WSJ : Activist Hedge Fund Makes Nearly $3 Billion Offer to Buy Meineke Owner

Activist Hedge Fund Makes Nearly $3 Billion Offer to Buy Meineke Owner
ADW Capital says private-equity firm Roark Capital mismanaging Driven Brands and offers roughly 40% premium to buy the company

  • Activist hedge fund ADW Capital is offering $18 a share to buy Meineke owner Driven Brands for nearly $3 billion.
  • ADW Capital, which owns a 3.7% stake, aims to overhaul Driven Brands and remove its majority owner, Roark Capital.
  • ADW Capital stated it is “highly confident” it can obtain financing for the transaction, subject to due diligence.

Adam Wyden’s activist hedge fund is offering to buy Meineke owner Driven Brands for nearly $3 billion, according to a letter that was viewed by The Wall Street Journal.

The details
ADW Capital is offering $18 a share to buy all Driven’s shares outstanding, according to the letter, a roughly 40% premium to its recent stock price.

The move is part of ADW’s effort to overhaul the automotive services provider and to remove private-equity firm Roark Capital, which is Driven’s majority owner. Driven owns brands including Meineke and Auto Glass Now.

The hedge fund, which has a roughly 3.7% stake in Driven, had last month called on the company to launch a strategic review process and to explore a sale or break up, the Journal reported.

On Thursday, ADW sent a letter saying it has met with financial advisers and potential financing sources and is “highly confident” that it can obtain financing to complete the transaction, which would be subject to due diligence.

Wyden in an interview said he has spoken with large banks, middle-market private-equity firms and family offices that have expressed interest in participating.

The context
ADW said that Driven and Roark hadn’t “even acknowledged the receipt of our prior letter” and that Driven is suffering from “self-inflicted structural, capital allocation and governance failures.”

It laid much of the blame, once again, on Roark, saying it was focused on building out a restaurant platform that it plans to take public and neglecting Driven.

Roark bought Driven in 2015 and took it public in 2021. Roark owns about 60% of Driven’s shares, which through Wednesday’s close were down over 60% from their peak shortly after the IPO.


The company hasn’t commented on Wyden’s earlier letter.

In February, Driven disclosed “material errors” in its financial statements and “material weaknesses” in internal controls over financial reporting.

Last month, ADW estimated that selling the whole company to a competitor or another private-equity firm would result in value north of $30 a share for Driven shareholders.

Wyden said he is offering $18 a share and would then have to improve the business, which could involve cost cuts or selling parts.

He said that if Driven or Roark thinks the company can sell for more than $18 a share right now, they should hire a bank to begin that process.

TechCrunch : Sources: Anthropic could raise a new $50B round at a valuation of $

Sources: Anthropic could raise a new $50B round at a valuation of $900B

Investor interest in Anthropic has reached a feverish pitch.

The maker of the Claude AI assistant has received multiple preemptive offers to raise fresh capital of around $50 billion at a valuation in the $850 billion to $900 billion range, according to half a dozen sources familiar with the matter. Bloomberg and Business Insider reported earlier this month that Anthropic received multiple preemptive bids at an $800 billion valuation, but at that time, the company had not yet committed to a fundraise.

Sources say, however, that Anthropic is finding it difficult to resist the pressure to secure more funding in what could be its final round of private fundraising before a potential IPO. The company is expected to make a definitive decision on the round and its valuation at a board meeting in May, one person told TechCrunch.

The round is expected to total $40 billion to $50 billion, according to people familiar with the company. But investor demand appears to be much higher given the company’s rapid growth, which shows no sign of slowing. Investors are clamoring to get into the round. One institutional investor prepared to commit as much as $5 billion has yet to secure a meeting with Anthropic CFO Krishna Rao, according to a source.

Anthropic announced this month that its annual revenue run rate has surpassed $30 billion, which is a dramatic increase from roughly $9 billion at the end of 2025. The company’s run rate is currently closer to $40 billion, one of the people with knowledge of the company’s financials said.

Anthropic declined to comment.

