Business and Finance News - 6.4.24

GameStop Rallies 21% on Keith Gill’s $115.7M Stake and 120,000 Call Options

• GameStop* (GME) rallied 21% Monday amid speculation about Keith Gill's significant position in the company.

• Keith Gill, aka Roaring Kitty, posted a screenshot of his GameStop holdings.

• Gill's account shows he holds 5 million GameStop shares worth $115.7 million as of Friday.

• His account also shows 120,000 GameStop call options with a $20 strike price expiring June 21.

• GameStop shares surged over 70% at the open but closed well below the highs.

• Gill’s first return to social media three weeks ago caused GameStop shares to more than double in May.

• GameStop raised over $900 million in a stock sale during the May rally.

* GameStop is a retail company that primarily sells video games, gaming consoles, and related accessories.

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Instagram Tests Unskippable Ads with Countdown Timers, Sparking User Backlash and Uncertainty on Global Rollout

• Instagram* (META) is testing unskippable ads, confirmed by circulating screenshots on social media.

• Ad breaks display a countdown timer, preventing users from browsing until the ad ends.

• This feature resembles YouTube's unskippable ads, aligning with Instagram's shift to video content.

• Meta spokesperson stated they are testing formats to drive value for advertisers.

• User Dan Levy first spotted the ad breaks and shared a screenshot on X.

• Negative reactions emerged, with users threatening to leave Instagram due to the new ads.

• Instagram did not specify where ad breaks appear or if the test is global.

* Instagram is a social media platform owned by Meta (formerly Facebook) that allows users to share photos and videos.

Paramount Global and Skydance Media Finalize $8 Billion Merger; Awaiting Shari Redstone's Approval

• Paramount Global* (PARA) and Skydance Media agreed on an $8 billion merger deal.

• The merger deal awaits final approval from Shari Redstone.

• Skydance will acquire National Amusements for about $2 billion.

• Skydance will buy 50% of Paramount’s non-voting shares for $4.5 billion.

• Skydance and its backers will inject $1.5 billion in cash into Paramount.

• After the merger, Skydance would own two-thirds of the new company.

• Paramount Global stock rose about 7% in Monday morning trading.

* Paramount Global, also known as Paramount, is a multinational media and entertainment conglomerate. It operates a broad portfolio of media and entertainment assets, including television networks, film production, streaming services, and content licensing.

Spotify Announces Premium Plan Price Hike to Invest in Features; New Rates Set, Shares Surge 4%

• Spotify* (SPOT) announced it is increasing the cost of premium subscription plans.

• The last price hike was in July of last year.

• Price increases aim to invest in and innovate product features.

• U.S. Spotify users will be notified about the changes over the next month.

• Shares of Spotify rose more than 4% Monday morning.

• New prices: Individual $11.99, Duo $16.99, Family $19.99, Student $5.99.

• Apple Music's individual subscription starts at $10.99 a month.

* Spotify is a digital music, podcast, and video streaming service that provides access to millions of songs and other content from artists all over the world.

Waste Management to Acquire Stericycle for $7.2 Billion, Deal Includes $1.4 Billion Debt

• Waste Management* (WM) will acquire Stericycle** (SRCL) for $7.2 billion.

• WM will buy all outstanding shares of Stericycle for $62 per share in cash.

• The deal includes Stericycle’s net debt of around $1.4 billion.

• The acquisition is expected to close in the fourth quarter of 2024.

• Stericycle's shares rose 14.6% after the announcement, reaching a 52-week high.

• WM’s shares fell about 4.5% following the news.

• The deal was unanimously approved by both companies' boards of directors.

* Waste Management, Inc. (WM) is a leading provider of waste management and environmental services in North America.

** Stericycle is a compliance company that provides waste management and regulatory compliance services.

Here’s how the markets closed yesterday:

• Dow Jones: 38,571.03 -115.29 (-0.30%)

• S&P 500: 5,283.40 +5.89 (+0.11%)

• Nasdaq: 16,828.67 +93.65 (+0.56%)

• Bitcoin (BTC): $68,981.32 (4:15PM PST on 6/3/24)

• Ethereum (ETH): $3,775.57 (4:15PM PST on 6/3/24)

Here’s how the MAGNIFICENT SEVEN STOCKS did yesterday:

• Microsoft (3.073T): 413.52 -1.61 (-0.39%)

• Apple (2.975T): 194.03 +1.78 (+0.93%)

• Nvidia (2.829T): 1,150.00 +53.67 (+4.90%)

• Alphabet (2.155T): 174.42 +0.46 (+0.26%)

• Amazon (1.856T): 178.34 +1.90 (+1.08%)

• Meta Platforms (1.211T): 477.49 +10.66 (+2.28%)

• Tesla (562B): 176.29 -1.79 (-1.01%)