Good Morning! Economists are increasing their long-term inflation expectations, which could spell trouble for the Fed. Choice Hotels gave up its $8 billion hostile takeover of rival firm Wyndham. Reddit wants to raise almost $750 million in its upcoming IPO. Blame it on Gen-Z’s behavior, but the workplace etiquette industry is booming. And Bitcoin topped $72k for the first time as its rally builds steam. Plus, how to make small talk with anyone, and a former Google recruiter on the interview mistakes that made him rescind offers.

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_{SQUEEZ OF THE DAY}

Private Equity’s Hollywood Nightmare

Some of the largest private equity megafunds Blackstone, Apollo Global Management, and Bain Capital dove headfirst into Hollywood over the past couple of years. They bet that streaming services like Netflix and Disney+ would spark a massive boom for Hollywood sound stages. 

But in 2024, they’re wondering if they bet the wrong horse. Many streaming companies like Disney and Netflix are restructuring - slashing costs, reducing stage occupancy and lease space.

During the pandemic, every developer scrambled to build more production space. Los Angeles grew its production space by 50% and New York saw its growth by 30%. But they were left in the dust by Georgia, which saw its production facilities grow 100-fold since 2010. And these private equity firms helped back a lot of this new construction.

But the industry is starting to feel some headwinds. And the private equity industry is feeling the squeeze in its returns, too. One Blackstone-backed project found that just 38% of Atlanta’s city stages had any action this past February. And in New York, signings for film and TV shows have fallen 85%.

Despite the current oversupply and economic pressures, some investors remain optimistic, focusing on prime locations and long-term demand.

Takeaway: It didn’t help that studios are still recovering from last year’s strikes and the post-pandemic production hangover, which led to layoffs and budget costs. Private equity firms are confronting the harsh reality that demand does not match the streaming industry's aspirations for perpetual expansion. Is this a sign of future trends or merely a dip in the world of content creation? Only time will tell.

_{PRESENTED BY FOUNT}

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_HEADLINES

Top Reads

• Long-term inflation expectations rise, spelling possible trouble for the Fed (CNBC)

• Choice Hotels surrenders its $8 billion hostile takeover of Wyndham (YF)

• Reddit to raise nearly $750 million in upcoming IPO (CNBC)

• The workplace etiquette industry is booming (CNN)

• Bitcoin tops $72,000 for the first time as rally builds steam (YF)

• This ratio shows how workers still have the upper hand (Axios)

• Wall Street braces for another potential inflation surprise (YF)

• SVB's collapse was a boon for these new kids on the block (Axios)

• Pfizer is betting big on cancer drugs to turn business around (CNBC)

• How ByteDance could save TikTok from a U.S. ban (Axios)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed lower ahead of a key inflation print.

Movers & Shakers

• (+) Bally’s Corporation ($BALY) +28% after hedge fund Standard General made a buyout proposal for the casino operator.

• (+) Duolingo ($DUOL) +4% after JPMorgan initiated coverage at overweight for the language learning company.

• (–) New York Community Bancorp ($NYCB) -5% after another volatile trading day after Steve Mnuchin rescued the community bank.

Private Dealmaking

• EQT Corp. bought Equitrans Midstream, a pipeline operator, for $5.4 billion

• Wiz, an Israeli cloud company, raised $800 million

• Fullcast, a revenue ops software provider, raised $34 million

• Oleria, an employee access security startup, raised $33 million

• Carewell, an online retailer, raised $24.7 million

• Reach Security, a cybersecurity startup, raised $20 million

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

_{BOOK OF THE DAY}

Little Treatments Big Effects

If you've ever wanted mental health support but haven't been able to get it, you are not alone. 

In fact, you're part of the more than 50% of adults and more than 75% of young people worldwide with unmet psychological needs. Maybe you've faced months-long waiting lists, or you're not sure if your problems are 'bad enough' to merit treatment?

Maybe you tried therapy but stopped due to costs or time constraints? Perhaps you just don't know where to start looking? The fact is, there are infinite reasons why mental health treatment is hard to get. There's an urgent need for new ideas and pathways to help people heal. 

Little Treatments, Big Effects integrates cutting-edge psychological science, lived experience narratives and practical self-help activities to introduce a new type of therapeutic experience to audiences worldwide: single-session interventions.

Its chapters unpack why systemic change in mental healthcare is necessary; the science behind how single-session interventions make it possible; how others have created 'meaningful moments' in their recovery journeys (and how you can, too); and how single-session interventions could transform the mental healthcare system into one that's accessible to all.

“Rooted in rigorous research, Little Treatments, Big Effects is full of powerful stories of coping and recovery."

_{DAILY VISUAL}

Americans Live Further Away From Work Than Ever Before

Average distance from work by earnings group

_{DAILY ACUMEN}

Worst Day

“Your worst day is a chance to show your best qualities, to stand out, and to learn an enormous amount about yourself.

Very few people plan or prepare for what they’ll do and how they’ll act during those times.

Those who do might well end up turning their worst day into their best.”

Source: Farnam Street

_{ENLIGHTENMENT}

Short Squeez Picks

• How to make small talk with anyone from anywhere 

• 3 habits of people who are great at communication

• 5 must-read books to overcome setbacks and achieve your goals

• Mark Cuban’s 5 best passive income ideas

• Ex-Google recruiter on the interview mistakes that made him rescind offers

_{MEME-A-PALOOZA}

Memes of the Day