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UK regulators are expected to approve Microsoft’s acquisition of Activision, Tether increased its T-Bill holdings to $53B, Robinhood is facing regulatory probes, Tucker Carlson is staying on Twitter, Spotify removed thousands of AI-generated songs, and TikTok delayed fully opening a US shop.

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Let’s dive in.

Before The Bell

Markets

• US stocks ended slightly higher after CPI report showed inflation slightly lower than expectations, signaling strides towards easing

• Treasury yields tumbled following the CPI report, further supporting a stock market that was previously worried about higher rates

• Markets are preparing for potential debt default as deadline looms

Earnings

• Disney missed Q2 EPS estimates by a penny as losses from streaming narrowed and theme parks outperformed estimates; the company will continue to cut $5.5B in costs this year (YF)

• Beyond Meat beat Q1 revenue estimates and had lower-than-expected losses as the company strives for cash-flow positive operations and sustainable long term growth (MW)

• Robinhood blew past Q1 revenue estimates as the Fed’s rapid rate hikes boosted the online brokerage’s interest income (RT)

• Wendy’s beat Q1 estimates as systemwide sales increased by 10% and same restaurant sales were up 8% (PR)

• What we're watching this week:

  • Today: Krispy Kreme  

• Full calendar here

Headline Roundup

• US CPI edged slightly lower to 4.9% YoY in April (WSJ)

• US White House, Congress begin tough debt limit, budget negotiations (RT)

• US prosecutors are investigating recent short selling in bank shares (RT)

• Icahn blasted Hindenburg after coming under federal investigation (WSJ)

• US accounting watchdog found unacceptable deficiencies in KPMG and PwC audits performed in China (RT)

• Intel and BCG are teaming up to sell AI to corporate customers (RT)

• Panasonic delays production of new Tesla battery to improve performance (RT)

• Robinhood faces regulatory probes over communications compliance (BBG)

• Repeat bankruptcies are piling up at fastest rate since 2009 (BBG)

• Tucker Carlson's Twitter move wipes $235M from Rumble (BBG)

• Uber launches flight bookings in UK travel ‘super app’ push (FT)

• Spotify ejected thousands of AI-made songs in purge of fake streams (FT)

• NYC-area rents surge by most in nearly two decades (BBG)

• TikTok delays full opening of US shop (WSJ)

• Toyota accelerates its EV changes with extra $7B investment (WSJ)

• US airlines thrown a curveball as consumer habits change post-pandemic (RT)

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Deal Flow

M&A / Investments

• EU Antitrust regulators are expected to clear Microsoft’s $69B acquisition of Activision next week (RT)

• Germany’s Software AG snubbed Bain Capital’s $2.7B offer, choosing to maintain support for a lower takeover offer from existing backer Silver Lake Management (BBG)

• A consortium comprising Franchise Group’s CEO and PE firm Irradiant Partners will take Vitamin Shoppe-owner Franchise Group private in a $2.6B cash deal (RT)

• Singapore’s sovereign wealth fund GIC emerged as the frontrunner to buy a $2.2B stake in Messer in deal that could value the German industrial gas maker at over $10B (BBG)

• Biopharmaceutical company Swedish Orphan Biovitrum agreed to buy US biotech CTI BioPharma, a developer of blood-related cancer therapies, for $1.7B in cash (BBG)

• Arctos Sports Partners are among a group of investors interested in buying a 5-15% stake in French football club PSG, currently valued at $4.6B (BBG)

• African investment firm Axian is in advanced talks with Africa’s largest mobile operator MTN to acquire some of its West African assets (BBG)

• UK housing provider Home REIT will not extend the deadline for investment firm Bluestar to make a firm offer for the company (RT)

VC

• “MRI for Cars” manufacturer UVeye raised a $100M Series D led by Hanaco VC (TC)

• Petal, a startup offering credit cards for underserved consumers, raised a $35M equity round led by Valar Ventures (TC)

• DiogenX, a biotech company focused on regenerating insulin-producing beta cells for the treatment of diabetes, raised a $27.5M Series A from Roche Venture Fund, Eli Lilly, Omnes, and others (FN)

• Triumph, a startup building an SDK to add real-money tournaments into games, raised $14M in funding: a $3.9M seed round led by Flux and a $10.2M Series A led by General Catalyst (TC)

• Datanomix, a production intelligence platform, raised $12M in growth capital led by MK Capital and Joint Effects (PRN)

• ChrysaLabs, a leading innovator at the forefront of soil science, announced an $11M financing round led by Leaps by Bayer, TELUS Ventures, and BDC Capital (PR)

• Salsa, a startup providing APIs for developers to add revenue-generating payroll solutions to their products, raised a $10M round led by Greycroft, Better Tomorrow Ventures, and Definition (TC)

• Pudgy Penguins, a Web3 IP company and NFT collection, raised a $9M seed round led by 1kx (FN)

• SquareX, a startup developing a browser-based cybersecurity product, raised a $6M seed round led by Sequoia Capital Southeast Asia (FN)

• Generative AI platform Orby AI raised a $4.5M seed round led by Pear VC and New Enterprise Associates (PRN)

• Blocktorch, an observability platform for web3 engineers, raised a $4.2M seed round led by Ideo CoLab Ventures (FN)

• Obeo Biogas, a biogas developer for dairy farms, raised a $3M seed round led by Diagram Ventures (BW)

IPO / Direct Listings / Issuances / Block Trades

• Digital infrastructure provider ST Telemedia Global Data Centres, backed by Singapore state-owned investment firm Temasek, is considering raising up to $1B through a funding round before its potential IPO (BBG)

• Indian commercial port operator JSW Infrastructure filed for an IPO worth up to $342M (RT)

• Japanese oil refiner Eneos Holdings is considering a spinoff and IPO of its metals unit, JX Nippon Mining & Materials, to increase its focus on renewable energy (BBG)

• Egypt plans to sell an additional 10% stake in state-run Telecom Egypt through share sale to raise cash and reassure investors (BBG)

• Italian Yacht Maker Ferretti is working on a potential dual listing in Milan after going public in Hong Kong last year (RT)

SPAC

• SPAC Pioneer Martin E. Franklin, who warned about excess blank check companies last year, launched a new SPAC Admiral Acquisitions on the London Stock Exchange (BBG)

Bankruptcy / Restructuring

• Martin Shkreli-founded drug company Vyera Pharmaceuticals filed for bankruptcy to sell its assets (RT)

• Private jet company Wheels Up’s founder stepped down as the company faces potential bankruptcy (CNBC)

Fundraising

• BlackRock is seeking $1B for a new Middle East infrastructure and PE fund with possible sovereign wealth fund contributors including Saudi Arabia’s PIF and Abu Dhabi’s Mubadala (BBG)

• One Equity Partners closed a $1B continuation fund to help fund acquisitions and continued growth for portfolio companies USCO and DWK Life Sciences (BBG)

Crypto Corner

• Tether, the operator of the largest stablecoin USDT, increased its holdings of US Treasury Bills to $53B and cut its exposure to cash in Q1 (BBG)

• US IRS filed claims worth $44B against the estate of bankrupt crypto exchange FTX and its affiliates (CD)

• Binance slammed US crypto crackdown as ‘confusing’ and hopes to be regulated in the UK (FT)

• Bitcoin is facing volatility threats amid declining participation from institutional market makers (BBG)

Exec’s Picks

• The Atlantic’s Ariel Sabar shared a wild story about how a solar “start-up” pulled the scam of the century, hooking everyone from Warren Buffett to the US Treasury.

• This New York Times piece discussed steps that NYC could take to deal with its office vacancy problem.

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