1. SpaceX Sells Internal Shares at High Valuation;
2. Salesforce Significantly Boosts Profit Margins;
3. GameStop Transforms Into Investment Firm;
4. KPMG Considers Merging UK and Swiss Arms;
5. Biden Cancels $4.8 Billion in Student Loans;
6. Blackstone Offers $1 Billion in Corporate Loans;
7. New NYC Office-to-Residential Project Begins Leasing.
1. SpaceX Sells Internal Shares at High Valuation
Sources revealed that Elon Musk’s rocket company SpaceX is considering selling $500 million to $750 million worth of internal shares at $95 each.
This would value SpaceX at around $175 billion, potentially placing it among the world’s 75 most valuable companies.
The final offering price will depend on supply and demand between internal shareholders and buyers.
SpaceX’s core business includes launching satellites for private companies and government agencies like NASA, as well as providing its Starlink satellite internet services.
This year, SpaceX is expected to generate $9 billion in revenue, with 2024 revenue projected to grow to $15 billion.
SpaceX hopes to ride the momentum and go public by the end of 2024.
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2. Salesforce Significantly Boosts Profit Margins
Enterprise software giant Salesforce raised its profit forecast for the current quarter, driven by successful cost-cutting measures.
CEO Marc Benioff trimmed the company’s workforce to expand margins, reducing headcount by 11% to 70,843 full-time employees as of October 31. In September, Salesforce announced plans to hire 3,000 AI-focused employees.
In addition to layoffs, the company introduced self-service purchasing options to reduce sales and marketing costs. Last week, Salesforce announced that some of its top-selling products will now be available through Amazon’s AWS platform—broadening customer reach and saving on sales expenses.
Salesforce now expects quarterly earnings of $2.26 per share, above analysts’ estimates.
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3. GameStop Transforms Into Investment Firm
Wall Street analysts discovered an unusual new policy in GameStop’s regulatory filing: CEO Ryan Cohen is now authorized to invest the company’s $900 million in cash and equivalents in equities rather than just short-term bonds. The strategic shift shocked many.
Michael Pachter, CEO of Wedbush and a longtime GameStop critic, called it “the most insane thing GameStop has ever done.”
Typically, companies invest excess cash in government bonds offering over 5% yields. Cohen, however, hopes to capitalize on the stock market rally to boost returns.
The filing reveals that Cohen is allowed to invest in stocks aligned with his personal portfolio.
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4. KPMG Considers Merging UK and Swiss Arms
Sources say Big Four firm KPMG is considering a merger between its UK and Swiss divisions in an effort to boost profits. The merger still requires approval from partners in both countries.
On Friday, UK and Swiss partners were notified of the potential merger, and by Monday the news had been shared with some employees.
KPMG has lagged behind the other Big Four firms due to repeated scandals and fines. UK CEO Jon Holt, who took the helm in 2021, is seeking to rebuild the firm’s reputation.
Holt believes the merger would allow the combined entity to create more service lines and global jobs.
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5. Biden Cancels $4.8 Billion in Student Loans
On Wednesday, President Joe Biden announced the forgiveness of $4.8 billion in student loans, easing the burden for more than 80,000 Americans.
Additionally, $2.2 billion in debt relief will go to 46,000 borrowers who have been repaying income-driven loans for long enough to qualify for forgiveness.
Since taking office, Biden has canceled $132 billion in loans for 3.6 million Americans. He reaffirmed his commitment to helping student borrowers chase their dreams without financial burdens.
A further $2.6 billion in debt forgiveness was granted to 34,000 public sector workers.
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6. Blackstone Offers $1 Billion in Corporate Loans
Sources revealed that Blackstone has provided over $1 billion in private credit to cybersecurity firm BeyondTrust.
The loan package includes $880 million at an interest rate 5% above the SOFR benchmark, plus additional credit lines. BeyondTrust will use the funds to refinance existing senior and second-lien debt.
The deal represents about 35% of BeyondTrust’s enterprise value.
BeyondTrust, which develops cybersecurity and remote access software, is currently owned by private equity firm Francisco Partners.
Its previous senior loan, due in 2025, carried a 4% premium over LIBOR.
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7. New NYC Office-to-Residential Project Begins Leasing
This Friday, the newly converted rental apartment tower Pearl House in Manhattan’s Financial District officially begins leasing. Developer Vanbarton Group transformed a 1970s office building into 588 luxury rental units.
Studio and one-bedroom apartments start at $3,500 to $4,700 per month, with amenities including a bowling alley.
Located at 160 Water Street, the new building is expected to be fully completed by mid-2024. The conversion began during the early days of the pandemic.
Mayor Eric Adams has strongly supported converting vacant office buildings—particularly in areas like the Financial District—into housing.
Vanbarton also plans to convert two more office buildings in FiDi and Midtown.
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本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。