The M&A market just went out with a bang after a terrible year, and it could be a sign of good times to come
Hi! Dan DeFrancesco checking in from NYC. Turns out I might have touted my World Cup picks a bit too soon.
Sam Bankman-Fried was arrested last night by Bahamian authorities, just a day before he was set to testify before Congress. Hours after his arrest, the SEC announced it will file separate charges against SBF relating to violations of securities law. This is a developing story.
Also today, we've got more job cuts on Wall Street, why small banks feel like they're getting a raw deal with Zelle, and where you can find the best company culture. (Hint: it's not on Wall Street.)
But first, let's make a deal.
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1. Return of the M&A.
Let's not sugarcoat it: This year has been awful for M&A.
Blame it on rising interest rates. Blame it on a inflation and a looming recession. Blame it on VCs who propped up startups with valuations they would never be able to materialize.
There are plenty of places to point the finger, but the end result is the same: Dealmaking ground to a halt by the middle of the 2022.
Even transactions that did get announced this year have been a mess.
The most high-profile one — Elon Musk's acquisition of Twitter — became more circus act than deal, and has left banks scrambling to try and get the debt off their books.
Meanwhile, the largest deal of the year — Microsoft's $68.7 billion bid for Activision — might not even happen, thanks to regulators.
But it's always darkest before dawn.
Investment bankers showed a sign of life on Monday, as a string of deals were announced: Amgen's $27.8 billion deal for Horizon Therapeutics, which is set to make one Wall Street veteran very happy; Microsoft buying nearly a 4% stake in the London Stock Exchange Group; PE firm Thoma Bravo's $8 billion bid for Coupa Software; and BDT Capital Partners' $3.7 billion deal for Weber.
Was it a last push to wrap up deals before the holidays kick off? Or perhaps a final attempt by some bankers to salvage what is likely to be a disappointing year-end bonus?
Or maybe it was a taste of what's to come in 2023?
As Insider reporters chat with sources about the biggest themes to keep an eye on for next year, one constant across industries has emerged: the return of M&A.
We've talked before about how streamers will be at a critical juncture in 2023. Insider's Lucia Moses, Elaine Low, and Claire Atkinson mapped out the 21 production companies that could be acquisition targets as a result.
And it's not just the likes of Apple and Netflix that will be on the hunt for deals, as Hollywood has become a favorite of private-equity firms.
Venture capitalists are also predicting a big year of M&A, according to reporting from Insider's Melia Russell. From a consolidation among healthcare startups to a top-tier VC going public, 2023 is sure to be active, if nothing else.
Agree? Disagree? Let me know.
In the meantime, read these so you can stay ahead of the curve:
In other news:
2. More layoffs are coming to Goldman Sachs. The bank is planning on cut at least 400 roles in its struggling consumer division, Bloomberg reports. Here's where else the firm is looking to trim.
3. Sam Bankman-Fried has been arrested. The disgraced founder of FTX was arrested Monday by Bahamian authorities based on a "sealed indictment" from US authorities. More on the arrest here.
4. Small banks might want out of Zelle. In the wake of regulatory pressure, the payment app, which is owned by a handful of large banks, is trying to standardize how scammed customers get refunded. But credit unions and community banks aren't happy with the new terms, The Wall Street Journal reports. Here's why.
5. Ray Dalio invested in a submarine company for the ultra-rich. The Bridgewater founder now has a stake in Triton Submarines, according to the Financial Times. More on why Dalio, along with another high-profile name, is obsessed with going under the sea.
6. It's the end of our employment (but we all feel fine). Layoffs are happening everywhere you turn, but workers aren't as concerned about losing their jobs as they have been in the past, according to a recent survey. Here's why everyone is so chill.
7. Big tech nabs from Wall Street. Goldman Sachs MD Cameron Brien and Morgan Stanley executive director Srinivas Nakka have joined Meta and Amazon, respectively, eFinancialCareer reports. More on their new roles here.
8. Company culture on Wall Street: not great! A list of the top-rated company cultures at large firms didn't have a financial firm anywhere near the top 25. But you probably already figured as much. Besides, who cares if you hate where you work, as long as the checks clear. Right? Right?! Check out the full list here.
9. This British billionaire doesn't want you working from home. Sir James Dyson, who founded Dyson, wrote a scathing takedown of a new UK policy intended to make flexible working the default in the country. Here's why Dyson thinks that's a terrible idea.
10. It's that time of year when you realize how bad you are at wrapping presents. Here are some wrapping hacks that'll help you save some time and avoid frustration. Check these out, because no one wants their present in a gift bag.
Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London.