More stories

  • in

    Facebook parent Meta rehired worker after he stalked a coworker for over a year, lawsuit says

    A Meta employee has filed a lawsuit against the company alleging retaliation and negligence after the tech giant rehired a former staffer who had been accused of stalking and harassment.
    The lawsuit comes after Facebook parent Meta gutted its talent and recruitment department amid larger efforts to restructure its business.
    “I trusted that my employer would be able to keep me safe,” the employee told CNBC. “This isn’t just a hazard for me, this is a dangerous individual that was let back into the workplace.” 

    A logo of US company’s Meta is displayed during the Vivatech technology startups and innovation fair, at the Porte de Versailles exhibition center in Paris, on May 22, 2024.
    Julien De Rosa | Afp | Getty Images

    A former Meta staffer who was placed on a “Do Not Hire” list after he stalked and harassed one of the company’s employees found himself rehired by the tech giant after it gutted its talent and recruitment department, a lawsuit filed Tuesday says. 
    The suit, filed in New York Supreme Court on behalf of Meta employee James Napoli, accuses the company of violating New York City’s human rights law and negligence for hiring the person back. It also accuses the company of retaliation after it allegedly sidelined Napoli and took him off big projects when he raised concerns that the person had been rehired.

    “I had spoken to my employer about this … on numerous occasions and I was told that he would not be able to enter our offices, that he would not be hired again, and then like, all of a sudden, this guy is reaching out to me [on Meta’s internal messaging system],” Napoli, a marketing leader who works out of Meta’s New York City office, told CNBC in an interview. “I trusted that my employer would be able to keep me safe, right? Because stalkers and harassers are also workplace hazards… And this isn’t just a hazard for me, this is a dangerous individual that was let back into the workplace.” 
    The lawsuit comes after CEO Mark Zuckerberg announced in March 2023 that Meta would be reducing the size of its recruiting team as part of a larger strategy to cut 21,000 jobs, remove layers of middle management and operate more efficiently.
    Meta owns Facebook, Instagram, Messenger and WhatsApp.
    Although Wall Street has responded favorably to Meta’s cost-cutting plans, layoffs in the company’s customer service and trust and safety teams have made it harder for the social networking giant to respond to concerns from small businesses and influencers, as well as state and local election officials who use Facebook and Instagram, CNBC has previously reported.
    In the aftermath of Meta’s cost-cutting efforts and ensuing layoffs, attorneys for Napoli say in the lawsuit that the company is relying “more heavily on hiring employees through outside contractors” and employs “far fewer recruiters to screen applicants,” which has negatively impacted their ability to properly catch red flags.

    “Meta’s employment practices are apparently so chaotic, reckless, and ineffectual that the company fails to keep track of the most fundamental data point in its workplace – the dangerous people who pose a severe risk to Meta’s own employees,” the lawsuit, filed by attorneys Carrie Goldberg and Peter Romer-Friedman, states. “Yet Meta tells the public and public officials that the company has the ability to safeguard the personal data of billions of children and adults on their platforms.”
    Meta has previously dealt with similar allegations that it’s employed workers who have engaged in stalking and related activity. For example, in 2018, the company said it fired a security engineer who allegedly used internal data to stalk women online.
    Meta didn’t immediately respond to request for comment on the lawsuit filed Tuesday.

