First Step to Final Offer (02/13/24)

Your weekly round-up of an M&A deal walkthrough, insightful market news summaries, technical quiz questions, and various internship, events, and diversity programs. A key resource to best prepare yourself for finance recruiting. If someone sent you the newsletter subscribe below!

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MARKET NEWS

Travelers ride the rails to save money (and the planet) as Amtrak chases pre-Covid ridership (CNBC)

As domestic travel rebounds from pandemic lows and airfare prices surge, some travelers are turning to trains as a cheaper, more spacious, and environmentally friendly alternative to flying, particularly in regions like the Northeast corridor where train travel can be competitive in terms of total travel time. Despite Amtrak's efforts to revive ridership and improve operations, delays persist, though ongoing investments in infrastructure upgrades aim to enhance the overall train travel experience and potentially revolutionize the industry in the long term, according to industry experts.

Google rebrands Bard AI to Gemini and launches a new app and subscription (CNBC)

Google has rebranded its AI chatbot and assistant from Bard to Gemini, aligning with the suite of AI models powering the tool, and introduced a new dedicated Android app for Gemini alongside integration within the Google app on iOS, reflecting the company's continued investment in AI agents. The rebranding also extends to Google Workspace and Google Cloud's AI agents, now called Gemini for Workspace and Gemini for Google Cloud, with Google One subscribers gaining access to Gemini's capabilities across various platforms, signaling a shift towards more personalized and context-aware AI interactions.


Disney's investment in Epic Games signals the company has to 'be there' (Reuters)

Disney CEO Bob Iger announced a $1.5 billion investment to integrate Disney, Marvel, Pixar, and Star Wars characters into Epic's Fortnite game, acknowledging the significant time younger demographics spend on gaming. Disney's move leverages Epic's expertise in engaging consumers through gaming, contrasting with Disney's previous struggles in in-house game development.

M&A DEAL OVERVIEW

HPE Acquires Juniper Networks for $14Bn

Hewlett Packard Enterprise's acquisition of Juniper Networks for $14 billion aims to integrate Juniper's AI technology into HPE's digital networking and cloud services, anticipating significant growth in the networking segment and annual cost synergies of $450 million within three years. Despite strategic benefits, concerns over product portfolio overlap, financial burden, and uncertainties surrounding the integration process and valuation of Juniper's AI technology pose risks to HPE's pursuit of market dominance and technological advancement.

TECHNICAL QUESTION OF THE WEEK:

Let's say I could only look at 2 statements to assess a company's prospects - which 2 would I use and why?

Select an answer and submit a written response about why

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ADDITIONAL RESOURCES

LAST WEEK TECHNICAL QUESTION OF THE WEEK ANWSER:

Correct Answer - Yes. An explanation submitted by one of our readers “Company can have negative retained earnings value through a negative net income - potentially hinting at an unprofitable business.”

AUTHOR

Written by Beckett Kreter