earnings where it beat adjusted earnings and revenue expectations; its revenue guidance was short of expectations (CNBC)

• Warner Bros Discovery shares plunged 19% after the company reported a larger-than-expected loss, a decline in ad revenue and lackluster streaming numbers (CNBC)

• Roblox shares popped 11% after beating Q3  revenue and net loss expectations and showing strong user growth (CNBC)

• What we're watching this week:  

  • Today: Li Auto, Unity

• Full calendar here

Headline Roundup

• Falling treasury yields could turn Fed hawkish if financial conditions ease (RT)

• It’s US vs China in an increasingly divided world economy (WSJ)

• Warner gets too real about advertising meltdown (WSJ)

• Investors are paying a price as bankers get cautious with IPOs (BBG)

• EV market’s surge toward $57T sparks global flashpoints (BBG)

• Amazon to offer lower-cost primary care to members in latest healthcare push (WSJ)

• Panama Canal queue jumper pays record $4M to skip line (BBG)

• Massive surge in the buying of Israel bonds from the United States (CNBC)

• UK sanctions Dubai-based trader in Russian oil clampdown (BBG)

• Caesars reaches deal with Las Vegas union to avoid strike (CNBC)

• American Airlines dangles $250k bonuses to poach FedEx and UPS pilots (WSJ)

• Microsoft’s GitHub announces Copilot assistant that can learn about companies’ private code (CNBC)

• Eli Lilly wins FDA not for obesity drug that rivals Wegovy, Ozempic (BBG)

• Nissan CEO weighs in on how the EV market has changed since Covid (CNBC)

• Private jets of Russia’s rich keep flying but not to Europe (RT)

• UK’s national grid boosts five-year spending on power networks (BBG)

• Vanguard shuts down German wealth platform after two years (BBG)

A Message From Magic

How 7-Eleven Is Using Magic To Drive Brand Loyalty

No, not literal magic.

(Although if a cashier could pull slurpees out of a hat while riding a unicycle, we’d be impressed). 

We mean Magic, the web3 platform that massive brands – including 7/11, Macy’s, and Mattel – are using to take brand loyalty to the next level. 

While AI is all the rage right now, web3 is still going strong just outside the spotlight. Nike has made $185M in revenue on NFT sales since December 2021, A16Z crypto has invested $162M in Q3 2023 alone, and everyone from Adidas and Puma to Lacoste are using blockchain technology to better connect with customers. 

And that’s where the magic of Magic comes in.

With Magic, brands can allow their best customers to secure special rewards, and build a closer connection than ever before. 

Is your company looking for newer, better ways to connect with customers?

Then download this free whitepaper from Magic right here and see what web3 can do for you. 

Deal Flow

M&A / Investments

• Canadian pension manager Caisse de Depot et Placement du Quebec is exploring the sale of as much as $2B of PE assets in the secondary market to free up cash (BBG)

• Software services provider Bill Holdings is in advanced talks to acquire digital payment tool provider Melio Payments in a $2B cash-and-stock deal (BBG)

• Recco Control Technology and Dazheng Group Investment Holdings offered $1.64B to acquire Hollysys Automation Technologies, topping Ascendent Capital Partners’ $1.6B bid (RT)

• Eni is nearing a deal to sell a ~10% stake in its Plenitude renewables unit for ~$800M to Energy Infrastructure Partners (BBG)

• KKR and GED Capital acquired Fresenius’ fertility business Eugin Group in a deal worth up to $536M (FT)

• Chinese PE firm Wise Road Capital is in advanced talks to buy Singapore’s Innovalues Holdings from Northstar Group, which was looking to sell the precision machine parts maker at over $377M (RT)

• China's ByteDance, the parent of short video app TikTok, is offering to buy back at least $300M worth of shares from its employees outside the United States for $160/share, which values the company at $224B (RT)

• Software and IT service provider Fuji Soft is close to unveiling buyout offers for four of its Tokyo-listed subsidiaries, Cyber Com, Cybernet Systems, Fuji Soft Service Bureau, and Vinx, to acquire the shares they don’t own for ~$266M (BBG)

• US chip company Vishay Intertechnology agreed to buy Newport Wafer Fab for $177M from Chinese-owned Nexperia (FT)

• PE firm Warburg Pincus launched a tender offer to acquire control of Brazilian insurance group Alper at a $174M valuation (RT)

• Abu Dhabi National Oil made a new offer to acquire a 38.3% stake in Brazil’s Braskem, one of the world’s largest petrochemical makers, from Novonor (BBG)

