Business

Goldman Sachs is investing more than $2.1 billion into Black women-owned businesses and nonprofits via the investment bank’s One Million Black Women program.
It’s the first chapter of a $10 billion commitment focused on access to capital, education, job creation and financial health.
The group’s advisory council includes Obama Foundation CEO Valerie Jarrett, Walgreens Boots Alliance CEO Roz Brewer, former Secretary of State Condoleezza Rice, actress and producer Issa Rae

The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York, November 17, 2021.
Andrew Kelly | Reuters

Goldman Sachs is investing more than $2.1 billion into Black women-owned businesses and nonprofits via the investment bank’s One Million Black Women program — and leaders say it’s only the first chapter.
“Goldman Sachs is sending a powerful signal into the marketplace around Black women and saying there has been a misalignment of capital, in terms of capital dedicated to this group. We’re seeking to change that by putting our capital where our mouth is,” Asahi Pompey, global head of corporate engagement and president of the Goldman Sachs Foundation, told CNBC.

One Million Black Women launched in March 2021 with the bigger goal of having a positive impact on the lives of 1 million Black women by 2030. Goldman Sachs has committed $10 billion in investment capital and $100 million in philanthropic capital with a focus on access to capital, affordable housing, health care, education, job creation, workforce advancement, digital connectivity and financial health.
“Turbo boosting Black women entrepreneurs is a key part of the work that we do,” Pompey said. “We know they create jobs. When a Black woman entrepreneur is able to grow her business, she employs Black people in the community, she’s a leader in that community, she mentors individuals in that community. The ripple effect of investing in a Black woman entrepreneur is tremendous.”
On Monday the group held a meeting of its advisory council — which includes Obama Foundation CEO Valerie Jarrett, Walgreens Boots Alliance CEO Roz Brewer, former Secretary of State Condoleezza Rice, actress and producer Issa Rae and National Urban League President Marc Morial — where it announced the $2.1 billion milestone in addition to the deployment of $23 million in philanthropic capital that will assist an estimated 215,000 Black women.

Goldman Sachs CEO David Solomon, Obama Foundation CEO Valerie Jarrett (to his right in purple), and National Urban League President Marc Morial (far left) at a meeting of the bank’s One Million Black Women program.
Frank Holland | CNBC

“When Black women succeed, America succeeds,” Jarrett, a founding member council, told CNBC. “You bet on Black women, that is a good bet. Goldman Sachs recognizes that and that Black Women have a track record of delivering.”
Jarrett said the initiative isn’t “just about the investment capital.”

“It’s a holistic approach,” she said. “What we are able to do uniquely is first to listen, meet people where they are, figure out what those needs are and then provide the resources and the expertise to help women thrive.”
Economists at the global investment bank have found the most efficient way to close the racial wealth gap is by investing in Black women. The racial wealth gap describes the disparity in wealth between Black and white households in the United States and is estimated to be at least $14 trillion, according to William Darity Jr., director of the Samuel DuBois Cook Center on Social Equity at Duke University.

Closing the gender pay gap for Black Women could increase gross domestic product by $300 billion to $450 billion and create between 1.2 million and 1.7 million jobs in the U.S., according to Goldman Sachs economists.
“The past two years have confirmed a key insight of our research. By investing in businesses that help Black women advance we can build a strong economy for everyone,” Goldman Sachs CEO David Solomon said during the One Million Black Women advisory meeting. “Our firm has a long history of supporting economic empowerment and we’re proud that One Million Black Women is already making a difference.” 
New York City Mayor Eric Adams also attended the meeting Monday to hear updates on One Million Black Women initiatives that the city has partnered on, including a $75 million investment in the NYC Small Business Opportunity Fund, designed to provide funding for Black female entrepreneurs.
“We get this right, we will stop feeding the other issues,” Adams told CNBC. “Sometime we stay in crisis mode instead of planning mode. What these women are doing about child-care issues, health-care issues, support to build businesses will prevent things from turning into a crisis. That’s why we wanted to be here.”
Still, launching One Million Black Women during the height of the Covid pandemic has created a unique challenge, according to Dina Powell McCormick, global head of sustainability and inclusive growth at Goldman Sachs.
“You are seeing a huge focus now on using the lessons learned from the digital divide and turning that into a huge opportunity,” said McCormick, who also previously led Goldman Sachs’ 10,000 Small Businesses and 10,000 Women initiatives. “We see what we learned all these years reaching a critical mass now to invest in this program.”
Goldman Sachs is now launching “OMBW: Black in Business,” a program providing support and resources specifically to Black female sole entrepreneurs. Applications for the fall 2023 cohort are open until April 23. More

