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Ryan Cohen could be in for a big payday, but he has to grow meme darling GameStop to $100 billion
CNBC· 2026-01-07 14:12
Core Viewpoint - GameStop has implemented a performance-based equity incentive plan for CEO Ryan Cohen, which is contingent on achieving significant growth in market capitalization and cumulative earnings [1][2]. Group 1: Incentive Structure - The plan grants Cohen stock options that will only vest if GameStop reaches a market capitalization of $100 billion and $10 billion in cumulative EBITDA [1]. - There is no partial credit; if the company does not meet at least $20 billion in market capitalization and $2 billion in cumulative EBITDA, none of the options will vest [2]. - The total award for Cohen could amount to stock options for 171,537,327 shares at a price of $20.66 per share if the targets are met [3]. Group 2: Company Performance - GameStop's shares fell by 36% last year, and the current market capitalization stands at $9.3 billion [2]. - The company reported a net income of $77.1 million in the third quarter [2]. Group 3: Business Strategy - GameStop is diversifying its business beyond physical video game sales, including ventures into collectibles, trading cards, and aggressive bitcoin purchases [4]. - However, there is a lack of a clear master plan on how these initiatives will achieve the growth necessary to meet the compensation targets [4]. Group 4: Alignment of Interests - The compensation structure aims to align Cohen's incentives with long-term shareholder returns by linking his pay to what GameStop describes as "extraordinary growth" [5].
Alaska Airlines buys more than 100 Boeing jets in carrier's biggest order ever
CNBC· 2026-01-07 14:00
Core Viewpoint - Alaska Airlines is making a significant investment in its fleet by ordering over 100 Boeing jets, which will secure order slots for expansion through the next decade [1][2]. Group 1: Order Details - The order consists of 105 Boeing 737 Max 10 jets, which are yet to be certified, and five 787-10 Dreamliners [1]. - This is Alaska Airlines' largest order to date, with options for an additional 35 Max 10 planes included in the deal [2]. - Out of the total order, 53 planes are new, while 52 are from previously exercised options [2]. Group 2: Certification and Delivery - Alaska Airlines anticipates FAA certification for the Max 10 jets within this year, with deliveries expected to commence in 2027 [2]. Group 3: Industry Context - Boeing currently has over 6,000 aircraft on backorder, indicating strong demand in the aviation sector [3]. - Alaska Airlines' purchase reflects confidence in Boeing, despite past issues with aircraft delivery, such as a previous incident involving a 737 Max 9 [3].
Oil sales from Venezuela to continue indefinitely, sanctions will be reduced, sources say
CNBC· 2026-01-07 13:37
A motorcycle rider passes in front of an oil-themed mural in Caracas, Venezuela on September 01, 2022.Oil sales from Venezuela to the U.S. will continue indefinitely and sanctions will be reduced, sources close to the White House told CNBC's Brian Sullivan on Wednesday. This is breaking news. Please refresh for updates. ...
eVTOL maker Joby buys new Ohio factory, more than doubles manufacturing footprint as it vies for FAA approval
CNBC· 2026-01-07 13:22
Core Viewpoint - Joby Aviation is expanding its manufacturing capabilities by acquiring a 700,000-square-foot facility in Dayton, Ohio, to support its production goals for electric vertical takeoff and landing aircrafts (eVTOLs) [1][2]. Group 1: Manufacturing Expansion - The new facility in Ohio more than doubles Joby's manufacturing footprint [2]. - Joby plans to increase its production capacity to four aircrafts per month by 2027, as previously announced [2]. Group 2: Strategic Growth and Industry Impact - The facility acquisition aligns with Joby's growth plans and aims to revitalize the commercial and defense aerospace industries in the U.S. [2][3]. - Joby emphasizes the importance of reindustrialization in Ohio, supported by governmental and policy backing, to ensure future aircraft are built in America [3]. - The air taxi market is witnessing increased manufacturing activity, with companies like Joby scaling up production to gain a competitive edge [3].
