by The NFL scores big
In many ways, the NFL couldn’t have asked for a better outcome for the Super Bowl. Have a exciting overtime victory that cemented the Kansas City Chiefs as the league’s latest dynasty; a well-reviewed Usher halftime show; a complete list of expensive ads; and, of course, Taylor Swift herself.
It was a powerful reminder of the Super Bowl’s unique position in America’s cultural landscape, and how that can translate into billions for a giant sports league.
The game was a place to see and be seen. Yes, Swift arrived from Japan in time to cheer on her boyfriend, Chiefs star Travis Kelce. And A-list celebrities like Jay-Z, Beyoncé and LeBron James were spotted at Allegiant Stadium in Las Vegas.
Also present They were corporate magnates including Elon Musk, who promoted a increased activity on their social network X during the game: Apple’s Tim Cook and Twitter and Block co-founder Jack Dorsey, who was wearing a crypto joke t-shirt.
The game could set a record. The broadcast, perhaps with the help of an army of Swift fans, can overcome the 115 million viewers who tuned in last year, making it the most-watched show in U.S. history. (Viewership for NFL games has rebounded strongly in recent years; the Jan. 28 AFC and NFC championship games accounted for nearly 39 percent of national linear television viewing.)
That would help explain why advertisers were still willing to shell out more than $7 million for a 30-second ad during last night’s broadcast. (More on the ads later.) “In this era of fragmentation, the Super Bowl is what television used to be,” Brad Adgate, a veteran media analyst, told The Times.
The NFL also stands to benefit from its growing ties to sports betting. It was expected that the bets exceed 23 billion dollars. Not all of that was necessarily legal, but the level of interest may validate the league’s interest in gambling, which has led to lucrative sponsorships with betting companies and, more importantly, increased fan engagement. sports.
All of this bodes well for the future of the league. The NFL will already raise more than $125 billion from the sale of broadcast rights to its games over the next decade. The good audience numbers are allowing the league distribute games between streaming giants for incredibly high prices.
That success is driving NFL franchise valuations to record levels and, as DealBook reported this weekend, will be high on the agenda at next month’s owners meeting to discuss how to allow institutions to buy teams.
About ads: Which were the most commented? Among the contenders was actor Michael Cera. absurd CeraVe spotBeyoncé’s Stealth Album Announcement at a Verizon Launch and the Latest Ben Affleck’s appearance in Dunkin’ (with Matt Damon, Jennifer Lopez and Tom Brady, who also appeared in a BetMGM Announcement).
But one much-discussed ad, for Cetaphil lotion, drew criticism after a social media influencer said the premise had been stolen.
THIS IS WHAT’S HAPPENING
Donald Trump revives concerns about his commitment to NATO. European leaders warned of the geopolitical risks of a second Trump term after the former president said this weekend that he would not defend some NATO members against an attack from Russia. But some hardline Republicans, including Sens. Lindsey Graham and Marco Rubio, declined to criticize Trump.
An aid bill for Israel and Ukraine advances in the Senate. The emergency funding measure, which would send $60 billion to kyiv and $14 billion to Jerusalem, easily cleared a critical hurdle Sunday that could see it passed by the full chamber soon. But the bill faces greater difficulties in the Republican-controlled House.
Israel strikes back after Moody’s downgrade. The credit rating agency cut its sovereign rating for Israel over concerns about the war in Gaza and the weakening of the country’s “executive and legislative institutions.” Israeli officials, including Prime Minister Benjamin Netanyahu, answered over the weekend that Israel’s economy would recover “the moment we win the war.” Shares in Tel Aviv rose on Monday.
Counting the latest wave of tech layoffs. Companies like Microsoft, eBay and Snap have cut 34,000 jobs since the beginning of the year as they refocus their efforts on creating products around generative AI. The Financial Times reports, citing data from Layoffs.fyi. One analyst noted that the layoffs have only just begun.
A critic attacks Tesla
Tesla shareholders have had a tough time lately, with the automaker’s shares falling amid concerns about the electric vehicle market and a flood of unflattering headlines about Elon Musk.
Then more bad news came during Sunday’s Super Bowl.
An enemy with a lot of money gained advertising time during the game. The Dawn Project, a nonprofit organization sponsored by tech entrepreneur Dan O’Dowd, used a pair of expensive slots to call for a boycott of Tesla, part of the former Senate candidate’s plan. long lasting crusade.
