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| Hello Insiders! Today's business newsletter covers: - 🚙 UPS drivers are set to earn up to $170,000 due to new labor agreement.
- 📉 Disney reports a decline in revenue and Disney+ subscriptions.
- 🤝 Tapestry is acquiring Capri Holdings, the parent company of Versace, Michael Kors, and Jimmy Choo.
Also, tell us how businesses can adapt to changing consumer behaviors and preferences here! If you find this newsletter helpful, please share it with your friends and colleagues. Thank you. Arbër
p/Arber | |
| 1 | | UPS drivers are set to earn an average of $170,000 annually in pay and benefits by the end of a five-year period, according to UPS CEO Carol Tomé. The new terms were reached during discussions with the Teamsters Union last month. More: - The new contract is currently in the midst of the approval process and is expected to be ratified in the next two weeks.
- With this new agreement, part-time workers could earn $21 per hour, while full-time workers would earn $49 per hour before benefits. As part of this agreement, mandatory overtime will also be terminated.
- The $170,000 amount is $25,000 more than the $145,000 in pay and benefits drivers average now.
- This pay means that UPS drivers will earn similar salaries to software developers, finance directors, and physician assistants, who average $108,000-$115,000 before benefits.
- The agreement affects around 340,000 UPS employees.
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What the numbers say: Disney's revenue in recent years has fluctuated, dropping in 2020 and 2021 before recovering in 2022. The company has suffered a setback, however, as it announced a revenue fall and a decrease in Disney+ subscriber numbers in its latest financial earnings report. The company had $22.3B in revenue, compared to the $22.5B estimate. Financial data: Due to $2.6B in one-time expenditures, the company posted a Q2 net loss of $460M. Disney+ now has 146.1 million subscribers, a 7.4% decline from the previous quarter. Wall Street analysts had estimated that Disney's streaming service would have 151.1 million subscribers. The company's parks, experiences, and products division, however, saw a 13% increase in revenue, reaching $8.3B in revenue. Box-office performance: Disney had several box-office bombs, failing to make a splash with movies such as "Elemental" and "Indiana Jones and the Dial of Destiny." The latter grossed $369M globally against a $300M budget, meaning it has lost money so far — roughly half of the domestic gross and 60% of the international gross go to the theaters, and the $300M budget only counts production costs, not marketing or distribution. However, the movie could still recoup some losses or even turn a profit depending on revenue from streaming and DVD sales. | | | |
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| 3 | | Tapestry has announced that it will acquire Capri Holdings, the parent company of Versace, Michael Kors, and Jimmy Choo, for $8.5B. With the acquisition, Tapestry's portfolio companies would have a combined $12B in revenue. More: - According to Tapestry CEO Joanne Crevoiserat, Michael Kors will help the company draw a younger and more diverse demographic, while Versace and Jimmy Choo attract wealthier customers globally.
- Tapestry, based in New York City, owns brands such as Coach New York, Kate Spade New York, and Stuart Weitzman.
- Industry experts view the acquisition as a way of strengthening America's brand in the fashion world.
- Through this acquisition, shareholders will receive $57 per share, a 59% premium on the 30-day average of Capri's share price.
- Following the announcement, shares of Capri jumped as much as 56%.
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| 4 | | Virgin Galactic has sent its first-ever group of tourists to space. The three space tourists were British Olympian Jon Goodwin, Keisha Schahaff, and Anastatia Mayers. More: - The flight goes over 262,000 feet, which is officially recognized by the U.S. as the boundary of space.
- The mission is Virgin Galactic's seventh spaceflight so far and its third since May. The company aims to fly its spacecraft once a month and is developing a fleet of spacecraft that is meant to fly on a weekly basis.
- Virgin Galactic, launched by Sir Richard Branson in 2004, has a backlog of 800 passengers.
- Many tickets were sold at prices between $200,000 and $250,000 over a decade ago, but the company reopened ticket sales two years ago, with pricing beginning at $450,000 per seat.
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| 5 | | Norfolk Southern Corporation (NSC.N) has agreed to pay a $49,111 fine for safety violations at the site of a February derailment in East Palestine, Ohio, the U.S. Labor Department said. The fine is for violations that occurred during cleanup of the derailment site, not for the derailment itself, which has cost the company an estimated $1B so far. More: - Norfolk Southern has agreed to pay the penalties for four violations at the site of the derailment.
- The company has also agreed to implement a medical surveillance program for all affected employees and provide 40 hours of hazardous waste operations and emergency response training for future derailments.
- The derailment occurred on Feb. 3, 2023, and caused cars carrying toxic vinyl chloride to spill and catch fire.
Zoom out: - The Federal Railroad Administration released a 143-page report on Wednesday that slammed Norfolk Southern as too often willing to accept the bare minimum safety requirements.
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| 6 | | Check Point has acquired cybersecurity company Perimeter 81 for $490M. The Israel-based startup had previously raised funds at a $1B valuation. More: - Check Point specializes in improving enterprise cybersecurity through products made for cloud services, network security, AI, and proactive threat detection.
- The company is also known for developing tools for remote and hybrid workers, a vertical that Perimeter 81's technology will likely be used for the most.
- Perimeter 81, founded in 2018 in Tel Aviv, claims to have over 25,000 customers globally, including numerous Fortune 500 companies.
- The acquisition is expected to be completed in Q3 2023.
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- England-based Semiconductor company Allegro MicroSystems has acquired Crocus Technology for $420M.
- Italy is set to acquire 20% of Telecom Italia Network through a deal with private equity firm KKR&CO.
- Tilray has announced plans to acquire Shock Top, Breckenridge Brewery, Blue Point Brewing Company, 10 Barrel Brewing Company, Redhook Brewery, Widmer Brothers Brewing, Square Mile Cider Company, and HiBall Energy for $85M. The eight brands were owned by Anheuser-Busch, the holding company of Budweiser.
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INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | 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 | |
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