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    Vince McMahon plans to sell a big chunk of his shares in WWE parent TKO

    Vince McMahon plans to sell a substantial chunk of his stake in TKO, the parent company of WWE, the wrestling empire founded by his father.
    Earlier this year, WWE merged with UFC to form TKO, which is majority owned by Endeavor Group.

    World Wrestling Entertainment Inc. Chairman Vince McMahon appears in the ring during the WWE Monday Night Raw show at the Thomas & Mack Center August 24, 2009 in Las Vegas, Nevada.
    Ethan Miller | Getty Images

    Vince McMahon plans to sell a substantial chunk of his stake in TKO, the parent company of WWE, the wrestling empire founded by his father, TKO said in a release Thursday
    TKO’s stock fell 5% after the closing bell Thursday. The stock closed at $84.90 during regular trading.

    McMahon intends to sell 8.4 million of his shares, worth about $700 million. He owned more than 28 million shares as of August, according to a regulatory filing. The company said it and several executives are looking to buy shares from McMahon. The longtime wrestling honcho has a net worth of $2.8 billion, according to Forbes.
    The move could be an indication that McMahon, 78, plans to get out of his family business, which has been the dominant player in professional wrestling for about four decades, launching the careers of Dwayne “The Rock” Johnson, John Cena and many other crossover stars.
    Earlier this year, WWE merged with UFC to form TKO, which is majority owned by Endeavor Group, the talent agency and media company run by Ari Emanuel.
    McMahon is executive chairman of TKO. In August, WWE said he was served with a federal grand jury subpoena related to allegations that he paid millions of dollars in hush money to women who accused him of sexual misconduct. He said at the time he has “always denied any intentional wrongdoing and continue to do so.”
    He also went on medical leave in July after he had spinal surgery.
    Endeavor, meanwhile, is exploring strategic alternatives as its market value hasn’t lived up to expectations since it went public in 2021. Endeavor’s biggest shareholder, investment firm Silver Lake, said it could take the company private. More

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    NWSL announces media deals with CBS Sports, ESPN, Amazon worth $240 million

    The National Women’s Soccer League announced Thursday a new four-year contract beginning in 2024 with CBS, ESPN, Prime Video and Scripps Sports.
    The deal is set at $60 million per year, totaling $240 million for the term of the deal, a person familiar with the matter told CNBC.
    It amounts to a 40-times multiple from NWSL’s previous agreement, the league said.

    Carli Lloyd of NJ/NY Gotham FC battles for control against in the second half of the NWSL Match against Sydney Leroux of Orlando Pride at Red Bull Arena on August 29, 2021.
    Ira L. Black – Corbis | Getty Images Sport | Getty Images

    The National Women’s Soccer League announced a four-year contract Thursday for media distribution with CBS Sports, ESPN, Amazon Prime Video and Scripps Sports.
    The contract, set to begin in 2024, includes agreements for 118 national windows on the media channels, the league said, which is expected to generate “record-breaking distribution and revenue.” The NWSL will begin each regular-season weekend with Friday night matches on Prime Video, followed by double-header Saturday night games on Scripps’-owned ION network.

    The league will also air a package of regular-season matches on CBS and stream live on Paramount+. Additionally, ESPN will air a package of matches across its various channels, including live streaming on ESPN+ in English and Spanish.
    The remainder of the NWSL’s regular-season matches will be part of a direct-to-consumer package, the league added.
    The deal is set at $60 million per year, totaling $240 million for the term of the deal, a person familiar with the matter told CNBC.
    It amounts to a 40-times multiple from NWSL’s previous agreement, the league said.
    “These partnerships fundamentally change the game for our league and the players who take the pitch each week,” NWSL Commissioner Jessica Berman said in a statement. “We have taken great care to ensure our games are discoverable by increasing our reach in order to expose new audiences to everything that makes our league special, without compromising the economic value of our product. This is the beginning of our future.”

    CBS will air a minimum of 21 games, ESPN and ABC will air 20 games, Prime Video will air 27 games and Scripps will air 50, according to the league.
    — CNBC’s Jessica Golden contributed to this report. More

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    SiriusXM is targeting younger customers with new app and streaming plan

    SiriusXM is launching a new app and streaming plan on Dec. 14, the company announced Wednesday.
    The satellite radio provider hopes to attract younger customers to its redesigned streaming platform.
    The company is banking on what it called its “human touch,” and the ability serve as a discovery tool for listeners who may already have a personal music library.

