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Live sports is coming to Warner Bros. Discovery’s streaming service app Max beginning Oct. 5.
The tier, called the Bleacher Report Sports Add-On, will simulcast live sports events including for the MLB, NHL, NBA and NCAA March Madness, among others.
Max subscribers will receive the tier for free through Feb. 29, and then it will cost an additional $9.99 a month.

Los Angeles Dodgers center fielder Cody Bellinger (35) steals second base as St. Louis Cardinals second baseman Tommy Edman (19) takes the late throw at Dodger Stadium in the 2021 National League Wild Card game.
Robert Hanashiro | USA TODAY Sports

Sports are coming to Warner Bros. Discovery’s streaming app Max.
Beginning Oct. 5, Max will include a tier that will simulcast live sports events that already appear on the company’s traditional TV networks TNT and TBS. The tier kicks off in time for Major League Baseball’s postseason, which airs on TBS.

The membership, called the Bleacher Report Sports Add-On, will also include NHL, NBA, NCAA March Madness and U.S soccer games. Max subscribers will get free access through Feb. 29. Then, it will cost an additional $9.99 a month.
CNBC previously reported Warner Bros. Discovery’s plans to add sports to Max under the Bleacher Report brand, as it tries to target a younger audience that has increasingly sidestepped the traditional pay-TV bundle.
Media companies have been doing a delicate dance to make their streaming services more attractive in a push to get to profitability and are now trying a variety of methods to do so.
Warner Bros. Discovery’s streaming segment was profitable in the first half of the year, and the company has said it expects that to continue for the full year.
Max has undergone various changes in the past year and has been bulking up on content for the fall.

In May, the streamer was renamed Max after the parent company blended the content of HBO Max and Discovery+ apps together. The move came more than a year after the merger of Warner Bros. and Discovery.
The company also struck a deal with AMC Networks to feature more than 200 episodes of recent shows from the cable TV network for two months. The arrangement, which kicked off earlier this month, runs through Halloween.
But sports and news were long-awaited additions to the app. CEO David Zaslav said during the company’s earnings call this summer that the change would happen in short order.
On Sept. 27, the app will also include CNN Max, a 24/7 live news hub that will feature content from the network’s top anchors.
The company hiked the price of Max earlier this year and has yet to increase it again. Currently, Max’s ad-free tier costs $15.99 a month, and a cheaper option with commercials is $9.99 a month. Company executives have said in investor calls that they see the potential to raise prices again in the future.
In addition to MLB’s postseason, the Max sports tier will also include 60 live NHL regular season games, 65 NBA regular season matchups and postseason games for both leagues. It will also include live video and other content from Bleacher Report. More

Canadian union Unifor and Ford are approaching an 11:59 p.m. ET Tuesday deadline to reach an agreement for roughly 5,600 autoworkers before a strike could occur.
The initial deadline for the talks was Monday night, but the sides announced a 24-hour extension after the union received a “substantive offer” from Ford “minutes before the deadline.”
A Unifor strike would affect Ford’s Oakville Assembly Plant that produces the Ford Edge and Lincoln Nautilus crossovers and engine plants that produce V8s for the F-Series pickups and Mustangs.

2023 Ford Super Duty F-350 Limited

DETROIT — Ford Motor’s labor troubles could become an international issue that affects U.S. production of some pickup trucks, as Canadian union Unifor and the company have only hours to reach an agreement for roughly 5,600 autoworkers.
The sides have to reach a deal before an extended 11:59 p.m. ET Tuesday deadline to avoid a potential strike. The initial deadline for the talks was Monday night, but the sides announced a 24-hour extension after the union received a “substantive offer” from Ford “minutes before the deadline.”