Private payrolls rose 41,000 in December, slightly below expectations, ADP says
CNBC· 2026-01-07 13:15
Group 1 - Private sector job creation turned positive in December with companies adding 41,000 hires, a reversal from the loss of 29,000 in November [2][4] - Payroll growth was entirely in services industries, with education and health-related fields adding 39,000 jobs and leisure and hospitality contributing 24,000 [3] - Nearly all job gains came from companies employing fewer than 500 workers, while larger firms added only 2,000 jobs [4] Group 2 - Wage gains remained tempered, with those staying in their jobs seeing an average annual increase of 4.4%, while job changers saw gains of 6.6% [5] - Economists expect 73,000 new jobs for the month of December, with the unemployment rate projected to edge down to 4.5% [6]
Trump's Greenland considerations, Nvidia's China demand, xAI's latest funding round and more in Morning Squawk
CNBC· 2026-01-07 13:08
Group 1: Semiconductor Industry - Nvidia CEO Jensen Huang reported "very high" demand for H200 artificial intelligence chips in China, with production restarted and export licenses being finalized with the U.S. government [2][3] - H200 sales are expected to be in addition to Nvidia's previously shared $500 billion two-year forecast, with the Chinese market potentially worth $50 billion annually [3] Group 2: Media and Entertainment - Warner Bros. Discovery's board unanimously rejected Paramount Skydance's hostile takeover bid, citing it as "inferior" to Netflix's $72 billion deal [5][6] - The board emphasized the compelling value and clear path to closing of the Netflix deal, providing protections for shareholders [6] Group 3: Technology and AI - xAI, led by Elon Musk, raised $20 billion in a funding round, exceeding its $15 billion target, with investments from Nvidia, Cisco, Fidelity, and Baron Capital Group [7] - xAI operates the social platform X and has faced regulatory scrutiny due to issues with its Grok chatbot, but secured a contract with the Department of Defense for its AI agents platform [8]
WBD once again rejects Paramount offer in favor of Netflix deal
CNBC· 2026-01-07 12:01
Core Viewpoint - Warner Bros. Discovery (WBD) board unanimously recommends shareholders reject a hostile takeover offer from Paramount Skydance, believing it to be inferior to a $72 billion deal with Netflix for WBD's studio and streaming business [1] Group 1: Hostile Takeover Bid - Paramount Skydance launched a hostile bid for WBD, offering $30 per share in an all-cash deal for the entire company, including its TV networks [2] - The WBD board initially recommended rejecting the offer, and Paramount made further attempts to acquire WBD's assets [3] Group 2: Support and Concerns - Paramount secured backing from billionaire Larry Ellison, addressing concerns raised by WBD's board regarding the financial support for the bid [3] - An amended offer from Paramount included assurances from Ellison regarding the family trust and asset transfers, but did not increase the bid amount [4] Group 3: Offer Deficiencies - WBD's board criticized Paramount for failing to submit a competitive proposal despite clear guidance on deficiencies in previous offers [5] - The board emphasized that Paramount's offers did not represent the best and final proposal, contrasting it with the Netflix merger agreement [5] Group 4: Acquisition Interest Timeline - Paramount's interest in acquiring WBD's assets began in September, leading to three takeover offers before WBD initiated a formal sale process [6]
Euro zone inflation hits 2% in December, in line with forecasts
CNBC· 2026-01-07 10:22
Group 1 - Euro zone inflation stood at 2% in December, aligning with the European Central Bank's (ECB) target, down from 2.1% in November [1] - Core inflation, excluding volatile prices, decreased to 2.3% in December from 2.4% in November, while services inflation fell to 3.4% from 3.5% [2] - The ECB maintained its key deposit facility rate at 2% for the fourth consecutive time in December, with the last rate cut occurring in June [2] Group 2 - The ECB's rate-cutting cycle has reduced rates from a record high of 4% in 2024, with indications that the easing cycle may be nearing its end [3] - Following the inflation data release, the euro and Stoxx 600 remained unchanged, but the return to the ECB's target could indicate potential future rate cuts [4] - Analysts suggest that the current inflation levels provide the ECB with justification to consider further interest rate cuts in 2026, although the recent changes are viewed as minor [5][6]
European markets head for mixed open as Greenland fears grow
CNBC· 2026-01-07 06:13
Core Viewpoint - European stocks are anticipated to open in mixed territory amid growing market concerns regarding U.S. President Donald Trump's threat to annex Greenland [1][2] Group 1: Market Reactions - The U.K.'s FTSE index is expected to open 0.2% lower, while Germany's DAX is projected to rise by 0.26%, France's CAC 40 by 0.24%, and Italy's FTSE MIB is expected to remain flat [2] - Global market focus is shifting towards President Trump's intentions regarding Greenland following the U.S. capture and arrest of Venezuela's leader Nicolas Maduro [2] Group 2: U.S. Government Position - The Trump administration is exploring "a range of options" to acquire Greenland, which may include "utilizing the U.S. Military," as stated by White House press secretary Karoline Leavitt [3] - Trump has emphasized the need for the Arctic island for national security, citing Russian and Chinese activities in the region as a concern [3] Group 3: International Response - Both Greenland and Denmark have firmly stated that the territory is not for sale, with European leaders asserting that "Greenland belongs to its people" and that decisions regarding the territory should be made solely by Denmark and Greenland [4]
Berkshire Hathaway lifts new CEO Greg Abel’s salary to $25 million
CNBC· 2026-01-07 00:48
Berkshire Vice Chairman Greg Abel speaks with shareholders during the Berkshire Hathaway Inc. annual shareholders' meeting, in Omaha, Nebraska, U.S., May 2, 2025.Greg Abel, the newly minted Chief Executive of Berkshire Hathaway, is getting a bump in salary as he takes over from the legendary investor Warren Buffett.Abel, who began his new role at the conglomerate on Jan. 1, will see his annual cash salary rise to $25 million, according to a Tuesday filing with the U.S. Securities and Exchange Commission. Th ...