    NEW YORK, NEW YORK – NOVEMBER 08: (L-R) Scott Greenstein, Kevin Hart, Ashley Flowers, and Kelly Clarkson speak onstage during the SiriusXM Next Generation: Industry & Press Preview at The Tisch Skylights at The Shed on November 08, 2023 in New York City.
    Bryan Bedder | Getty Images Entertainment

    SiriusXM announced Wednesday that it will launch a revamped app and a newly priced streaming plan as it pushes to attract younger customers.
    The company will launch the offerings on Dec.14, first on streaming, and later in car interfaces. It will price the new plan at $9.99 per month.

    “Our growth audience is millennials and younger, who are willing to pay for an experience,” CEO Jennifer Witz said during an event Wednesday where the company unveiled the new services. The star-studded event included appearances by Howard Stern, Conan O’Brien, Andy Cohen and Kevin Hart, and a performance by Kelly Clarkson.
    The satellite radio company, home to big-name hosts like Howard Stern and Andy Cohen, is hoping its new app interface will make the millennial and younger generations, many of whom are used to Spotify or Apple Music, feel right at home. The move comes as Sirius looks for a jolt to pull it out of stagnant sales and a 20% decline in its share price this year.
    Listeners will now have “always-on” curation and a personalized library featuring four new stations on the app landing page: Music, Talk & Podcasts, Sports, and For You. The app will also bring features like enhanced search, improved podcast listening and greater content discovery, the company said in a press release.
    “The current app only put our radio on the phone,” Chief Product and Technology Officer Joe Inzerillo told CNBC. “This new app will offer more which will then be mirrored in the car.”
    With the new platform, listeners will be able to pick up where they left off across devices, including the car, phone, or Fire TV. This means those tuning into a podcast, interview, or sports game can go listen on another device without losing their place.

    “Typically, we see [the improved listening experience] supporting lower churn and higher conversion, driving net adds and higher customer lifetime value over time,” Morgan Stanley wrote in a Thursday note.
    SiriusXM has shed subscribers recently, as it reported a loss of 94,000 satellite radio subscribers in the third quarter.
    The company hopes that what Witz called its “human touch” will set SiriusXM apart from other streaming competitors. Music superstars Dolly Parton, Kelly Clarkson and John Mayer are launching new year-round SiriusXM channels this month that will feature their handpicked curation of songs.
    The company is also simplifying its pricing structure, offering its new Streaming All Access Plan for $9.99 a month, a dollar cheaper than its current all-inclusive streaming plan. The cheaper price tag is another bid to attract millennial and younger customers, who may already pay for another streaming service.
    “We see this as a supplemental product,” Witz told CNBC on Wednesday. “We know people already have a separate music library, but we’re here for discovery.”
    Morgan Stanley analysts believe the changes could help the company bring in younger listeners.
    “We see the opportunity for the new product to help broaden the base, to younger, more often streaming-only consumers,” they said in the note Thursday. “The newly announced $9.99 per month price point may help. We note the product will have to compete against stiffer competition (e.g., Spotify, Apple, Amazon) relative to its in-car product vs. AM/FM radio.”
    The company also continues to make headway on its satellite radio compatibility in new cars. Select-model 2024 Polestar vehicles will come equipped with SiriusXM 360L technology, which combines satellite and streaming features, the company announced Wednesday. More

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    Flutter shares fall after disappointing earnings — but it insists FanDuel is No. 1 in sports betting

    FanDuel parent Flutter is insisting the online gaming platform is the market leader in sports betting in the United States.
    DraftKings last week claimed the top spot in the market.
    Flutter shares plummeted after the company reported disappointing third-quarter results.

    FanDuel parent Flutter came out swinging Thursday, insisting the online gaming platform is the market leader in sports betting in the United States after DraftKings last week boasted it had taken over the top slot.
    “We have a billion dollars more in revenue in the U.S., so we’re very clearly number one,” Flutter CEO Peter Jackson said in an interview with CNBC after an earnings conference call.

