🍋 Last-Minute M&A Flurry

$40 billion of M&A was announced yesterday, plus former Wall Street accountant turned escort, plus Adobe and Figma called off their $20 billion merger, Nikola CEO sentenced to 4 years in prison.

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Short Squeez
December 19, 2023

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"A man does not deserve huge amounts of pay for creating tiny spreads on huge amounts of money. Any idiot can do it. And, as a matter of fact, many idiots do do it." — Charlie Munger

Good Morning! Adobe and Figma called off their $20 billion merger. Founder of Nikola (EV truck maker) got sentenced to 4 years in prison for defrauding investors. Goldman Sachs faces a messy exit after walking away from its Apple Card partnership. One former accountant is raking in $34k/week escorting for Wall Street bankers. Plus three tips to tame your impulse buying habit, and why you should ask for advice, not permission.

SQUEEZ OF THE DAY

Last-Minute M&A Flurry

We finally got through the last working Monday of the year. And it turns out that, in an otherwise disappointing year for deal activity, it was a big one for dealmaking.

Companies love announcing last-minute deals on the Monday before Christmas. It’s usually the last major day for deal announcements for the year.

And more than $40 billion of mergers and acquisitions hit the wire yesterday. That’s up from $10 billion on the Monday before Christmas in 2022.

The largest deal announced was Nippon’s $14 billion takeover of its rival, U.S. Steel.

Private equity had a field day, too. Clearlake Capital and Insight Partners will take data analytics firm Alteryx private for $4.4 billion, Koch Industries bought an Iowa fertilizer business for $3.6 billion, and IBM bought a data integrations platform for $2.3 billion.

Takeaway: It was even a big day for companies unwinding deals - Adobe and Figma announced they’re breaking up their $20 billion deal after opposition from regulators. The M&A rush before the holidays usually sends investment bankers into full swing aka zombie mode (including our Buysiders intern). Don’t forget to subscribe to Buysiders, our dealmaking newsletter - we’ll be giving you the detailed rundown on some of these deals tomorrow.

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HEADLINES

Top Reads

  • Nikola founder sentenced to 4 years in prison for lying to investors (CNBC)

  • Goldman Sachs faces rocky exit from Apple credit card partnership (Reuters)

  • Adobe and Figma call off $20 billion deal (CNBC)

  • Private credit is the hot new thing, but its roots go back to the 1980s (YF)

  • Robinhood woos wealthier clients from bigger brokerages (Reuters)

  • Meta’s stock is wrapping up a record year spurred by cost cuts (CNBC)

  • Stock market fear gauge at its lowest post-pandemic level (Axios)

  • Apple halts sale of some Apple Watches over patent dispute (YF)

  • Why salad giant Sweetgreen ditched seed oils (BB)

  • Why the premium gas premium is always heading up (Axios)

CAPITAL PULSE

Markets Rundown

Stocks closed higher after Goldman boosted its 2024 S&P 500 target.

Movers & Shakers

  • (+) U.S. Steel ($X) +26% after Nippon announced it would acquire the manufacturer.

  • (+) Netflix ($NFLX) +3% after Morgan Stanley raised its price target.

  • (–) SunPower ($SPWR) -31% after delaying filing its 10-Q form, liquidity concerns.

Private Dealmaking

  • Nippon bought U.S. Steel for $14 billion

  • IBM bought Software AG's enterprise integration platforms for $2.3 billion

  • Bain Capital sold Japan Wind Development to Infroneer for $1.39 billion

  • Coupang bought Farfetch and will provide a $500 million bridge loan

  • Tamara, a BNPL platform, raised $340 million

  • Shinobi Therapeutics, a cell therapies developer, raised $51 million

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

BOOK OF THE DAY

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Now, Dr. Lyon offers an easy-to-follow food, fitness, and self-care program anchored in evidence and pioneering research that teaches you how to optimize muscle—no matter your age or health background.

Discover how to overcome everything from obesity to autoimmune disorders and avoid diseases like Alzheimer’s, hypertension, and diabetes by following Dr. Lyon’s powerful new approach to becoming forever strong.

“Learn how to reboot your metabolism, build strength, and extend your life.”

DAILY VISUAL

Market rally has Wall Street bracing for a refinancing bonanza

Average yield on US high-yield bonds rated CCC and lower

Source: Axios

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While inflation riddled other sectors, IRE remained resilient, delivering instant cash flows, inflation protection, and asset appreciation for investors. 

But here’s the kicker: Not all IRE investments are the same. MAG Capital Partners have over 50 year’s experience of accessing off-market investments that deliver consistent yields (while minimizing risk).

DAILY ACUMEN

Consistency

“When you focus on the outcome, the gap between where you are and where you want to go seems large.

To cover ground quickly, the tendency is to look for a hack or shortcut.

The problem is that no one who got the outcomes you wanted used a hack or shortcut to get them. Instead, they consistently inched forward.

Instead of focusing on the ultimate outcome, focus on the next move.

There is always something you can do today to get a little better, to move a little closer, to put yourself in a better position.

It's not pretty. It's not sexy. It's not fast. It doesn't even make for a good story. But it works.

You don't build an empire in a day. You build it brick by brick. Day by day.

Consistent daily progress for a long period of time.”

Source: Farnam Street

ENLIGHTENMENT

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MEME-A-PALOOZA

Memes of the Day

 

 

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