Business and Tech News - 3.29.24

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Skool Projekt Staff
March 29, 2024

Sam Bankman-Fried Sentenced to 25 Years

Sam Bankman-Fried has received a 25-year prison sentence for his involvement in fraudulent activities and conspiracy that led to the downfall of the cryptocurrency exchange FTX, a decision that balances between the prosecution's demand for a harsher sentence and the defense's request for leniency. The judge rejected the defense's argument that potential future repayments could mitigate the significant $8 billion harm caused to FTX customers, emphasizing the irrelevance of profits from risky investments in determining the sentence. 

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Chinese Smartphone Maker, Xiaomi, Takes on Tesla

Xiaomi has launched its debut car, the SU7, in China, undercutting Tesla's Model 3 with a price tag of 215,900 yuan ($30,408) despite it being a loss-making move for the company. The electric vehicle boasts a driving range of 700 kilometers, with consumer interest peaking as over 50,000 orders were placed within the first 27 minutes, and deliveries are scheduled to commence by the end of April. CEO Lei Jun touts the SU7's superiority over the Model 3 in most specifications, as Xiaomi aims to capture a significant share of the competitive electric vehicle market by targeting 20 million premium users.

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Home Depot Buying SRS Distribution For $18 Billion

Home Depot has purchased SRS Distribution from Leonard Green & Partners and Berkshire Partners for $18.25 billion, targeting an expansion in services for professional builders in response to a decline in homeowner DIY projects due to inflation. This move surpasses Home Depot's 2020 acquisition of HD Supply, which was its largest buy at $8 billion, highlighting the company's aggressive growth strategy. The acquisition, which is the fifth-largest global merger of 2024 and represents the largest private equity exit according to LSEG, follows Leonard Green's acquisition of SRS in 2018 for $3 billion.

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Walgreens Takes $5.8 Billion Loss on VillageMD

Walgreens faced a $5.8 billion impairment from its VillageMD investment, leading to the strategic shutdown of 160 clinics to optimize services in urban centers. This decision, driven by sluggish patient influx and a broader cost reduction initiative, has prompted a revision of the company's financial projections under CEO Tim Wentworth's leadership, focusing on streamlining operations. Despite reporting a significant quarterly loss, the company's adjusted earnings surpassed analyst predictions, reflecting a resilience in its core operations amidst fiscal adjustments.

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US Buys 2.8 Million Barrels of Oil To Fill Its Reserve

The Biden administration allocated $225.6 million to acquire 2.8 million barrels of oil for the Strategic Petroleum Reserve (SPR) at an average price of $81.32 per barrel, surpassing the Department of Energy's (DOE) initial target of $79 or lower. Despite this specific purchase exceeding the target price, the DOE maintains that the overall average cost of oil acquired, including prior and current purchases totaling 26.28 million barrels, remains below the $79 per barrel target, averaging at $76.47.

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