Plus: Streaming stocks surge as Apple and Paramount hint at partnership
| For December 02, 2023 |  |
| These are today's top Business stories: - 💵 Walmart has stopped advertising on X as the revenue crisis continues to get worse for Elon Musk's company.
- 💊 Pfizer will no longer produce its weight loss pill due to many reported side effects.
- ✈️ Boeing has been eliminated from the competition to build a "doomsday" plane for the U.S. government.
Arbër
p/Arber | |
| 1 | | Walmart has confirmed that it has stopped advertising on X because it has "found better platforms to reach its customers." The announcement comes as Elon Musk publically lashed out at Disney CEO Bob Iger. More: - During the New York Times' DealBook event on Wednesday, Tesla CEO and X owner Elon Musk said that advertisers who have left X "can go f*** themselves" for trying to "blackmail" him through their advertising money, then called out Disney CEO Bob Iger by name.
- Musk added that he is well aware that X may go bankrupt as a result of the boycott from major advertisers but said that he believes the public would join him in blaming the advertisers.
- X could lose as much as $75M in advertising revenue due to a boycott from companies such as Airbnb, Coca-Cola, Disney, IBM, and Microsoft.
- This boycott began earlier this month when MediaMatters published a story that X would place ads for these companies next to antisemitic material.
- Musk said that MediaMatters manipulated the algorithm to get its desired result and vowed to sue the organization.
- Musk's vulgar statement galvanized some of his supporters online, who made calls to boycott Disney+, which has nearly 150 million users.
|     | |
| 2 | | 
The story: Pfizer has announced it will stop the development of its twice-daily weight loss pill due to side effects. The company still plans to release a once-daily pill in 2024. More details: Pfizer's pill had been in a phase two trial. The pill was tested by 600 obese adults who did not have Type 2 diabetes in 26-week and 32-week periods. Patients who took the pill twice a day lost 6.9% to 11.7% of their body weight on average at 32 weeks and from 4.8% to 9.4% at 26 weeks. Meanwhile, patients undergoing a placebo therapy gained 1.4% of their body weight at 32 weeks and 0.17% at 26 weeks. But Pfizer claims that up to 73% of the patients experienced nausea, with up to 47% vomiting and up to 25% experiencing diarrhea. Pfizer stated that it aims to publish its data on a trial regarding a once-daily pill in H1 2024. What the numbers say: The global obesity treatment therapy market is set to grow at 18% CAGR until 2030. This market, valued at $11B in 2022, will reach $18B in 2025 and skyrocket to $21B by 2030. Pfizer will look to grab its market share, as Ozempic maker Novo Nordisk has seen its market cap reach over $400B due to the popularity of its therapy. | | | |
| 3 | | Boeing has been eliminated from the competition to build a nuclear warplane for the U.S. government. Sierra Nevada Corp is now the only company publicly known to be left in the competition. More: - The two sides could not reach a deal to build the successor of the E-4B Nightwatch because Boeing allegedly refused to sign a fixed-price agreement that would have made the company unable to go beyond a certain threshold in terms of costs.
- Boeing's defense unit has lost $1.3B on fixed-price development programs this year and $16.3B since 2014.
- The plane would be used for a "Doomsday" and would have to be able to be operational during a nuclear attack.
- The Air Force currently operates four E-4B aircraft manufactured by Boeing, with at least one on alert at all times.
- Due to their age, many parts are now going obsolete, while the entire fleet is expected to be replaced by 2030. This fleet has planes used since the 1970s.
| | | |
| 4 | | Streaming stocks have surged as Apple and Paramount hinted at a potential partnership. The duo could bundle their services in a plan cheaper than each cost separately. More: - Paramount's stock price rose almost 10% on Friday, while Warner Bros. surged 8%.
- Paramount's stock price this year has fallen by 6%, while Warner Bros. has seen its share price surge by 19% on a yearly basis.
- Earlier this year, Netflix and Max announced a new deal with Verizon to bundle their services at $10 a month, almost half what the services would cost separately.
- These bundling offers could help companies reduce cancellations from consumers, according to industry experts. This is because viewers feel less likely to follow through with a cancellation if they feel that they will miss out on what is twice as much content as they previously had.
| | | |
| 5 | | Southwest Airlines is close to reaching a new deal with its pilots union. The agreement will see a pay increase for 11,000 workers. More: - In addition to pay, workers have also made demands regarding retirement benefits.
- If a preliminary agreement is approved by the Southwest pilots union board in the coming weeks, it would then go to the pilots for a ratification vote.
- Southwest reached an agreement with its flight attendants union earlier this fall that includes 36% pay increases for cabin crew members, while Delta Air Lines, United Airlines, and American Airlines have all implemented changes in pay and benefits with their workers.
| | | |
| 6 | | Amazon has bought three rocket launches from SpaceX for its satellite internet project. The decision surprised industry experts since the two are competitors. More: - Amazon owns a company named Project Kuiper, with the mission of providing internet connection for people around the world by launching satellites.
- This business is a direct competitor of Starlink, SpaceX's subsidiary, which provides the same service.
- Starlink provides coverage in 60 countries and has over 2 million subscribers as of September 2023.
- The business generated $1.4B in 2022, generating a small profit at the beginning of 2023.
| | | |
| 7 | | Quick Hits: - Competitors are killing your efficiency. Read how Greenhouse gained $85mil in revenue from reps who used Klue over non-Klue users.*
- U.S. regulators are launching an investigation into 73,000 Chevrolet Volt plug-in hybrid cars over a number of reported technical failures.
- Johnson & Johnson Medtech has acquired medical device manufacturer Laminar for $400M.
- Ireland's Minister of Public Expenditure could bid to become the next head of the International Monetary Fund.
*This is sponsored content. | | | |
 | Writer | | Arbër is an Inside writer who also has experience in entrepreneurship. He has experience covering Consumer Tech, Venture Capital, NFTs, Crypto, etc. Arbër holds a Bachelor's degree in Business from XAMK University in Finland. When he is not reading(and writing) business news, he chooses to watch sports or anime...and then read news about sports or anime. | | This newsletter was edited by Aaron Crutchfield | |
| |
| |