A large portion of that revenue is driven by Anthropic’s AI coding capabilities, specifically through its Claude Code and Cowork platforms. Many investors believe the company is only scratching the surface of its potential, given the massive opportunity to expand its offerings into new industries, including finance, life sciences, and healthcare.

Anthropic raised its last round at a $380 billion valuation in February. If the company proceeds with another fundraise at the terms described by TechCrunch’s sources, it will not only more than double its valuation but also match or surpass that of its chief rival. Also in February, OpenAI closed a record-breaking $122 billion round at an $852 billion post-money valuation.

WSJ : Activist Engine Capital Urges Government Contractor KBR to Explore a Sale

Activist Engine Capital Urges Government Contractor KBR to Explore a Sale
KBR is in the midst of splitting its businesses; Engine thinks that is unnecessary

  • Activist investor Engine Capital, with a roughly 2% stake, is urging government contractor KBR to explore a sale.
  • KBR’s stock price has fallen over 25% since it announced plans last September to separate its businesses into two companies.
  • Engine Capital believes a full-company sale could fetch from $48 to $55 a share, mitigating risks of KBR’s planned separation.

Activist investor Engine Capital has a roughly 2% stake in KBR KBR 0.64%increase; green up pointing triangle and is urging the government contractor to explore a sale because it believes the company’s businesses are being undervalued in the public market, according to a letter viewed by The Wall Street Journal.

The details
KBR has a market value of roughly $4.5 billion, with its stock price down more than 25% since it announced plans last September to separate its businesses.

KBR, run by Chief Executive Stuart Bradie, is an engineering, consulting, logistics and training company.

It is in the process of dividing into two, with one firm focused on so-called mission technology solutions, serving military and other government agencies, and another firm (being called New KBR) focused on sustainable technology, centered on energy transition and emissions reduction.

KBR said the split would let investors value their underlying businesses better.

Engine argues that the planned separation would be costly and create new risks and tax difficulties, according to the letter that was delivered to KBR’s board of directors on Monday.

Instead, Engine believes KBR could attract both private-equity and strategic buyers for the company and could fetch from $48 to $55 a share in a transaction. KBR shares closed Wednesday at $36.02.

“A full-company sale would offer shareholders a clear and immediate realization of value,” Engine Managing Member Arnaud Ajdler wrote in the letter. “It would also mitigate execution risk, eliminate incremental standalone costs and allow an acquirer to optimize the business under its own management and operating structure.”

The context
Another activist investor previously supported plans for KBR to separate its segments. Irenic Capital Management built a stake in KBR in late 2024 and pushed the company to spin off the private-sector part of its business, the Journal previously reported.

Engine, founded in 2013 by Ajdler, has roughly $1.5 billion under management. Earlier this year, Engine successfully pushed for the sale of uniform supplier UniFirst to Cintas.

WSJ : AI Has Made Memory Chips One of the World’s Most Profitable Products

AI Has Made Memory Chips One of the World’s Most Profitable Products
Samsung is expected to outearn Apple, Microsoft and Alphabet, while two other memory giants are projected to enter the top-10 profit list this year


SEOUL—At the end of last year, the world’s investments in artificial intelligence had already pushed the memory-chip industry into a “super boom cycle.” Profits smashed records. Prices in the opening three months of 2026 were expected to jump another 50% from the prior quarter.

But things didn’t go that way. They got better—a lot better.

On Thursday, Samsung 005930 -2.43%decrease; red down pointing triangle Electronics reported first-quarter net profit equivalent to more than $30 billion. That not only blew away its prior quarterly record, but also nearly topped the South Korean company’s high for full-year profit.

Around 94% of Samsung’s first-quarter operating profit came from its semiconductor business.

Samsung’s chief memory rivals—SK Hynix of South Korea and U.S.-based Micron Technology MU 2.81%increase; green up pointing triangle—recently delivered similarly dizzying results. Those three firms dominate the market for memory, which gets used alongside Nvidia’s processor chips for AI computing.


While fears grow over whether AI services will eventually reap big profits, an epic windfall is flowing to the companies involved in the build-out of related infrastructure.

