Several Corporate Shakeups

There were several high-profile management changes announced today. We’ve got you covered with a summary below. 📝

First up, the founder and CEO of dating app Bumble, Whitney Wolfe Herd, is planning to step down early next year as she transitions to a new role as executive chair. She’ll be replaced by Lidiane Jones, the current CEO of Salesforce’s cloud-based messaging platform Slack. The announcement came ahead of Bumble’s earnings results, which will be released Tuesday after the bell. Like other pandemic-era companies that came public during the bull market, Bumble’s share price has struggled since day one and is currently sitting at all-time lows. 📉

Next, as Overtstock.com completes its transition to Beyond, Inc., it’s doing so under the direction of a new CEO. Pressure from activist hedge fund JAT Capital finally drew enough support to oust Jonathan Johnson, who has been with the company for over twenty years and led the acquisition of Bed Bath & Beyond out of bankruptcy. Beyond’s president, David Nielsen, will be interim CEO while the board searches for a permanent candidate. Meanwhile, JAT Capital has recommended Camping World CEO and TV personality Marcus Lemonis as their preferred choice. 🛒

Disney has itself a new CFO, tapping PepsiCo’s longtime CFO, Hugh Johnston, as its next financial leader. Christine McCarthy stepped down earlier in the year, and the company has been searching for a replacement since. He’s leaving PepsiCo after a 34-year tenure and will join Disney as it undergoes a massive restructuring effort to turn around its lagging stock price. The company is set to report earnings on Wednesday after the bell, likely providing more color on the transition then. 🐭

The Washington Post announced that Will Lewis will become publisher and CEO on January 2, 2024. The former journalist turned media executive has served as the CEO of Wall Street Journal parent Dow Jones and will now be tasked with returning the historic newspaper company to profitability. With The Post on track to lose $100 million this year and resorting to cost-cutting to stay afloat, he must balance employee morale, further expense reductions, and growth investments. 📰

Lastly, Citigroup is not getting a new CEO. However, current CEO Jane Fraser said her reorganization efforts could result in job cuts of at least 10% in several of its major businesses. Executives could see cuts beyond 10%, particularly as Fraser looks to eliminate regional managers, co-heads, and others with overlapping job responsibilities. The internal project dubbed “Project Bora Bora” has stakeholders on edge as they wait to asses whether the global bank can turn its stock around. 🏦

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Plug Power Is Charged Up

Plug Power hasn’t given investors much to be excited about over the last few years, but today’s news has people (and its stock price) charged up again. So let’s see what happened. 👇

The alternative-energy company, which provides hydrogen fuel cell technology, finalized a deal with the Department of Energy (DOE) for a $1.6 billion loan facility. This critical funding comes at a time when the company has faced immense liquidity issues, issuing a going-corn warning last quarter and disclosing a secondary share offering of up to $1 billion. 💸

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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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Epic Wins A “Victory Royale” Against Google

It’s been three years since Fornite-maker Epic Games sued Apple and Google for allegedly running illegal app store monopolies. And despite losing a similar battle against Apple, the game-maker has secured a win against Google. 🏆

The jury in Epic v. Google delivered its unanimous decision after just a few hours of deliberation. They found a few key things:

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A Chip Off The Holiday News Flow

It’s a slow week in the market, but as usual, there’s some news out of the semiconductor space. Let’s take a look. 👀

First up is Israel granting Intel $3.2 billion to support the company’s biggest investment in the country. Intel will not only build a $25 billion factory that creates thousands of jobs but will also buy $16.6 billion in goods and services from Israeli suppliers over the next decade. It is anticipated that the plant will open in 2028 and operate through at least 2035. 🏭

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