    ‘Do Not Hire’ list

    The person accused of stalking Napoli, identified only by the initials “G.F.” in the complaint, was a member of Meta’s marketing team before he was laid off in November 2022 when the company cut 13% of its staff as part of a larger restructuring. 
    Before the layoffs, G.F. and Napoli occasionally saw each other in meetings but were no more than “work acquaintances,” Napoli said. After G.F. lost his job, he reached out to Napoli for support and asked him to get a coffee. During that meeting, the accused stalker started making “disturbing” comments, the filing states. 
    “[He] told me that he hears voices, God talks to him, and God had been talking to him about me since April of that year, and he sent me a list of documents that were his like journal entries over the months,” Napoli recalled.
    Napoli “immediately” reported the incident to his manager and to HR, and says at first he was concerned for G.F.’s well-being. But over the next year, Napoli says, the situation escalated. 
    G.F. began sending Napoli up to 30 messages a day, contacting his family members and referencing Napoli’s partner, friends and even his dog, Luigi, in messages. 
    “I am being mind tortured with an A.I tech which I don’t know where it’s coming from and I am feeling like my love for you is being used for experiences I didn’t agree for, while I am being told by spirits that you and I are the two messengers,” G.F. wrote in one message to Napoli, according to the complaint. 
    G.F. found out where Napoli lived and “personally delivered a large ream of disturbing writings and drawings” to the apartment, forcing Napoli and his partner to move, the lawsuit says. 
    “It really felt like I was drowning for a long time because there was just nothing that I could do to escape. … It was really terrifying,” said Napoli. “I was worried about going out, I was worried about my dog, I was worried about my partner, because they were all mentioned by this person.” 
    Napoli reported G.F. to the police and considered getting a restraining order, but under New York state law orders of protection are only available to people who have an intimate or familial relationship to their stalker, the lawsuit states. 
    In September 2023, Napoli informed Meta that the stalking had increased “in both frequency and severity,” and the HR department assured him that G.F. was on the company’s “Do Not Hire” list and its “No Entry” list, which identifies people who shouldn’t be permitted into company buildings.
    But just four months later, the company hired G.F. back to a contractor position after he apparently slipped through the cracks in the hiring process, the lawsuit says. Napoli learned his accused stalker was back at Meta when G.F.’s name popped up on Workplace, the company’s internal messaging system. Napoli says he received a message from G.F. stating that he’d been rehired and would be seeing him at meetings and events. 
    “To have all of that come back after I was guaranteed that I would be kept safe, it was really harrowing,” said Napoli. “I immediately went to [HR]… they let me know that they were equally stunned. They didn’t have an answer as to how it happened, and they let me know that they would investigate.” 

    Terminated again

    For the next month, Napoli says he “lived in terror of interacting with G.F. at work” until Meta notified him that G.F. had been terminated. However, after G.F. lost his job a second time, his “stalking and harassment of Mr. Napoli significantly amplified and became more creative, sexually violent, and obsessive,” the lawsuit states.
    As Napoli grappled with the continued stalking, he also faced what the lawsuit says was retaliation at Meta for complaining to his managers and to HR about the decision to rehire G.F.
    Napoli had been tapped to lead an artificial intelligence marketing push at Meta, but says that in response to his complaints, those projects were taken away and he found himself sidelined with reduced responsibilities. 
    In his complaint, Napoli is asking for damages but didn’t specify an amount. He also asked the court to enter judgements that would prohibit G.F. from being rehired at Meta and prohibit the company from “engaging in any further discriminatory or retaliatory acts” against Napoli. 
    “I want to be able to do my job, and I want to be able to do my job without feeling like the shoe is going to drop,” said Napoli. “I am very passionate about my work, and I take a lot of pride in my work, and that is really all I want to be able to do.” 
    Napoli said he decided to tell his story because he wants Meta to make reforms that would prevent something like this from happening again. 
    “It doesn’t seem to me as though there are the right processes in place to stop this from happening to … me or to someone else,” said Napoli. “Everybody deserves a safe workplace.” 

    Don’t miss these insights from CNBC PRO More

  • in

    GM reports 2.2% decrease in third-quarter sales, but EVs make gains

    GM reported slightly better-than-expected sales during the third quarter, thanks in part to increases in sales of electric vehicles and small crossovers.
    The Detroit automaker reported a 2.2% drop in third-quarter sales compared to a year earlier to 659,601 vehicles sold.
    GM is one of several automakers to report third-quarter sales on Tuesday. The industry is expected to be down roughly 2% compared to a year earlier.

    GM’s 2024 Chevrolet Equinox EV during a media launch event for the vehicle in Detroit, May 16, 2024.
    Michael Wayland / CNBC

    DETROIT — Increases in sales of electric vehicles and small crossovers helped General Motors report slightly better-than-expected sales during the third quarter.
    The Detroit automaker reported a 2.2% drop in third-quarter sales compared with a year earlier, slipping to 659,601 vehicles sold. Auto industry forecasters such as Cox Automotive and Edmunds had expected GM’s sales to be down by more than 3% during that time.

