NIPPON STEEL: Acquires U.S. Steel

On Monday, Japan's Nippon Steel made a significant announcement of its intention to acquire U.S. Steel in a transaction valued at $14.9 billion. This strategic move comes several months after U.S. Steel had initiated its sale process. The proposed per-share offer of $55 presents an impressive premium, equating to a ~40% premium over U.S. Steel's closing price on Friday, Dec. 15, and an astonishing 142% compared to the stock's closing price before the company's strategic review announcement on August 11. Consequently, U.S. Steel's shares experienced a notable 27% increase during premarket trading at the time this newsletter was written.

Nippon Steel, currently the world's fourth-largest steel manufacturer, views the United States as a promising growth market capable of offsetting the declining demand in its home country, Japan, according to the Nikkei Daily newspaper, which initially reported on this deal.

Nippon has already secured the necessary financing commitments for this acquisition and anticipates that it will propel the company toward achieving a remarkable 100 million tonnes of global crude steel capacity.

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EU: Goes After Elon Musk, X

The European Union has initiated infringement proceedings against Elon Musk's social media platform X, formerly known as Twitter. These proceedings will concentrate on X's adherence to its responsibilities concerning the prevention of illegal content dissemination within the EU, the effectiveness of the social media platform's efforts to combat information manipulation, and its initiatives to enhance transparency.

Additionally, the investigation will delve into concerns about a potential "misleading design" within the X user interface, with particular emphasis on the platform's distinctive blue checkmarks. X asserts that these blue badges signify verified accounts with active subscriptions to the X Premium service, meeting specific eligibility criteria, including the display of a username and profile picture, regular activity, and a commitment to security and transparency.

Following the initiation of proceedings, the Commission will proceed with the collection of evidence. It is important to note that the Digital Services Act does not establish a legal timeframe for concluding formal proceedings.

BP: Pauses Oil Shipments

BP, in response to a recent string of attacks on vessels by Houthi militants from Yemen, has joined the ranks of companies suspending travel through the Suez Canal. The company prioritizes the safety of its personnel, as stated in a release on Monday. The statement reads: “In light of the deteriorating security situation for shipping in the Red Sea, BP has decided to temporarily pause all transits through the Red Sea,” it said. “We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region.”

This decision comes after shipping giants MSC, Hapag-Lloyd, CMA CGM, and Maersk announced suspensions of travel through the Red Sea due to the drone threat, effectively closing off the key link between Europe and Asia, connecting the Middle East and North Africa.

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The Paypal Mafia

In the ever-evolving landscape of finance, the PayPal Mafia stands as a remarkable group of entrepreneurs who emerged during the tech boom of the late 1990s and early 2000s, reshaping the way we handle money online. Their journey began in Silicon Valley when Max Levchin and Peter Thiel, two brilliant minds, joined forces to create a seamless digital wallet, envisioning a world where online payments could be made easily and securely. Their startup, Confinity, eventually merged with Elon Musk’s X.com and gave birth to PayPal, an online payment system that would revolutionize the industry. PayPal quickly became the go-to platform for online payments, but what followed was even more astonishing.

The members of the PayPal Mafia, as they came to be known, went on to become some of the most influential figures in finance and technology. Chad Hurley and Steve Chen co-founded YouTube, transforming the way we consume media through user-generated content. Reid Hoffman co-founded LinkedIn, connecting professionals worldwide through a career networking platform. Jeremy Stoppelman founded Yelp, revolutionizing online reviews by harnessing the power of user-generated opinions. Their collective impact reshaped the digital landscape.

Today, the legacy of the PayPal Mafia continues as they invest in startups, mentor new entrepreneurs, and drive innovation across various industries. From a small digital wallet startup to becoming billionaire titans of finance, their journey is a testament to the power of innovation, determination, and the unique magic of Silicon Valley. So, the next time you use PayPal for an online payment, remember the remarkable story of the PayPal Mafia and their viral impact on the world of finance.

Chart of the Day

📊 By far, Gen X’s are most concerned about their retirement savings.

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.