WWD : LVMH Luxury Ventures Invests in Aimé Leon Dore

LVMH Luxury Ventures Invests in Aimé Leon Dore
Retail expansion is seen as a key growth avenue for the buzzy streetwear brand.
Underscoring how it has its pulse on what’s cool and emerging in New York City, LVMH Luxury Ventures has taken a minority stake in Aimé Leon Dore, a streetwear brand with a cult following — and a tinge of preppy polish.
Established in Queens in 2014, Aimé Leon Dore is perhaps best known for its sneaker collaborations with New Balance and clothes and accessories inspired by New York City itself, particularly its 1990s hip-hop scene and pick-up basketball culture.
The investment sets the stage for the brand to expand internationally, and likely grow its retail footprint, given the French group’s real-estate clout and relations with developers.
According to sources, the brand plans to open a boutique in London as early as March.


LVMH’s vast network of global leaders across the industry and its rich history in growing exceptional storied brands offers a truly unique partnership opportunity to fuel the next chapter of growth for Aimé Leon Dore,” founder Teddy Santis said in a statement.

Financial terms were not disclosed.
LVMH Luxury Ventures said Aimé Leon Dore would continue to operate independently out of its New York offices, with the fund’s support and guidance.
Santis launched into fashion with a made-up brand name, slim sweatpants and down vests that he paired with Air Jordan 1 sneakers. Today Aimé Leon Dore creates seasonal ready-to-wear, footwear and accessories collections. It has also done collaborations with Woolrich, Suicoke, Timberland, New Era, Paraboot, Drake’s and Porsche.
The brand’s flagship in NoLIta currently its only location in the world, is also home to Café Leon Dore, which serves coffee and pastries from Greece — a nod to the homeland of Santis’ parents.
It is understood the brand has been charting rapid growth in recent years, primarily via its online store, which ships worldwide, and despite having trimmed all wholesale accounts to become a purely direct-to-consumer brand.
Aimé Leon Dore is analogous in some ways to Supreme — at least in its sparse interactions with the press, commitment to organic growth, and tight control of its distribution and image.
It is understood LVMH was attracted to the company’s cultural relevance, community-building know-how, elevated and refined approach to products, and sophisticated campaigns around product drops, often involving artists and musicians.
The brand counts 726,000 followers on Instagram, an eclectic tumble of vintage photography, film stills, artworks and product shots, including a closeup of an embroidery reading: “A team from outta Queens with the American dream. A.L.D.N.Y.C.”
Santis has collaborated frequently with Boston-based New Balance, reimagining styles including the 550, the 1300, the 990, the 997 and the 827. Last April he took on the role of creative director of New Balance’s Made in USA label, the activewear brand’s designation for product that has a domestic value of 70 percent or more.
LVMH Moët Hennessy Louis Vuitton established LVMH Luxury Ventures in 2017 with a mission to take minority stakes in early-stage luxury brands that have high growth potential and compelling business models.


Its first investments were French beauty brand Officine Universelle Buly 1803 and New York-based sneaker reseller Stadium Goods, both of which it has already exited.
In 2019, it took a minority stake in Gabriela Hearst, the luxury women’s wear label devoted to sustainability.
Its current portfolio also includes Los Angeles-based skin care brand Versed, California apparel brand Madhappy, New York-based watch platform Hodinkee, British mystery box start-up Heat, and social shopping specialist Replika Software, based in New York and Paris.
According to its website, LVMH Luxury Ventures targets companies with revenue between 3 million and 30 million euros, and makes equity investments ranging from 2 million to 15 million euros, yielding shareholdings of between 5 and 25 percent.

>>> Europe : Brokers Upgrades & Downgrades - 19th of January 2022 V2(+)

>>> Up
* ABB Raised to Outperform at RBC; PT 41 Swiss francs
* Adecco Raised to Buy at UBS (+)
* Alfen Raised to Outperform at Oddo BHF; PT 88 euros (+)
* BNP Paribas Raised to Buy at DZ Bank; PT 74 euros (+)
* CareTech Raised to Buy at HSBC; PT 750 pence
* Commerzbank Raised to Buy at Deutsche Bank; PT 10 euros
* DKSH Raised to Buy at Stifel; PT 90 Swiss francs
* DNB Bank Raised to Buy at Deutsche Bank
* Eni Raised to Add at AlphaValue/Baader
* Exxon Raised to Sector Perform at RBC; PT $90
* Fuchs Petrolub Raised to Buy at Deutsche Bank; PT 50 euros
* Getinge Raised to Buy at Pareto Securities; PT 379 kronor
* Hexagon Raised to Buy at DNB Markets; PT 145 kronor
* Inditex Raised to Buy at Goldman; PT 37.50 euros
* LISP SW PT Raised to 12,000 Swiss francs at Bank Vontobel (+)
* Lonza Raised to Buy at Bank Vontobel; PT 810 Swiss francs (+)
* Morgan Advanced Raised to Buy at Berenberg; PT 425 pence (+)
* Pandora Raised to Hold at Handelsbanken; PT 840 kroner
* Ryanair Raised to Buy at Liberum; PT 19 euros
* Segro Raised to Overweight at JPMorgan; PT 1,450 pence
* SFS Raised to Buy at Baader Helvea; PT 165 Swiss francs
* Siemens Gamesa Raised to Buy at Kepler Cheuvreux; PT 23 euros
* Siemens Healthineers Raised to Buy at SocGen; PT 75 euros
* Siltronic Raised to Buy at Jefferies; PT 160 euros
* Tinexta Raised to Neutral at Banca Akros (ESN); PT 28 euros (+)
* Zurich Ins. Raised to Buy at Citi