The historic run doesn’t look likely to end soon. Based on Samsung’s prebooked orders, the supply crunch is expected to grow worse next year, said Jaejune Kim, the company’s executive vice president for memory. “The available supply is far short of customer demand,” he said on a Thursday earnings call.

Since the start of this year, shares of Samsung have risen by 72%. SK Hynix’s shares are up 90% and Micron has gained 65%.

Memory prices in the first three months of 2026 grew nearly 100% from the prior quarter, roughly double the initially projected growth, according to Trendforce, a tech-market researcher.

In recent years, memory makers had given priority to production of specialized memory needed for AI—called high-bandwidth memory or HBM—which in turn constrained the supply of more conventional memory chips used in smartphones, personal computers and general servers. Training large-language models typically requires the pairing of Nvidia’s graphics processing units with HBM.

More recently, demand has risen for inference, the type of computing that allows trained AI models to respond to user queries. That sparked more demand for general servers, which use conventional memory, and elevated the earnings of Samsung, SK Hynix and Micron into a new echelon.

The three companies are collectively expected to generate net profit of roughly $350 billion for 2026, according to FactSet estimates. Each is projected to rank among the 10 most profitable listed companies in the world—with Samsung vaulting past Alphabet GOOGL 0.05%increase; green up pointing triangle, Microsoft and Apple to the No. 2 spot. A year ago, none of the memory makers cracked the top 10.


A single chip-making factory, or fab, can cost upward of $20 billion and take years to build. Samsung, SK Hynix and Micron are building new facilities, but production won’t likely hit full levels until late 2027 or 2028, industry analysts say. Many production lines are allocated to HBM, which takes up more capacity compared with conventional memory.

Memory comes in two major types: DRAM, which provides temporary storage for faster data-processing in servers, PCs and other electronics, and NAND flash, which provides long-term data storage, such as storing photos on a phone.

HBM is made by stacking DRAM chips on top of one another, which is later packaged alongside processors made by the likes of Nvidia to speed up AI computing. Nvidia works closely with Samsung, SK Hynix and Micron.

Operating profit margins for both types have roughly doubled from usual levels, hitting around 80% for DRAM and up to 60% for NAND flash, said MS Hwang, a semiconductor research analyst at Counterpoint.


Many big companies in the server, PC and smartphone businesses are paying premiums to buy up bigger volumes of memory and constrain supply for rivals, Hwang added. “It’s the idea that whoever dominates memory supply can dominate AI,” he said.

“What we’re seeing today is the most severe memory shortage that the market has ever seen,” said Marcus Chen, executive vice president at FusionWorldwide, a global distributor of electronic components. Most of the customers Chen supports are getting only 30% to 50% of the memory chips they need. “Some even less,” he said.

Customers and memory-chip makers long relied on handshake deals for long-term supply, but are now moving to binding contracts in some cases. Some contracts go as long as five years and call on customers to prepay some 30% of the cost or share in the investment costs for new memory-chip factories, said Peter Lee, a semiconductor analyst at Citi.

“We’re seeing customers go this far,” Lee said.

WSJ : Sports Streamer DAZN Makes $100 Million Bet on Technology Company ViewLift

Sports Streamer DAZN Makes $100 Million Bet on Technology Company ViewLift
DAZN is seeking to expand its reach within the U.S.

DAZN agreed to acquire technology company ViewLift for approximately $100 million to expand its U.S. sports market presence.
ViewLift provides streaming technology for 15 U.S. professional sports teams and five regional sports networks.
DAZN says it sees opportunities in the U.S. regional sports market.

Sports media company DAZN has agreed to buy technology company ViewLift for roughly $100 million, according to people close to the deal.

London-based DAZN, which streams sports including soccer, boxing and basketball and is available in more than 200 countries and territories, is seeking to establish itself as a leader in the U.S. sports market. DAZN also provides access abroad to National Football League games through NFL Game Pass.

ViewLift provides technology for streaming services for 15 professional U.S. sports teams, five regional sports networks, and clients in news and entertainment. DAZN is betting that the acquisition will help it expand its footprint in the U.S.

