BIRD: Files For Bankruptcy

The electric scooter company Bird, once estimated to be worth $2.5 billion, has filed for bankruptcy under Chapter 11 in a federal court in Florida. This move was announced on Wednesday.

In an effort to establish a baseline valuation, Bird entered a preliminary purchase agreement with its current creditors, as revealed in a recent announcement. The company intends to leverage the bankruptcy process to oversee the sale of its assets, with an anticipated completion timeframe of between 90 to 120 days.

Initially celebrated as a greener alternative to conventional vehicles and public transportation, Bird's electric scooters saw a surge in use prior to the COVID-19 pandemic. The company's fundraising success in 2019, which amounted to over $275 million, propelled its value to $2.5 billion.

The pandemic's onset in 2020, however, brought significant challenges. Lockdown measures led to a drastic reduction in scooter usage. Even though Bird became a publicly traded entity in 2021 through a merger with a special purpose acquisition company, it suffered a steep decline in its stock value.

The bankruptcy filing is a subsequent development following Bird's removal from the New York Stock Exchange in September. The company was delisted for not meeting the exchange's regulatory requirements, specifically failing to maintain a minimum market capitalization of $15 million over a continuous 30-day period.

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PARAMOUNT: Hollywood Titans Mull Mega-Merger

Warner Bros and Paramount Global have engaged in early-stage discussions about a potential merger, a move that would bring together two of the world's leading media conglomerates. This week, the CEOs of both companies convened in New York to explore the possibilities of merging their operations, which would integrate renowned film and TV studios. This consolidation would also bring several pay-TV and broadcast channels under one umbrella, including HBO and CBS.

Both companies have experienced challenges due to a shift in consumer preferences, as more people opt for streaming services over traditional cable TV subscriptions. In a related development, Bloomberg reported yesterday that Paramount is considering selling its Black Entertainment Television network.

The proposed merger between these two major players in Hollywood is likely to attract significant attention from antitrust regulators, especially under the Biden Administration, which has been vigilant in assessing such large-scale corporate mergers.

CITIGROUP: Bids Farewell to Distressed Debt

Citigroup is discontinuing its global distressed-debt operation, a strategic move that's part of CEO Jane Fraser's extensive restructuring plan, as per a CNBC report citing informed sources.

This marks a significant shift in the bank's strategy, with Citigroup undergoing its most drastic transformation in almost two decades. The revamp includes leadership shifts and job cuts, as Fraser focuses on consolidating control over Citigroup's main business areas and simplifying the company's structure.

The distressed-debt unit, which is responsible for trading in the bonds and securities of companies facing or undergoing bankruptcy, currently employs about 40 individuals.

Further emphasizing its strategic shift, Citigroup recently announced its intention to shut down its municipal bond underwriting and trading operations. This decision, set to be implemented in the first quarter, was made as the unit no longer aligns with Citigroup's aim of improving its overall financial returns.

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Apple's Tesla Snub

Elon Musk tried to sell Tesla… To Apple. 

This deal would have changed everything in the tech world. Tesla was on the verge of bankruptcy, and Elon Musk felt like he had run out of options to save Tesla. In fact, he called this time period some of his darkest days. Apple had the cash to acquire Tesla, and they were interested in getting into the car business.

So, in 2017, Elon Musk reached out to Apple CEO Tim Cook about a meeting for Apple to acquire Tesla. However, according to a tweet from Elon Musk, Apple and Tim Cook declined the meeting. Some believe that Apple thought Tesla had no chance of making it and did not believe there was any chance for a turnaround. However, this has never been confirmed by Apple.

 A few years later, Tesla exploded in growth, which led it to become one of the largest global companies in the world. This transitioned Musk into one of the richest people in the world. Since this declined meeting, Apple has failed to launch a car even after spending billions of dollars on research and development. 

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📊Costco has declared a special dividend several times every two to three years since 2012.

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