>>> Down
* AB Dynamics Cut to Hold at Berenberg
* Activision Blizzard Cut to Neutral at Credit Suisse; PT $95
* Activision Blizzard Cut to Neutral at Baird; PT $95
* Allfunds Cut to Hold at HSBC; PT 16 euros
* Asos Cut to Neutral at Goldman; PT 2,750 pence
* DBV Tech Cut to Hold at SocGen; PT 3.40 euros (+)
* EDF Cut to Underweight at JPMorgan; PT 7.60 euros
* Legal & General Cut to Neutral at Citi
* Metso Outotec Cut to Neutral at Credit Suisse; PT 10.50 euros
* NN Cut to Neutral at Citi
* Primary Health Cut to Hold at Panmure Gordon; PT 151 pence
* Safestore Cut to Hold at Panmure Gordon; PT 1,417 pence
* Schneider Electric Cut to Sector Perform at RBC; PT 175 euros
* Securitas Cut to Neutral at UBS (+)
* Smiths Cut to Sector Perform at RBC; PT 1,675 pence
* Sparebank 1 Oestlandet Cut to Neutral at SpareBank
* SpareBank 1 Ringerike Hadeland Cut to Neutral at SpareBank
* Sparebanken More Cut to Neutral at SpareBank; PT 475 kroner
* Swiss Life Cut to Neutral at Citi
* Bureau Veritas Cut to Sell at UBS (+)

>>> Initiation
* Aalberts Rated New Buy at Jefferies; PT 72 euros
* Angle Rated New Buy at Jefferies; PT 185 pence
* Banco Santander Resumed Neutral at Citi; PT 3.30 euros
* Cofle Rated New Buy at TP ICAP Midcap; PT 24.30 euros
* Daimler Truck Rated New Buy at SocGen; PT 42 euros
* Penneo Rated New Hold at Carnegie; PT 19 kroner
* Schiehallion Fund Rated New Sell at Investec
* Wienerberger Rated New Outperform at Oddo BHF; PT 42 euros

>>> Call
* Aalberts Initiated Buy at Jefferies on Portfolio Optimization
* Adecco Double-Upgraded as Bureau Veritas, Securitas Cut at UBS (+)
* Airbus Top Aerospace Pick, Defense Names Attractive, MS Says
* Burberry’s 3Q Sales ‘Slightly’ Better Than Expected, RBC Says (+)
* Citi Prefers P&C in European Insurers, Cuts Swiss Life, L&G
* Commerzbank Raised at Deutsche Bank on Top-Line Momentum (+)
* EDF Double-Downgraded at JPMorgan on Govt Decision, Shutdowns
* Lindt PT Raised at Vontobel, Another Buyback ‘Highly Probable’ (+)
* Richemont Beat May Lead to High-Single Digit EPS Upgrades: Citi
* Siltronic Upgraded to Buy at Jefferies on Attractive Entry Point
* Spanish Banks to Beat in 4Q, Santander Rated Neutral: Citi (+)

WWD : Fashion Journalist André Leon Talley Dead at 73

Fashion Journalist André Leon Talley Dead at 73
The fashion journalist, New York Times bestselling author and former Vogue creative director has died, TAA PR has confirmed.
Fashion journalist, New York Times bestselling author and former Vogue creative director and editor at large André Leon Talley has died at age 73, TAA PR has confirmed.
The cause of death has not been released.
A trailblazer for 40-plus years in an industry that had very little diversity in its upper echelons, Talley worked at WWD, Interview, Vanity Fair, House & Garden and Vogue, in between dancing at Studio 54, interviewing Rihanna on the Met Gala red carpet and Michelle Obama for the pages of Vogue. With his baritone voice, vibrant caftans and unmistakable presence, Talley was a forthright personality in an industry filled with notable forces. His decades-long career in fashion also included volunteering at the Metropolitan Museum of Art’s Costume Institute and a run at Andy Warhol’s Factory. Along the way, by his own account, he dealt with ageism, racism and weight discrimination.