    Even as Jackson projected confidence in the company’s market position, FanDuel’s revenues failed to meet Wall Street expectations in the third quarter. In the U.S., the company’s revenue grew by 20% year over year to $820 million, and average monthly players grew by 38%.
    Flutter shares plummeted after the company reported disappointing third-quarter results. It blamed its softer than expected top line on a streak of customer wins in September and October, foreign currency headwinds, a slowdown in Australia and tax changes in India.
    It did not detail earnings results, but reiterated its full-year adjusted EBITDA guidance of $180 million in the U.S.

    The FanDuel Inc. app and DraftKings Inc. website are arranged for a photograph in Washington, D.C.
    Andrew Harrer | Bloomberg | Getty Images

    DraftKings, by contrast, issued improved guidance in its third quarter earnings report last week. It said it expected full-year adjusted EBITDA losses of $95 million to $115 million and revenue of $3.67 billion to $3.72 billion.
    On a conference call with analysts and investors, Flutter’s CEO Jackson said he thinks the measuring stick to determine who is the market leader should change. He said net gaming revenue, rather than gross gaming revenue, should be the more important metric for who is in first place. There, FanDuel has 47% market share and holds the top spot ahead of DraftKings.

    FanDuel claims the number two position in iGaming, or online casinos, in the U.S. Its gaming revenue grew 52% year over year. FanDuel said it’s the fastest-growing brand in the space.
    Igaming is more profitable than sports betting — and it’s a big contributor to DraftKings gaining the number one slot. Its acquisition of Golden Nugget Online is paying off in online casino play.
    DraftKings was quick to claim the crown, and CEO Jason Robins touted the company’s market position on his earnings call and in an interview with Jim Cramer on CNBC’s “Mad Money.” Robins said he’s very proud, “but also realized it doesn’t mean anything if we don’t continue to build on the momentum that we’ve generated.”
    DraftKings took the top spot from FanDuel in August in online betting, combining iGaming and online sports betting but leaving out retail sports wagering, according to Eilers & Krejcik, a research and consulting firm in the gaming industry,
    But traditionally, gambling results are categorized as sports betting (online and retail) and iGaming, separately.
    Also, the Eilers & Krejcik research report was issued before all states reported their gaming numbers. August is typically a slower sports month, so iGaming results would account for a bigger percentage of the total.
    At least one other rival think it has a claim to part of the online betting crown. During MGM’s earnings call Wednesday, CEO Bill Hornbuckle acknowledged DraftKings’ triumph in August, but said, “Year in and year out, we’ve been number one in iGaming. And so we’ve got a very big position we want to protect, and we’ll continue to do so.” More

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    Powell says Fed is ‘not confident’ it has done enough to bring inflation down

    Fed Chair Jerome Powell said he and his colleagues remain steadfast in getting policy in line with their 2% inflation goal, but “we are not confident that we have achieved such a stance.”
    He stressed the Fed nevertheless can be cautious as the risks between doing too much and too little have come into closer balance.

    Federal Reserve Chairman Jerome Powell said Thursday that he and his fellow policymakers are encouraged by the slowing pace of inflation but are unsure whether they’ve done enough to keep the momentum going.
    Speaking a little more than a week after the central bank voted to hold benchmark policy rates steady, Powell said in remarks for an International Monetary Fund audience in Washington, D.C., that more work could be ahead in the battle against high prices.

    “The Federal Open Market Committee is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have achieved such a stance,” he said in his prepared speech.
    For the second time in recent weeks, a public address from Powell was interrupted by climate protesters. He briefly left the stage before resuming.
    The speech comes with inflation still well above the Fed’s long-standing goal but also considerably below its peak levels in the first half of 2022. In a series of 11 rate hikes that constituted the most aggressive policy tightening since the early 1980s, the committee took its benchmark rate from near zero to a target range of 5.25%-5.5%.
    Those increases have coincided with the Fed’s preferred inflation gauge, the core personal consumption expenditures price index, to fall to an annual rate of 3.7%, from 5.3% in February 2022. The more widely followed consumer price index peaked above 9% in June of last year.
    Powell said that inflation is “well above” where the Fed would like to see it while describing policy as “significantly restrictive.”