A Ford Lighting pickup is displayed outside the New York Stock Exchange (NYSE) in New York City, U.S., March 23, 2023. REUTERS/Brendan McDermid
Brendan Mcdermid | Reuters

DETROIT – Ford Motor on Tuesday reported a roughly 10% increase in its quarterly U.S. sales, led by jumps in its critical F-Series pickups and Bronco SUVs.
The Detroit automaker sold 475,906 vehicles during the first three months of the year, up 10.1% compared to subdued levels a year earlier due to supply chain problems.

Sales of Ford’s trucks increased by nearly 20%, while car sales were up by 5.1% and SUVs increased by less than 1%. Sales of Ford’s EVs increased by 41%. However, they only amounted to less than 10,900 vehicles, or about 2.3% of its quarterly sales.
This is a developing story. Please check back for additional updates. More

Virgin Orbit on Tuesday filed for Chapter 11 bankruptcy protection in the U.S. after failing to secure a funding lifeline.
It comes days after CNBC obtained audio of Virgin Orbit CEO Dan Hart telling employees during an all-hands meeting that the company was ceasing operations “for the foreseeable future.”
The company’s last mission suffered a mid-flight failure, with an issue during the launch causing the rocket to not reach orbit and crash into the ocean.

The company’s modified 747 jet “Cosmic Girl” in Mojave, California.
Virgin Orbit

Virgin Orbit on Tuesday filed for Chapter 11 bankruptcy protection in the U.S. after failing to secure a funding lifeline.
The California-based satellite launch company lodged the filing in the U.S. Bankruptcy Court in the District of Delaware and is looking to sell its assets.

It comes after CNBC obtained audio of Virgin Orbit CEO Dan Hart telling employees during an all-hands meeting last week that the company was ceasing operations “for the foreseeable future.” The firm also said it would lay off nearly all of its workforce.
“While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business,” Hart said in a statement Tuesday.
“We believe that the cutting-edge launch technology that this team has created will have wide appeal to buyers as we continue in the process to sell the Company. At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale,” he added.
Virgin Orbit said it was focused on a swift conclusion to its sale process to provide clarity on the future of the firm.
Virgin Orbit said a commitment from Virgin Investments had allowed the company to secure $31.6 million in new money through “debtor-in-possession” financing. This process, sometimes known as DIP financing, refers to funding for businesses that have filed for Chapter 11 bankruptcy protection to allow them to keep operating.

What happened?

Virgin Orbit developed a system that uses a modified 747 jet to send satellites into space by dropping a rocket from under the aircraft’s wing mid-flight.
The company’s last mission suffered a mid-flight failure, with an issue during the launch preventing the rocket from reaching orbit. It crashed into the ocean.
Virgin Orbit is among a select few U.S. rocket companies to successfully achieve orbit with a privately developed launch vehicle. It has launched six missions since 2020, counting four successes and two failures.
It has been looking for new funds for several months, with majority owner Richard Branson unwilling to fund the company further.
Branson founded the company in 2017 and owns a 75% interest. Abu Dhabi sovereign wealth fund Mubadala holds the second-largest stake at 18%.
The company began commercial services in 2021 and began publicly trading on the Nasdaq stock exchange after a so-called SPAC merger. The deal saw the company valued at nearly $4 billion at the time.
It is a markedly different picture at present. Virgin Orbit had a market value of roughly $65 million, according to the Monday closing price.
“Today my thoughts and concerns are with the many talented teammates and friends now finding their way forward who have been committed to the mission and promise of all that Virgin Orbit represents,” CEO Dan Hart said.
“I am confident of what we have built and hopeful to achieve a transaction that positions our Company and our technology for future opportunities and missions,” he added.
— CNBC’s Michael Sheetz contributed to this report. More