Prior to the release of his 2020 memoir “In the Chiffon Trenches,” Talley told WWD, “People have done things to me that I have forgiven them for. There are things in the book that you can’t imagine — the racism, everything. You don’t even understand how much I’ve gone through.…”
He was best known for his time at Vogue where he was fashion director between 1983 and 1987, before becoming its creative director and later an editor at large. In 1995, he moved to Paris for a stint at W, but returned to New York as Vogue’s editor at large.
A front row fixture known for his flamboyant style and storytelling, Talley was a close confidant of Karl Lagerfeld, Valentino, Marc Jacobs and many other legendary designers, and he provided support and a sounding board to up-and-comers from their first runway collections, including Rodarte, Sergio Hudson and Zac Posen. With his eye for talent, Talley was always in search of the next generation of rising stars.
Upon being notified as a recipient of the de l’Ordre des Arts et des Lettres of France in April 2021, Talley said, “Of all the education and experiences that I have had in this world, I think this represents a great deal to my race and my people. I hope that it will make people, who look like me, really proud. I am very proud to be an African American man, who grew up in the Jim Crow South to receive this prestigious honor from the Republic of France.”
Describing himself at that time as someone who has appreciated the relevancy of France, Talley said that included “the culture, the history and every aspect of refinement, style, architecture, the gardens, fashion haute cuisine, Versailles, the churches, the history — even its bad history — its revolution and the guillotine.”
Talley’s all-encompassing way of looking at life — the good and the bad — resonated with a wide range of people in and out of the spectrums of fashion. In his memoir, Talley detailed some of the less glamorous aspects of his life including sexual abuse, his weight struggles and ageism. After an advance copy leaked to the media, consumers’ interest in the book was so strong that the publisher Ballantine moved up the release date from September to May, and greenlighted a second run before it was out.


As a sign of Talley’s dualistic life, he dedicated the book to Lee Radziwill and Calvin O. Betts, his pastor at the Abyssinian Baptist Church, where he often attended weekly services. “When I sit back and look at the riches of my life, I just wanted to share some of the great moments of my life, as well as the struggles.”
In May 2020, when Talley learned that he had landed on The New York Times bestseller list for hardcover nonfiction, he told WWD that he was thrilled. But what he really wanted to discuss in an interview was “the horror” that had happened in Minneapolis, referring to the police murder of George Floyd. “This is just systematic of the world that we live in. The video — I have no words.” he said at that time.
Memories of the icon started to pour in Tuesday night.
“I have 45 years of memories of André from his working for Interview and Andy Warhol to working at WWD and WWD in Paris,” said Diane von Furstenberg. “I remember him wearing a cashmere robe when people wore black tie. We used to have tea at the Plaza Athénée in Paris, and he used to pretend he was an African king. We went to the inauguration for [Barack] Obama together and Nancy Pelosi gave us the best seats in the house. He introduced me to SCAD and he has a gallery in his name at SCAD [Savannah College of Art & Design]. Naomi [Campbell] took him to Algeria just before COVID-19 and he loved it. He had so many friends. He was truly bigger than life.”
Donna Karan told WWD Tuesday night, “He was larger than life. I always looked up to him. He loved fashion and we all loved him so. His fashion was beyond the clothes, the people, his presence, his heart, his laughter. He was fashion to the world like a big daddy. He will always be here by our sides watching over us all. We love you, André.”
Former Vanity Fair editor in chief Graydon Carter, who is now co-editor of Air Mail, said, “He was a dear friend and maybe the greatest fashion historian of his generation. He was a giant of fashion and a walking dictionary. When he came to Vanity Fair, he did five or six things for us that were as inventive as anything that we’d ever seen before.”
After his Condé Nast days had wound down, Talley pitched in at Carter’s newsletter Air Mail. Describing Talley as “a wonderful contributor,” Carter said he especially loved his book reviews, and “so did our readers. I will miss him terribly.”