    “My colleagues and I are gratified by this progress but expect that the process of getting inflation sustainably down to 2 percent has a long way to go,” he said. “We will keep at this until we succeed,” he later added, saying the Fed is focused on whether rates need to go higher and how long they need to stay elevated.
    Stocks headed lower after the speech, with the Dow Jones Industrial Average down close to 200 points. Treasury yields lurched higher after declining for most of the past three weeks, propelled up in large part after a poorly received 30-year bond auction.
    “Chairman Powell issued a warning to investors too giddy on the prospect of rate cuts next year,” said Jeffrey Roach, chief economist at LPL Financial. “The Fed will be true to its mandate and hike further should inflation reaccelerate.”
    As he has in recent speeches, Powell stressed that the Fed nevertheless can be cautious as the risks between doing too much and too little have come into closer balance. He said the Fed is attuned to the rise in Treasury yields.
    “If it becomes appropriate to tighten policy further, we will not hesitate to do so,” he said. “We will continue to move carefully, however, allowing us to address both the risk of being misled by a few good months of data, and the risk of overtightening.”
    “Monetary policy is generally working the way we think it should work” Powell said during a discussion following his speech.
    Markets are largely convinced the Fed is through hiking rates.
    Futures pricing, according to the CME Group, indicates less than a 10% probability that the FOMC will approve a final rate hike at its Dec. 12-13 meeting, even though committee members in September penciled in an additional quarter percentage point rise before the end of the year.
    Traders anticipate the Fed will start cutting next year, probably around June.
    Powell noted the progress the economy has made. Gross domestic product accelerated at a “quite strong” 4.9% annualized pace in the third quarter, though Powell said the expectation is for growth to “moderate in coming quarters.” He described the economy as “just remarkable” in 2023 in the face of a broad consensus that a recession was inevitable.
    Unemployment remains low, though the jobless rate has risen half a percentage point this year, a move commonly associated with recessions.
    But Powell noted that the Fed is “attentive” that stronger-than-expected growth could undermine the fight against inflation and “warrant a response from monetary policy.”
    He also pointed out that improvements in supply chains have helped ease inflation pressures, but “it is not clear how much more will be achieved by additional supply-side improvements. Going forward, it may be that a greater share of the progress in reducing inflation will have to come from tight monetary policy restraining the growth of aggregate demand.”
    The remarks are part of a broader presentation he is giving to the Jacques Polak Annual Research Conference. One broad policy topic he addressed was the challenge posed by keeping rates anchored near zero, where they were before the inflation surge. Powell said it is “too soon” to say whether zero-rate challenges are “a thing of the past.”
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    Barbie who? Gen Alpha kids ‘obsessed’ with skin care could fuel holiday spending

    Generation Alpha kids, or those born in 2010 or later, have become fascinated with skin care and are expected to drive beauty sales this holiday.
    Dermatologists say the trend is perfectly safe – as long as kids are using products that are appropriate for their young skin.
    Gen Alpha is expected to be the largest generation in history and their purchasing power is on pace to dwarf millennial and Gen Z spend.

    When Melissa Fuentes imagined the Christmas gifts she’d buy for her 9-year-old Tatiana, she figured she’d want Barbies, Bratz dolls or a scooter – the kinds of things she found under her tree growing up in the ’90s. 
    Instead, something unexpected made it to the top of the list this year: skin care. 

    “I would have never imagined that I would be buying moisturizer” for a child, Fuentes, 31, told CNBC from Coral Springs, Florida. “There’s this obsession with moisturizing. … That’s all she’s really into right now. Cheerleading, and taking care of her face.” 
    Fuentes is not the only parent who will be hitting the skin-care aisle for their kids this holiday season.
    In an age where TikTok and YouTube have replaced linear TV for America’s youngest consumers, kids are adopting skin-care routines like never before as they absorb content online from so-called Skinfluencers, experts said. 
    Many kids from Generation Alpha, which are children born in 2010 and later, have become budding experts in serums, toners, moisturizers and sunscreens. In their quest to mimic the cool teenagers they’re watching on social media, some know more about the ingredients in those products than their parents do.
    As the new generation of skin-care enthusiasts floods the beauty aisle, new brands catering exclusively to Gen Alpha are cropping up and retailers are cashing in on what parents say has become an obsession. During the crucial holiday shopping season this year, Gen Alpha’s fascination with skin care is expected to fuel a boon in sales. 