Walmart will hold an investor event in Tampa, Florida, on Tuesday and Wednesday.
As sales get tougher, the retailer is using its low-price reputation, large grocery business and massive store footprint to break into new businesses and attract higher-income shoppers.
The company is also a bellwether for the retail industry and U.S. economy.

Bloomberg | Bloomberg | Getty Images

As shoppers get thrifty, Walmart is flexing its muscles.
Like other retailers, the company faces slowing sales as the boom of pandemic-fueled spending fades and inflation hits shoppers’ wallets.

Yet, unlike many competitors, Walmart has a few key factors that could work in its favor: Most of its sales come from food, a category that shoppers need in any economy. It has built its reputation on offering low prices. And its huge reach allows Walmart to make money in other ways, including selling ads, offering delivery services and fulfilling online orders for third-party sellers.
Walmart CEO Doug McMillon acknowledged the challenging retail backdrop on the company’s earnings call in February. Yet he said its business is “naturally hedged.”
“If customers want more of something and less of something else, we shift our inventory,” he said. “If the economy is strong, our customers have more money and that’s great. If things are tougher, they come to us for value.”
The retailer’s top leaders will share the company’s strategy for the year Tuesday and Wednesday at an investor event in Tampa, Florida.
Here’s a closer look at some key themes for Walmart that could emerge at the investor event:

Checking the consumer’s health

As the nation’s largest retailer, Walmart is a bellwether. Investors are hungry for any fresh clues about the health of the sector and the U.S. economy
“You always start a Walmart meeting by asking how the consumer is doing because they really have the best pulse on what is going on with the American consumer and how they are spending,” said David Silverman, a retail analyst at Fitch Ratings.
Walmart has already noticed changes in buying patterns. In the past few quarters, Chief Financial Officer John David Rainey told CNBC that its shoppers have bought more private-label products and opted for cheaper proteins like peanut butter and hot dogs. Plus, he said as customers spend more on groceries and other essentials, they are buying less general merchandise — a shift that’s shaking up Walmart’s sales mix and hitting sales at other retailers, including Target.
Walmart shared a cautious outlook for the year, factoring in economic uncertainty and shoppers’ more discerning approach. It said it expects same-store sales for Walmart U.S. will increase between 2% and 2.5% excluding fuel, in the fiscal year ahead. The company projects that adjusted earnings per share for the fiscal year will range from $5.90 to $6.05, excluding fuel.
That would be a decline from the past fiscal year, when same-store sales grew 6.6% for Walmart U.S. and adjusted earnings per share were $6.29, excluding fuel.

Side hustle progress report

Advertising. Delivery services. Picking and packing items for third-party sellers.
Walmart has taken a page from its chief rival, Amazon, as it sells services and technology, along with socks and gallons of milk. It is expected to provide a progress report at the investor event.
The company has a growing number of side hustles, including Walmart Connect, its advertising business; Walmart Luminate, its data and analytics tool; Walmart+, its membership program and answer to Amazon Prime; GoLocal, its delivery service for other retailers; and Walmart Fulfillment Services, its picking, packing and shipping service for sellers in its third-party marketplace.
The aggressive push has gained importance over the past year, as Walmart’s profit margins are under pressure. Like other companies, the big-box retailer is coping with higher labor, supply chain and material costs. All of its newer businesses, such as advertising, have higher profit margins than its bread-and-butter retail business.
Walmart has been flashier in spreading the word about its new businesses, too. Two years ago, it tapped Seth Dallaire, an Amazon veteran and former Instacart chief revenue officer, to oversee the newer businesses as Walmart’s chief revenue officer.
At industry conferences, it has thrown parties, handed out tote bags and other branded swag, and paid for large showroom booths. It has reversed roles with suppliers, too, as it knocks on doors to try to sell to them.