Unabashed about sharing his views, Talley was not one to pull punches. His friend, the designer Ralph Rucci, said Tuesday night, “Beneath the particulars and the judgments, he was the most sensitive man — a brother. I loved him and watched over him with a paternal nature. I, and others, loved to constantly bring luxury into his life. Most of all, he made me laugh, which extinguished so much steam from this thing called fashion,” Rucci said.
Retail industry veteran and former longtime fashion director at Neiman Marcus Ken Downing said: “Elegant, engaging and entertaining. Style, wit and intelligence, the trifecta of terrific! RIP Mr. André Leon Talley.”
Lindsay Peoples Wagner, editor in chief of The Cut, said: “Not even sure how to wrap my mind around all you’ve done, and the legacy you’ve left behind, but you gave us hope and aspirations that we never would have dreamed if it hadn’t been for you, André.”
Born in Washington, D.C., he earned an undergraduate degree in French literature at Carolina Central University and later at Brown University, he earned a master of arts degree in French literature. Talley lived in France from 1978 to 1980 while working for Women’s Wear Daily, with his first big piece on Yves Saint Laurent establishing him in Paris. That was the first of “so many great experiences” and travels in France, he said.
There were also trying exchanges, as chronicled in his memoir “The Chiffon Trenches,” which was released in 2020.
Talley authored several books, including “Valentino,” “A.L.T.: André Leon Talley,” “A.L.T. 365+“ and “Little Black Dress,” and contributed to “Valentino: At the Emperor’s Table” and “Cartier Panthère.” He was also the subject of the 2017 documentary film “The Gospel According to André.” Accustomed as he was to the designer crowd and the adornments of a fashion career, Talley often spoke in recent years about the need for greater diversity and understanding. In a 2020 interview with WWD, Talley said, “The biggest challenge is to get up everyday and to go forward and to fight the battle…a Black man must think about racism every single day.”


Fern Mallis described Talley Tuesday night “as always being so much fun to be around. When he appeared at one of her “Fashion Icons” talks, Talley reeled in the A-list to attend, including Carolina Herrera, Michael Kors, Grace Coddington and Bette Midler. When his friend Bethann Hardison attempted to leave for the restroom, Talley chastised her from the stage, Mallis recalled.
“I also loved going to the VIP Manolo Blahnik sample sales. He always sat prominently in the middle of a room filled with tables with mountains of shoes and [surrounded] by lots of frantic women grabbing everything they could. He sat in a majestic chair and women would crave his opinion, which as you could imagine — he was generous with,” Mallis said.
in recent years, Talley was embroiled in a legal dispute about his $1 million White Plains, N.Y., home with his friend the former Manolo Blahnik USA chief executive officer George Malkemus. Talley contested that he owned it based on a gentleman’s agreement that he had with Malkemus and his husband Anthony Yurgaitis, who purchased the property. The couple contended in court filings that Talley had failed to pay rent for hundreds of thousands of dollars. Malkemus died last fall.
Another public dispute surfaced after “The Chiffon Trenches” was released. Talley’s blistering portrayal of his former Vogue boss Anna Wintour and the severed ties between them set off a firestorm of media publicity. Talley speculated about the public’s fascination with the feud in an interview with WWD in 2020, “I think people are riveted by this, because Anna Wintour is on everybody’s brain waves, because she is a very powerful human being. Perhaps they are perplexed or mystified by me, my relationship to Vogue, how did I land at Vogue, why am I not at Vogue now, what’s going on.”
He added, “People are so fascinated by this, because she is a very, very powerful woman, as with ‘The Devil Wears Prada.’ She managed to be more than icon. She is a world figure.”
By Tuesday night, a number of people paid tribute to Talley on social media. Karla Martinez de Salas, editor in chief of Vogue Mexico, said: “I still remember the first time I met him when I started at Vogue in 2001. I thought he was going to be intimidating and mean, but he was the complete opposite. He was funny, outgoing, witty, incredibly smart, friendly and a walking fashion encyclopedia. I will never forget his loud voice and laughter. May your contribution to fashion and the arts never be forgotten.”


Talley was also outspoken about the need for advocacy and brands to enact change and inclusion. “The brands should be more aware and conscious of the times that we live in, which are difficult because of the pandemic and the whole thing about social justice and equality for Black people.…People have got to be included more. It’s not just a selfish thing anymore. Fashion turned in on itself and became this very narcissus endeavor, with brands outdoing brands and shows outdoing shows.”
Despite the arcs and tenors of his life, Talley maintained the importance of progressing and moving forward. In a 2020 interview with WWD, he said, “What makes me hopeful is a sense of who I am and that there can be progress. People have to come together — individuals within the fashion world and outside the fashion world — to continue to work, to struggle and you don’t give up. You don’t give up the dream. The dream has not been realized.”

(ZH) As US Homebuilders Crash, China Property Developers Set To Surge As PBOC Se

As US Homebuilders Crash, China Property Developers Set To Surge As PBOC Sends "Clear Easing Signal"

Over the weekend, we said that as a major divergence has emerged between China and the US, where the former is now actively easing - ostensibly to support the country's reeling property market but also to prevent a complete collapse in GDP, by cutting rates and injecting gobs of new credit - and the former is about to undertake a major tightening cycle, a trade has emerged to capitalize on this divergence whereby one should pair trade a long in beaten down Chinese property developers while shorting US homebuilders...
... this trade is starting to outperform, with US homebuilders tumbling on Tuesday with some builders sinking by the most since May, amid fears of a slowdown in the property market due to higher years. The S&P Supercomposite Homebuilding Index plunged by as much as 5.2% with all members are trading lower on Tuesday. KB Home was down as much as 8.5% for its biggest intraday decline since May 2021, LGI Homes down by as much as 7.8%, Meritage Homes lower by as much as 6.4% for its worst intraday decline since May 2021, and Lennar sliding as much as 6.3% to also notch its sharpest decline since May.

