1. Bumble Founder to Step Down as CEO
2. No Salary Increases at McKinsey & BCG in 2024
3. Princeton Hires MIT CIO for Endowment
4. Dish Shares Plunge 22% Amid Customer Loss
5. European AI Startup Raises $500 Million
6. Hilton Acquires Bluegreen for $1.5 Billion
7. Hedge Fund Treasury Shorts Backfire
1. Bumble Founder to Step Down as CEO
Dating app company Bumble Inc. announced today that founder and CEO Whitney Wolfe Herd will step down in January, handing over the reins to Lidiane Jones, current CEO of Slack Technologies. Wolfe will remain at the company as Executive Chair.
Investors expressed concern over the founder’s exit from day-to-day operations, sending Bumble’s stock down 10% to $12.29—its lowest level on record.
Bumble is unique among dating apps in giving women the first move in conversations. It has also expanded to include job networking features.
Wolfe said she had long considered the transition and deeply respects her successor.
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2. No Salary Increases at McKinsey & BCG in 2024
Sources revealed that top consulting firms McKinsey & Company and Boston Consulting Group will not raise base salaries for junior staff in the U.S. next year.
Last year, fierce competition for talent led to the biggest salary increases in over two decades. But this year’s economic downturn and business slowdown are forcing firms to control costs to protect profit margins.
Source Global Research CEO Fiona Czerniawska said firms are prioritizing partner profit retention, meaning base salaries for junior staff are unlikely to rise as they did in the previous two years.
McKinsey pays $112,000 for bachelor’s degree hires and $192,000 for MBA graduates.
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3. Princeton Hires MIT CIO for Endowment
Princeton University announced today it has hired Vincent Tuohey, the Chief Investment Officer of MIT, to manage its $34.1 billion endowment.
Tuohey replaces Andrew Golden, who is retiring after more than 30 years at the helm.
Tuohey joined MIT in 2010 and holds a bachelor’s and MBA from Harvard. He also served in the U.S. military from 2002 to 2006.
For the fiscal year ending in June, while the S&P 500 rose 18%, the average return for Ivy League endowments was just 2.1%.
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4. Dish Shares Plunge 22% Amid Customer Loss
Dish Network’s disappointing Q3 results triggered a 22% stock drop to $4.28—the steepest single-day decline in its history.
Wireless broadband customer losses were five times greater than analysts had forecast. The company, like other traditional pay-TV providers, is losing customers to streaming services.
Dish is shifting focus to mobile, 5G, and broadband services. It reported $3.7 billion in revenue and a net loss of $0.26 per share, missing expectations of a $0.06 gain.
Bloomberg analysts said Dish faces an uphill battle competing with AT&T, Verizon, and T-Mobile.
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5. European AI Startup Raises $500 Million
Aleph Alpha GmbH, a European AI startup aiming to rival OpenAI and Google, raised $500 million from a consortium of industrial and financial backers.
Investors include Schwarz Group, Bosch’s venture arm, SAP, and U.S.-based HP.
German Vice Chancellor Robert Habeck said Aleph Alpha is a national priority and a crucial competitor to American tech giants.
Anthropic, a U.S. startup with a similar product, is reportedly raising $2 billion.
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6. Hilton Acquires Bluegreen for $1.5 Billion
Hilton Grand Vacations Inc. announced today it will acquire Bluegreen Vacations in an all-cash deal worth $1.5 billion, with a 100% premium on share price. The transaction is expected to close in the first half of next year.
Following the announcement, Hilton’s stock fell 8.8%, while Bluegreen’s doubled.
The acquisition will expand Hilton’s membership base to over 740,000 and nearly 200 resorts.
Hilton’s CEO said Bluegreen already has several strong partnerships, making it a strategic fit.
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7. Hedge Fund Treasury Shorts Backfire
Data released by the CFTC on October 31 showed that hedge funds’ net short positions on U.S. Treasuries hit their highest level since 2006—unfortunately at the wrong time.
On October 23, the 10-year Treasury yield peaked at 5.02%, but subsequent economic data raised expectations that the Fed might pause its tightening cycle. Treasury yields then plummeted by 40 basis points.
Short-sellers scrambled to buy back bonds to cover positions, further fueling the rally.
Traders now anticipate 100 basis points in Fed rate cuts by the end of next year. Citigroup strategists believe the Treasury rally could continue this week.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.