ViewLift was founded more than a decade ago, initially focusing on streaming films, before pivoting to other content, including sports.

Regional sports networks have come under financial pressure in recent years as consumers cut the cord on their cable TV packages. Main Street Sports Group, which operates channels branded as FanDuel Sports Network, has struggled to make payments to sports franchises. In February, Main Street told teams that it would wind down operations unless it reaches a strategic transaction. DAZN had been in talks to acquire a majority stake in Main Street.

“We think there is a great opportunity for DAZN to play a big role there and be part of the solution,” Shay Segev, DAZN’s chief executive, said in reference to the business challenges facing regional sports.

>>> Europe : Brokers Upgrades & Downgrades - 30th of April 2026

>>> Up
* Bilia Raised to Neutral at SB1 Markets; PT 135 kronor
* Brenntag Raised to Neutral at UBS; PT 60 euros
* Etsy PT Raised to $72 from $56 at Evercore ISI
* Hexatronic Raised to Buy at SEB Equities; PT 38 kronor
* Kone Raised to Overweight at JPMorgan; PT 70 euros
* Lloyds Raised to Buy at UBS; PT 115 pence
* OKEA Raised to Buy at Arctic Securities; PT 43 kroner
* Qualcomm Raised to Buy at Summit Insights
* Sotkamo Silver Raised to Reduce at Inderes; PT 3.70 kronor
* Thyssenkrupp Raised to Buy at Deutsche Bank; PT 14.50 euros
* Tieto Oyj Raised to Buy at SEB Equities; PT 21 euros
* Zealand Pharma Raised to Buy at SEB Equities; PT 475 kroner

>>> Down
* DCC Cut to Sector Perform at RBC; PT 6,500 pence
* Epiroc Cut to Hold at Pareto Securities; PT 275 kronor
* Fortum Cut to Reduce at Inderes; PT 21 euros
* Kempower Cut to Reduce at Inderes; PT 15 euros
* Kone Cut to Hold at ABG; PT 58 euros
* Matvareexpressen Cut to Hold at Norne Securities; PT 220 kroner
* Orron Energy Cut to Hold at SEB Equities; PT 9.70 kronor
* Solteq Cut to Sell at Inderes; PT 21 euro cents