Meanwhile, as Bloomberg's Wes Goodman writes, China stocks may draw some support amid the global market rout, especially if the yuan slides after the PBOC said it plans to use more monetary policy tools to spur the economy. China bonds jumped on Tuesday prior to the announcement, though still supported by the outlook for more easing. The yuan also weakened as the central bank said it will not allow one-way moves in the currency, while Goldman strategists said that the PBOC press conference sent "clear policy easing signals."
The larger Asia stock market is starting under a cloud following the U.S. rout, triggered by the relentless advance in Treasury yields and forecasts for Fed tightening, while Asian currencies may lose some appeal as the dollar rises. However, keep an eye on China's property developers now that Beijing has made it clear it will backstop the housing sector and provide support to prevent China's largest property developer, Country Garden, from becoming the next Evergrande.
And sure enough, a real-time update of the chart shown above shows that the relationship between easing China and tightening US may have now troughed ...
... and may be on its way to becoming what we dubbed the "trade of 2022."

(ZH) Round 2? Eastern US Braces For Two Winter Storms

Round 2? Eastern US Braces For Two Winter Storms

A wintry outbreak appears to be ongoing in the eastern US as millions of folks in Mid-Atlantic and Northeast states prepare for two more winter storms expected this week.
AccuWeather forecasters expected a wintry mix Wednesday night into Thursday and a second storm could produce accumulating snow Friday night into Saturday.
"The energy for the first storm is moving onshore along the Pacific coast on Monday, and if that catches up to the front a certain way, there could be a narrow, sneaky zone of 3 inches of snow from parts of the Tennessee Valley to the lower mid-Atlantic coast in the Wednesday night to Thursday time frame," AccuWeather Chief Meteorologist Bernie Rayno said.

Rayno warned, "this isn't the only storm we have to watch this week." He said a larger storm would develop in the Southern states and potentially move northward towards Mid-Atlantic and Northeast states and collide with "another fresh injection of Arctic air" between Friday and early Saturday.
The next round of cold air will keep average temperatures in New York City well below a 30-year average through the end of the month. This means heating demand will rise and put a bid under natural gas prices.
So far this month, natgas prices linked to Henry Hub contracts have jumped as much as 36% on cold weather and snowstorms.

Bloomberg Intelligence's senior US oil/gas analyst Vincent Piazza was overly bullish on natgas for the remainder of the month. He wrote in a note Tuesday:
Weather across most of the US over the next 8-14 days should be more bullish for Henry Hub prices, yet the rally in natural gas production is pushing them below our bearish view around $4 per million BTUs. Physical-market conditions remain somewhat clouded during heating season, and our confidence in the trajectory of the winter strip persists. Still, levels below $4 seem pessimistic, compared with our negative stance when prices surpassed $6 in 4Q. January and February remain crucial for draws, and operators' capital discipline in 2022 isn't likely to drive outsized growth in gas volume.
Last week, natgas prices recorded their largest weekly gains since November. We suspect as temperatures remain frigid and the prospects for additional winter storms to batter the eastern US, a bid will stay under energy prices this month.

(ZH) These Are The World's Largest Nuclear Power Producers

These Are The World's Largest Nuclear Power Producers

Nearly 450 reactors around the world supply various nations with nuclear power, combining for about 10% of the world’s electricity, or about 4% of the global energy mix.
But, as Visual Capitalist's Govind Bhutada details below, while some countries are turning to nuclear as a clean energy source, nuclear energy generation overall has seen a slowdown since its peak in the 1990s.

The above infographic breaks down nuclear electricity generation by country in 2020 using data from the Power Reactor Information System (PRIS).
Ranked: The Top 15 Countries for Nuclear Power
Just 15 countries account for more than 91% of global nuclear power production. Here’s how much energy these countries produced in 2020:
In the U.S., nuclear power produces over 50% of the country’s clean electricity. Additionally, 88 of the country’s 96 operating reactors in 2020 received approvals for a 20-year life extension.
China, the world’s second-largest nuclear power producer, is investing further in nuclear energy in a bid to achieve its climate goals. The plan, which includes building 150 new reactors by 2035, could cost as much as $440 billion.
On the other hand, European opinions on nuclear energy are mixed. Germany is the eighth-largest on the list but plans to shutter its last operating reactor in 2022 as part of its nuclear phase-out. France, meanwhile, plans to expand its nuclear capacity.
Which Countries Rely Most on Nuclear Energy?
Although total electricity generation is useful for a high-level global comparison, it’s important to remember that there are some smaller countries not featured above where nuclear is still an important part of the electricity mix.
Here’s a breakdown based on the share of nuclear energy in a country’s electricity mix:
European countries dominate the leaderboard with 14 of the top 15 spots, including France, where nuclear power is the country’s largest source of electricity.
It’s interesting to note that only a few of these countries are top producers of nuclear in absolute terms. For example, in Slovakia, nuclear makes up 53.6% of the electricity mix—however, the country’s four reactors make up less than 1% of total global operating capacity.
On the flipside, the U.S. ranks 17th by share of nuclear power in its mix, despite producing 31% of global nuclear electricity in 2020. This discrepancy is largely due to size and population. European countries are much smaller and produce less electricity overall than larger countries like the U.S. and China.
The Future of Nuclear Power
The nuclear power landscape is constantly changing.
There were over 50 additional nuclear reactors under construction in 2020, and hundreds more are planned primarily in Asia.
As countries turn away from fossil fuels and embrace carbon-free energy sources, nuclear energy might see a resurgence in the global energy mix despite the phase-outs planned in several countries around he globe

