‘An operation of seduction’
Just days after the PGA-LIV golf merger was announced, a legion of investors and power brokers from Saudi Arabia, including Crown Prince Mohammed bin Salman, converged on France this week in search of more deals that could potentially cost trillions.
First stop: Paris’ major tech event. The “Invest in Saudi” booth at Vivatech – where Elon Musk and luxury tycoon Bernard Arnault are also on the program – has a high attendance. Paid for by the Saudi Ministry of Investment, the booth serves as a billboard of sorts to announce the country’s ambitions and a way to help its entrepreneurs attract Western investors and potential business partners, says Vivian Walt Writes for DealBook.
Bumper oil revenue has already turned the country’s sovereign wealth fund, headed by Prince Mohammed, into an investing force. about $35 billion in US assets alone (including stakes in Uber, PayPal and Electronic Arts) and a mandate to diversify the economy beyond fossil fuels.
Badr Al Badr, deputy minister of investor outreach, told DealBook that Saudi Arabia has $3.2 trillion to invest through 2030. “That’s why there are so many opportunities for investors,” he said.
The Saudis are looking in all areas. Saudi football clubs have snapped up star European players for a fortune, and are reportedly looking for more. And at last month’s Cannes Film Festival, the kingdom — which had been banned from cinemas for decades until 2017 — unveiled a $180 million in funding for moviemakers,
Cash-strapped, the Kingdom is trying to build a new public image. Saudi investors say people in the investment world rarely mention their long track record of human rights abuses. It also includes the kingdom’s role in the 2018 murder of journalist Jamal Khashoggi, which was carried out by the CIA with Prince Mohammed’s knowledge. Saudi Arabia has cut plenty of deals since then, and investor interest is growing rapidly: private equity and venture capital firms Looking to the state for funding, especially China is fast running out of range.
The tight grip of the Saudi royals on power has not diminished. Prince Mohammed is said to have the final say in investment strategy, and the country’s wealth gives him advantages beyond business.
As part of a weeklong visit to France, the crown prince (who owns a $300 million palace near Paris) will meet Friday with President Emmanuel Macron at the Elysee Palace to discuss the state’s possible role in Ukraine peace talks. is ready to have lunch.
On Monday, Saudi officials and officials will also gather for a one-day investment summit. On the agenda: Riyadh seeks to host the 2030 edition of the World Expo, whose governing body is headquartered in the French capital.
Last stop: next week’s Paris Air Show. Prince may announce big purchase of Airbus planes A report from the French newspaper Le Figarowho called his visit “an operation of seduction”.
What’s going on over here
Goldman Sachs’ role in the final days of the Silicon Valley bank is reportedly being investigated. Fed and SEC are looking into Goldman’s role in buying the tech lender’s securities book, advising it to raise its wasted capital, according to The Wall Street Journal. It’s the latest point of pressure on Goldman over its dual roles following the collapse of the Silicon Valley bank, which DealBook first reported in March.
BlackRock Takes a Big Step Into Crypto. The investment-management giant went on Thursday create a spot bitcoin etfUsing Coinbase as the custodian of the funds. This is a move by BlackRock to embrace crypto more strongly as the SEC cracks down on the industry; The agency has not yet given permission Any spot bitcoin etf
China is said to be planning new economic stimulus measures. is beijing Explored potential billions in new infrastructure spending According to The Wall Street Journal, the loosening of regulations for people to invest in new property. Such moves would follow efforts by the Chinese government to kickstart an economy that has unexpectedly stalled despite the end of pandemic restrictions.
Disney’s CFO is stepping down. Christine McCarthy is taking a “family medical leave of absence” on July 1 before helping to identify a successor. She helped Disney navigate the pandemic but quickly clashed with then-CEO Bob Chapek and voiced concerns to Bob Iger about returning to lead the media giant.
