🍋 Neumann's New Startup

Adam Neumann is trying to build a WeWork city in Miami, plus why finding a buyer for TikTok will be hard.

Together With

“The people I see living the best lives are central nodes in networks rather than at the top of a hierarchical pyramid.” —Tom Morgan

 

Good Morning! Joe Biden and Donald Trump agree on at least one Wall Street issue - they both oppose the U.S. Steel-Nippon merger. Cocoa prices have skyrocketed to record highs, a 215% increase from last year. Goldman’s CEO is optimistic about 2024 as markets rebound, and prosecutors want Sam Bankman-Fried to spend at least 40 years behind bars. Plus how to read 12 books at once, and why you should set systems instead of goals. 

Streamlining the hospitality sector with AI: Jurny is targeting over $1 trillion of inefficiencies in the hospitality sector, and readers can invest now for a limited time.

SQUEEZ OF THE DAY

Neumann’s New Startup: WeWork Miami

Adam Neumann is back. He’s still trying to buy WeWork back for $1. But he's also planning on spending $300 million to develop apartments, office space, and retail space in what used to be Miami’s tent city for the homeless. 

The development is part of Miami Worldcenter - a new, 20-acre urban redevelopment in downtown Miami. Neumann will build around Caoba, the 44-story apartment building he already uses. And when the development opens next year, the entire neighborhood might be mostly owned by Neumann - kind of like a WeWork version of Hudson Yards.

Neumann’s new startup is called Flow Global. Andreessen Horowitz has already provided Flow with a $350 million backing, valuing the startup at over $1 billion. But Neumann’s real estate startup Flow was relatively mysterious until last week when reports surfaced about the Miami project.

And it gets interesting for Neumann - he’s using this new startup Flow as the entity to try and scoop up the now-bankrupt WeWork.

In some ways, Flow is Neumann’s chance at a redo project - he’s trying to bring that dream of reinventing communal, mixed-use living back to life. But on the other hand, Neumann hasn’t been able to successfully demonstrate an ability to monetize his visions.

Takeaway: If Neumann can capitalize on his $300 million Miami bet, he may just swan dive back into WeWork's executive chair and somehow combine the two entities. But if he fails this time, he may want to swap his business suit for a spacesuit, because his next comeback will need to be out of this world.

PRESENTED BY JURNY

Beyond Nvidia: Explore AI’s Hidden Jewels

With Google Bard, ChatGPT and the like sculpting the future of nearly every industry, VCs are betting big, pumping billions into AI startups with huge potential growth. 

But profiting from the AI wave isn’t just for major players–savvy investors can take advantage, too. 

Jurny and its AI-powered platform is streamlining hotel and short-term rental operations, targeting over $1 trillion in inefficiencies.

With customers already reporting improvements upwards of 80%, are we surprised Jurny has the backing of leading investors Mucker Capital, Okapi Venture, and others?

Over $12 million in capital has already poured in, but there’s still time to jump aboard. 

HEADLINES

Top Reads

  • How both Biden and Trump got to 'no' on the US Steel-Nippon merger (YF)

  • Cocoa prices spike above $8K, boosted by global turmoil (Axios)

  • Why finding a buyer for TikTok won’t be easy (Vox)

  • Goldman CEO is optimistic about 2024 as markets rebound (YF)

  • Prosecutors want SBF to spend at least 40 years behind bars (NBC)

  • Platinum Equity explores $2 billion-plus Club Car sale (Reuters)

  • JPMorgan fined $348 million for the way it monitors trading (YF)

  • Boeing’s problems could soon become your problem (CNN)

  • United Steelworkers’ long history of influencing corporate mergers (Axios)

  • NFL owners could vote soon on allowing private equity investments (NBC)

  • What to expect from Nvidia’s big conference (YF)

  • After NYCB's rescue deal, analysts forecast Q1 losses (Axios)

CAPITAL PULSE

Markets Rundown

Stocks closed lower on more inflation worries.

Movers & Shakers

  • (+) Cardlytics ($CDLX) +77% because the marketing company’s 2023 EBITDA turned positive for the first time since 2019.

  • (–) Adobe ($ADBE) -14% after the software company issued weak revenue guidance.

  • (–) Jabil ($JBL) -16% because the global manufacturing company posted weak Q2 revenue. 

Private Dealmaking

  • Rodolphe Saade has agreed to buy BFM TV, a French news channel, for $1.69 billion

  • Zscaler acquired Avalor, a data security startup, for $310 million

  • InDrive, an urban services platform, raised $150 million

  • Tubulis, an antibody-drug developer, raised $139 million

  • Together AI, an Nvidia chip reseller, raised $106 million

  • Perfios, a SaaS provider, raised $80 million

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

BOOK OF THE DAY

The Algebra Of Wealth

Today's workers have more opportunities and mobility than any generation before. They also face unprecedented challenges, including inflation, labor and housing shortages, and climate volatility.

Even the notion of retirement is undergoing a profound rethink, as our life spans extend and our relationship with work evolves. In this environment, the tried-and-true financial advice our parents followed no longer applies. It's time for a new playbook.

In The Algebra of Wealth, Galloway lays bare the rules of financial success in today's economy. In his characteristic unvarnished, no-BS style, he explains what you need to know in order to better your chances for economic security no matter what.

“A must-have guide to optimizing your life for wealth and success.”

DAILY VISUAL

Who Is Buying US Treasuries?

US households and real money buying Treasuries. Fed and foreigners selling Treasuries.

Source: Apollo

PRESENTED BY PERCENT

Don’t Miss the “Golden Era” for Private Credit

Private credit is now a $1.9 trillion asset class and still growing

AllianceBernstein and Goldman Sachs are calling it a “key component of a diversified investment portfolio” and “the biggest opportunity set across the alternative space”. 

That’s because private credit can offer higher yields, less correlated returns, and liquidity compared to public markets–while also hedging against inflation and rising interest rates.

You can take advantage with Percent. They’ve already funded over $1 billion in private credit deals, giving investors access to: 

  • Attractive yields: Percent’s weighted average APY was 18.83% in 2023

  • Recurring interest income: Investors earned $17M in interest in 2023 

DAILY ACUMEN

Kobe Bryant

"If you really want to be great at something, you have to truly care about it. If you want to be great in a particular area, you have to obsess over it.

A lot of people say they want to be great, but they're not willing to make the sacrifices necessary to achieve greatness. They have other concerns, and they spread themselves out.

Greatness isn't easy to achieve. It requires a lot of time, a lot of sacrifices. It requires a lot of tough choices. It requires your loved ones to sacrifice, too.

So you have to have an understanding circle of family and friends. People don't always understand just how much effort from how many people goes into one person chasing a dream to be great.

There's a fine balance between obsessing about your craft and being there for your family. It's akin to walking a tightrope. Your legs are shaky, and you're trying to find your center.

Whenever you lean too far in one direction, you correct your course and end up over leaning in the other direction. So you correct by leaning the other way again.

That's the dance. You can't achieve greatness by walking a straight line."

ENLIGHTENMENT

Short Squeez Picks

MEME-A-PALOOZA

Memes of the Day

 

 

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