VC

• Quantum computing startup Photonic raised a $100M round from BCI, Microsoft, and others (BW)

• Black Ore, an Austin-based provider of an AI platform for financial services, raised a $60M round led by a16z and Oak HC/FT (FN)

• Forward Therapeutics, a biopharmaceutical company developing small molecule therapies for chronic immunological and inflammatory disorders, raised a $50M Series A led by BVF Partners (FN)

• L-Nutra, a nutri-tech startup, raised a $47M Series D led by Moderna CEO Stephane Bancel (FN)

• AI behavioral health startup Eleos Health raised a $40M Series B led by Menlo Ventures (PRN)

• RNA editing startup Ascidian Therapeutics raised a $40M Series A extension from Apple Tree Partners (PRN)

• Niron Magnetics, a startup manufacturing rare earth-free permanent magnets, raised a $33M round from GM Ventures, Stellantis Ventures, and others (FN)

• Code-generating AI platform Tabnine raised a $25M Series B led by Telstra Ventures (TC)

• Letoon Holding Ltd., a UK-based company focused on recovering high-value ingredients from vegetable waste, raised $24.5M in financing from Nimbus Capital (BW)

• Influence, a startup providing a platform for venture investing, raised a $20.8M seed round led by Alpha Praetorian Capital (FN)

• IperionX, a titanium producer, raised $16.7M in funding led by B Riley Principal Investments, Fidelity International, Inherent Group, and others (BW)

• Fillogic, a startup building tech for channel-free logistics, raised a $13M Series A led by Revelry Venture Partners (PRN)

• Data management platform Upciti raised a $7.5M round led by Point Nine and Chalfen Ventures (TC)

• Ozone, an AI-powered collaborative video editor in the cloud, raised a $7.1M seed round from Y Combinator, NEA, General Catalyst, and more (TC)

• Nubis Communications, a photonics startup, received a $6M investment from TDK Ventures (PRN)

• Forum, a marketplace for peer support groups, raised $5.3M in funding led by NextView Ventures (PRN)

• Ghost Autonomy, an autonomous driving startup, received a $5M investment from the OpenAI Startup Fund (BW)

• ReturnGO, an e-commerce return management platform, raised $5M in funding led by Trestle Partners (FN)

• EarnBetter, a startup applying generative AI to writing resumes and cover letters, raised a $4.5M seed round from a16z, Abstract Ventures, and more (TC)

• Protecto, a data privacy solution enabling safer AI, raised a $4M seed round led by Together Fund (BW)

• Ensol, a Paris-based PV equipment startup, raised $3.2M in funding from Otium Capital (FN)

• AstroBeam, a VR game studio focused on multiplayer, raised a $3M seed round from The Venture Reality Fund, Anorak Ventures, Boost VC, and more (BW)

• Chilean food supply chain startup Loads raised a $2.1M seed round led by Nazca (TC)

• Concept Matrix Solutions, a vertically integrated biotech company, received a $1.2M investment from Impact Biotech (FN)

IPO / Direct Listings / Issuances / Block Trades

• Shares of Spirit AeroSystems fell ~15% after the aerospace supplier announced plans to raise $200M through the issuance of common stock and $200M through the issuance of convertible debt maturing in 2028 (RT)

• Middle East alternative asset manager Investcorp Capital's IPO of its investment vehicle was revised upwards to a minimum of $389M (RT)

Debt

• Transnet SOC rolled over $381M of debt due this week until March, giving the South African state-owned port and rail company relief for four months (BBG)

• Warren Buffett’s Berkshire Hathaway plans to sell yen-denominated corporate bonds for the second time this year (BBG)

Bankruptcy / Restructuring

• Sweden's Oscar Properties proposed a refinancing plan after two of its lenders last month demanded the immediate repayment of $192M, although one lender rejected the scheme (RT)

Fundraising

• Jefferies Financial Group raised over $2.1B for its Jefferies Direct Lending Fund II, which will focus on making senior secured loans to middle- and upper-middle-market companies (BBG)

• German VC Acton Capital closed its Acton VI fund at $241M to invest in European and Canadian companies in their early growth phase (FN)

Crypto Corner

• HSBC is planning to launch a custody service for storing blockchain-based assets excluding cryptocurrency in 2024 (RT)

• Spanish regulators opened their first case relating to mass advertising campaigns for crypto assets (RT)

Exec’s Picks

• Ben Thompson gave a detailed breakdown of OpenAI’s recent keynote presentation.

• Ted Gioia wrote about everything wrong with Sam Bankman-Fried’s “effective altruism” movement.

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