TikTok Lives To See Another Day, Plus Roku and Microsoft Win Big
I think I’m starting to understand why Garfield hates Mondays — because his portfolio is always in the red. Jokes aside, welcome to Bullish Rippers. Indices got hammered today, adding to a week of losses. However, our winners today defied the odds to end the day in the green ✅
📺 As someone who doesn’t own a streaming box, I don’t understand why people lose their minds every time Roku adds a new service to their platform. But they did just that today, and their stock responded by going into A-fib (something for you “Grey’s Anatomy” and “House” fans out there). $ROKU jumped nearly 18% after announcing the addition of NBC’s Peacock service to their platform. The most exciting portion of the deal is an ‘ad-sharing agreement,’ which allows both Roku and NBC to capitalize off of the content on the native platform. Details about the deal were not published, but analysts are keeping a watchful eye on this model.
🎮 Microsoft scored a big gain for its gaming ecosystem today. They acquired Zenimax Media, which owns eight studios including Bethesda, the creator of The Elder Scrolls and Fallout franchises. The acquisition, worth $7.5 billion, makes Zenimax nearly twice as expensive as LucasFilm was when Disney acquired it for the rights to produce more Star Wars films. Either Disney got a deal or Microsoft paid a premium, but either way — everybody is happy. The acquisition by $MSFT is destined to grow their monthly Xbox Game Pass subscription and grow the number of game studios that Microsoft owns. In a sector that will be worth $200 billion in revenue next year alone, $MSFT is setting up to look like the forerunner in the gaming industry.
📱At long last: the fracas between the U.S. government and TikTok has come to a willing conclusion. On Sunday, TikTok announced a joint pre-IPO investment between Oracle and Walmart. Both parties have been in the running since the early days of the deal negotiations, but the last minute inclusion of Walmart is an interesting twist — as we thought Oracle had this locked down. The average Walmart shopper is not a TikTok user; it’s your 46-year-old father-in-law. Regardless, $ORCL and $WMT will collectively own 20% of the newly created TikTok Global. The deal is awaiting final approval from regulators, but the president has given the deal his stamp of approval.
That’s a wrap on our Monday Rippers list. Check back here on Wednesday to see what’s ripping 🔥🔥🔥