WSJ : Gorillas Hires CMO as Rapid-Grocery-Delivery Race Speeds Up

Gorillas Hires CMO as Rapid-Grocery-Delivery Race Speeds Up
Luanne Calvert will lead the global marketing team at Berlin-based Gorillas

Gorillas Technologies Ltd. has hired Luanne Calvert as chief marketing officer as the company tries to solidify its brand in the increasingly competitive rapid-grocery-delivery space.

Berlin-based Gorillas was founded in 2020 and promises delivery on groceries—from pantry staples to condoms to premade salads and soups—in minutes. Gorillas says it offers more than 2,000 essential items at retail prices for a delivery fee of €1.80 or $1.80, depending on location. The company says it employs all of its 12,000 delivery riders and offers service in more than 60 cities, including Amsterdam, London, Paris, Madrid and New York.

Gorillas said it hired Ms. Calvert to help make its brand more internationally recognized. Ms. Calvert will lead Gorilla’s global marketing team and report to the company’s founder and chief executive, Kağan Sümer.

In previous roles, Ms. Calvert served as the chief marketing officer for airline company Virgin America and held marketing positions at companies including retailer Walmart Inc. and technology company Alphabet Inc.’s Google.

Competition among rapid-delivery services has exploded in cities such as New York in recent months, with companies including GoBrands Inc.’s Gopuff, Buyk Corp., Jokr SARL, Fridge No More Inc. and Getir Perakende Lojistik AS offering steep deals for consumers and opening neighborhood “hubs” that function as warehouses.

The companies are competing for investors as well. Gorillas last fall raised nearly $1 billion in a Series C funding round led by established German delivery player Delivery Hero SE. Gopuff last year raised $1 billion from investors including SoftBank Group Corp.

But despite the investor attention in the space and the proliferation of contenders, rapid delivery thus far doesn’t appear to be much of a moneymaker, with companies like Gopuff looking to white-label products to boost margins. Gopuff earlier told The Wall Street Journal that it isn’t profitable on the basis of earnings before interest, taxes, depreciation or amortization.

After an influx of new players, the quick-commerce space is “looking unsustainably over-supplied and profit-challenged,” according to a November report from retail and technology research and advisory firm Coresight Research. The report said “consolidation, with some nascent players falling out of the market, looks inevitable given the glut of businesses competing on such similar unique selling points and often on the same turf.”

Indeed, one new grocery-delivery entrant, New York-based Fifteen Twenty Inc., stopped service in December after exhausting its funding, Business Insider reported earlier. Its app now directs customers to “switch your grocery service” to competitor Getir.

>>> Stoxx 600 Pre-Market Indications

  • Rio Tinto (RIO1 TH) +1.2%
  • Norsk Hydro (NOH1 TH) +1.1%
    • Norsk Hydro: Hydro to discontinue the Corporate Assembly
  • Commerzbank (CBK TH) +0.7%
    • Commerzbank Raised to Buy at Deutsche Bank; PT 10 euros
  • LVMH (MOH TH) +0.5%
    • Richemont Reports Fastest Christmas Sales Growth in Decade
  • Kion (KGX TH) -1.6%
  • Atlas Copco (ACO2 TH) -1.6%
  • Sanofi (SNW TH) -1.7%
    • Sanofi Announces Second Positive Phase 3 Dupixent Study
  • Bechtle (BC8 TH) -1.7%
  • Sartorius (SRT3 TH) -1.7%
  • Infineon (IFX TH) -1.8%
  • Nemetschek (NEM TH) -1.8%
  • ArcelorMittal (ARRD TH) -2.2%
  • Vestas (VWSB TH) -2.2%
    • Siemens Gamesa, Vestas May See Turbine-Demand Boost in Scotland
  • Alfa Laval (AA9 TH) -3.4%

WSJ : Activision Blizzard’s Workplace Problems Spurred $75 Billion Microsoft Dea

Activision Blizzard’s Workplace Problems Spurred $75 Billion Microsoft Deal
After a lawsuit and a Journal report, the company’s stock was falling, board members were getting anxious—and the tech giant was ready to take a gamble

When allegations of a toxic workplace at Activision Blizzard Inc. surfaced last year and investors fled the video-gaming giant’s stock, Microsoft Corp. rushed in.