    GM’s third-quarter sales are expected to be in line with the overall industry. Cox Automotive and Edmunds project third-quarter sales industrywide will be down roughly 2% compared to a year earlier.
    GM’s sales were assisted by a roughly 60% year-over-year increase in EVs during the quarter, to roughly 32,100 units sold. Still, EVs made up only 4.9% of the company’s total third-quarter sales.
    GM forecasts its market share was 9.5% of the U.S. EV market, up 3 percentage points from the first quarter of this year.
    While GM has withdrawn most of its previously announced electric vehicle targets, the automaker believes its EV sales momentum is finally building thanks to an expanding lineup of all-electric vehicles — spanning a price range of roughly $35,000 to more than $300,000.

    “We are definitely outstripping the industry in terms of growth, in terms of EVs,” Rory Harvey, GM president of global markets, including North America, told CNBC last month. “We have the most comprehensive EV lineup out of any manufacturer in the industry, in the U.S., at the moment.”

    GM’s EV sales were led by the Cadillac Lyriq crossover at roughly 7,224 units sold during the quarter, followed by the Hummer EV pickup and SUV at 4,305 units.
    Sales of small, gas-powered crossovers such as the Chevrolet Trax and Buick Envista and Envision also experienced notable increases compared with a year earlier, GM reported.
    GM’s total 2024 sales of 1.95 million vehicles through the third quarter were down 1% compared with the first nine months of 2023.
    An unknown outlier in the third quarter is how much of an effect Hurricane Helene had on vehicle sales in the South, since it hit the U.S. in late September. It’s also unclear how much a strike at U.S. East Coast and Gulf Coast ports will impact sales during the fourth quarter.
    GM is one of several automakers to report its third-quarter or September sales on Tuesday. Here are other reported U.S. sales compared with the third quarter of 2023:

    The Hyundai brand reported total sales of 210,971 units, a 5% increase over the third quarter of 2023 and the second best third-quarter in the company’s history. Hyundai’s Genesis luxury brand reported its best-ever third quarter of 20,117 units, up roughly 4% from a year earlier.
    Toyota Motor reported an 8% decrease in third-quarter sales, including a 20.3% decrease in September.
    Nissan reported a sales decline of 2.2% to 212,068 vehicles sold during the third quarter.
    Honda Motor reported an 8% increase in third quarter sales to 366,214 units. More

  • in

    Spacecraft delivery startup founded by former SpaceX rocket guru raises $150 million, led by Founders Fund

    Los Angeles-based space startup Impulse, led by renowned rocket specialist Tom Mueller, raised $150 million in a new round led by Founders Fund.
    Impulse is scaling a product line of orbital transfer vehicles — colloquially known as “space tugs” — and so far is building two, Mira and Helios.
    The company flew its first mission in the past year, with a Mira vehicle carrying and deploying a small satellite in a flight that Mueller called “probably the most successful orbital transfer vehicle debut in history.”

    An Impulse employee works on assembling a Mira vehicle.
    Impulse Space

    Los Angeles-based space startup Impulse, which is led by renowned rocket specialist Tom Mueller, has raised $150 million in a new fundraising round led by venture capital firm Founders Fund.
    Impulse is scaling a product line of orbital transfer vehicles — colloquially known as “space tugs” — and so far is building two, the smaller Mira and the larger Helios.

    While rockets get satellites and payloads into orbit, like an airplane carrying passengers to a metro area, space tugs deliver them to specific destinations, like taxis taking those passengers home from the airport.

    Read more CNBC space news

    Mueller, the first employee of SpaceX who spent nearly two decades developing engines for CEO Elon Musk, told CNBC that the funds will secure Impulse Space’s future. Mueller founded Impulse three years ago after leaving SpaceX and leads the company as CEO.
    “This means that we’re sufficiently funded through the development of Helios and the upgraded version Mira and out past the first flights of both of these products,” Mueller said.

