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- First Step to Final Offer (12/05/23)
First Step to Final Offer (12/05/23)
Your weekly round-up of an M&A deal walkthrough, insightful market news summaries, and various internship, diversity program, and full-time applications recently released. A key resource to best prepare yourself for finance recruiting.
CAREER OPPORTUNITIES
Class of 2026
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Deutsche Bank dbAchieve Sophomore Summer Internship - Link Here
The Raine Group 2024 Diverse Leaders Program - Link Here
Centerview Women’s Leadership Program Networking Event - Link Here
Moelis Virtual Discover Series - Link Here
TD Cowen 2024 Early ID Program - Link Here
William Blair Fast Track to Investment Banking Program - Link Here
Rothschild Sophomore Women’s Program - Link Here
Perella Weinberg Partners Advisory Diversity Prep Program - Link Here
Class of 2027
MARKET NEWS
OPEC+ agrees to deepen voluntary oil output cuts (RT)
OPEC+ has agreed to voluntary oil output cuts of approximately 2.2 million barrels per day for early next year, with Saudi Arabia leading by extending its existing voluntary cut. Global oil prices settled around 2% lower due to investor skepticism over the efficacy of the cuts and expectations for deeper reductions.
After Musk tirade, X faces prospect of more advertisers fleeing (RT)
Elon Musk apologized for a controversial post during a New York Times DealBook event, but later unleashed a profanity-laced tirade against advertisers who left his platform, X, accusing them of "blackmail." Despite Musk acknowledging that an extended advertiser boycott could bankrupt X, analysts attribute the platform's troubles to Musk's decisions, tweets, and comments, with ad spending on X in the U.S. declining 64% from January to October 2023, and concerns rising about the platform's content moderation and subscription revenue reliance.
Microsoft secures non-voting board seat at OpenAI (CNBC)
Microsoft will now have a nonvoting board seat at OpenAI, addressing lingering questions about its involvement with the startup following recent leadership changes. OpenAI's CEO Sam Altman, who was briefly fired and rehired, expressed confidence in the partnership with Microsoft and announced a new board, including former Salesforce CEO Bret Taylor and former Treasury Secretary Larry Summers, to strengthen corporate governance.
FTC chair Lina Khan defends her track record when it comes to blocking mergers and doesn’t subscribe to Amazon (CNBC)
FTC Chair Lina Khan defended her approach to blocking mergers, emphasizing the importance of taking significant actions, expressing satisfaction with the agency's efforts under her leadership. While acknowledging high-profile losses, including the failed attempt to block Meta's acquisition of Within Unlimited and Microsoft's acquisition of Activision Blizzard, Khan highlighted the FTC's success in causing companies to abandon merger plans in five out of 11 cases filed during her tenure.
Spirit Airlines offers buyouts to salaried employees to cut costs (CNBC)
Spirit Airlines is offering voluntary exit packages to salaried employees as part of its cost-cutting efforts amid ongoing financial strains, including weak off-peak demand and the grounding of Airbus A320neo aircraft for engine inspections. The move follows other measures such as pausing training for new pilots and flight attendants, restricting expense budgets, and adjusting its network, including plans to exit Denver.
M&A DEAL OVERVIEW
Roche's $7.1bn acquisition of Telavant
Roche, the Swiss healthcare company, has announced a $7.1 billion deal to acquire Telavant Holdings, a drug manufacturer specializing in therapies for inflammatory and fibrotic diseases. Roche aims to strengthen future earnings and diversify its portfolio by entering the $20 billion gastrointestinal disease treatment field. The acquisition includes access to Telavant's promising therapy, RVT-3101, for inflammatory bowel diseases, which Roche plans to bring to global Phase 3 trials. The deal also grants Roche an option to collaborate with Pfizer on a new inflammatory bowel disease drug. While Roche anticipates long-term benefits, uncertainties include the complexity of treating inflammatory bowel diseases and potential setbacks in clinical trials, along with competition and market limitations.
TECHNICAL TOPIC OF THE WEEK
Walk me through the 3 financial statements and how they connect
The income statement consists of Revenue - Expenses = Net Income over a period of time. The cash flow statement consists of cash flow from operations, investing, and financing over a period of time. The balance sheet consists of assets = liabilities + shareholders’ equity at a specific point in time.
In terms of how they connect, the net income from the income statement flows to the top line of the cash flow statement and into the shareholders’ equity on the balance sheet. Additionally, changes to assets or liabilities on the balance sheet are reflected on the cash flow statement accordingly.
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