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| Hello Insiders!! Today's Business newsletter covers: - 🚀 Telesat's Lightspeed to be launched by SpaceX
- 🔍 Deep Dive: U.S. food companies look to M&A to boost growth
- 😞 Oracle misses revenue estimates
If you enjoy reading this newsletter, please share it with your friends and colleagues. If there's a topic you want to see discussed in the newsletter, let us know! Thank you!! Shriram
p/Shriram | |
| 1 | | SpaceX and satellite operator Telesat have an agreement for 14 Falcon 9 flights beginning in 2026 to launch Telesat's Lightspeed broadband satellites. Despite owning the rival satellite internet company, SpaceX has already launched satellites for other organizations competing with Starlink. More: - CNBC reported that the parameters of Telesat's contract with SpaceX were kept private, but given that Falcon 9 launches cost about $67M each, a transaction for $900M seems likely.
- CEO of Telesat, Goldberg, lauded Falcon 9 as a cost-effective and dependable launch choice.
- Telesat and Jeff Bezos' Blue Origin had a 2019 agreement for launches using the New Glenn rocket, but complications have delayed its initial launch.
- Goldberg also stated, "The Lightspeed satellites from Telesat are more concerned with business clients than direct-to-consumer markets."
- Recently, the corporation switched satellite producers, saving around $2B in launch expenses.
Q: SpaceX is also known for its Starlink project, but it's also launching satellites for Telesat, a competitor in the satellite internet business. How do you think this affects the satellite internet market dynamics? Join the conversation here. |     | |
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What the numbers say: Deal volume in the food and beverage sector in the U.S. decreased this year by almost 3% to about $10.39B. However, the industry outperformed several other sectors in dealmaking, with deal volumes increasing by 17.5% to 248 deals as of September 1. During the same period, agreements fell overall by 4% across all industry sectors. Relevance: American packaged food corporations aggressively engage in mergers and acquisitions (M&A) to restructure their brand portfolios due to decreasing pandemic-era growth and dwindling gains from price increases. This pattern indicates the industry's plan to update its product lines with fresh ideas, flavor profiles, and foods to meet shifting consumer tastes. More data: As sales of established brands stall, major food firms like General Mills and Mondelez are increasingly turning to mergers and acquisitions to spur growth. Despite rising borrowing costs, strategic purchases are still a priority to remain competitive in the evolving food industry. Given its significance in transforming the environment, analysts anticipate the trend towards M&A in the food business to continue through the beginning of 2024. | | | |
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| 3 | | Oracle's first-quarter sales of $12.45B, which was slightly below projections of $12.47B, caused its shares to fall 9%. Due to decreasing company expenditure in the current economic climate and fierce competition from market leaders like AWS and Microsoft, Oracle is facing limited cloud revenue estimates. More: - Despite these difficulties, Oracle expects its cloud infrastructure business to expand as more artificial intelligence (AI) applications are used.
- Oracle's stock has increased by nearly 55% so far this year.
- According to Oracle Chairman and CTO Larry Ellison, contracts for more than $4B worth of capacity in Oracle's Gen2 Cloud have been signed by AI development businesses, signaling potential growth in this industry.
- In addition, Ellison disclosed a deal for AI model training in Oracle's Gen2 Cloud with Elon Musk's AI business xAI.
- Oracle's Fusion Cloud applications will replace the enterprise resource planning systems used by Berkshire Hathaway's nine utility firms.
- The American multinational computer technology company expects revenue growth between 5% and 7% for the second quarter, slightly below analysts' projections of 8.2%, and an adjusted profit of $1.30 to $1.34 per share, vs. an estimated $1.33 per share.
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| 4 | | The Roomba j9+, a high-end robotic vacuum and mop that iRobot just released, costs $1,399 with a dock and features powerful suction and scrubbing technology. Building on its advancements in the cleaning sector, iRobot aims to bring convenience with the Roomba j9+, an all-in-one robotic vacuuming and mopping system. More: - The 4-Stage Cleaning System and Dual Rubber Brushes of the Roomba j9+ provide more potent suction and scrubbing.
- A characteristic that sets it apart from some rivals is Dry Rug Intelligence (D.R.I.), which keeps high-pile rugs dry and clean.
- According to CEO Colin Angle, a crucial differentiator is superior software, which includes functions like Dirt Detective for effective cleaning.
- The latest robot models run on iRobot OS 7.0, which provides cutting-edge features, including room labeling and prioritization depending on cleaning requirements.
Zoom Out: | | | |
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| 5 | | J.M. Smucker is acquiring Hostess Brands, maker of Twinkies, in a $5.6B deal of cash and stock that values Hostess at $34.25 per share and includes assuming $900M of debt. The deal is expected to be finalized during Smucker's third fiscal quarter, which ends in January. More: - Hostess shares rose 18% in premarket trading, while Smucker's stock dropped 7.5%.
- Shares of Hostess had already increased by 25% in the year before the deal's announcement.
- Hostess encountered difficulties due to the decline in demand for Twinkies and Ding Dongs following price increases to counteract growing commodity costs.
- Hostess' seven-year tenure as an independent, publicly traded corporation ends with the sale to Smucker.
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| 6 | | Apple's yearly autumn presentation is said to be focused on updating current goods, mainly iPhones, with four new models split into two base and two premium Pro versions that target high-end users with additional capabilities. Unlike its June VR headset "Apple Vision Pro" unveiling, Apple is not anticipated to unveil any new hardware categories at its fall event. More: - With competition in China and pressure from Chinese authorities, Apple is attempting to reverse plummeting iPhone revenue, which declined 2.4% to $39.7B.
- About half of all Apple sales are still attributable to the iPhone.
- Key iPhone updates include a switch to USB-C charging, higher Pro model prices, expanded satellite connections, new custom chips for Pros, and a redesigned mute switch changed to a programmable button on Pro iPhones.
- The iPhone 15 Pro will likely feature a new in-house Apple chip delivering faster performance and better efficiency through Taiwan Semiconductor's advanced 3nm manufacturing process.
- YouTube and Apple's website will both stream the presentation.
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- Hours before Monday Night Football, Disney and Charter came to an agreement, including offering ad-supported Disney+ and ESPN+ for select Spectrum subscribers, ending their cable blackout dispute.
- Just days before the UAW's contract ends, Stellantis made a four-year offer to UAW-represented hourly workers that would enhance their pay by 14.5%.
- Updated COVID-19 boosters from Pfizer and Moderna were given FDA approval, marking the first step for more immunizations as cases rise in the U.S.
- The third-largest contract chipmaker in the world, GlobalFoundries, debuted a $4B semiconductor fabrication facility in Singapore on Tuesday as part of a significant increase in global manufacturing.
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INSIDE BUSINESS LEADERBOARD (7 DAYS) |
 | Freelance Writer | | Shriram is pursuing Master’s in Business with Marketing at Warwick Business School. He worked as a Senior Consultant in Tech and Political Consultancies before his Masters. He is passionate about Tech, Marketing, Strategy, Anthropology and Politics. He is also the Postgraduate Ambassador for Warwick Business School. | | This newsletter was edited by Aaron Crutchfield | |
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