    Tom Mueller delivering the commencement speech at the University of Idaho in 2018.
    University of Idaho

    Impulse flew its first mission, called LEO Express-1, with a Mira vehicle carrying and deploying a small satellite. Launched in November, Impulse declared full mission success in July after a variety of additional demonstrations, with Mueller arguing it was “probably the most successful orbital transfer vehicle debut in history.”
    “That success really helped with this raise, as well as all the customer engagement that we’re getting,” Mueller said.

    The company has a backlog of contracts from both commercial and government customers — ranging from standard satellite deliveries to building the propulsion system for a private space station to demonstrating the capabilities of its Helios vehicle in the distant geosynchronous orbit for the U.S. Space Force.
    A wide swath of venture investors joined the company’s $150 million round including: Airbus Ventures, Alumni Ventures, Balerion Space Ventures, Lux Capital, RTX Ventures, Spring Tide, Tamarack Global, 137 Ventures, DCVC, Elysium, First Principles Group, Island Green, Overmatch and Trousdale Ventures. The new round brings Impulse’s total fundraising to $225 million to date, the company said.

    A Mira vehicle in orbit during the LEO Express-1 mission that launched November 2023, with several pairs of its Saiph thrusters visible.
    Impulse Space

    Impulse’s next mission, LEO Express-2, is set to launch later this year. Then it plans to launch an updated version of its Mira vehicle in late 2025, perform a demo mission with Helios by mid-2026 and debut its “GEO Rideshare” missions by 2027, according to the company.

    Tapping reusable rockets, Starship or not

    In Mueller’s view, while SpaceX reduced the cost to launch mass to orbit, the in-space delivery systems on the market are lacking. And there’s more launch capacity coming, with large reusable rockets in development by Rocket Lab, Blue Origin, Relativity and others.
    “There’s a lot of cost and efficiency to be gained … [with] a reliable solution for any customer who wants to move things around in space,” Mueller said.

    A Mira vehicle at the company’s Redondo Beach headquarters.
    Impulse Space

    While he said he started Impulse “really based on what I thought Starship could do commercially,” Mueller noted that “now we’re finding out that [SpaceX is] probably not going to fly commercially for maybe another five years and there’s not a lot of information yet on what the arrangements will be.”
    SpaceX continues to develop its monstrous Starship rocket system, with increasingly ambitious test flights by prototypes. The rocket is crucial for the company’s future, whether that’s deploying its own Starlink satellites or flying high-profile moon missions for NASA.
    “For now, [we’ll be] flying on Falcon 9 and the medium launch vehicles,” Mueller added. 
    Headquartered in Redondo Beach, California, Impulse currently has about 140 employees and plans to expand to more than 200 next year as it scales Mira and Helios production. The company does most of its design, manufacturing, assembly and even engine test firing at its 60,000-square-foot facility. 
    Mueller noted that the current Impulse facility allows the company to scale to producing at least 10 of its Mira spacecraft a year before it needs to expand.
    “We feel good right now. Got that [fundraising] behind us, so it’s head down and make progress now,” Mueller said. More

  • in

    Charles Schwab CEO Walt Bettinger to retire at end of 2024, Rick Wurster to replace him

    Bettinger will be replaced on Jan. 1, 2025, by Charles Schwab President Rick Wurster.
    Bettinger will remain as the co-chair of Schwab’s board.
    Schwab’s stock has gone up roughly 150% during Bettinger’s tenure, but it has underperformed the broader market over the past two years.

    Walter “Walt” Bettinger, president and chief executive officer of Charles Schwab Corp., speaks during the 2015 Fortune Global Forum in San Francisco, California, U.S., on Tuesday, Nov. 3, 2015.
    David Paul Morris | Bloomberg | Getty Images

    Charles Schwab CEO Walt Bettinger is retiring from his role at the end of December after 16 years leading the brokerage firm, the company announced Tuesday.
    Bettinger will be replaced on Jan. 1, 2025, by Charles Schwab President Rick Wurster. Bettinger will remain as the co-chair of Schwab’s board.