    “[We] know from some of our proprietary research, as we enter into the holiday season, that skincare is one of the categories that is at the top of their list,” Ulta Beauty’s chief merchandising officer, Monica Arnaudo, said of the Gen Alpha consumer. 

    Walmart is expanding the price points in its beauty department. It recently added a “Beauty finds” display with makeup, skincare, hair and other items for $3, $5 or $9 each. It also sells prestige brands through a new deal with British beauty retailer SpaceNK.
    Melissa Repko | CNBC

    Both Bubble and e.l.f. Beauty – two brands that have used TikTok to win over young consumers – also said they expect sizable sales this holiday from parents looking for gifts for their Gen Alpha kids. 
    “We definitely see it on TikTok. We’ve seen a lot of kids and a lot of people are posting their holiday wish list [and we’re] getting tagged very often,” Shai Eisenman, Bubble’s founder and CEO, said in an interview.  
    Tarang Amin, CEO of e.l.f., said young people’s burgeoning interest in skin care is part of the reason the company has invested in the category, including through its recent acquisition of skin-care company Naturium. 
    “It’s never too soon to take care of your skin, particularly on sun protection,” said Amin.
    Generation Alpha’s interest in skin care comes as millennials and Gen Z consumers also lean deeper into the category — a trend that many say began during the Covid pandemic, when people stopped wearing makeup as often and began focusing more on self-care.
    Between 2019 and 2022, annual prestige skin-care spending grew from $6.6 billion to $8 billion, according to Circana. As of September, spending is up 14% this year compared with the same period a year ago. 
    Meanwhile, mass skin-care sales grew from $7.8 billion to $9.2 billion between 2019 and 2022, according to Circana. Spending is up 10% this year, as of September.

    Piper Sandler isn’t yet tracking Gen Alpha. But according to its most recent teen spending survey, where the average age of respondents was 15.7, skin-care spending this fall climbed 19% year over year to an average of $122. It was 16% higher than the multiyear average. 
    That’s no surprise to Salt Lake City dad Rick Aaron, whose daughters Allie, 15, and Katie, 13, have been religious about skin care since they were about 10- and 8-years-old.
    “My wife recently purchased a [mini-fridge] to keep all of her and the girls’ skin-care products in, saying that it needs to be refrigerated and will deteriorate over time at room temperature,” said Aaron, 45. “And then my wife has recommended, ‘well it’s not going to be big enough, so maybe we need to buy a second mini fridge just for skin-care products.'” 

    A photo of just some of the skincare products Rick Aaron’s daughters are using.
    Courtesy: Rick Aaron

    When asked how much money he spends on his daughters’ skin-care habit each month, he told CNBC he doesn’t know – and doesn’t want to. 
    “Between the subscriptions and Amazon purchases and store purchases … it’s probably close to, if not over, $1,000 a month,” said Aaron. “I would probably break down in tears if I actually saw a hard figure on it.”

    Grown up products on growing faces. Is it safe?

    In the bright white lights of the bathroom she shares with her mom, 7-year-old Marley-Rose addresses her camera as she prepares for her nightly skin-care routine. 
    “Hey guys, it’s me Marley and today I’m doing my skin-care routine,” Marley says in the clip, which was filmed last month and shared with CNBC.
    With her hair neatly pulled into matching buns on either side of her head, Marley shows off her Youth to the People superfood face cleanser, a moisturizer from the same brand and a Laneige toner before she begins cleansing and moisturizing her face. 
    “I’m going to do it upwards because, well, um, if you do it downwards, your face is gonna be droopy at an early age,” Marley explains as she applies the toner. 
    Two minutes later, Marley ends the clip with a smile and says she’ll be back soon for her next skin-care routine. 
    “I just never imagined at 7 years old she’s going to come up to me and ask about skin care and wanting to buy it,” Marley’s mom, Karla Joseph, 41, told CNBC in an interview.

