Good Morning! The U.S. is suing Adobe for hiding fees and making it tough to cancel subscriptions. Apple is shutting down Apple Pay Later just months after launching in October 2023. McDonald’s is ending its AI drive-thru ordering due to bizarre mistakes. Pension funds are facing a liquidity crunch thanks to private equity. OpenAI says the corporation could become a for-profit corporation, and analysts are revising their S&P pricing targets up to 6,000. Plus 3 mindful alternatives to meditation and some valuable career advice.

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We’ll be taking Juneteenth (Wednesday) off and will resume normal programming on Thursday.

_{SQUEEZ OF THE DAY}

Big Water Mafia

Two of the world’s largest bottled water brands agreed to merge on Monday.

Publicly-traded Primo Water ($PRMW) is merging with privately held company BlueTriton Brands.

You might know BlueTriton Brands from some of its brands like Poland Spring or Pure Life. BlueTriton was part of Nestle Waters North America before getting bought by One Rock Capital Partners in February 2021.

It’s an all-stock deal and the combined company is expected to generate $6.5 billion in net revenue and $1.5 billion in EBITDA in the 12-month period ended March 31, 2024, including $200 million in cost synergies.

Primo’s CEO will become the new CEO of the combined company. The company will have two headquarters - Tampa, FL, and Stamford, CT.

Primo is offering a special dividend of up to 82 cents a share for its shareholders, a $133 million payout. Post-merger, Primo shareholders will hold 43% of the new company, while BlueTriton shareholders will own 57%.

The combined company will hold an 18.5% market share in the U.S. bottled water market, surpassing Coca-Cola's 16% and PepsiCo's 10%.

Takeaway: It's hard to believe, but the bottled water industry is booming. Americans drink about 38 billion gallons of water annually, with 39% coming from bottled water. In 2023, the US beverage industry saw $135 billion in retail sales, with soft drinks at $42 billion and bottled water at $25 billion, up from $17 billion in 2018 (see below). Turns out hydration is serious business—and big bucks.

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_HEADLINES

Top Reads

• US sues Adobe over subscriptions (Fox)

• Apple is shutting down Apple Pay Later just months after launch (Verge)

• Nvidia alone accounts for more than a third of the S&P 500’s gains this year (YF)

• McDonald's kills AI drive-thru ordering after snafus (Axios)

• Major tech fund weights Nvidia to get 20%, demotes Apple (CNBC)

• Pension funds facing liquidity crunch thanks to private equity (WSJ)

• OpenAI says company could become a for-profit corporation (Reuters)

• Pixar debut jolts box office (CNBC)

• Apple won’t rush latest AI rollout (BB)

• Latest inflation data provides potential for 'even greater upside' in the stock market rally (YF)

• Treasury, IRS unveil plan to close ‘major tax loophole’ used by large partnerships (CNBC)

• China's property drag is getting worse (YF)

_{CAPITAL PULSE}

Markets Rundown

S&P 500, Nasdaq hit another record high as Wall Street wonders if stocks have more room to grow.

Movers & Shakers

• (+) Xponential Fitness ($XPOF) +34% after the company named Mark King as CEO effective today.

• (+) AutoDesk ($ADSK) +6% following activist fund Starboard Value taking a $500 million stake in the software company.

• (–) Virgin Galactic ($SPCE) -15% after the struggling space company’s 1-for-20 reverse stock split took effect.

Private Dealmaking

• Fisher Investments sold up to a $3 billion stake to Advent International & ADIA

• Boulder Care, an addiction treatment startup, raised $35 million

• GetWhy, a market research startup, raised $34.5 million

• Nexa Equity invested $31 million into Easy Metrics

• Reibus, a metals marketplace, raised $30 million

• XGS Energy, a geothermal startup, raised $20 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

The Venture Mindset

Inspired by venture capitalists' unique way of thinking, The Venture Mindset offers a transformative playbook for delivering results in a rapidly changing world from a top Stanford professor and a technology executive.

Venture capitalists are known for their extraordinary ability to spot opportunities. They know how to identify emerging trends, how to bring new industries into being, and when to hold them and when to fold.

Their unique mindset has made them the force behind world-changing companies such as Amazon, Google, Moderna, SpaceX, and Zoom.

Stanford Professor Ilya Strebulaev has devoted two decades to studying VCs' counterintuitive approaches to decision-making and the reasons behind the successes and failures of corporate innovations.

Alex Dang has witnessed up close how VCs' thinking and mechanisms can create successful businesses at companies like Amazon and McKinsey.

Combining their insight and extensive experience, they present nine distinct principles that will help you make better decisions, transform your business, and achieve remarkable results, no matter your industry.

"Full of powerful, practical lessons on changing how we think and act."

_{DAILY VISUAL}

Pump Prices Drop

Average US gas price

_{PRESENTED BY DOLLAR FLIGHT CLUB}

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_{DAILY ACUMEN}

Coffee Habit

In the realm of sleep and wellness, one critical habit to reassess is your coffee-drinking schedule.

According to sleep expert Dr. Michael Breus, consuming coffee past noon is a primary culprit in disrupting sleep quality.

Caffeine, though beneficial in providing an energy boost, can linger in your system for hours, potentially affecting your sleep cycle long after your last sip.

The key to mitigating these effects is to establish a caffeine cutoff time—ideally no later than 2 p.m.—and to monitor your overall caffeine intake, including hidden sources in foods and drinks.

By aligning your coffee habits with these guidelines, you can enhance your sleep quality and overall well-being, ensuring that your energy levels remain balanced throughout the day and into the night.

_{ENLIGHTENMENT}

Short Squeez Picks

• How to conquer your biggest fear

• 3 mindful alternatives to meditation

• Why Bali is the fittest place on earth

• Ryan Holiday on the best career advice he got

• How next-gen data analytics is changing American football

• How anxiety became a catchall for every unpleasant emotion

_{MEME-A-PALOOZA}

Memes of the Day

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