London’s Heathrow airport abruptly shut down due to a fire at a power substation, causing a significant power outage. Alimentation Couche-Tard and Seven & i are entering crucial negotiations with private equity firms, setting the stage for the $47bn takeover of the 7-Eleven owner. Welcome to Due Diligence, your go-to source for dealmaking, private equity, and corporate finance insights.
- Bezos’ Strategic Shift:
- Jeff Bezos, the Amazon founder, has transitioned from a vocal critic of former President Trump to a strategic ally. Despite past tensions, Bezos is now aligning with Trump’s interests, investing in his events and content.
- Bezos’ efforts have paid off, securing him a prime spot at the inauguration and potentially protecting his business interests, particularly with Blue Origin, during government contract bids.
- People close to Bezos assert that his motivations are not rooted in fear or ulterior motives, but rather in his alignment with certain political inclinations and business strategies.
- Meme Stocks Make a Comeback:
- Following the trend in the US, European retail traders are rallying around meme stocks, particularly in the small and mid-sized companies segment.
- Companies like Eutelsat and Colour have seen a surge in interest from retail traders, resulting in substantial gains and losses for short sellers who had bet against them.
- The surge in meme stocks in Europe is fueled by a patriotic outlook, notably in the defense sector, leading to an interesting dynamic in the market.
- Wiz’s Mega Deal Journey:
- Startup Wiz turned down a $23bn offer from Alphabet only to seal a deal worth $32bn with the tech giant less than a year later.
- Founder Assaf Rappaport’s foresight and decision-making prowess played a pivotal role in Wiz’s success and the lucrative acquisition deal.
- The large break fee in the deal underscores potential regulatory hurdles for the acquisition, despite the celebration among Wiz staffers and investors.
In a nutshell, the landscape of dealmaking, private equity, and corporate finance is evolving rapidly, marked by strategic shifts, meme stock resurgence, and mega acquisition deals. The intricate dance between key players sets the stage for a dynamic and ever-changing market environment. Stay informed, stay ahead.
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