    Karla Joseph says her daughter Marley-Rose, 8, has become fascinated with skincare and recently spent her birthday at Sephora.
    Courtesy: Karla Joseph

    She said Marley first became interested in skin care last month after she watched a TikTok video of a teenager doing her routine. After securing some products of her own, Marley now has her own ritual for mornings and nights and shares videos of it on social media. 
    “It’s a different time, you know? They’re on their phones, they’re on the internet and they see all this stuff and they want to try it,” Joseph said. “I kind of just have to roll with it because this is what they’re exposed to.” 
    For her eighth birthday last weekend, Joseph took Marley to Sephora and is already preparing to buy her daughter myriad skin-care items for Christmas. 
    She said her daughter’s interest in skin care is “great,” and better than playing around with makeup. But she’s been researching products to make sure they’re age appropriate. 
    That diligence is crucial for any parent whose kids are interested in skin care, said Dr. Amy Wechsler, a board certified dermatologist and psychiatrist.
    “I love a routine. I think routines in general are a great idea … especially if that routine includes sunscreen,” Wechsler told CNBC in an interview. “But on the flip side … preteens using products that are often too harsh for their skin because they’re adult products is not a good idea.” 

    Aveeno skincare, a Johnson & Johnson product.
    Jodi Gralnick | CNBC

    Wechsler, who runs a New York City practice, said her Gen Alpha patients frequently come in with rashes, irritation, dryness, flakiness and even swelling in their faces and eyes from using skin care products that weren’t appropriate for their young skin. 
    “I had a kid yesterday that she felt some peer pressure at a sleepover and she knew she kind of had sensitive skin, but she tried some mask or some new product that her friends were all using because she wanted to be part of the group, and then she got an itchy rash on her face,” said Wechsler. “The treating it is pretty easy, but you want to prevent that from happening again.”
    She said plenty of skin-care products are safe for kids, and a routine could promote self-esteem, as long as it doesn’t become obsessive.

    Here come the Gen Alphas

    Considering how young Gen Alpha is, and that the generation isn’t done being born, it’s tough to parse out what kind of effect the group is having on skin-care sales. But the age group is on pace to transform the overall consumer landscape. 
    Gen Alpha is expected to be the largest generation yet, with roughly 2.5 billion people by 2024, and the group is projected to have the greatest spending power in history, according to demographer and social researcher Mark McCrindle. He coined the term Gen Alpha and is considered a leading expert on the generation. 

    Momo Productions | Digitalvision | Getty Images

    By the end of 2024, when the oldest Gen Alphas will be 14, more than $5.39 trillion will be spent on them annually around the world, according to estimates from McCrindle. 
    That spending dwarfs the purchasing power of millennials and Gen Zs, which is estimated to be around $2.5 trillion and $3 trillion, respectively, according to research and projections gathered by Harvard Business Review.
    “They’re the most materially endowed, the most globally connected, the most digitally integrated, they’re going to be the most formally educated we predict as well, so they’re going to be a very influential generation,” said Ashley Fell, a social researcher at McCrindle’s firm who co-wrote a 2021 book with him on Gen Alpha.
    “It’s something that every brand should be thinking about.” 
    If they’re not, Fell said, they risk becoming “irrelevant.”
    — CNBC’s Melissa Repko contributed to this report.
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    Biden says all autoworkers deserve deals like those the UAW won from Detroit automakers

    President Joe Biden said all autoworkers deserve contracts like the ones recently won by the United Auto Workers from General Motors, Ford Motor and Chrysler-parent Stellantis.
    Biden said the deals won by UAW negotiators are “game changers” that set a “new standard” for blue-collar workers.
    Despite this being Biden’s second event with UAW President Shawn Fain, including walking a UAW picket-line in September, the union has not endorsed Biden for reelection.

    U.S. President Joe Biden puts on a t-shirt of the UAW Local 1268 during a United Auto Workers (UAW) union members meeting, in Belvidere, Illinois, U.S., November 9, 2023. 
    Leah Millis | Reuters

    DETROIT – President Joe Biden said Thursday that all autoworkers deserve contracts like the ones recently won by the United Auto Workers from General Motors, Ford Motor and Chrysler-parent Stellantis.
    Biden, wearing a red UAW T-shirt given to him by a local union leader, said the deals won by UAW negotiators are “game changers” that set a “new standard” for blue-collar workers.