The potential Canadian work stoppage adds to pressure facing Ford days after the United Auto Workers called for targeted strikes against Ford and its crosstown rivals, General Motors and Chrysler parent Stellantis.
A Unifor strike would disrupt Ford’s Oakville Assembly Plant that produces the Ford Edge and Lincoln Nautilus crossovers. It would also affect two engine plants that produce 7.3-liter and 5.0-liter V8 gasoline engines used in highly profitable products such as the Ford F-Series Super Duty and F-150 pickups and the Mustang muscle car.

An aerial view shows Ford’s Oakville Assembly Plant in Oakville, Ontario, Canada May 26, 2023.
Carlos Osorio | Reuters

If Unifor strikes against Ford, it would be the first time both unions have simultaneously gone on strike against a Detroit automaker over national contracts — marking another unprecedented labor move after the UAW struck all three of the Detroit automakers last week for the first time.
“Ford doesn’t want a strike anywhere. Having the extra pressure of Unifor is pushing Ford very hard to get a deal,” said Art Wheaton, a labor professor at the Worker Institute at Cornell University.
Unifor, whose auto members were part of the UAW until a split in the mid-1980s, confirmed talks are ongoing after they continued past the deadline into Tuesday morning.

F-Series, Mustang could be disrupted

If a prolonged Canadian strike occurs, the work stoppage could eventually impact U.S. production of the vehicles. The breadth of the effect depends on Ford’s engine stock and how much the company would want to focus on non-V8 gasoline engine models.
For F-150 and Mustang, Ford could increase production of four-cylinder and V6-powered engines, including EcoBoost ones that have made up the majority of sales since 2018. The company also could increase production of diesel engines for its larger Super Duty trucks.
Gasoline V8 models make up about 50% of Mustang and 20% of F-150 models sold in the U.S. Large F-Series trucks exclusively have V8 engines. But a majority of those vehicles sold have diesel V8 engines rather than gasoline, according to the company. Those engines are made at a plant in Mexico, not Canada.

Lana Payne speaks on stage as Unifor, Canada’s largest private sector union, announced her as their new president to replace outgoing leader Jerry Dias in Toronto, Ontario, Canada August 10, 2022.
Cole Burston | Reuters

“We will continue to work collaboratively with Unifor to create a blueprint for the automotive industry that supports a vibrant and sustainable future in Canada,” Ford said in a statement about the talks early Tuesday.
Unifor, which represents 18,000 Canadian workers at the Detroit automakers, took a more traditional approach to its negotiations than its U.S. counterpart did. The Canadian union picked Ford as its “target” company instead of following the UAW’s new strategy of bargaining with all three automakers. It also announced a traditional national strike, if needed, instead of targeted ones.
Hours before the initial deadline, Unifor National President Lana Payne said the union and Ford were “not where we need to be on key priority issues,” including wages and pensions. She noted the last time Canadian automakers went on strike was in 1990.
“We need Ford to deliver more to meet our members’ expectations and demands, it’s as simple as that,” she said.

UAW connection

Payne said the union has been monitoring the UAW negotiations, and she has been “in touch” with the American union, including on Monday with UAW President Shawn Fain. The UAW and Unifor showed solidarity heading up to the talks and have continued to publicly support each other.
Spokespeople with Ford and Unifor declined to comment on details of the company’s proposal that caused the union to agree to extending the deadline.
Extending contract deadlines is historically common during automotive collective bargaining. However, Fain declined to do so. He also unconventionally set a second deadline of noon Friday to announce additional strikes if “serious progress” isn’t made in the talks by then.
“The automakers for decades have used whipsawing where they’re trying to pit the U.S. against Canada … Shawn Fain flipped the tables on them and is using the same or similar strategy to urge the bargaining,” said Wheaton, the Cornell labor professor.
If the Unifor strikes don’t have an impact on F-Series production, expanded UAW strikes could do so, starting Friday. Barclays analyst Dan Levy said Tuesday that “large pickup plants could be targeted” next by the UAW in its strike against the Detroit automakers, also known as the D3.
“As a reminder, large pickups are the profit engines for the D3,” he wrote in an investor note, pointing out that each has robust inventories of the vehicles.
Cox Automotive reports that “days-supply” of Ford’s F-Series pickups was at 87 days to start September, including 64 for the larger Super Duty trucks; GM was at 79 for the Chevrolet Silverado and 70 for GMC Sierra; and Stellantis’ Ram was at 119 days.
— CNBC’s Michael Bloom contributed to this report. More