    Stock chart icon

    Charles Schwab, 5 years

    In a statement, Bettinger cited his 65th birthday next year as a reason to step aside and praised the choice of Wurster.
    “The Schwab Board’s thoughtful and disciplined approach to succession planning helps make this transition smooth. Rick Wurster and I have worked together on a daily basis for more than eight years. I have complete confidence in his leadership, and I am thrilled that the Schwab Board of Directors has selected him as my successor,” the statement said.
    In an interview on CNBC’s “Squawk Box,” Wurster indicated that there would not be any immediate change in strategy with the CEO handoff.
    “I don’t think there will be a transition in the sense that we’re going to continue what we’ve been doing, which is deliver for our clients and delight them,” Wurster said.
    Since Bettinger took over in 2008, the company’s client assets have grown to $9.74 trillion from $1.14 trillion, and client brokerage accounts have grown to more than 43 million from fewer than 10 million. This growth is due in part to Schwab’s acquisition of TD Ameritrade, which closed in 2020.

    Bettinger said on “Squawk Box” that the integration of Ameritrade was completed earlier this year and was another reason that he thought this was a good time to step aside from the CEO role.
    Schwab’s stock has gone up roughly 150% during Bettinger’s tenure, which began in the middle of the financial crisis, but it has underperformed the broader market over the past two years.
    “I often say that not many CEOs halve their company’s stock price in the first 90 days, but that was pretty much what I walked into in the financial crisis,” Bettinger said on “Squawk Box.”
    Shares of Schwab were up less than 1% in premarket trading Tuesday. More

  • in

    Mastercard to buy Swedish startup that makes it easier to manage and cancel subscription plans

    Mastercard on Tuesday said it’s agreed to acquire Minna Technologies, a subscription management software startup.
    The payments giant touted the deal as a way to help consumers with a key pain point — managing the myriad subscription services that exist today, from Netflix to Amazon Prime.
    According to Juniper Research data, there are 6.8 billion subscriptions globally, a number that’s expected to jump to 9.3 billion by 2028.

    BARCELONA, SPAIN – MARCH 01: A view of the MasterCard company logo on their stand during the Mobile World Congress on March 1, 2017 in Barcelona, Spain. (Photo by Joan Cros Garcia/Corbis via Getty Images)
    Joan Cros Garcia – Corbis | Corbis News | Getty Images

    Mastercard said Tuesday that it’s agreed to acquire Minna Technologies, a software firm that makes it easier for consumers to manage their subscriptions.
    The move comes as Mastercard and its primary payment network rival Visa are rapidly attempting to expand beyond their core credit and debit card businesses into technology services, such as cybersecurity, fraud prevention, and pay-by-bank payments.

    Mastercard declined to disclose financial details of the transaction which is currently subject to a regulatory review.
    The payments giant said that the deal, along with other initiatives it’s committed to around subscriptions, will allow it to give consumers a way to access all their subscriptions in a single view — whether inside your banking app or a central “hub.”
    Minna Technologies, which is based in Gothenburg, Sweden, develops technology that helps consumers manage subscriptions within their banking apps and websites, regardless of which payment method they used for their subscriptions.
    The company said it works with some of the world’s largest financial institutions in the world today. It already counts Mastercard as a key partner as well as its rival Visa.
    “These teams and technologies will add to the broader set of tools that help manage the merchant-consumer relationship and minimize any disruption in their experience,” Mastercard said in a blog post Tuesday.

    Consumers today often have tons of subscriptions to manage across multiple services such as Netflix, Amazon and Disney Plus. Owning multiple subscriptions can make it difficult to cancel them as consumers can end up losing track of which subscriptions they’re paying for and when.
    Mastercard noted that this can have a negative impact on merchants because consumers who aren’t able to easily cancel their subscriptions end up calling on their banks to request a block on payments being taken.