    The deals include 25% wage increases, including 11% upon ratification; reinstatement of cost-of-living adjustments; additional contributions for retirees; billions in new investments; and other benefits. The tentative deals must still be ratified by union members; voting is ongoing.
    “I’m a little selfish, I want this type of contract for all autoworkers,” Biden said during a visit with UAW President Shawn Fain in Belvidere, Illinois. “And I have a feeling the UAW has a plan for that.”
    Biden said he personally spoke with Stellantis North America Chief Operating Officer Mark Stewart regarding a plant in Belvidere that the company had indefinitely idled earlier this year and was expected to potentially close.
    “I told my team, ‘Make Stellantis know Belvidere is a priority,’ so I got on the phone and let him know personally I thought it was a priority,” Biden said.

    President Joe Biden speaks next to Shawn Fain, president of the United Auto Workers, as he joins striking members of the union on the picket line outside GM’s Willow Run Distribution Center in Bellville, Michigan, Sept. 26, 2023.
    Evelyn Hockstein | Reuters

    Under the UAW’s tentative agreement with Stellantis, the plant is expected to reopen to produce a midsize pickup truck in 2027, followed by $3.2 billion in new battery cell operations at or near the plant a year later.

    Stellantis did not immediately respond for comment about Biden’s comments or visit.
    Despite this being Biden’s second event with Fain since the UAW launched roughly six weeks of strikes against the companies on Sept.15, the union has not endorsed Biden for reelection. The first event was Sept. 26 when Biden walked a UAW picket line – making him the first sitting president to do so with the union. Biden’s approval ratings are down, and several polls indicate he would face a difficult reelection bid against former President Donald Trump next year.
    Biden’s comments about contracts for all automakers echoed Fain’s recent remarks about how the UAW’s next move is to organize non-union auto plants, which it has failed to do for decades.
    Fain has said he plans to use the record contracts reached with the Detroit automakers, which must still be ratified by members, to assist in the union’s embattled organizing efforts elsewhere.

    US President Joe Biden waves after speaking about the economy and the deal between the United Auto Workers (UAW) Union and the big-three automakers, in Belvidere, Illinois, on November 9, 2023.
    Olivier Douliery | AFP | Getty Images

    “We’ve created the threat of a good example, and now we’re going to build on it,” Fain said Thursday night when discussing Stellantis’ tentative agreement. “We just went on strike like we’ve never been on strike before and won a historic contract as a result. Now we’re going to organize like we’ve never organized before.”
    The UAW has previously failed to organize foreign-based automakers in the U.S. Most recently, plants with Volkswagen and Nissan Motor fell short of the support needed to unionize. The UAW has previously discussed organizing Tesla’s Fremont plant in California with little to no traction in those efforts. More

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    What’s Warner Bros. Discovery’s next move? David Zaslav and John Malone offer clues

    John Malone suggested that regulators may be open to media consolidation it wouldn’t typically allow if one or more of the merging companies was facing the prospects of bankruptcy.
    Warner Bros. Discovery CEO David Zaslav said the company is preparing its balance sheet to be an acquirer in the next 12 to 24 months.

    David Zaslav, CEO and president of Warner Bros. Discovery (L), and John Malone, chairman of Liberty Media, Liberty Global, and Qurate Retail Group.
    CNBC | Reuters

    Warner Bros. Discovery’s next step to gain scale may be looking at distressed assets.
    Chief Executive David Zaslav and board member John Malone both made comments this week suggesting the company is paying down debt and building up free cash flow to set up acquisitions in the next two years of media businesses suffering from diminished valuations.

    The targets could be companies flirting with or filing for bankruptcy, Malone said in an exclusive interview with CNBC on Thursday. While U.S. regulators may frown at large media companies coming together because of overlaps with studio, cable or broadcasting assets, they’ll be much more forgiving if the companies are struggling to survive, Malone told David Faber.
    “I think we’re going to see very serious distress in our industry,” Malone said. “There is an exemption to the antitrust laws on a failing business. At some point of distress, right, then some of the restrictions, they look the other way.”
    Media company valuations have been plummeting amid streaming video losses, traditional TV subscriber defections, and a down advertising market. This has affected Warner Bros. Discovery as much as its peers. The company’s market valuation recently fell below $23 billion, its lowest point since WarnerMedia and Discovery merged last year. The company ended the third quarter with about $43 billion in net debt.
    Warner Bros. Discovery is trying to position itself to be an acquirer, rather than a distressed asset, itself, by paying down debt and increasing cash flow, Zaslav said during his company’s earnings conference call this week. Warner Bros. Discovery has paid down $12 billion and expects to generate at least $5 billion in free cash flow this year, the company said.