NBA superstar Kevin Durant and partner Rich Kleiman are expanding beyond their Boardroom media business.
The duo announced Boardroom Advisory, which aims to connect athletes to various business and media opportunities.
Durant is among a slew of superstar athletes to branch out in the sports media and entertainment world.

NBA player Kevin Durant attends a 2023 FIBA World Cup exhibition game between Puerto Rico and the U.S. at T-Mobile Arena in Las Vegas on Aug. 7, 2023.
Ethan Miller | Getty Images

National Basketball Association superstar Kevin Durant and business partner Rich Kleiman on Tuesday announced the launch of a new advisory firm under the duo’s Boardroom media company.
The firm, Boardroom Advisory, will operate on a yearly fee structure and work with athletes as well as executives and brands on creating business and sports ownership opportunities, content and more, the company said in a press release.

“What our team has built with Boardroom speaks for itself, and it was born out of many of the relationships we have cultivated along the way,” Durant said in the release. “Boardroom Advisory is a natural extension of the brand, and is a way for us to bring our resources to other athletes.”
The firm doesn’t intend to compete with agencies and will work in tandem with athletes’ preexisting representatives, a spokesperson for Boardroom said. The firm also isn’t disclosing client details at the moment. It will rely on its extensive network to draw clients.
Durant is among a slew of superstar athletes to branch out in the sports media and entertainment world. NBA rival Lebron James’ video production company SpringHill was valued at $725 million after the company sold a minority stake to investors. Soccer star Cristiano Ronaldo is one of the richest athletes in the world, whose social media influence makes him millions per post, due in large part to his $1 billion lifetime deal with Nike.
Durant and Kleiman founded Boardroom in 2019. The media brand covers the business behind media, sports and music. The company also produces original content. “The Boardroom,” a series of roundtable discussions on ESPN+, ran for two seasons. The company’s investment portfolio stretches to more than 100 early stage investments across the sports and business space.
Durant, a 13-time NBA all-star and former MVP, has played for the Golden State Warriors, Oklahoma City Thunder and the Brooklyn Nets. Now, he plays for the Phoenix Suns. Kleiman is Durant’s long-time manager. The two co-founded 35V (35 Ventures), a sports, media and entertainment company, in 2016.

Business manager Lorenzo McCloud, who has worked with Philadelphia 76ers guard and former Durant teammate James Harden, will join the firm as director of talent relations.
Disclosure: CNBC partnered with Boardroom on the Game Plan conference over the summer. More

Uninsured Americans can now get a new round of Covid vaccine boosters for free at certain locations across the country.
The updated vaccines from Pfizer and Moderna began to roll out late last week after the Centers for Disease Control and Prevention recommended them to all Americans ages 6 months and up.
Patients can now find locations with appointments for the new shots using the federal government’s vaccine search tool, Vaccines.gov.

Pharmacist Aaron Sun administers new vaccine COMIRNATY® by Pfizer to Jimmy Smagula at a CVS Pharmacy in Eagle Rock, California.
Irfan Khan | Los Angeles Times | Getty Images

Uninsured Americans can now get the newest Covid vaccines for free at certain locations across the country, just days after U.S. regulators greenlit those shots for most people.
The updated jabs from Pfizer and Moderna began to roll out late last week after the Centers for Disease Control and Prevention recommended them to all Americans ages 6 months and up last Tuesday. 