>>> Initiation
* Prosus ADRs Rated New Overweight at Morgan Stanley; PT $12

>>> Call
* JPMorgan’s Bob Michele Sees Economy Absorbing Some Inflation

>>> What to look at today - 30th of April 2026

 Oil surged to the highest level in almost four years with little sign of progress toward ending the Middle-East conflict, weighing on risk sentiment despite a boost from megacap tech earnings. Brent climbed as much as 7.1% to $126.41 a barrel, heading for a ninth day of gains that would be the longest winning streak since May 2022. The commodity has surged more than 105% this year. Thursday’s gains extended after Axios reported President Donald Trump was slated to receive a briefing on new plans for potential military action in Iran.  Futures contracts for the Nasdaq 100 erased gains of as much as 1.1%, after earlier being boosted by robust earnings of megacap companies such as Alphabet Inc. and Amazon.com Inc. MSCI’s Asia Pacific share index fell 1.3% and European equities were primed to drop at the open. Bonds slid as the surge in oil and a hawkish hold by the Federal Reserve sapped demand for fixed-income assets. Treasury 10-year futures dropped for a fourth day, while cash 10-year yields held near the highest since July. Yields on Japan’s 10-year notes rose to the highest since 1997. From surging oil prices driven by the Iran war to a divided Fed holding rates steady and megacap tech earnings, traders are grappling with a barrage of whipsawing headlines. With oil climbing to four-year highs and bond yields rising, the backdrop tests a global equity rally that has erased war-related losses and pushed US markets to new highs, driven by strong tech earnings. There’s more for traders to parse Thursday, with the European Central Bank and the Bank of England set to announce policy decisions, followed by US economic data. Apple Inc. is the marquee earnings event on Thursday after a frenzied Wednesday offered a glimpse at how some of the world’s biggest tech companies are doing in artificial intelligence. The upshot is that Alphabet’s Google is seeing a clear payoff from its AI spending, while Meta is lagging behind. Alphabet rose 7% in post-market trading, while Meta Platforms Inc. dropped 7%. Amazon.com Inc. shares climbed 2.7%, while Microsoft Corp. edged up 0.3%. Elsewhere, Anthropic PBC began weighing a fresh funding round that would value the AI developer at more than $900 billion, according to people familiar with the matter, potentially leapfrogging its longtime rival OpenAI as the world’s most valuable AI startup. In Asia too, the AI-fueled rally is masking signs of strain, with gains in tech names overshadowing the impact of the US-Iran war on the broader market. The Kospi Index in South Korea was set for its best month since 1998 and the Taiex in Taiwan the best since 2001. Elsewhere, the yen was steady on Thursday after the currency extended its slide beyond 160 per dollar to its weakest level this year, fueling risk that Japanese officials may step into the market to offer support. Gold edged up 0.5% to $4,570 an ounce, while Bitcoin advanced to about $75,750. Earlier, the Fed left rates unchanged Wednesday, but revealed a deepening division over the outlook for policy. Traders have all but abandoned wagers on a rate cut this year and began pricing in the chances of a hike in 2027. Jerome Powell’s press conference was his last at the helm of the central bank after the Justice Department dropped a controversial criminal investigation into the Fed, clearing the way for the Senate confirmation of Kevin Warsh as the next chair. Powell said he’ll remain at the central bank as a governor. The latest gathering revealed a deepening division. Cleveland Fed President Beth Hammack alongside Minneapolis’ Neel Kashkari and Dallas’ Lorie Logan “supported maintaining the target range for the federal funds rate but did not support inclusion of an easing bias in the statement at this time.” Governor Stephen Miran dissented in favor of a cut. US After Hours GOOG +6.7%, AMZN +4.6%, MSFT +1.4% higher on earnings; META -5.6% lower on earnings; VIAV +19.3%, QCOM +14.9%, GKOS +10.3% also higher on earnings; TDOC -13.1%, NCSM -11.4%, KLAC -9.3% lower on earnings.

Nikkei -1.54% Hang Seng -1.23% CSI -0.01% Shanghai +0.09% Shenzen +0.11%

Eur$ CNH CNY JPY GBP CHF RUB TRY WTI$ Gold BTC ETH

S&P -0.16% Nasdaq -0.10% EuroStoxx -1% FTSE -0.19% Dax -1% SMI

Macro :
- BoE in Stand-Off With FCA Over Trading Firms’ Capital: FT
- US Seeks Forfeiture of Seized Oil Tankers Tied to Iran