    According to Juniper Research data, there are 6.8 billion subscriptions globally, a number that’s expected to jump to 9.3 billion by 2028.
    Financial services incumbents such as Mastercard have been rapidly growing their product suite to remain competitive with emerging fintech players that are offering more convenient, digitally native ways to manage consumers’ money management needs.
    In 2020, Mastercard acquired Finicity, a U.S. fintech firm that enables third parties — such as fintechs or other banks — to gain access to consumers’ banking information and make payments on their behalf.
    Earlier this year, the company announced that by 2030, it would tokenize all cards issued on its network in Europe — in other words, as a consumer, you wouldn’t need to enter your card details manually anymore and would only have to use your thumbprint to authenticate your identity when you pay.
    Visa, meanwhile, is also trying to remain competitive with fintech challengers. Last month, the company launched a new service called Visa A2A, which makes it easier for consumers to set up and manage direct debits — payments which are taken directly from your bank account rather than by card. More

  • in

    Tom Brady to put his watch collection up for sale at Sotheby’s

    Tom Brady is putting his valuable watch collection up for sale at Sotheby’s.
    The watches range in value between $12,000 and $800,000, and include a Patek Philippe, Rolex and IWC, as well as a custom-made timepiece by Audemars Piguet.
    Demand for luxury watches peaked during the Covid-19 pandemic. Since then, prices have come down dramatically.

    Tom Brady.
    Mike Ehrmann | Getty Images Sport | Getty Images

    Legendary quarterback Tom Brady is putting his valuable watch collection up for sale.
    The seven-time Super Bowl champion’s collection will be available this December through auction house Sotheby’s as part of “The GOAT Collection: Watches and Treasures from Tom Brady.”

    The watches range in value between $12,000 and $800,000, and include a Patek Philippe, Rolex and IWC, as well as a custom-made timepiece by Audemars Piguet.
    “I’ve been so fortunate to have such an amazing journey in my career, and these watches and collectibles really capture those unforgettable moments and all the hard work behind them,” Brady said in a statement. “I’m excited to give fans and collectors a chance to own and cherish these special pieces from my journey just like I have.”
    Brady said his passion for timepieces began in high school after his parents gave him his first watch as a graduation gift.
    “Just as he mastered the language of football, he has devoted himself to understanding the intricacies of watches, curating a world-class assortment of exquisite timepieces in recent years that reflects his deep passion for collecting,” said Richard Lopez, Sotheby’s senior specialist of luxury watches.
    It wasn’t until Brady’s first Super Bowl in 2002 that his collection really took off. Since then, he began acquiring watches to mark some of his biggest occasions.

    Tom Brady’s Audemars+Piguet watch up for auction at Sotheby’s.
    Source: Sotheby’s

    The highlights of the sale include a white gold and diamond-set flying tourbillon Royal Oak with bracelet by Audemars Piguet. The piece was worn by Brady during his Netflix special, “Greatest Roast of All Time.” It is expected to fetch in the range of $400,000 to $800,000.
    He will also be parting with his Richard Mille 35-03 “Baby Nadal.” The blue quartz-encased timepiece could sell for as much as $500,000.
    Other lots include a rose gold Patek Philippe Nautilus worn by Brady since he purchased it in 2017 and an IWC Pilot’s Watch Top Gun edition “SFTI” model, which he wore during his last Super Bowl Championship parade in 2021, following his historic win with the National Football League’s Tampa Bay Buccaneers.
    “The collection is truly unparalleled; the stories they tell, the authenticity they embody, and their historical significance elevate them beyond mere collectibles — these items are genuine pieces of sports history,” said Brahm Wachter, Sotheby’s head of modern collectables.

    Arrows pointing outwards

    Watches owned by former NFL player Tom Brady up for auction at Sotheby’s.
    Source: Sotheby’s

    Demand for luxury watches peaked during the Covid-19 pandemic. Since then, prices have come down dramatically.
    According to EveryWatch, the world’s largest watch market database, total sales in 2024 have reached $493 million, a 6% increase over the previous year’s total sales.
    The auction houses are also investing more in watches, with the major auction houses increasing their watch lots by 50% over last year, according to EveryWatch.

