Goodbye SPACs, Hello SPARCs?

While investors have certainly cooled on the idea of special purpose acquisition companies (SPACs), famous hedge funder Bill Ackman is betting they may be open to his spin on the investment vehicle. 🧠

A SPARC is a special purpose acquisition rights company, which operates like a SPAC, acting as a shell to combine with a private company and take it public. However, with a SPARC, investors will know what company the financing vehicle would be used to merge with before they pledge their investments.

Essentially, it provides an extra layer of protection for investors because they can choose not to invest if they don’t like the vehicle’s target company. Whereas with a traditional SPAC, they put the money in, essentially betting on the fund manager and their ability to pick a good target. They may have some idea what they plan to invest in, but not always. 🎯

Now, Bill Ackman starting a SPARC isn’t that exciting of a news story. But where it got interesting is that the billionaire investor signaled that he would “absolutely” do a deal with the social media platform X, previously known as Twitter. However, he hasn’t talked to Elon Musk about the investment yet; he’s just saying he’d be open to it.

Bringing the company back to the public markets in its much leaner, more chaotic form a year after Musk’s acquisition officially closed would be an exciting twist. 🍿

For now, investors will have to wait patiently as Ackman vets his targets. In the meantime, we can all enjoy watching Bill respond to investor pitches in the comments of his tweet. 😆

Japan’s Nippon Takes Over U.S. Steel

After months of bidding, U.S. Steel finally has a buyer. However, the auction’s winner has some parties concerned. 🤔

Japan’s Nippon Steel emerged as the top bidder for the 122-year-old steelmaker, beating out offers from Cleveland-Cliffs, ArcelorMittal, and Nucor. Its $55 per share price represents a 142% premium to where $X shares were trading before Cleveland-Cliffs’ $35-per-share offer kicked off the bidding war.

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Peloton’s New Partnership

With Peloton’s turnaround strategy not yet bearing the fruit it had anticipated, the company continues to lean on partnerships to grow market share. For example, in September, the company entered a 5-year strategic partnership with Lulemon to bring its content to the athleisure brand’s exercise app. It also made Lululemon Peloton’s primary athletic apparel partner. 👟

It’s still too early to tell whether or not that cooperative effort is working, but management seems to think further initiatives like it will help boost revenues. As a result, it’s partnering with TikTok to bring short-form fitness videos and other content to the social media platform.

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Trouble Continues For Telecoms

We last talked about Telecom stocks about six months ago, when their stocks came under significant pressure due to slowing growth, competition concerns, and regulatory issues. We then discussed them in October when investors dumped defensive stocks for higher-yielding treasuries with no risk.

Prices have since rebounded sharply with the broader market as investors priced in Fed rate cuts this year. However, Verizon was back in the news today for a not-so-great reason. Let’s dig in. 👇

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Thailand Scores Major EV Win

Thailand has been helping lead the electric vehicle (EV) push, with the second-biggest economy in Southeast Asia looking to achieve carbon neutrality by 2050. ♻️

The country is known as the “Detroit of Asia,” serving as a major manufacturing hub. As part of that, it’s looking to make 30% of its car output electric by 2030 so that it doesn’t lose its leadership position in the EV transition. Its government is putting up major funds to help fund that, approving $970 million in tax cuts and subsidies to help encourage demand and boost local production. ⚡

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