Keep an eye on :
- APAM NA : Aperam 1Q Adjusted Ebitda Beats Estimates
- MT NA : ArcelorMittal 1Q Ebitda Beats Estimates
- AEF IM : Italian Luxury Company Aeffe’s CFO Rocco Bennici Resigns
- AMZN US : Amazon Slips as Analysts Debate Pace of AWS Growth: Street Wrap
- AAPL US : Apple Plans a Siri Camera Mode and Upgraded Visual AI in iOS 27
- BAS GY : BASF 1Q Adjusted Ebitda Beats Estimates
- BBVA SM :BBVA 1Q Net Income Beats Estimates
- BYW6 GY : T&G Global Plans Divestments as BayWa Eyes Sale of 74% Stake
- BNP FP : BNP Agrees to Sell Entire Stake in Moroccan Bank BMCI to HFC
- BP/ LN : Venezuela Signs Gas Exploration, Production MOU With BP
- CABK SM : CaixaBank 1Q Net Income Beats Estimates
- CVNA US : Carvana Shares Rise as 1Q Revenue Beats Estimates (1)
- CO FP : Casino 1Q Net Sales EU1.95B Vs. EU2.18B Q/Q
- CLNX SM : Cellnex 1Q Revenue Beats Estimates
- EDP PL : EDP Bets Big on Australia in $1 Billion Renewables Push in Asia
- EL FP : Estée Lauder Takes Minority Stake in Skincare Brand 111SKIN
- F US : Ford Raises Profit Outlook Despite Rising Commodity Costs
- GOOGL US : Alphabet Climbs After ‘Outstanding’ Results, US Seeks to Deploy Hypersonic for the First Time Against Iran
- NK FP : Imerys 1Q Adjusted Ebitda Beats Estimates
- KGX GY : Kion 1Q Adjusted Ebit Misses Estimates
- LAND SW : Landis+Gyr Sells Rhebo to Everfield
- LAZ US : Lazard Buys $575 Million Firm to Bolster Private Markets Banking
- META US : Meta Falls as Spending Plans Offset Results: Street Wrap
- ML FP : Michelin 1Q Revenue Beats Estimates
- MSFT US : Microsoft Down as Results Suggest Lower AI Traction: Street Wrap
- NOVOB DC : Novo-Backed Drugmaker Avalyn Raises $300 Million in Upsized IPO
- PSH LN : Bill Ackman’s IPO Ties His $9 Billion Fortune to Public Markets
- PHM SM : Pharma Mar 1Q Net Income Misses Estimates
- P911 GY : Porsche 1Q Operating Profit Meets Estimates
- PAH3 GY : Porsche Weathers US Tariffs, China Slump With Robust Margin
- PRY IM : Prysmian 1Q Adjusted Ebitda Meets Estimates
- PUIG SM : Estée Lauder Mulls Bid for Puig at €18-19/Share: Expansion
- RR/ LN : Rolls-Royce Wins Latam Order for Struggling Engine on Boeing 787
- SCYR SM : Sacyr 1Q Net Income EU37.5M Vs. EU26.8M Y/y
- 9984 JP : SoftBank’s $40 Billion Loan for OpenAI Stake Draws More Banks
- 9984 JP : SoftBank to Create and List AI Firm Roze in the US, FT Says (1)
- GLE FP : SocGen 1Q Net Income Beats Estimates
- Space X IPO : SpaceX Starlink Revenue Per User Fell 18% 2023-2025: Information
- STAN LN : StanChart Profit Beats Street as Lender Downplays Gulf Conflict
- TLX GY : Talanx 1Q Prelim Consolidated Result EU774m
- UMG NA : UMG 1Q Ebitda Misses Estimates, UMG 1Q Revenue in Constant Currency Beats Estimates
- VKTX US : Viking Therapeutics 1Q Revenue Matches Estimates

>>> US After Hours Summary: GOOG +6.7%, AMZN +4.6%, MSFT +1.4% higher on earning

After Hours Summary: GOOG +6.7%, AMZN +4.6%, MSFT +1.4% higher on earnings; META -5.6% lower on earnings; VIAV +19.3%, QCOM +14.9%, GKOS +10.3% also higher on earnings; TDOC -13.1%, NCSM -11.4%, KLAC -9.3% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: VIAV +19.3%, TTMI +16.4%, PI +15.1%, QCOM +14.9% (also authorizes new $20 bln stock repurchase program), FORM +14%, PRCT +12.4%, BHE +11.1%, MRAM +11.1%, GKOS +10.3%, CVNA +8.8%, FMC +8.5%, GOOG +6.7% (also increases dividend; raises CapEx guidance) ASIC +6.3%, SFM +6%, BNL +5.4%, CWH +5.2%, LXU +4.9%, AMZN +4.6%, CAKE +4.6%, CMG +4.2%, ORLY +4.2%, GFL +4%, ETD +3.8%, CBZ +3.4%, CUZ +3.4% (also increases share repurchase authorization by $250 mln), TTEK +2.8%, THG +2.5%, MYRG +2.3%, BHC +2.3%, CHRW +1.6%, MSFT +1.4%, FTAI +1.4%, AR +1.2%, MAT +1.1%, WH +1.1%, ALGN +0.9%, CP +0.7%, AWK +0.7%, MGM +0.6%, VICI +0.5%, MEOH +0.3%, EBAY +0.2% (also Depop acquisition to close in Q3), PLPC +0.2%, TYL +0.1%

