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| Here's your daily business briefing. - 💼 BlackRock buys Global Infrastructure Partners for $12.5B
- 🎮 Deep Dive: Take-Two's $12B Zynga bet amid mobile slum
- 🍻 Olympics secures first global beer sponsor
Thanks for reading!! Shriram
p/Shriram | |
| 1 | | BlackRock ($BLK) acquired Global Infrastructure Partners (GIP) for $12.5B, with $3B in cash and approximately 12 million BlackRock shares. The move positions BlackRock as a significant player in global infrastructure investments, including ports, power, and digital infrastructure, with an anticipated portfolio value of about $150B post-acquisition. More: - Founded in 2006, GIP is a portfolio manager overseeing assets valued at over $100B, which include properties such as the Port of Melbourne, offshore wind farms, and Britain's Gatwick airport.
- BlackRock's acquisition is a transformative move to address revenue stagnation and align with ESG investing, emphasizing their focus on alternative assets amid rising logistics and digital infrastructure demand.
- For the three months ended Dec. 31, BlackRock earned $1.45B, or $9.66 per share, on an adjusted basis, up from $1.36B, or $8.93 per share, YoY.
- Boosted by the U.S. Federal Reserve's dovish stance, BlackRock ended Q4 with $10.01T in assets under management (AUM), compared to $8.59T a year earlier.
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| 2 | | 
What the numbers say: In December, Take-Two Interactive's $12B investment in Zynga aimed to boost its mobile game presence, contributing to half of its $5.3B annual sales. However, Zynga's top game sales have dropped 23% since spring 2022, reflecting a broader decline in the $90.4B mobile games market. Relevance: Despite challenges in the mobile games industry, Take-Two's acquisition of Zynga closed amid a downturn attributed to the end of pandemic restrictions and changes in Apple's privacy features. The company remains optimistic, focusing on the highly anticipated release of Grand Theft Auto VI while acknowledging the mobile industry's "soft" and "more challenging than anticipated" nature. More data: Zynga's limited game releases and adaptation challenges contribute to Take-Two's mobile gaming strategy struggles, but Grand Theft Auto VI excitement boosts Take-Two's shares despite Zynga's hurdles and the broader mobile game downturn. | | | |
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| 3 | | Anheuser-Busch (AB InBev), the world's largest brewer, has secured sponsorship for the Olympic Games until 2028, partnering with the International Olympic Committee. AB InBev's alcohol-free brand, Corona Cero, will serve as the game's global beer sponsor, representing a strategic shift toward sports marketing following previous sponsorship setbacks like the FIFA World Cup. More: - The marketing rights include the 2024, 2026, and 2028 Olympic Games, as well as the Paralympic Games in partnership with the International Paralympic Committee.
- The beverage company also inked a multiyear sponsorship pact with the U.S. Olympic team for Michelob Ultra, securing sponsorship for the Paris 2024, Milan Cortina 2026, and Los Angeles 2028 games.
- While AB InBev does not market Corona in the U.S., Olympic sponsorships are anticipated to center around its Michelob Ultra brand.
- CEO Michel Doukeris said AB InBev wants to use sports sponsorships to interact with and positively touch billions of fans worldwide.
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| 4 | | Citigroup ($C) has revealed plans to cut 20,000 jobs over the next two years as part of a comprehensive reorganization, aiming to reduce its global workforce from 239,000 to 219,000 by 2026. The restructuring, which includes the spinoff and IPO of its Mexican consumer unit Banamex, is a broader strategy to boost profits, streamline operations, and create shareholder value. More: - Following Citi's $1.8B quarterly loss, primarily caused by one-time charges such as reorganization costs, currency devaluations, and unrest in Argentina and Russia, the company announced a restructuring.
- A payment of $1.7B to top up a government deposit insurance fund is also included in the loss.
- Analysts note that Citi's fundamental business is resilient when extraordinary factors are taken out, and the company performed strongly overall.
- Citi's Q4 revenue dipped 3% to $17.4B, with earnings breakdowns for its five segments: services, markets, banking, U.S. personal banking, and wealth.
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| 5 | | Big Deal Round-Up Companies are making strategic moves in the M&A space; Chesapeake Energy secured Southwestern Energy for $7.4B, Hewlett Packard Enterprise acquired Juniper Networks for $14B, LeBron James partnered with Fanatics Collectibles, and Peloton is collaborating with TikTok for diverse content amid shifting market trends. M&A: - Chesapeake Energy announced its acquisition of Southwestern Energy in an all-stock deal valued at $7.4B, aiming to secure its position as the largest U.S. natural gas producer.
- Wolverine World Wide has sold its Sperry brand to Authentic Brands Group for $130M, with the proceeds intended for debt reduction.
- LondonMetric Property Plc has agreed to acquire U.K. landlord LXI REIT Plc in a deal valued at $2.4B.
- Hewlett Packard Enterprise has entered into a $14B deal to acquire Juniper Networks, bringing together two longstanding tech companies aiming to strengthen their position in artificial intelligence.
- SandboxAQ has acquired Good Chemistry for about $75M, reflecting rising commercial demand for innovative drug simulation, design, and material development approaches.
- Johnson & Johnson will buy Ambrx Biopharma for $2B, expanding its portfolio in the thriving field of cancer treatment, particularly antibody-drug conjugates (ADCs).
- Accenture Song, the creative services unit of consulting firm Accenture, is set to acquire Work & Co., a digital design and technology agency catering to clients like Apple, Google, Pfizer, and the PGA Tour.
Partnerships: - LeBron James signed a multiyear deal with Fanatics Collectibles, ending a two-decade partnership with Upper Deck, and their first card will be released on Jan. 19.
- Peloton is partnering with TikTok to offer short fitness videos and diversify its customer base amid declining sales and profits.
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| 6 | | Google Cloud has unveiled generative AI tools tailored for retailers to improve online shopping and retail operations, including a chatbot for websites and mobile apps. This move underscores the increasing impact of generative AI in shaping the retail landscape. More: - Additionally, Google Cloud has launched an advanced language model feature to improve product searches, initially available to select stores, with broader access expected later this year.
- Moreover, the recently released AI products include solutions for enhancing customer support platforms and expediting product cataloging procedures for merchants.
- Brick-and-mortar stores will benefit from new AI capabilities through Google Distributed Cloud Edge, an existing hardware and software product.
- The news is released ahead of the National Retail Federation's annual meeting, which will be held in NYC.
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| 7 | | Quick Hits: *This is a sponsored listing. | | | |
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 | 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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