E-commerce growth plans

One part of the investor event’s agenda? Offering a glimpse of Walmart’s e-commerce future.
The retailer will likely showcase how it is growing online sales and trying to make them profitable.
Thanks to a push from the Covid pandemic, e-commerce has become a larger part of Walmart’s business. Online sales accounted for about $53.4 billion — or nearly 13% — of Walmart U.S.′ total net sales in the past fiscal year, which ended in late January, according to company filings. That’s a jump from $15.7 billion, or roughly 5% of Walmart U.S.′ total net sales, in 2019.
Walmart has leaned into e-commerce in other ways, too. Just this week, the retailer rolled out a new look for its website and app. Some of the key perks of Walmart+, its membership program, are free shipping and free home deliveries of online orders.
The ease of online shopping coupled with lower-priced popular products has given Walmart a way to outmatch regional grocers and smaller stores, said Silverman of Fitch Ratings.
“”Historically, there was a tradeoff,” he said. “You paid less at Walmart, but you got a weaker customer experience.”
Yet when shopping online, he added, customers ultimately get the same brand of ketchup, laundry detergent or paper towels in a similar brown box. And from Walmart, it is often cheaper.
“The value focus can resonate more with Walmart,” he said. “You are giving up less in terms of the customer experience over time.”

Higher-income shoppers

For Walmart, a pandemic-related migration to the suburbs and sticker shock from inflation have created an opportunity: attracting customers with larger salaries and more disposable income.
Wealthier shoppers are increasingly turning to to Walmart for groceries, CFO Rainey told CNBC. He said about 75% of its market share gains in food came from households that make more than $100,000 a year in both the second fiscal quarter and third fiscal quarter.
About half of the market share gains came from high-income consumers in the quarter that ended in late January, he said at a conference in March.
Investors want to hear how Walmart not only plans to attract those more financially insulated customers, but also keep them. Doing that could help the retailer, particularly as food stamp benefits shrink and tax refunds come in light.
The company has tinkered with in-store elements that could appeal to more upscale shoppers. For instance, it has rolled out new store designs in some parts of the country that play up trendier offerings, such as more fashion-forward exclusive apparel and home decor brands.
It has also expanded convenient online options, including curbside pickup, faster home delivery and its direct-to-fridge InHome delivery service.
As inflation cools, Walmart may have to fight some affluent shoppers’ tendency to go to other websites and stores, according to Rick Watson, CEO of e-commerce consulting firm RMW Commerce Consulting.
But, he said, grocery habits formed due to inflation could stick around, too, “If prices are good, why would you go back?” More

The National Women’s Soccer League has awarded a 14th franchise to an investor group in California’s Bay Area for a record $53 million fee.
The group includes investment firm Sixth Street, along with Sheryl Sandberg, sports executive Rick Welts and former national team stars Brandi Chastain, Leslie Osborne, Danielle Slaton and Aly Wagner.
The league’s third team from California will begin play in the 2024 season.

Former USWNT stars Brandi Chastain, Leslie Osbourne, Aly Wagner and Danielle Slaton are part of the Bay Area ownership team
Source: Allison+Partners Studio

The National Women’s Soccer League announced on Tuesday it’s awarding a 14th franchise to an investor group in California’s Bay Area for a record $53 million franchise fee and a total investment of $125 million — the largest institutional investment ever made in a professional women’s sports franchise, according to the investing group. 
Previously, franchise fees for NWSL teams ranged from $2 million to $5 million.