Companies trading higher in after hours in reaction to news: PUMP +4.5% (unit enters strategic framework agreement with CAT), SLNH +3.9% (stock offering by selling shareholders), VSAT +2.9% (successful launch and initial signal acquisition of the ViaSat-3 Flight 3 satellite), SPXC +2% (launch of the Marley OlympusMAX Fluid Cooler), POOL +1.3% (increases dividend and buyback program), SMR +1.2% (opens new office), EVO +1% (concludes cooperation agreement with MAK Capital), RMBS +0.7% (names new CFO), SWMR +0.5% (memorandum of understanding with HIMERA), ASRT +0.3% (co and Garda Therapeutics extend deadline on tender offer), ALEC +0.2% (discontinues Phase 2 PROGRESS-AD trial of nivisnebart), DRS +0.1% (awarded $150 mln modification to Army contract)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: TDOC -13.1%, NCSM -11.4%, KLAC -9.3% (also increases dividend and buyback program), FLS -9.2%, MDXG -8.3%, BBT -7.5%, TENB -7.1%, ACHC -6.6%, WAY -6.3%, EQIX -5.7%, META -5.6% (also increases CapEx guidance), AMRZ -5.1%, AMRZ -5.1%, WFG -3.3%, PPC -3.2%, SBAC -3.1%, UDR -3.1%, CVI -2.9%, ALKT -2.6% (also authorizes $100 mln stock repurchase program), MAX -2.5%, NFG -2.4%, INVH -2.1%, GRBK -2%, MORN -2%, MC -1.9%, AFG -1.9%, ALL -1.8%, F -1.6%, VKTX -1.5%, JOE -1.5%, QTWO -1.3%, SBRA -0.7%, AFL -0.4%, WWD -0.3%, PLXS -0.3% (also CEO to reitre; names new CFO), AGI -0.1%

Companies trading lower in after hours in reaction to news: SHMD -2.1% (to delay 20-F filing), GRBK -2% (audit committee concludes residential unit revenue was incorrectly reported in prior periods), AUTL -1.4% (strategic initiative to improve operational efficiency), PYPL -1.1% (confirms strategic reorganization), XWIN -0.5% (files for $1 bln mixed shelf offering), NVO -0.3% (NEJM published 26-week results from the phase 3 FRONTIER2 trial evaluating the efficacy and safety of once-monthly and once-weekly denecimig (Mim8), LMT -0.3% (awarded $1.13 bln US Army contract), EL -0.1% (minority investment in 111SKIN)

WSJ : Sergey Brin-Backed California Measures Have Signatures to Reach Ballot, Ba

Sergey Brin-Backed California Measures Have Signatures to Reach Ballot, Backers Say
Two ballot initiatives funded in part by the Google co-founder that take aim at portions of a proposed wealth tax are on track to qualify

Two California ballot initiatives funded in part by Google co-founder Sergey Brin are on track to qualify for the November ballot, according to their backers, setting up a possible clash with a proposed billionaire wealth tax.

The countermeasures are underwritten by a political organization called Building a Better California, which has received $57 million from Brin as well as $36 million from other California billionaires and business leaders.

The battling ballot initiatives represent a fight between some of California’s wealthiest residents who oppose the first-of-its-kind tax proposal and leaders of a powerful healthcare union seeking more tax income to offset looming cuts to Medicaid.

One of the Building a Better California-backed initiatives would bar new taxes on personal property, including retirement accounts, intellectual property and financial assets, excluding real estate. The measure would also bar retroactive taxes on those assets.

The campaign said that the measure collected 1.4 million signatures, which “far surpassed” the needed number, and that it started submitting signatures to county election officials Tuesday.

The other initiative would require more audits of new taxes and contains a provision about how tax revenue can be spent that directly conflicts with the wealth tax. The campaign said it collected about 1.5 million signatures and would start submitting them Wednesday.

That provision could override the wealth tax; if California voters approve competing ballot measures on the same subject, the one with more “yes” votes takes effect.