Patients can now find locations with appointments for the new shots using the federal government’s search tool, Vaccines.gov. The website also includes a filter for locations that are providing Covid vaccines at no cost to those who are uninsured, including several CVS and Walgreens pharmacies.
That filter specifically shows locations participating in the Biden administration’s Bridge Access Program, which will provide free Covid vaccines and treatments to uninsured people through December 2024.
The Bridge Access Program aims to maintain broad access to Covid products after a big shift in how the U.S. covers them. Previously, the federal government purchased Covid vaccines directly from manufacturers at a discount to distribute to all Americans for free.
But now that the U.S. Covid public health emergency has expired, the government is shifting shots to the commercial market. That means manufacturers will sell their new jabs directly to health-care providers at more than $120 per dose.
The vast majority of Americans will be able to get the new vaccines at no cost through private insurance or government payers such as Medicare. Meanwhile, the Bridge Access Program is aiming to fill the gap for the estimated 30 million uninsured Americans. 

How uninsured people can find appointments 

Clicking on “Find Covid-19 vaccines” on Vaccines.gov will bring patients to the search tool. There, patients have to enter their five-digit zip code and select which vaccine brands they want to receive, along with the their age group. 

Arrows pointing outwards

Vaccines.gov displaying options to find Covid vaccines based on vaccine brand, age group and zip code in the U.S.
Vaccines.gov

All Pfizer and Moderna vaccines available are the newly approved versions targeting XBB.1.5. The companies’ boosters from last year, which were designed around different Covid strains, are no longer authorized for use in the U.S.
Meanwhile, all Novavax vaccines available are still the older version, which doesn’t target XBB.1.5. The updated Novavax shot is still being reviewed by the U.S. Food and Drug Administration and could be approved within days.  
Once patients make their selections, the site generates a list of locations and a corresponding map. Uninsured patients can check off a filter that only shows locations participating in the Bridge Access Program.
That will likely narrow down the list to several CVS and Walgreens pharmacy branches. 

Arrows pointing outwards

Vaccines.gov search tool displaying pharmacies and other locations offering free vaccines to uninsured Americans through the Biden administration’s Bridge Access Program.
Vaccines.gov

After selecting a location, patients directly schedule the appointment with the pharmacy. For example, people can set vaccine appointments on the CVS website or CVS Pharmacy app. 
Uninsured patients can then show up at their scheduled appointment and receive a vaccine. They are not required to show their ID cards, a CVS spokesperson told CNBC. More

Mark Thompson, a former New York Times CEO, will begin as CNN’s CEO on Oct. 9.
In his new role, Thompson will focus on turning CNN into a sustainable business over the next five years.
CNN’s 2023 EBITDA is expected to bounce back closer to $1 billion after falling to $750 million in 2022.

A person walks past the CNN headquarters in Atlanta, Georgia, Nov. 17, 2022.
Brandon Bell | Getty Images

When former CNN Chief Executive Officer Chris Licht started running the news organization last year, he was given a mission by his boss, Warner Bros. Discovery CEO David Zaslav: change the network’s programming and tone to emphasize news rather than “advocacy” journalism.
With Licht now fired, CNN’s incoming CEO, Mark Thompson, has a new mission: everything else.