    “We’re surrounded by a lot of companies that are – don’t have the geographic diversity that we have, aren’t generating real free cash flow, have debt that are presenting issues,” Zaslav said Thursday. “We’re de-levering at a time when our peers are levering up, at a time when our peers are unstable, and there is a lot of excess competitive – excess players in the market. So, this will give us a chance not only to fight to grow in the next year, but to have the kind of balance sheet and the kind of stability … that we could be really opportunistic over the next 12 to 24 months.”

    Still, Warner Bros. Discovery also acknowledged it will miss its own year-end leverage target of 2.5 to 3 times adjusted earnings as the TV ad market struggles and linear TV subscription revenue declines.

    Buying from distress

    Malone has some experience with profiting from times of distress.
    His Liberty Media acquired a 40% stake in Sirius XM over several years more than a decade ago, saving it from bankruptcy. Since then, the equity value of the satellite radio company has bounced back from nearly zero to about $5 per share. Sirius XM currently has a market capitalization of about $18 billion.
    “It made us a lot of money with Sirius,” Malone told Faber.
    While Malone didn’t name a specific company as a target for Warner Bros. Discovery, he discussed Paramount Global as an example of a company whose prospects seem shaky. Paramount Global’s market valuation has slumped below $8 billion while carrying about $16 billion in debt.
    Malone noted that Paramount’s debt was recently downgraded. “I think that they’re running probably negative free cash flow,” he said.
    While Paramount Global shares have fallen precipitously since Viacom and CBS merged in 2019, there are signs the company is shoring up its balance sheet. CEO Bob Bakish said earlier this month Paramount Global’s streaming losses will be lower in 2023 than 2022, and the company expects further improvement to losses in 2024. The company closed a sale for book publisher Simon & Schuster for $1.6 billion and will use the proceeds to pay down debt.

    Paramount Global’s fate

    Shari Redstone, chair of Paramount Global, attends the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, on Tuesday, July 11, 2023.
    David A. Grogan | CNBC

    Paramount Global is one of the few assets that logically fits Malone’s vision of a media asset that would have regulatory issues as an acquisition with potential distress concerns. Comcast’s NBCUniversal, another potential merger partner, will lose more than $2 billion this year on its streaming service, Peacock, but the media giant is shielded by its parent company, the largest U.S. broadband provider.
    “Warner Bros. [Discovery] now is making money. Not a lot, but they’re making money,” Malone said. “Peacock is losing a lot of money. Paramount is losing a ton of money that they can’t afford. At least [Comcast CEO] Brian [Roberts] can afford to lose the money.”
    Paramount Global’s controlling shareholder Shari Redstone is open to a transformative transaction, CNBC reported last month. Puck’s Dylan Byers recently reported that industry insiders have speculated Warner Bros. Discovery might pursue an acquisition of Paramount Global after the 2024 U.S. presidential election.
    A combination of NBCUniversal and Paramount Global also has strategic logic, but the combination of two national broadcast networks — Comcast’s NBC and Paramount Global’s CBS — would present a significant regulatory hurdle. Warner Bros. Discovery doesn’t own a broadcast network, making an acquisition of CBS easier.
    Spokespeople for Paramount Global and Warner Bros. Discovery declined to comment.
    While Malone said all legacy media companies should be talking to each other about merger synergies, he acknowledged valuations may have to fall farther to get regulators on board with further consolidation. Malone predicted that could happen in the same timeline Zaslav gave — within the next two years.
    “Eventually maybe there’ll be regulatory relief,” Malone said. “Out of distress usually comes the reduction in competition, increased pricing power, and the opportunity to buy assets at a deep discount.”
    Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
    Tune in: CNBC’s full interview with John Malone will air 8 p.m. ET Thursday. More