A California regulatory agency had sued Activision in July alleging widespread sexual harassment. Then a Wall Street Journal article in November reported that longtime Chief Executive Bobby Kotick knew about allegations of employee misconduct across Activision that he didn’t brief the board on, adding to pressure on the company and its stock.

That provided the catalyst for Microsoft’s gaming head, Phil Spencer, to approach Mr. Kotick about a takeover soon after, according to people familiar with the matter.

Deal-hungry Microsoft had long been interested in Activision and had discussed a potential acquisition in the past, some of those people said, but Mr. Kotick was cool to the idea until Microsoft offered him a graceful exit.

Some of Activision’s directors who had stood by Mr. Kotick during the crisis were individually beginning to get anxious, according to people familiar with the board. Some directors didn’t believe shareholders and employees would be comfortable without a major change but weren’t willing to try to oust Mr. Kotick. He is expected to depart the company after the deal closes, the people said.

Staking so much on a company facing investigations, internal and external unrest and unknown liabilities is highly unusual and a big risk for Microsoft. Activision’s troubles gave the tech giant an opening to make a deal and also a long list of problems to navigate.

Mr. Kotick pushed to make the deal happen, the people familiar with the board said. He and Mr. Spencer already knew each other given that many of Activision’s games, which include the wildly popular Call of Duty and World of Warcraft, appear on Microsoft’s Xbox console. Microsoft CEO Satya Nadella later got involved in the talks too, a person familiar with the matter said.

Over the next two months, Messrs. Spencer and Kotick negotiated. The $75.5 billion transaction, announced Tuesday, is the biggest ever for Microsoft and will create the world’s third-largest gaming company by revenue.

The deal gives Microsoft broader reach in a gaming sector that has only grown during the pandemic, and adds original content—and nearly 400 million monthly users of Activision’s products—that could boost Microsoft’s subscription game service. Microsoft said it also provides opportunities to expand in the virtual world known as the metaverse, the latest focus of many major technology players.

It is the biggest deal since 2019 and the largest cash acquisition of a U.S. company ever, according to Dealogic.

Activision’s board said in a written statement provided by the company’s spokeswoman that the board didn’t consider Mr. Kotick’s status in unanimously approving the Microsoft transaction. The spokeswoman, Helaine Klasky, disputed the Journal’s timeline of the deal and said the details of Mr. Kotck’s status after the deal’s close haven’t been decided. A Microsoft spokesman declined to comment.

In an interview Tuesday, Mr. Kotick didn’t specifically address his status after the deal closes. He described “really great opportunities” at Microsoft, with Activision Blizzard “able to tap into the pipeline of talent that Microsoft has been able to build,” as well as its machine learning and data analytics capabilities.

Activision has disputed the California regulator’s claims alleging sexual harassment. It has said the Journal’s reporting created a misleading picture of the company, and Mr. Kotick has said he is transparent with his board, which issued a statement supporting him.

The company has announced changes in recent months that Mr. Kotick has said are aimed at making Activision a welcoming and inclusive workplace, including a zero-tolerance harassment policy and an end to mandatory arbitration for harassment and discrimination claims.

Mr. Spencer had told Microsoft employees in November that the software giant was evaluating its relationship with Activision in the wake of the Journal’s reporting on Mr. Kotick’s handling of the sexual-misconduct allegations. Sony Group Corp.’s PlayStation unit also asked Activision how it planned to address sexual misconduct issues.

Asked about Activision’s workplace issues in an interview Tuesday, Mr. Spencer said: “We see the progress that they’re making that was pretty fundamental to us deciding to go forward here.”

Microsoft, which has faced pressure from shareholders over its handling of workplace issues, pledged last week to be more transparent in its handling of sexual-harassment allegations and would review its policies.

As part of the due-diligence process, Microsoft and its advisers reviewed the allegations Activision is facing and met with management to understand them as well as the processes put in place to ensure future issues are handled differently, a person familiar with the matter said.

Tuesday’s agreement hands Microsoft a major prize after several aborted acquisition attempts. It has managed to ink others, such as a $16 billion deal for artificial-intelligence company Nuance Communications Inc.

The Redmond, Wa., company, one of the biggest in the world with a market value of $2.3 trillion, held unsuccessful talks to buy social-media company TikTok’s U.S. operations, photo-sharing platform Pinterest Inc. and chat startup Discord Inc. in recent years. Microsoft’s biggest acquisition to date was its roughly $26 billion purchase of LinkedIn Corp., announced in 2016. In that deal, Microsoft moved after its target’s shares were depressed—in that case because the networking platform’s growth had slowed.