Thompson, who starts at CNN on Oct. 9, has had preliminary discussions with Zaslav and other members of CNN’s leadership about strategic ideas and priorities, according to people familiar with the matter, who declined to speak on the record because the discussions were private. He has made no decisions about CNN’s operations and won’t until he has had a chance to meet with staffers and learn the business, said the people.
Still, some areas of emphasis are clear. Thompson will focus on building digital subscription businesses around CNN.com and creating programming for a younger audience on CNN Max, the network’s live news service on Warner Bros. Discovery’s “Max” streaming service, said two of the people.
Licht’s background was programming, as he launched “Morning Joe” on MSNBC and “CBS This Morning” with Charlie Rose, Norah O’Donnell and Gayle King. Zaslav hired him as a TV programmer — and ultimately fired him after Licht lost the confidence of his employees and failed to deliver ratings winners.
Much of Licht’s short reign, which lasted a little over a year, centered around depoliticizing CNN. Zaslav and Licht agreed that CNN had gotten a reputation as left-leaning, and tried to refocus the network as a down-the-middle outlet that could appeal to both Democrats and Republicans. Licht and CNN’s leadership since his firing — a four-person team of Amy Entelis, Virginia Moseley, Eric Sherling and David Leavy — overhauled CNN’s linear shows, including debuting a new morning show and a revamped prime-time lineup.
Licht struggled to win over CNN employees by purposely taking a hands-off approach to differentiate his style from former CNN chief Jeff Zucker, who resigned in February 2022 after failing to disclose a consensual relationship with a coworker. Zaslav felt Licht moved too slowly to make decisions and didn’t appropriately relate to CNN’s talent, according to people familiar with the matter. Licht believed he couldn’t be his authentic self given Zaslav’s mandate to be a no-nonsense leader who had to reform CNN’s image and cut costs, the people said. Licht had to lay off hundreds of employees as part of a broader Warner Bros. Discovery head count reduction.

Mark Thompson, CEO of CNN

While Licht largely focused on linear programming, Thompson will concentrate on making CNN a sustainable business for the next five years — a timeline he’s already discussed with some members of CNN leadership, according to people familiar with the matter. The work to change CNN’s reputation is largely complete, according to people familiar with Warner Bros. Discovery executives’ thinking.
How to cover Donald Trump, an issue that defined Licht’s tenure, probably isn’t in Thompson’s top five priorities as he starts the job, according to a person familiar with the matter. Existing CNN executives believe they already have the infrastructure in place to appropriately handle the former president and current Republican primary candidate as the 2024 election ramps up, the person said.
Entelis, Moseley, Sherling and Leavy all plan to stay at CNN as Thompson takes over as CEO, according to people familiar with the matter. All will report to Thompson.
A CNN spokesperson declined to comment on speculation about Thompson’s eventual moves and strategy.

Digital strategy

Thompson’s last job was CEO of The New York Times, a position he held from 2012 to 2020. He grew the Times’ subscription digital business, which launched in 2011, from less than 1 million subscribers to about 7 million before he left the company in September 2020. During his time as the newspaper’s CEO, shares rose from $9 to about $43 — a gain of more than 375%.
CNN hasn’t had a clear digital strategy since Zaslav and Licht decided to kill off CNN+ after just a month, in 2022. CNN+, at the time, was a little-watched streaming service that launched without much content. Former CNN chief Jeff Zucker and then-CNN digital chief Andrew Morse hoped it would eventually become CNN’s version of The New York Times — a subscription news product that could feature more than just video.
Thompson will still have to preside over CNN’s linear network, an entity that has declined along with the erosion of the pay-TV cable bundle. But Zaslav is counting on him to use CNN.com and its 149 million monthly unique visitors as a funnel to build digital subscription businesses, said people familiar with the matter.
One idea being discussed is to build several subscription products on specific topics within CNN.com, which would remain without a paywall, said the people. For customers who want all access, CNN could offer a bundle for a discount. Paying a monthly fee could unlock on-demand or live CNN programming on certain subjects, give users access to particular pieces of in-depth or focused journalism and provide other benefits.
Thompson may also explore ways to integrate Bleacher Report with CNN.com, just as The New York Times has done with The Athletic, the online sports media company it acquired last year for $550 million, according to a person familiar with the matter.

