– A coalition of US states is preparing a lawsuit to block Paramount Skydance’s proposed $110 bn acquisition of Warner Bros Discovery, as reported by Reuters (paywall).
California and New York are among the states considering legal action, driven by concerns that the deal could reduce competition, lead to job losses and further consolidate power in Hollywood. State attorneys general are weighing intervention even as federal regulators continue their review of the transaction.
The dispute has also exposed a growing rivalry between Paramount and streaming giant Netflix. According to reports, Paramount’s chief legal officer Makan Delrahim accused Netflix of waging a ‘scorched-earth campaign’ to ‘poison regulators and other stakeholders’ against the merger, arguing that the opposition reflects Netflix’s concerns about facing a stronger competitor. Netflix has reportedly dismissed the allegation as unfounded.
Paramount maintains that the merger would strengthen competition, preserve theatrical releases and boost content investment, while critics warn it could accelerate industry consolidation.
– The SpaceX IPO saga continues as political pressure and investor concerns intensify as the satellite company made its highly-anticipated stock market debut. According to CNBC, Senator Elizabeth Warren has urged the SEC to delay the offering, citing concerns over SpaceX’s governance structure, valuation and the potential risks to retail and retirement investors. Warren also questioned recent index rule changes that could accelerate the company’s inclusion in major benchmarks, forcing passive funds to buy the stock shortly after listing.
The scrutiny comes as The Financial Times (paywall) reported growing unease among investors over the scale of the deal, which is expected to raise around $75 bn and value SpaceX at roughly $1.75 trn, making it the largest IPO on record. Market participants have also linked recent selling in technology stocks to investors raising cash ahead of the offering.
Meanwhile, SOC Investment Group has warned investors to proceed with caution, arguing that SpaceX’s valuation and disclosures require closer examination and raising concerns that the company’s value could fall once its financials are independently assessed.
At the same time, The Wall Street Journal (paywall) reports that BlackRock has put in an order to buy at least $5 bn of SpaceX shares at IPO.
– Anthropic has taken a major step toward becoming a publicly traded AI company after confidentially filing for a US IPO, setting up a high-stakes race with rivals OpenAI and SpaceX for investor capital. As reported by Reuters, the company submitted draft registration documents to the SEC, allowing it to prepare for a listing while keeping sensitive financial information private.
The filing comes after Anthropic raised funding at a $965 bn valuation, putting it close to the $1 trn mark and ahead of many established technology groups. Analysts view the IPO as a key test of investor appetite for AI companies that are growing rapidly but continue to spend heavily on development and infrastructure.
According to The Financial Times, it comes just as OpenAI has launched its own IPO bid which could become one of the largest technology listings in recent years.
– Activist investor Ancora Alternatives has built a significant stake in specialty chemicals company Ashland and is pressing management to explore a sale, arguing that a deal could unlock substantial shareholder value. According to Reuters, the hedge fund believes a transaction could lift Ashland’s share price by at least 30 percent, valuing its stock at roughly $76 per share.
Ancora said Ashland has suffered from weak execution and slowing growth, noting that the company’s stock price has fallen around 50 percent since reaching a peak in late 2022. The investor argues that the market is valuing the business below the combined worth of its individual divisions and that a sale represents the best route to realize its intrinsic value.
The activist investor warned it could launch a proxy fight if there is no meaningful progress before Ashland’s board nomination window opens in September. Ancora is also prepared to seek board changes, increasing pressure on chief executive Guillermo Novo and the company’s directors to consider alternatives.
– Target shareholders have voted against a proposal to appoint an independent board chair, handing a victory to former chief executive Brian Cornell and the retailer’s current leadership amid ongoing scrutiny of its governance structure.
According to Reuters, the non-binding proposal sought to separate the roles of board chair and executive leadership, as a result of concerns among some investors about Cornell’s continued influence after becoming executive chair earlier this year.
The vote allows Cornell to remain executive chair, a position that includes oversight of chief executive Michael Fiddelke, who took over the top job in February. Governance advocates had argued that an independent chair would provide stronger oversight as Target works through a challenging period marked by declining sales, strong competition and a few strategic missteps.
Natalie Bannerman
Natalie is a former telecoms and infrastructure journalist, a role she held for nearly seven years. Before this, she worked in the B2C startup space, covering lifestyle, arts and culture reporting. As senior reporter for Governance Intelligence she...
