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THE HEADLINES

 

YOUR HUMBLE SERVANT

(Yes, this is actually how Patrick Byrnes signs emails. That is some serial killer sh*t.)

Nobody:
Absolutely nobody:
Overstock CEO Partick Byrne: “Starting in 2015 I assisted in what are now known as the ‘Clinton Investigation’ and the ‘Russian Investigation’”

Patrick Byrne, the erm, eccentric, founder, and CEO of Overstock.com has resigned after more than 20 years at the helm of the company … which if you’re to believe TV ad spots, sells more than overstocked goods. But I digress.

Following remarks that he was involved in the 2016 Russian election meddling investigation and claims that he was romantically involved with Maria Butina, a Russian operative charged with infiltrating the NRA, shares of Overstock tumbled more than 30%.

It’s worth noting that Byrne released a statement titled “Overstock.com CEO Comments on Deep State, Withholds Further Comment” in which he referred to government officials as the “Men In Black” rather unexpectedly as the only accusations against him were levied by relatively unknown (read: WordPress blogs) news outlets.

Was this out of character for Byrne?

This certainly wasn’t the first time Byrne engaged in what medical professionals would refer to as “f*cking outlandish human behavior.” Case in point, Byrne championed a security token trading platform called tZERO at the retailer … an innovation he compared to the discovery of the polio vaccine.

And then there was the time he joked on a conference call about lending office space to the SEC, which is currently investigating tZERO. If all else fails, there will certainly be a job opening for him at Tesla.

Bottom line? Dude is a loose cannon and his company’s board couldn’t risk keeping him around. Ya hate to see it.

MERGER MO- … THURSDAY?

Three household names made multi-billion-dollar deals during an otherwise quiet day as the financial community awaits Jay Powell’s remarks this afternoon.

Start ’em young

Toymaker Hasbro inked a deal for Entertainment One, whose main franchise Peppa Pig is all the rage amongst the pre-school set. The Nerf and Power Rangers maker has been on a mission to partner with movie and entertainment companies as it looks to capitalize on the development of feature-length children’s films … and the subsequent distribution of overpriced toys.

Cyber-synergy

“I’m not gonna lie to you, it’s gonna get weird … two dragons.” – VMware, probably.

Software maker VMware is buying not just one, but two companies as it looks to enhance its endpoint cybersecurity offering. Whatever that actually means. Carbon Black is a cybersecurity company that allows companies to scan their own devices to check for hacks … so the electronic equivalent of a cop who shows up to tell you when your house got robbed.

It’s other purchase, Pivotal provides security for companies’ infrastructure that can be deployed via the cloud. The combined value of the purchases is around $4.8B, and VMware expects a $1B increase in revenue over the first year.

Chic, boutique

MGM is getting itself into the boutique hotel business by purchasing a 50% stake in the small hotel company Sydell Group. You may have heard of Sydell’s flagship hotel NoMad … unless, of course, you’re poor. Terms of the deal weren’t disclosed but MGM is looking at growing its high-end hotel brands throughout select cities across the world.

 

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IN OTHER NEWS

• VanEck Associates’ ETF business is leaving BNY Mellon for the greener pastures (read: State Street). VanEck is consolidating its custody work, some of which already resides under the State Street umbrella. VanEck manages more than $49B in assets, and it’s unsure, as of yet, how much of that will be moving to the BNY rival. The loss will certainly hurt BNY’s goal to become a larger player in ETFs, but given that ETFs make up more than 20% of daily trades, there are other fish in the sea.

 

• Three regional Fed heads have spoken out in opposition of another interest rate cut. Kansas City, Dallas, and Philadelphia’s Fed chiefs all made abundantly clear their disagreement with a certain policy-maker’s (read: POTUS) calls to lower rates. The Fed Presidents will meet today at their annual retreat in Jackson Hole and will provide more guidance. Apres-ski, anyone?

 

• Dion Weisler, CEO of HP, is stepping down for “family health reasons,” according to the company. Weisler will be replaced by Enrique Lores, the current head of imaging, printing, and solutions. Lores will take the reins on November 1st. The largest computer manufacturer’s stock fell more than 6% on the news. Dion is hanging around through January to help bring Enrique up to speed. His lessons will presumably be distributed via inkjet print-outs.

 

• It’s all about optics. Alibaba is hitting pause on its planned entrance to Hong Kong’s stock exchange as protests in the city rage on. The multibillion-dollar listing was set to launch over the next few weeks, but as you could imagine, political unrest has lead to market instability and investor queasiness. It’s also not a great look for one of China’s largest companies to jump into Hong Kong during the third month of Hong Kong’s protests over China’s handling of “democracy.” That sound you hear is Jack Ma’s private jet getting as far away from this situation as possible after he steps down.

 

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