Programming CNN Max

Before joining The New York Times, Thompson was director-general — a combination of chief executive and editor-in-chief — of the British Broadcasting Corporation. He’ll have a chance to develop new shows at CNN Max, a tab in Warner Bros. Discovery’s larger Max streaming service.
With CNN Max, Thompson will try to program for a younger audience. CNN’s linear network largely appeals to older, 60-and-up adults who still subscribe to traditional pay TV.
Thompson will have some runway to invest in CNN Max. CNN’s EBITDA — or earnings before interest, taxes, depreciation, and amortization — is expected to be closer to $1 billion in 2023 after dipping to $750 million in 2022 when it had about $200 million in losses tied to CNN+, according to people familiar with the matter. Attention from the U.S. presidential election should also improve advertising revenue in 2024.
To keep CNN relevant, Thompson will need to figure out news programming that millennials and younger viewers will watch. Former CNN leadership feared news content would get swallowed up by a larger streaming service, believing it would be difficult to persuade viewers to eschew entertainment programming when both are on the same platform. That led Zucker and former WarnerMedia CEO Jason Kilar to push for CNN+, a standalone streaming service.
CNN has already begun considering ideas to solve that problem, including potentially alerting Max viewers who are watching on-demand entertainment to CNN breaking news.
“This is a game that is still very much to be played,” JB Perrette, president and CEO of Warner Bros. Discovery’s streaming operations, said of the streaming-news business last month in an interview with Variety. “Nobody has figured it out yet.”
That will be Thompson’s job.
WATCH: WBD might be a better streaming bet than Disney, says Gabelli’s Kevin Dreyer More

Disney said Tuesday it would nearly double its planned investment to roughly $60 billion in its parks business.
Theme parks have been a relative bright spot while the company struggles to make a profit on streaming.
Still, domestic parks, particularly Walt Disney World in Florida, have seen a slowdown in attendance and hotel room purchases.

Disney World celebrated its 50th anniversary in April 2022.
Aaronp | Bauer-Griffin | GC Images | Getty Images

Disney said Tuesday it will nearly double its planned investment in the company’s parks and cruises business.
The company said in a securities filing it will nearly double its planned investment to roughly $60 billion over the course of 10 years.

While the company is grappling with the changing media and entertainment landscape – and trying to make its streaming business profitable while considering sales of its traditional TV networks – the theme parks, experiences and products division has been a bright spot.
Still, the domestic parks, particularly Walt Disney World in Florida, has seen a slowdown in attendance and hotel room purchases. Instead, the segment’s strength has come from its international parks. During the third quarter the division saw a 13% increase in revenue to $8.3 billion.
The company will unveil more details about the investment at its investor day Tuesday.
Disney highlighted the historical results of the parks and experiences business since 2017 on the back of heightened investment. Disney’s parks, like its peers, suffered during the lockdowns of the pandemic.
Its peers, including Comcast’s Universal parks in Florida, experienced a similar slowdown.

Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.
This is breaking news. Please check back for updates. More

The UAW union will announce additional strikes at GM, Ford and Stellantis plants if the sides don’t make “serious progress” in negotiations by noon ET Friday, according to UAW President Shawn Fain.
The timing of the additional plants would come just over a week after the union announced targeted strikes at assembly plants of about 12,700 autoworkers.
Unlike the original contract deadline, Fain did not say tentative agreements needed to be reached at the companies to avoid additional strikes, just “serious progress.”

Blue Cross Blue Shield employees show their support to members of the United Auto Workers (UAW) union as they march through the streets of downtown Detroit following a rally on the first day of the UAW strike in Detroit, Michigan, on September 15, 2023. 
Matthew Hatcher | AFP | Getty Images

DETROIT – The United Auto Workers union will announce additional strikes at General Motors, Ford Motor and Stellantis plants if the sides don’t make “serious progress” in negotiations by noon ET Friday, UAW President Shawn Fain announced Monday night.
The timing of the additional plants would come just over a week after the union announced targeted strikes at assembly plants for each of the Big Three Detroit automakers, sending about 12,700 workers to picket lines.