Alan Waxman, founder of global investment firm Sixth Street, leads the group, which also includes former Meta executive Sheryl Sandberg, NBA and WNBA executive Rick Welts, and U.S. women’s national team legends Brandi Chastain, Leslie Osborne, Danielle Slaton and Aly Wagner.
The league’s third team from California will begin play in the 2024 season.
“Sixth Street has the incredible know-how, experience and bandwidth to devote to the league,” NWSL Commissioner Jessica Berman told CNBC. “We think that they’re just going to be an incredible asset, not just locally, but for other teams and for the league.”
Waxman, a former Goldman Sachs executive, founded Sixth Street in 2009, and the firm currently has more than $65 billion in assets under management. This is the company’s first foray into women’s sports, following investments in Spanish soccer teams Real Madrid and FC Barcelona and the NBA’s San Antonio Spurs. It also holds a stake, alongside the New York Yankees and Dallas Cowboys, in Legends, the stadium hospitality company.
Waxman said his wife and soccer star Wagner first brought the investment opportunity to his attention. He said he had his team run the research and “every single indicator of what makes a good investment flashed green.”

“I kept asking, ‘What are we missing?’ It’s literally the most undervalued thing we’re seeing not only within the sports landscape, but just across everything,” Waxman said.
The four former national team players will be represented on the board and will work alongside Sixth Street in setting the team’s strategic direction, he said.
Sandberg, founder of Lean In — an organization dedicated to the inclusion and advancement of women — will join the club as a board member and strategic investor, along with her husband Tom Bernthal.
Sandberg will partner with the club to create leadership programs that empower women and girls in underserved Bay Area communities.  
“There is a very clear link between playing sports and becoming a leader,” Sandberg told CNBC.

Sheryl Sandberg, COO of Facebook speaks onstage during ‘Putting a Best Facebook Forward’ at Vanity Fair’s 6th Annual New Establishment Summit.
Matt Winkelmeyer | Getty Images

She pointed to the fact that while women hold 5% of the CEO jobs around the world, 80% of those women played sports.
“We’re hopefully going to win lots of games and bring this amazing business to the Bay Area, but we’re also going to train leaders,” Sandberg said.

Health of the league

Berman said the transaction marks an inflection point for the league.
“I don’t think there’s a single better indictor on the health of the league than this purchase price of $53 million” the league’s commissioner said. “That will reset the minimum standards of what we expect from the investors in how they approach the NWSL and our growth.”
Berman also touted the Northern California market, calling the area a “soccer hotbed,” noting the prevalence of Fortune 500 and growth companies in the region.
“We see how the market craves and is thirsty for this level of women’s soccer. When the U.S. women’s national team comes to town, they sell out in a second,” she said.
Berman, a labor attorney and sports executive, stepped in as commissioner a year ago tasked with not only growing the business but also restoring faith in women’s soccer after a tumultuous couple of years that were plagued with abuse, sexism and a lack of confidence in the league.
“That was one of our concerns going in,” Waxman said, “but I think the way that Jessica hit it head on, addressing it with the right protocols, the checks and balances, she’s brought in institutionalization of the league, and that ended up being a positive for us in our overall investment thesis.”
Berman has also super-sized the business in nearly every metric. Attendance, sponsorships and franchise values are all seeing massive upticks.
The league’s $4.5 million media rights deal with Paramount Global, owner of CBS, is up at the end of the year, and that will be another key indicator of the health of the league. Berman characterized conversations over media rights as being robust, saying there are many interested parties as the league eyes global growth.
“The whole landscape has changed in such a short period of time, and we’re actually seeing it translate into bottom-line results much quicker I think than anybody expected,” she said. More

The drop in sales and prices follows a 29% decline in the fourth quarter, and suggests that the nation’s largest real estate market is correcting after a post-pandemic boom in prices and demand.
The big question for brokers, buyers and sellers is where the new “bottom” will be in Manhattan.
Brokers say the biggest challenge for deals is the wide gap between buyer and seller price expectations.