Is the IPO market ready to reopen?
share in kava, the Mediterranean-oriented fast-casual restaurant chain, doubled in its trading debut on Thursday, valuing the company at about $4.9 billion. That performance has many on Wall Street wondering whether the largely frozen market for initial public offerings is finally opening up — and what types of companies stand to benefit.
Kava’s stock jumped 117 percent Closed at $43.78. This is almost double what the company had already raised the price of its shares. Such a performance harks back to a rosier era for IPOs, where investors eagerly bid for fast-growing and often unprofitable companies.
Kava is among them. The 12-year-old company has yet to turn a profit, and is expanding rapidly, growing from 22 locations in 2016 to 263 now – with ambitions to reach 1,000 by 2030.
Some see reason for hope for the IPO market, who is currently on slowest pace since 2009, Perhaps investors are again willing to gamble on riskier stocks, despite the Fed saying it won’t raise rates. (Consider that shares of cava rivals Chipotle and Sweetgreen have made impressive comebacks this year.)
Cava’s success is especially encouraging for other restaurant chains ready to go public, including the parent company of Panera and Fogo de Chão.
On the other hand, other high-profile companies that have recently gone public, including Tylenol maker Kenvue, have seen their stock performance fade after promising debuts.
A call for ‘urgent hearing’ on AI
Representative Maxine Waters, Democrat of California and one of Congress’ longtime financial watchdogs, is asking Republicans to immediately schedule a hearing on how banks and other financial companies are using artificial intelligence in their businesses, Emily Flitter writes for DealBook.
Ms Waters is concerned about the effects of AI on consumers. The top-ranking Democrat on the House Financial Services Committee urged the panel to examine how technology enables financial services companies to “make complex consumer and investment decisions with minimal human direction.”
He singled out The explosive popularity of generative AI powered chatbots, such as ChatGPT, the AI feature of Microsoft Bing, and Google’s Bard, has captured the imagination of the business world and the public at large.
The tech industry has said it is open to some oversight. In Senate testimony last month, Sam Altman, CEO of ChatGPT maker OpenAI, urged Congress to regulate this new generation of AI tools. “I think if this technology goes wrong, it can go terribly wrong,” he said at the time. “We want to work with the government to prevent this from happening.”
Ms Waters echoed that concern. Noting AI’s potential to expand financial access for consumers, it said in its letter, “The speed at which AI is being developed makes it difficult to fully assess and understand the potential pitfalls of AI systems and capabilities.” may supersede the role of Congress and regulators to enforce integral consumer and investor protections.”
His call may be gaining some traction. Representative Patrick McHenry, the North Carolina Republican who chairs the panel, has raised privacy concerns About the rapidly developing technology.
Spotify splits from royalties
Spotify and Archewell, the media company founded by Prince Harry and his wife Meghan, said on Thursday they are ending their exclusive content partnership after two and a half years.
The news speaks to the tension between the two parties — and, perhaps more important, to the changing approach to what had been one of Spotify’s breakout businesses.
There’s only one podcast received from the Archewell deal: Meghan’s “Archetypes”, which topped the charts in several countries following its debut in 2020.
Depending on who you talk to, the deal fell through because Harry and Meghan wanted Expand Beyond Spotify’s Walls — as are the Obamas and other podcasters like Brene Brown — or because they didn’t produce enough Content for Spotify. In any case, it is unlikely that the couple will be able to make the full $20 million of their deal.
And it’s a reminder that Spotify’s expensive podcast bet hasn’t worked. Eager to move beyond music streaming, a business that will forever cost labels a lot of money, the company spent over $1 billion On podcasting, $400 million for studio Gimlet and The Ringer and hundreds of millions more for deals with the likes of Harry and Meghan (to say nothing of the reported $200 million for Joe Rogan).
Since then, Spotify has moved to cut jobs from the division, retiring the Gimlet and Parcast brands and focusing more on offering podcasting tools than drawing in customers with Spotify-only shows.
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