The tech giant saw another opening in late November, when Activision was facing an uprising from employees, investors and business partners. Activision’s share price had fallen nearly 30% since California regulators sued, alleging sexual harassment and gender pay disparity at the company. The Securities and Exchange Commission was investigating.

Even though the deal carries a 45% premium, it values Activision at around its level before the California lawsuit.

The Journal reported Nov. 16 that Mr. Kotick had known for years about misconduct allegations, including rape, and hadn’t told the board, sending the stock down nearly 20% over several sessions. About 1,900 of the company’s 10,000 employees signed a petition calling for Mr. Kotick to resign and some staged a walkout. Business partners, including Sony, said they were reevaluating their relationship with the company.

Activision’s board publicly expressed confidence in his leadership and ability to address Activision’s workplace-culture issues, but in recent weeks some directors came to the realization that the public backlash may continue and Mr. Kotick might be forced to resign, according to people familiar with the company.

The Journal reported Monday that Mr. Kotick held back a summary of personnel issues planned for public release that showed the company had disciplined or pushed out more than 80 employees since July, and had collected about 700 reports of employee concern over misconduct and other issues—in some cases about these same incidents. An Activision spokeswoman disputed the 700 number and said it included benign issues, and said “the assertion regarding Mr. Kotick is untrue.”

Mr. Kotick owns 0.53% of the company, according to FactSet. A stake that size would be worth nearly $400 million at the deal price, of $95 a share.

His departure following the sale would mark a big shift for Activision and the videogame industry. He became Activision’s chief executive in 1991 after acquiring it out of bankruptcy with partners for $400,000. Over the past three decades, he has built it into the second largest videogame publisher by market capitalization by focusing on deal-making and pumping out sequels and spin-offs to the most popular franchises. His 2020 pay package was valued at $154 million, making him one of the highest-paid chief executives of a U.S. publicly traded company.

Mr. Kotick has been eager to change the public narrative about the company, and in recent weeks has suggested Activision Blizzard make some kind of acquisition, including of gaming-trade publications like Kotaku and PC Gamer, according to people familiar with him. The Activision spokeswoman, Ms. Klasky, disputed that Mr. Kotick wanted to make the acquisitions. A spokesman for G/O Media, the parent company of Kotaku, declined to comment. PC Gamer didn’t respond to a request for comment.

WSJ : New York Attorney General: Evidence Suggests Trump and Company Falsely Val

New York Attorney General: Evidence Suggests Trump and Company Falsely Valued Assets
Trumps have asked a judge to quash subpoenas or put them on hold until parallel criminal case has concluded

The New York attorney general’s office said late Tuesday it uncovered a swath of evidence that former President Donald Trump and his company falsely valued assets to obtain loans, insurance coverage and tax deductions.

The findings came in court papers asking a judge to order Mr. Trump and two of his adult children, Ivanka Trump and Donald Trump Jr., to comply with civil subpoenas for its fraud investigation. Attorney General Letitia James’s office said while it hadn’t reached a conclusion about whether to take legal action, the grounds for the investigation were “self evident.”

“Thus far in our investigation, we have uncovered significant evidence that suggests Donald J. Trump and the Trump Organization falsely and fraudulently valued multiple assets and misrepresented those values to financial institutions for economic benefit,” Ms. James, a Democrat, said.

A lawyer for the Trumps couldn’t be reached. The Trumps have asked a judge to quash the subpoenas or put them on hold until a parallel criminal case has concluded. Lawyers for the Trumps have argued that any information the attorney general’s lawyers gained through depositions could be improperly used in the criminal investigation, which the Manhattan district attorney’s office is conducting alongside lawyers from the attorney general’s office.

The office has said its investigation began in March 2019, after former Trump lawyer Michael Cohen testified before Congress that Mr. Trump deflated his assets to decrease real estate taxes and inflated them to gain financial benefits.

Ms. James’s office said it determined that Mr. Trump made inaccurate statements in his statements of financial condition, a collection of financial information compiled but not audited by his accountants that contained values for properties and assets.

The inaccuracies pertained to Trump properties including Seven Springs, an estate north of New York City; Mr. Trump’s triplex apartment in Trump Tower; and the Trump International Golf Club Scotland, the attorney general’s office said.

To value Mr. Trump’s apartment, the statements based a calculation on the assertion that the triplex was 30,000 square feet, despite the actual size being 10,996 square feet, the attorney general’s office said. The 2015 and 2016 statements valued the apartment at $327 million, based on the 30,000 square foot size, according to the office.

The attorney general’s office said its evidence showed banks and financial institutions relied on the statements when determining whether to grant Mr. Trump and his company loans and insurance.