    Don’t miss these insights from CNBC PRO More

  • in

    MLS partners with OneFootball in push to expand global audience

    Major League Soccer has reached a deal with OneFootball, an international media platform known for showing highlights, stats and other content for professional soccer teams.
    The partnership comes as MLS has been trying to expand its audience and capitalize on the growth its experienced since Lionel Messi joined the league last year.
    MLS will also invest in OneFootball, joining a group of shareholders that includes European clubs such as Real Madrid, FC Barcelona and Manchester City, among others.

    Lionel Messi #10 of Inter Miami controls the ball during the second half of the game against St. Louis City at Chase Stadium on June 01, 2024 in Fort Lauderdale, Florida. 
    Megan Briggs | Getty Images

    Major League Soccer is teaming up with German digital media platform OneFootball to provide highlights, stats and other content to a global audience. As part of the deal OneFootball will have access to highlights of hundreds of MLS matches each season.
    MLS will also take a stake in OneFootball, joining a long list of financial investors and European soccer clubs that are shareholders, including Real Madrid, FC Barcelona and Manchester City, among others. Terms of the investment weren’t disclosed.

    The deal comes as MLS continues to look for ways to expand its audience and capitalize on its recent surge in popularity since superstar Lionel Messi joined the American league a year ago.
    “As we think about ways that we can capture new fans and new eyeballs and get consumers more engaged, we’re always looking for creative and innovative partners that we can work with,” said Seth Bacon, executive vice president of media at MLS. “OneFootball certainly ticks those boxes, and has a huge reach and a really creative way of approaching both the marketplace but also how they cover soccer.”
    Since joining Inter Miami, Messi has fueled MLS’ attendance and audience, and there has been an increase in sponsorship revenue, according to data from the league. That’s continued even as Messi missed a part of this season due to an injury.
    Global social media engagement has also increased substantially for MLS, particularly on YouTube and TikTok, according to data from the league.
    OneFootball, which is available to fans as a mobile app, TV streaming app and website, will offer the new content internationally as well as through its co-branded partnership and content hub with Yahoo Sports in the U.S.

    MLS’ deal with OneFootball is not exclusive, so MLS content will still live on other sources.
    For OneFootball, adding MLS made sense as the U.S. has become one of the fastest-growing markets for soccer, said OneFootball CEO Patrick Fischer.
    “In the U.S., with the arrival of Messi, the game has changed in terms of participation, in terms of awareness and in terms of fan interest,” said Fischer. “It’s a completely different ballgame. And looking ahead there will be the FIFA World Cup [in 2026].”

    Apple partnership

    New York City FC forward Valentín Castellanos (11) passes the ball forward against Portland Timbers midfielder Diego Chara (21) during the MLS Cup Final between the Portland Timbers and New York City FC on December 11, 2021 at Providence Park in Portland, Oregon.
    Brian Murphy | Icon Sportswire | Getty Images

    MLS, which was founded in the U.S. in the 1990s, still lags behind other more prominent and mature professional sports leagues in the country, such as the National Football League and National Basketball Association, in terms of viewership and ticket prices.
    The league set itself apart from those peers recently when it signed a media rights deal with Apple. While the NFL, NBA and other leagues have various media rights partners in the U.S. and globally, MLS has signed an exclusive global deal with Apple.
    MLS Season Pass on Apple TV is available as a separate subscription alongside the tech giant’s Apple TV+ streaming service. All MLS games are available through the monthly service, although there are some that also air on traditional broadcasters.
    Since the $2.5 billion, 10-year deal with Apple began last season, viewership stats have been hard to come by for MLS. Apple doesn’t release ratings. However, Apple executives have said publicly that viewership has grown, particularly since Messi’s arrival. During a conference last November, an Apple TV executive reportedly said some of the biggest matches last season attracted more than a million viewers.
    MLS is often looking at ways it can drive subscriptions for its Apple TV platform.
    “We’re constantly looking at different avenues and different distribution platforms that we think can broaden the reach and awareness of the league, our players and our clubs,” said Bacon.
    OneFootball’s Fischer said the company’s partners and investors also benefit from the data that stems from the platform.
    “We know that this kid is following Messi on OneFootball, so we give him the highlights, the updates and the whole system. Then we work with the clubs very strategically when it comes to lead generation, customer data, stuff like that,” said Fischer. “Whereas social media platforms do not share relevant data with the content creator.”

