Connect with us

Published

on

Ari Emanuel breaks down new merger between WWE and UFC, named TKO

Ultimate Fighting Championship and World Wrestling Entertainment executives decided to name their new publicly traded company TKO to honor the companies’ expertise in fighting, but they have broader aspirations than just owning combat sports.

TKO began trading on the New York Stock Exchange on Tuesday, culminating a merger of two live-entertainment juggernauts that was announced in April. The combined company is 51% owned by Endeavor Group Holdings, which owns assets including UFC and Hollywood talent agency WME, and 49% owned by WWE shareholders.

Shares rose 2.4% on Tuesday.

The first 18 months of the company’s existence will revolve around integrating UFC and WWE, Mark Shapiro, TKO’s president and chief operating officer, said in an interview with CNBC. That includes eventually going to market together for international media rights and bringing together the company’s production efforts and back offices, Shapiro said.

After that, TKO plans to swing into acquisition mode to grow the company, he said.

“We will ultimately be in the marketplace looking for other sports properties that we can bolt onto the flywheel enhanced by Endeavor,” Shapiro said, adding the company has a strong desire to expand internationally.

Endeavor also owns Professional Bull Riders and two tennis tournaments — the Mutua Madrid Open and the Miami Open. The “flywheel” includes Endeavor’s representation of professional athletes through WME, its expertise in negotiating media rights, product licensing and enhancing live events to boost venue fees. Shapiro also envisions direct-to-consumer options with TKO that don’t exist yet.

WWE currently streams on NBCUniversal’s Peacock in a deal that concludes in 2026. Shapiro said other streaming entities have already expressed interest in bidding on the rights when that deal expires.

In the coming months, TKO executives will also negotiate new media deals for WWE “Raw” and “SmackDown” on traditional pay TV. NBCUniversal and Fox currently own those rights.

Who runs TKO?

Vince McMahon, 78, is the executive chairman of TKO and Ari Emanuel is the CEO. Shapiro made it clear who will be the company’s leader.

“Ari Emanuel is running the company,” Shapiro said. “Vince will play a role. He’s got experience and influence. But he understands the role of CEO is Ari’s. This is not a shared position.”

McMahon has earned a reputation as a force of personality, both as a WWE character and behind the scenes, in his more than 40 years running WWE. He’s also had some recent legal issues. On July 17, according to a recent filing, federal law enforcement agents served a federal grand jury subpoena on McMahon stemming from allegations of sexual misconduct. No charges have been brought in the investigation.

Shapiro noted Emanuel has already proven he can run a company along side a sports league co-founder with a big personality and checkered past. Dana White, UFC’s president, has dealt with a number of controversies in his personal life, including slapping his wife in a recorded video, while brashly and unapologetically staying in his job.

“Me leaving hurts the company. Hurts my employees. Hurts the fighters. Doesn’t hurt me,” said White during a media event earlier this year “Do I need to reflect? No, I don’t need to reflect. … I own this. I’m telling you that I’m wrong.”

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

WATCH: Vince McMahon explains why he sold WWE to Endeavor

Endeavor-UFC deal is the next evolution of WWE, says Vince McMahon

Continue Reading

Technology

Apple’s market share slides in China as iPhone shipments decline, analyst Kuo says

Published

on

By

Apple's market share slides in China as iPhone shipments decline, analyst Kuo says

Jaap Arriens | Nurphoto | Getty Images

Apple is losing market share in China due to declining iPhone shipments, supply chain analyst Ming-Chi Kuo wrote in a report on Friday. The stock slid 2.4%.

“Apple has adopted a cautious stance when discussing 2025 iPhone production plans with key suppliers,” Kuo, an analyst at TF Securities, wrote in the post. He added that despite the expected launch of the new iPhone SE 4, shipments are expected to decline 6% year over year for the first half of 2025.

Kuo expects Apple’s market share to continue to slide, as two of the coming iPhones are so thin that they likely will only support eSIM, which the Chinese market currently does not promote.

“These two models could face shipping momentum challenges unless their design is modified,” he wrote.

Kuo wrote that in December, overall smartphone shipments in China were flat from a year earlier, but iPhone shipments dropped 10% to 12%.

There is also “no evidence” that Apple Intelligence, the company’s on-device artificial intelligence offering, is driving hardware upgrades or services revenue, according to Kuo. He wrote that the feature “has not boosted iPhone replacement demand,” according to a supply chain survey he conducted, and added that in his view, the feature’s appeal “has significantly declined compared to cloud-based AI services, which have advanced rapidly in subsequent months.”

Apple’s estimated iPhone shipments total about 220 million units for 2024 and between about 220 million and 225 million for this year, Kuo wrote. That is “below the market consensus of 240 million or more,” he wrote.

Apple did not immediately respond to CNBC’s request for comment.

WATCH: Apple has to do something to justify its runup

Apple has to do something to justify its run-up, says Capital Area Planning's Ethridge

Continue Reading

Technology

Amazon to halt some of its DEI programs: Internal memo

Published

on

By

Amazon to halt some of its DEI programs: Internal memo

Amazon said it is halting some of its diversity and inclusion initiatives, joining a growing list of major corporations that have made similar moves in the face of increasing public and legal scrutiny.

In a Dec. 16 internal note to staffers that was obtained by CNBC, Candi Castleberry, Amazon’s VP of inclusive experiences and technology, said the company was in the process of “winding down outdated programs and materials” as part of a broader review of hundreds of initiatives.

“Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture,” Castleberry wrote in the note, which was first reported by Bloomberg.

Castleberry’s memo doesn’t say which programs the company is dropping as a result of its review. The company typically releases annual data on the racial and gender makeup of its workforce, and it also operates Black, LGBTQ+, indigenous and veteran employee resource groups, among others.

In 2020, Amazon set a goal of doubling the number of Black employees in vice president and director roles. It announced the same goal in 2021 and also pledged to hire 30% more Black employees for product manager, engineer and other corporate roles.

Meta on Friday made a similar retreat from its diversity, equity and inclusion initiatives. The social media company said it’s ending its approach of considering qualified candidates from underrepresented groups for open roles and its equity and inclusion training programs. The decision drew backlash from Meta employees, including one staffer who wrote, “If you don’t stand by your principles when things get difficult, they aren’t values. They’re hobbies.”

Other companies, including McDonald’s, Walmart and Ford, have also made changes to their DEI initiatives in recent months. Rising conservative backlash and the Supreme Court’s ruling against affirmative action in 2023 spurred many corporations to alter or discontinue their DEI programs.

Amazon, which is the nation’s second-largest private employer behind Walmart, also recently made changes to its “Our Positions” webpage, which lays out the company’s stance on a variety of policy issues. Previously, there were separate sections dedicated to “Equity for Black people,” “Diversity, equity and inclusion” and “LGBTQ+ rights,” according to records from the Internet Archive’s Wayback Machine.

The current webpage has streamlined those sections into a single paragraph. The section says that Amazon believes in creating a diverse and inclusive company and that inequitable treatment of anyone is unacceptable. The Information earlier reported the changes.

Amazon spokesperson Kelly Nantel told CNBC in a statement: “We update this page from time to time to ensure that it reflects updates we’ve made to various programs and positions.”

Read the full memo from Amazon’s Castleberry:

Team,

As we head toward the end of the year, I want to give another update on the work we’ve been doing around representation and inclusion.

As a large, global company that operates in different countries and industries, we serve hundreds of millions of customers from a range of backgrounds and globally diverse communities. To serve them effectively, we need millions of employees and partners that reflect our customers and communities. We strive to be representative of those customers and build a culture that’s inclusive for everyone.

In the last few years we took a new approach, reviewing hundreds of programs across the company, using science to evaluate their effectiveness, impact, and ROI — identifying the ones we believed should continue. Each one of these addresses a specific disparity, and is designed to end when that disparity is eliminated. In parallel, we worked to unify employee groups together under one umbrella, and build programs that are open to all. Rather than have individual groups build programs, we are focusing on programs with proven outcomes — and we also aim to foster a more truly inclusive culture. You can read more about this on our Together at Amazon page on A to Z.

This approach — where we move away from programs that were separate from our existing processes, and instead integrating our work into existing processes so they become durable — is the evolution to “built in” and “born inclusive,” instead of “bolted on.” As part of this evolution, we’ve been winding down outdated programs and materials, and we’re aiming to complete that by the end of 2024. We also know there will always be individuals or teams who continue to do well-intentioned things that don’t align with our company-wide approach, and we might not always see those right away. But we’ll keep at it.

We’ll continue to share ongoing updates, and appreciate your hard work in driving this progress. We believe this is important work, so we’ll keep investing in programs that help us reflect those audiences, help employees grow, thrive, and connect, and we remain dedicated to delivering inclusive experiences for customers, employees, and communities around the world.

#InThisTogether,

Candi

Continue Reading

Technology

Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

Published

on

By

Tesla recalling 239,000 vehicles in U.S. over rearview camera failures

New Tesla Model 3 vehicles on a truck at a logistics drop zone in Seattle, Washington, on Aug. 22, 2024.

M. Scott Brauer | Bloomberg | Getty Images

Tesla is voluntarily recalling about 239,000 of its electric vehicles in the U.S. to fix an issue that can cause its rearview cameras to fail, the company disclosed in filings posted Friday to the National Highway Traffic Safety Administration’s website.

“A rearview camera that does not display an image reduces the driver’s rear view, increasing the risk of a crash,” Tesla wrote in a letter to the regulator. The recall applies to Tesla’s 2024-2025 Model 3 and Model S sedans, and to its 2023-2025 Model X and Model Y SUVs.

The company also said in the acknowledgement letter that it has already “released an over-the-air (OTA) software update, free of charge” that can fix some of the vehicles’ camera issues.

In 2024, Tesla issued 16 recalls in the U.S. that applied to 5.14 million of its EVs, according to NHTSA data. The recall remedies included a mix of over-the-air software updates and parts replacements. More than 40% of last year’s recalls pertained to issues with the newest vehicle in the company’s lineup, the Cybertruck, an angular steel pickup that Tesla began delivering to customers in late 2023.

Regarding the latest recall, the company said it had received 887 warranty claims and dozens of field reports but told the NHTSA that it was not aware of any injurious, fatal or other collisions resulting from the rearview camera failures.

Other customers with vehicles that “experienced a circuit board failure or stress that may lead to a circuit board failure,” which cause the backup camera failures, can have their vehicles’ computers replaced by Tesla, free of charge, the company said.

Tesla did not immediately respond to CNBC’s request for comment.

Don’t miss these insights from CNBC PRO

Tesla: Here's why Bank of America downgraded the stock to neutral

Continue Reading

Trending