Read It And Eat 14/12

David Abam
Apr 8, 2024
3 min read

Welcome to ‘Read it and Eat’ — your go-to for bite-sized updates on corporate actions in finance, AI and anything I consider newsworthy. Join me twice a week for quick reads, where I serve up the latest insights that matter in the world of business.

Major Headlines:

EY to layoff 5% of their US-based workforce including junior and senior Partners [ https://www.wsj.com ]
Similar to the Tech industry, the post-pandemic aggressive hiring to mass layoff pipeline has affected the Big 4 Audit companies as other companies except PWC have commenced mass layoffs. EY claims it is the Advisory, Audit and Tax departments of their U.S. Operations that have been affected.
Apple require a Court Order to submit push notification data to Government agencies [ https://www.reuters.com ]
This is not new as Apple has always been a major defender of their customers’ and users’ right to privacy and data against data brokers and government agencies. Regardless, it is a win for privacy.
OpenAI’s non-profit arm made only $44,485 in its 2023 filing [https://www.cnbc.com]
A company with an interesting company structure, a capped profit entity, that enables its for-profit arm (which built and owns ChatGPT) to be worth billions on the private market but be controlled by the nonprofit arm, giving the entire company the same privileges of a charity.
Epic Games won its antitrust case against Google over its PlayStore [https://www.reuters.com]
‘Fortnite’ maker Epic Games won its antitrust trial against Google which alleged the PlayStore app operated an illegal monopoly which extracted exorbitant fees, stifled competition and stunted innovation.

Minor Headlines:

Renault to sell its ~5% stake in Nissan Motors which is valued at ~$824M [https://www.bloomberg.com]
An impressive $56.5M Series A raise by AI startup Essential AI led by March Capital [https://www.businesswire.com]
After a failed sale and divestiture of its assets, Boots’ parent company, Walgreens Boots Alliance has plans to separate from its UK drugstore chain through an IPO in the London Stock Market at a valuation of $8.8B [https://www.bloomberg.com]
Private Equity firm GPB Capital Holdings will be liquidated through a Court Appointed receiver after their fraud charges brought by the SEC against them in 2021 for $1.7B [https://www.wsj.com]
WeWork resolved the landlord’s objections to its bankruptcy filing, through financial agreements which allow SoftBank to redirect $683M into new credit facilities [https://www.reuters.com]
Harpoon Ventures, a Venture Capital firm that invests in early-stage startups launched its third fund with a goal of $125M which aims to invest in enterprise startups. [https://www.finsmes.com]
Dubai aims to set up the Dubai Investment Fund to manage $4Tn of state funds and invest state funds locally and internationally. [https://www.bloomberg.com]

News of the Day:

The SAG-AFTRA Strike Is Over🎉

The USA producers’ union, AMPTP, and SAG-AFTRA reached a tentative agreement, ending the 118-day strike. Though the written agreement awaits ratification, key highlights include wage increases, updated agreements until 2026, and provisions for Artificial Intelligence (AI) use in entertainment. Notably, different AI categories and respective guidelines were established. Additionally, a streaming bonus was introduced for High-Budget SVOD (Subscriptions Video On Demand) programs, albeit critiqued for its high threshold. Residuals, casting, transparency commitments, and various other changes were detailed, impacting pension and health, performance capture, television, and holidays, among other aspects. Find more details in the full summary document. [deadline.com]

GEN-Z Word Of The Day:

Inflationship: To be in a romantic relationship for the sole purpose of splitting the cost of rent, bills, and groceries due to the rise in the cost of living.