“Autoworkers have waited long enough to make things right at the Big Three. We’re not waiting around, and we’re not messing around. So, noon on Friday, Sept. 22, is a new deadline,” Fain said in a video released online by the union.
Fain previously said the union planned to increase the work stoppages, based on how negotiations with the companies were going. The announcement follows the union meeting with each of the automakers since the targeted strikes began Friday.

Unlike the original contract deadlines, Fain did not say tentative agreements needed to be reached at the companies to avoid additional strikes, just “serious progress.” A union spokesman did not immediately respond for comment regarding what defines that aside from a tentative deal.
Currently on strike are workers from GM’s midsize truck and full-size van plant in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio.
The union selected the plants as part of targeted strike plans, as Fain and UAW leaders unconventionally negotiate with all three automakers at once. It’s calling the work stoppages “stand-up strikes,” a nod to historic “sit-down” strikes by the UAW in the 1930s.

“The ‘Stand Up Strike’ is a new approach to striking. Instead of striking all plants all at once, select locals have been called on to ‘Stand Up’ and walk out on strike. If the automakers fail to make progress in negotiations and bargain in good faith going forward, more locals will be called on to Stand Up and join the strike,” Fain said Monday.
Targeted strikes typically focus on key plants that can then cause other plants to cease production due to a lack of parts. They are not unprecedented, but the way the union is conducting them is not typical.
GM and Ford released general statements on the ongoing talks, but both declined to comment directly on the union-imposed deadline Monday night. Stellantis referred to a statement released Monday afternoon about discussions with the union earlier in the day being “constructive and focused on where we can find common ground to reach an agreement.”
The additional strike plans are despite automakers making record offers to the union that include roughly 20% hourly wage increases, thousands of dollars in bonuses, retention of the union’s platinum health care and other sweetened benefits.
Key demands from the union have included 40% hourly pay increases, a reduced 32-hour workweek, a shift back to traditional pensions, the elimination of compensation tiers and a restoration of cost-of-living adjustments, among other items. More

Rocket Lab stock fell in premarket trading after the company suffered its first launch failure in over two years in the early hours of Tuesday morning.
Its uncrewed 41st Electron rocket launch failed about 2 minutes and 30 seconds after lifting off from New Zealand.
The rocket was carrying the Acadia 2 satellite for San Francisco-based Capella Space.

The company’s Electron rocket carrying the CAPSTONE mission lifts off from New Zealand on June 28, 2022.
Rocket Lab

Rocket Lab stock fell in premarket trading after the company suffered its first launch failure in over two years early Tuesday morning.
The company confirmed its uncrewed 41st Electron rocket launch – lifting off from New Zealand and carrying the Acadia 2 satellite for San Francisco-based Capella Space – failed about 2 minutes and 30 seconds into the flight. Rocket Lab said it has begun working with the Federal Aviation Administration on investigating the root cause of the issue, which appeared to happen around the time the rocket’s first and second stages separated.

“We are deeply sorry to our partners Capella Space for the loss of the mission,” Rocket Lab said in a statement.
Shares of Rocket Lab fell as much as 26% in premarket trading from its previous close at $5.04. The stock was up 34% for the year as of Monday’s close.

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The company’s 42nd Electron mission was set to launch before the end of the third quarter. But Rocket Lab warned it will be postponed while it resolves the launch failure. As a result, Rocket Lab expects to issue revised third quarter revenue guidance. In its second quarter report, Rocket Lab forecast about $30 million of launch services revenue – the minority of its overall forecast revenue between $73 million and $77 million, as the bulk was expected to come from its space systems unit.
Rocket Lab’s failure comes after the company built up a steady rhythm of successful launches, becoming the second-most active U.S. rocket company behind Elon Musk’s SpaceX. The Electron rocket hadn’t suffered a mission failure since May 2021, stringing together 19 successful launches in 28 months since then.
A rocket can remain grounded for an uncertain amount of time, with the length of investigations depending upon the severity and complexity of the issue. After its previous launch failure, Rocket Lab launched its next Electron mission 70 days later. More