Guests attend a pool party in a penthouse apartment in New York.
Michael Nagle | Bloomberg | Getty Images

Manhattan real estate sales fell 38% in the first quarter, as buyers and sellers battled over prices and mortgage rates remained volatile, according to new reports.
Total sales volume fell to $4.4 billion in the quarter, with 2,242 apartments and townhouses sold, compared to 2,546 sales in the first quarter of 2022, according to a report from Douglas Elliman and Miller Samuel. The average sales price fell 5% to $1.95 million and the median sales price fell 10% to $1.075 million, according to the report.

The drop in sales and prices follows a 29% decline in the fourth quarter, and suggests that the nation’s largest real estate market is correcting after a post-pandemic boom in prices and demand. The big question for brokers, buyers and sellers is where the new “bottom” will be in Manhattan.
“I think we’ll see a seasonal uptick in the spring,” said Jonathan Miller, CEO of Miller Samuel, the appraisal and research firm. “But some of it depends on whether the [Federal Reserve] holds rates where they are.”
Brokers say the biggest challenge for deals is the wide gap between buyer and seller price expectations. Relatively low levels of inventory, or unsold listings, means that buyers still don’t have much choice in Manhattan. There were 6,996 homes on the market in the first quarter, slightly lower than the five-year average of around 7,200, according to Miller Samuel.
“There still is a disconnect between buyers and sellers,” said Jason Haber at Compass. “Sellers are not slashing prices left and right to get deals done. They have confidence. They feel like ‘if I lose a buyer there’s another one down the road waiting.’ There is a no panic selling, or thinking they have to get out now.”
Sellers have trimmed prices, but not enough for today’s bargain-hunting buyers. The average discount from the initial list price to sales price in the first quarter price was 7%, up from 5% in the fourth quarter, according to Serhant. “Weary buyers were still in a strong position to negotiate,” according to Coury Napier, director of research at Serhant.

Buyers still fear overpaying in the face of a potential recession, volatile stock market and banking crisis. Many brokers say buyers have been calling for months with expectations of price cuts of 20% or more — only to be disappointed.
“Buyers for the last three quarters have been sitting back, waiting for massive reductions and they’re not coming,” said Noble Black of Douglas Elliman. “And I don’t think those big reductions will come.”
As Frederick Warburg Peters, president of Coldwell Banker Warburg, said in his first-quarter report, “The big price decreases seem behind us, and property costs have plateaued.”
Bidding and interest has remained especially strong at the high end. The share of luxury sales — or deals in the top 10% of the market by price — that resulted in bidding wars rose to a record high of over 11% in the quarter, Miller said. Brokers say wealthy buyers usually prefer to pay cash and therefore are less affected by higher mortgage rates.
Overall, cash deals rose to a record 57% of all sales in the quarter, Miller said. At the high end of the market, three-quarters of all sales over $5 million were all cash.
Brokers say they’re seeing signs that the second quarter will be stronger — especially since the higher-end market improved over the course of the first quarter. Sales contracts for properties priced at $4 million or more increased from an average of 16 deals a week in January to 32 deals a week in March, according to the Olshan Report.
Still, a lot depends on the future of interest rates and the overall economy. Because New York City is home to so many buyers and sellers tied to finance, the performance of the stock market could also shape Manhattan’s housing market this spring and summer.
“Based on what I see now, we’re getting to a healthier place in the spring,” Black said. “It’s not by any stretch a seller’s market, but it’s getting busier each month.” More

Florida Gov. Ron DeSantis has asked the state’s inspector general to investigate whether an agreement signed by the previous Disney-backed board of the Reedy Creek district is legal.
Before DeSantis could replace the Reedy Creek Improvement District board of supervisors, the Disney-allied panel signed an agreement that drastically limits his control.
“The governor got very angry about the position Disney took and seems like he’s decided to retaliate against us,” Disney CEO Bob Iger said.

Bob Iger on Monday called Florida Gov. Ron DeSantis’ actions against The Walt Disney Co. retaliatory, “anti-business” and “anti-Florida.”
The feud between DeSantis and the company escalated earlier Monday, when the governor asked the state’s inspector general to determine whether the House of Mouse’s sly move to retain control over the outer limits of Orange and Osceola counties is legal – and whether any of the company’s executives were involved in the scheme.