Quoting a recent Washington Post investigation As for deaths and injuries related to Tesla vehicles operated with Autopilot, the two ads called self-driving technology “a reckless experiment” that has “claimed 33 lives.” (Under pressure from regulators, Tesla recalled more than two million vehicles in December following The Post’s report.)
Tesla has retreated, sending Project Dawn a cease and desist letter in response to previously printed and broadcast advertisements. Sunday ads increased a lot of discussion on Musk’s social media platform, X, with Tesla supporters and critics discussing the technology. (Musk himself did not intervene.)
The state of the electric vehicle market could be a bigger concern. Tesla, recently displaced by China’s BYD as the leader in electric vehicle sales, announced last weekend that reduce the price of its popular Model Y at $1,000. This follows a series of discounts in Asia and Europe.
Musk downplayed the last move as a temporary measure to stimulate demand during the winter, when sales tend to decline.
Tesla is under pressure for other reasons, too. The Wall Street Journal recently reported that some directors of Musk’s companies had Complicated financial ties with Musk., and knew of his illicit drug use. Meanwhile, a Delaware court threw out a lawsuit almost $56 billion pay package for Musk that had been approved in 2018.
Tesla shares have faltered. It is down more than 20 percent this year, the worst performer in the so-called Magnificent Seven group of stocks that has propelled the S&P 500 to new highs.
Even long-time bulls are getting impatient. In a note to investors last week, Wedbush analyst Dan Ives called on the board to take control of the narrative “to stop this Category 5 hurricane on Tesla stock.”
The last mega agreement in the oil zone
Mergers in the fossil fuel sector show no signs of cooling, as two Permian Basin producers announced a $26 billion deal on Monday.
Diamondback Energy Agreed to Buy Endeavor Energy in Cash and Stock Deal. Endeavor, founded by billionaire Autry Stephens, had become the subject of acquisition speculation in oil circles in recent months. (According to the Wall Street JournalConocoPhillips had also reportedly explored an offer.)
The deal would create one of the largest drillers for Permian shale, a tract of land in west Texas and southeastern New Mexico that is rich in oil and natural gas.
Fossil fuel mergers and acquisitions are heating up amid rising oil prices. West Texas Intermediate, the U.S. benchmark, is up about 9 percent this year, driven in part by concerns that the war in the Middle East could limit global supplies.
Even as Washington, Brussels and other governments promote greener energy sources, Big Oil is betting that demand for fossil fuels will remain strong for years to come.
The enormous profits have fueled a wave of energy mergers, even when agreements are generally delayed. The spree began in October with back-to-back blockbuster deals: Exxon Mobil’s $60 billion bid for shale driller Pioneer Natural Resources and Chevron’s $53 billion bid for Hess.
Then in December, Occidental Announced a $12 billion acquisition of CrownRock, a driller with a large presence in the Permian. And last month Chesapeake Energy agreed to buy liquefied natural gas producer Southwestern Energy in an all-stock deal valued at $7.4 billion.
Next week
Stocks continue to break records. Will new inflation data and earnings reports keep the streak going? This is what you should look at.
Tuesday: It’s the event of the week: the Commerce Department is set to release its latest report on the Consumer Price Index, with economists forecast that inflation fell last month.
And Airbnb, Shopify, Krispy Kreme and Coca-Cola present results, offering new insights into consumer purchasing power.
Wednesday: Economic data releases on the calendar include the Consumer Price Index in Britain and fourth-quarter GDP from the eurozone and Japan. Cisco, Sony and Occidental Petroleum plan to report results.
Thursday: Retail sales figures are scheduled for release. Additionally, Airbus, DoorDash, Deere and DraftKings will announce their earnings.
Friday: The University of Michigan will release its latest report on consumer confidence.
FAST READING
Offers
The cost of Disney’s fight against activist investors, including Nelson Peltz could exceed 70 million dollars, making it one of the most expensive proxy battles ever recorded. (WSJ)
He The Italian luxury company Tod’s is going private in a sale to its founding family and LVMH-backed investment firm L Catterton, which values it at $1.5 billion. (FOOT)
Policy
Representative Mike Gallagher, the Wisconsin Republican who chairs a House committee that oversees U.S. efforts to compete with China, is not running for re-election. (WSJ)
As departure of a senior official at the Federal Energy Regulatory Commission threatens the Biden administration’s climate plans. (Political)
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