WeBroke To WeBack

WEWORK: Are WeBack?

Once ousted from WeWork, Adam Neumann is now attempting to buy back the bankrupt company through his new venture, Flow Global Holdings. Despite repeated attempts and an offer to inject funds during its bankruptcy, his efforts were consistently rebuffed, as highlighted in a letter reported by DealBook. Neumann, who left WeWork in 2019 amid controversy, has always been interested in getting back involved with his company.

Following WeWork's bankruptcy filing in November 2023, Neumann's path to repurchase involves navigating bankruptcy court procedures. These courts will scrutinize any potential deal, offering Neumann a chance to negotiate terms and secure financing, a process he will likely navigate smoothly given his background. Neumann's interest in WeWork is driven by the intellectual property and the coworking trend he helped popularize despite his controversial tenure. However, reclaiming WeWork won't be easy, given the increased coworking market competition.

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UBER: Earnings Are In

Uber outperformed analyst expectations in its fourth-quarter earnings, reporting a significant jump in net income to $1.4 billion, thanks in part to $1 billion in "unrealized gains" from equity revaluations. Revenue increased by 15% yearly, with gross bookings rising 22% to $37.6 billion. The company also saw a 15% increase in monthly active users to 150 million and a 24% rise in trips to 2.6 billion.

Despite these positive results and Uber's stock reaching a record high before the announcement, the market's reaction was subdued. This reflects the considerable growth that the stock has had over the past year. After navigating challenges during the pandemic and a history of aggressive spending, Uber shows signs of financial maturity. This is its third consecutive quarter of operating profit. This progress, under CEO Dara Khosrowshahi's cost management, has positioned Uber to fulfill its promise of returning capital to shareholders.

SPORTS: A New Streaming Service

This fall, ESPN (Disney), Fox, and Warner Bros. Discovery are launching a joint sports streaming service managed by a new company that the three own. The service, accessible via a new app, will offer a focused lineup of sports networks, including ESPN, ABC, TNT, TBS, Fox, and more, aiming for a more streamlined package than traditional cable. It will also allow bundling with existing services like Disney+, Hulu, and Max.

While pricing is still being finalized, it's hinted to start around $45 to $50 per month, with introductory rates potentially lower but above $30. The platform seeks to become a central hub for sports viewing, possibly adding more networks over time. Ownership is equally shared, but revenue sharing will align with each network's pay-TV charges.

Headlines You Need To Know: 🎙

• NYCB credit is cut to junk by Moody’s

• Roblox shares rise 13% after earnings

• CVS beats on earnings

• Alibaba shares whipsaw in pre-market trading

• US commercial real estate contagion is moving to Europe

• China replaces top market regulator

A Wild Financial Crime

Jerome Kerviel became a notorious figure in the financial world after being involved in one of the biggest trading frauds in history. As a trader at Société Générale, one of France's largest banks, Kerviel engaged in unauthorized trading that led to a loss of approximately €4.9 billion in 2008.

His methods involved complex and risky maneuvers, exploiting the bank's security systems and evading detection through a deep understanding of its risk management systems. Kerviel's actions unveiled the vulnerabilities in the financial system, highlighting the need for stronger oversight and risk management practices in banking institutions. His story is not just about the financial loss but also about the broader implications for the banking industry and regulatory frameworks. It is a cautionary tale of how unchecked ambition and the lack of oversight can lead to catastrophic financial outcomes.

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📊 China Falls Further Behind

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.