During the company’s annual shareholder meeting Monday, Disney CEO Iger addressed investor inquiries about the ongoing dispute between the company and Florida legislators. He noted that Disney has more than 75,000 employees in the state, and has created thousands of indirect jobs, as well as brings around 50 million visitors to Florida every year and is the state’s largest taxpayer
“A year ago, the company took a position on pending Florida legislation,” Iger said, apparently referring to what critics called the “Don’t Say Gay” bill. “And while the company may have not handled the position that it took very well, a company has a right to freedom of speech just like individuals do.”

Bob Iger, CEO, Disney, during CNBC interview, Feb. 9, 2023.
Randy Shropshire | CNBC

He added: “The governor got very angry about the position Disney took and seems like he’s decided to retaliate against us, including the naming of a new board to oversee the property and the business. In effect, to seek to punish a company for its exercise of a constitutional right. And that just seems really wrong to me.”

Iger said Disney plans to spend more than $17 billion in investments at Walt Disney World over the next decade, which would create around 13,000 jobs at the company and generate even more taxes for Florida.
“Our point on this is that any action that supports those efforts simply to retaliate for a position the company took sounds not just anti-business, but it sounds anti-Florida,” he said. “And I’ll just leave it at that.”

Last week, DeSantis’ newly appointed board of the Reedy Creek district, now named the Central Florida Tourism Oversight District, revealed that the previous Disney-allied board signed a long-lasting agreement that drastically limits the control that can be exercised over the company and its district.

Florida Governor Ron DeSantis speaks during ‘The Florida Blueprint’ event on Long Island, New York, United States on April 1, 2023. Ron DeSantis made comments on the Grand Jury’s indictment of Donald J. Trump, 45th President of the United States in Manhattan, New York. 
Kyle Mazza | Anadolu Agency | Getty Images

The agreement was signed on Feb. 8, the day before the Florida House voted to put DeSantis in charge. DeSantis replaced all of the Disney-allied board members with five Republicans on Feb. 27. It was only then that Disney’s new binding agreement was discovered.
The agreement includes a clause that dates back to 1692 in Britain. The “Declaration shall continue in effect until 21 years after the death of the last survivor of the descendants of King Charles III, King of England, living as of the date of this declaration,” the document said.
The governor’s letter calls the board’s agreement an attempt to “usurp the authority of the CFTOD board” and “nullify the recently passed legislation, undercut Florida’s legislative process, and defy the will of Floridians.”
He said at the agreement also has “legal infirmities” including inadequate notice, improper delegation of authority and ethical violations.
Disney, however, has said that all of the board’s maneuvers were completely legal — the agreement was discussed and approved in open, noticed public forums, in compliance with Florida’s Sunshine law.
The development in DeSantis’ conflict with Disney marks just the latest move in one of several partisan battles being waged by the Republican governor.
DeSantis is widely believed to be laying the groundwork to launch a 2024 presidential campaign. That move is expected to come not long after the current Florida legislative session ends in early May. Polls show that DeSantis is the most competitive of the potential opponents for former President Donald Trump in a GOP primary.
The Florida governor took aim at Disney after the company publicly balked at Florida’s HB 1557 law early last year. HB 1557, which critics called the “Don’t Say Gay” bill, limits early education teachings on sexual orientation or gender identity.
Republican state Rep. Randy Fine told CNBC’s “Squawk Box” last April that the bill dissolving Reedy Creek wasn’t retaliatory, but then said “when Disney kicked the hornet’s nest, we looked at special districts.”
Until recently, there had been no major public discussion about dissolving Disney’s long-established special district, which it’s occupied for 55 years, leading DeSantis’ critics to question its timing and the speed at which the governor acted against the company.
The fight between DeSantis and Disney shows no signs of slowing down. During a book tour stop in Georgia last week, DeSantis told attendees “You ain’t seen nothing yet.” More

The impending merger of WWE and Endeavor Group’s UFC means each sports entertainment property will have more leverage when media rights negotiations come up.
A new publicly traded company combining WWE and UFC will be controlled by Ari Emanuel’s Endeavor. WWE’s Vince McMahon will remain as executive chairman.
WWE has domestic rights deals for its Raw and Smackdown programming coming up in 2024, meaning negotiations will take place this year.