    Don’t miss these insights from CNBC PRO More

  • in

    London-based Robinhood rival Freetrade buys UK arm of Australian investing platform Stake

    British retail investing app Freetrade has entered into an agreement with Australian rival Stake to take on all of the company’s U.K. clients and their assets, Freetrade told CNBC Tuesday.
    Sydney-based Stake launched its services in the U.K. in 2020, however the firm has decided to focus primarily on its Australia and New Zealand operations after a recent business review.
    The move is expected to bolster Freetrade’s domestic operations, and comes as British retail investment platforms as a whole are facing heated competition from Robinhood.

    People walk along London Bridge past the City of London skyline.
    Sopa Images | Lightrocket | Getty Images

    London-based online trading platform Freetrade told CNBC Tuesday that it’s agreed to buy the U.K. customer book of Stake, an Australian investing app.
    The move is part of a broader bid from Freetrade to bolster its domestic business and comes as British digital investment platforms face rising competition from new entrants — not least U.S. heavyweight Robinhood.

    The startup told CNBC exclusively that it entered into a transaction with Stake to take on all of the company’s clients and move all assets the firm manages in the U.K. over to its own platform.
    Freetrade and Stake declined to disclose financial information of the deal, including the value of Stake’s U.K. customer book.
    Stake, which is based in Sydney, Australia, was founded in 2017 by entrepreneurs Matt Leibowitz, Dan Silver and Jon Abitz with the aim of providing low-cost brokerage services to retail investors in Australia.
    The company, which also operates in New Zealand, launched its services in the U.K. in 2020. However, after a recent business review, Stake decided to focus primarily on its Australia and New Zealand operations.
    Following the deal, customers of Stake U.K. will be contacted with details about how to move their money and other assets over to Freetrade in “the coming weeks,” the companies said. Customers will still be able to use their Stake account until assets and cash are transferred to Freetrade in November.

    Freetrade operates primarily in the U.K. but has sought to expand into the European Union. It offers a range of investment products on its platform, including stocks, exchange-traded funds, individual savings accounts, and government bonds. As of April 2024, it had more than 1.4 million users.
    Earlier this year, CNBC reported that the startup’s co-founder and CEO, Adam Dodds, had decided to depart the company after six years at the helm. He was replaced by Viktor Nebehaj, the firm’s then-chief operating officer.
    Freetrade was a beneficiary of the 2020 and 2021 retail stock investing frenzy, which saw GameStop and other so-called “meme stocks” jump to wild highs. In the years that followed, Freetrade and its rivals, including Robinhood were impacted by higher interest rates which hammered investor sentiment.
    In 2022, Freetrade announced plans to lay off 15% of its workforce. The following year, the firm saw its valuation slump 65% to £225 million ($301 million) in an equity crowdfunding round. Freetrade at the time blamed a “different market environment” for the reduction in its market value.
    More recently, though, things have been turning around for the startup. Freetrade reported its first-ever half year of profit in 2024, with adjusted earnings before interest, tax, depreciation and amortization hitting £91,000 in the six months through June. Revenues climbed 34% year-over-year, to £13.1 million.
    “I’m focused on scaling Freetrade into the leading commission-free investment platform in the UK market,” CEO Nebehaj said in a statement shared with CNBC. “This deal shows our commitment to capitalise on opportunities for inorganic growth to reach that goal.”
    “Over the last few months, we have worked closely with Stake to ensure a smooth transition and good outcomes for their UK customers. We look forward to welcoming them and continuing to support them on their investment journeys.”
    Freetrade currently manages more than £2 billion worth of assets for U.K. clients. Globally, Stake has over $2.9 billion in assets under administration.
    Robinhood, a far larger player in the U.S. with $144 billion in assets under management, launched in the U.K. in November 2023 to much fanfare. Earlier this month, the company launched a securities lending scheme in the U.K., in a bid to further entice prospective British clients. More