The initiatives take aim at portions of the wealth tax, which would impose a one-time, 5% tax on many assets of California billionaires. The wealth tax would apply to billionaires who were residents of California as of Jan. 1, 2026, and would apply to a broad category of assets, including stocks, bonds, business interests and intellectual property.

The healthcare union sponsoring the billionaire tax has collected more than 1.5 million signatures and expects the measure to qualify.

Representatives for both Brin-backed campaigns said the measures are designed to apply to other ballot initiatives and legislative efforts, too.

Brin didn’t respond to a request for comment.

The initiatives needed about 875,000 valid signatures to make the ballot. If elections officials certify that the measures have cleared that hurdle, the campaigns have until late June to decide whether the measures will appear on the November ballot.

Both Building a Better California-backed campaigns worked on tight timelines to collect the needed signatures. In addition to paying petition circulators in public places, the campaigns mailed petitions directly to voters, along with instructions on how to fill them out, envelopes to return them and text messages to remind them to do so.

A third measure with funding from Building a Better California is still collecting signatures, but is now aiming for the 2028 ballot, a campaign spokesman said.

FT : Elon Musk says he was ‘a fool’ to fund the launch of OpenAI

Elon Musk says he was ‘a fool’ to fund the launch of OpenAI
Billionaire says Sam Altman wanted ‘halo effect’ of a non-profit while enriching himself in second day of his testimony

Elon Musk told a jury on Wednesday that he was “a fool” to provide initial funding for OpenAI, claiming he believed the $850bn ChatGPT maker would remain a non-profit organisation.

The billionaire was testifying in federal court in Oakland, California, as the first witness in his lawsuit against Sam Altman, OpenAI and its largest shareholder, Microsoft.

“I actually was a fool who [gave] free funding for them to create a start-up,” Musk said. “I gave them $38mn of essentially free funding, which they used to create a . . . for-profit company.”

Musk brought the case claiming he was deceived by a “bait and switch” after OpenAI was created as a non-profit with the billionaire’s support and then launched a for-profit entity, which has since become one of the most valuable start-ups in the world.

His attorneys on Wednesday showed the jury emails between Musk, OpenAI’s chief executive Altman and president Greg Brockman, who were both in court.

The messages from 2017 included early discussions about creating a for-profit, and a proposed ownership breakdown under which Musk would have owned slightly more than half of the company.

After opposition from OpenAI employees, Musk ended the conversation. “Guys I’ve had enough . . . Either go do something on your own or continue with OpenAI as a non-profit,” he wrote in September 2017, adding that it was not an “ultimatum” and the proposed structure was “off the table”.

Altman replied: “I remain enthusiastic about the non-profit structure!”

Musk said in his testimony that he meant that OpenAI’s founders could not “have their cake and eat it too”. They could not have “the positive halo effect of being a non-profit charity and enrich themselves”, he added.

After Musk resigned from the board in 2018, OpenAI received a $1bn investment from Microsoft in 2019, with a capped-profit arrangement. Musk said “there was no basis for me to file a lawsuit at that time because they hadn’t violated the non-profit” principles.

OpenAI has claimed Musk waited too long to bring his case, exhausting the statute of limitations on his claims.

The jury then saw text messages between Musk and Altman where Musk said he was “disturbed to see OpenAI with a $20bn valuation” in late 2022. Microsoft’s investment was formally announced in January 2023.

Altman justified the Microsoft investment, saying there was “no way” to compete “without many billions of dollars”.

“A non-profit doesn’t have a valuation,” Musk told the court. “OpenAI had become for all intents and purposes a for-profit company with a $20bn valuation.”

OpenAI and Microsoft will also get the opportunity to grill Musk on Wednesday. Microsoft is accused of “aiding and abetting” by encouraging OpenAI to prioritise profit and products over its charitable mission.

Musk also referred to a provision in the Microsoft and OpenAI agreement that the for-profit would be dissolved if artificial general intelligence — AI that is akin to or surpasses human intelligence — were achieved.

This clause was scrapped in an amendment to their partnership agreement on Monday.

“With all respect to Microsoft, do you really want Microsoft controlling digital superintelligence?” Musk asked the jury.