World Wrestling Entertainment

Networks and streaming services need to get ready for a media rights smackdown.
World Wrestling Entertainment is due to negotiate new media deals this year, a process made all the more interesting by its planned combination with UFC to form a publicly traded new company controlled by Ari Emanuel’s Endeavor Group. Endeavor expects the WWE-UFC merger to be completed in the second half of this year.

The merger will not only make WWE a heavyweight in these conversations. UFC should also benefit ahead of 2025, when its U.S. media rights deals come up, including with Disney’s ESPN.
The agreement, announced on Monday, comes after WWE had been on the sale block in the last few months. The process transpired ahead of negotiations for WWE’s domestic media rights deals for two key parts of its programming: Raw and Smackdown, which are on NBCUniversal’s USA Network and Fox Corp’s broadcast network, respectively.
Current WWE CEO Nick Khan told CNBC last week that WrestleMania weekend, which just took place in Los Angeles, would lead into rights discussions ahead of the 2024 expiration. “We’re optimistic,” Khan said last week, noting NBC and Fox were both “terrific” partners.
WWE’s media partners have been preparing for the high-stakes talks, too.
“From a rights point of view, we’re focused on their rights renewal. We’re ready, we haven’t engaged with them on the rights yet. We’re ready to engage with them when they’re ready. But ultimately, our appetite for renewal depends on what happens with the rest of our sports portfolio,” Fox CEO Lachlan Murdoch said at a recent conference.

Sports organizations have seen media rights valuations step up in recent years. Even with the number of cable-TV bundle subscribers declining, live sports still gets the highest ratings on TV.
Plus, with streaming services trying to bulk up on anything that will make their subscriptions a must for consumers, they’ve entered the mix too, hungry for sports rights.
The NFL locked in 11-year media rights contracts across media companies including NBC, CBS, Fox and ESPN, which included the right to simulcast games on streaming services. Amazon’s Prime Video became the exclusive home of Thursday Night Football. Meanwhile, the NBA is likely to lean toward streaming partnerships in its next round of rights negotiations, while MLB, NHL and other sports properties have inked streaming deals.
Even when WWE shuttered its own streaming service, it licensed all of that content, including WrestleMania, to Comcast’s Peacock, which won’t be on the table this year.
“I think everything is up for grabs with these media rights deals. There’s a wide range of opportunities of what can be done and where these properties can end up,” said sports media consultant Lee Berke of WWE, UFC, and pretty much any other sports league.
Besides their massive popularity, WWE and UFC also have some of the most-seasoned entertainment and sports rights negotiators sitting on their side of the table.
Khan, who will become WWE president after the merger closes, joined the wrestling company in 2020 after previously serving as the co-head of television at Creative Artists Agency. During his time with CAA, he had formed a relationship with McMahon during a recent round of TV rights negotiations for WWE.
Endeavor’s Emanuel and Mark Shapiro have sat at many negotiation tables.
“With Endeavor, given their skill set, particularly through IMG, negotiating sports rights deals, it’ll provide a value added to WWE and their negotiating process,” said Eric Handler, senior media and entertainment analyst at Roth Capital Partners. Agencies IMG and WME merged in 2014 to create powerhouse Endeavor. It will also work for UFC negotiations, he noted.
Emanuel touted Endeavor’s experience with sports deals well before the WWE deal.
“Internationally, one of our last deals we did for the UFC in the UK, there were six bidders for our rights. So – and we’re up over 100% and our IMG Media business is doing very, very well,” he said in Endeavor’s most recent earnings call. “So the demand for live sports and those rights broadcast is in high demand.”
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC. More