#58 Apple in talks to buy EA Games
Disney & Amazon competing
Welcome to another edition of Business News for Kids 🙇♂️.
Busy business this week 💼
Soon after ending its FIFA license agreement, its another big news week for EA Sports 🎮 with Apple seeming interested in acquiring it. With FY 2021 Net Revenues of $5.6 billion, we’re thinking this might be a <$50bn deal, given Microsoft recently acquired gaming co Activision Blizzard for $68 billion 🤯 and they had revenues of ~$8.8bn. Discuss with a big person about Valuations and try to estimate EA’s worth. 🚀
And while some are acquiring, some are divesting.. McDonald’s 🍔 has decided to sell off its Russia business, after closing operations in the country earlier this year due to Russia’s invasion of Ukraine. It’s Franchisee will take over 850+ location business and run it under a new brand. McDonald’s is expected to record a loss of $1.2 billion 💸 due to this transaction.
And many others are warning 😅.. right after early stage investor Ycombinator warned of a slow down, its now late stage investor 🤷 Sequoia’s turn to issue a warning.
And one lot is continuing their theatrics 😆 - the Elon <> Twitter lot.. A group of Twitter investors is suing Mr. Musk for making wrongful accusations and driving the price of the share down to <$40, after agreeing to buy it for $54/share 😱.
And finally with all this negativity some positivity.. Hyundai has committed to to invest $10bn 🚀 in the US for makings EVs, Autonomous Vehicles 🤖🏎 and Robotics by 2025. Don’t miss reading about it.
Wait, what is..
Acquire: Buy. A company 😅.
Divest / Divesting: Reducing investment. Selling a part of your business or assets.
Net Revenue: Gross Revenue - Direct Costs for achieve Revenue like discounts, pass through License payments etc. Geek out here.
Revenue Guidance (useful later): Estimates a public company provides its shareholders for revenue, earnings and other important numbers it is likely to meet for the next few quarters.
Sue, suing, earnings, quarters & more Wait, What Glossary.
Woah 😱 Weird 🥴?
A crab 🦀 robot 😱. Yup you read that right. A team from Northwestern University created what they call the tiniest walking robot that could one day help block arteries and more. Still not sure how tiny? Well we couldn’t put it better than CNET “It's tiny enough to fit inside the ‘o’ in this sentence”. That there👇.
Inspiring business people to know 🙏
Meet Chung Ju-yung, our inspiring business person of this week.
Chung Ju-yung, also known as Jung Joo-young, is the founder of South Korean Cars 🚘 to Ships to Nuclear Power Plants 🏭 maker Hyundai. The son of a poor farmer 👨🌾👩🌾, Chung grew up to become the richest person in South Korea. Starting work at the early age of 16 as a construction worker, he had to escape farm life 3 times over to try to build a life in the city.
After struggling through tough jobs that included jobs that of a labourer, deliveryman 📦, store accountant 🧾, and car servicing garage owner he went on to start Hyundai in 1946, aged 31; and just post the end of Japans’ occupation of South Korea. The rest as they say is history. He died in 2001. Read his fascinating story here.
About BNFK
Knowledge is at the heart of being. To be more, we must know more.
BNFK distills the latest, most interesting, Business News 📰 .. to an emoji filled, ultra informative, and fun Newsletter for Kids. Delivered every Sunday. Previous editions here. Forwarding this? Ask them to hit 👇 & subscribe for FREE.
Stocks, stonks and.. ⚡️
Snapchat 👻 owner Snap’s shares crashed 43%💥 its highest ever single day fall, after reporting it will not achieve its revenue guidance + reduced future earning estimates.📉
Substack, the service we use to send you this email 📥, has dropped plans to raise ~$100 million in funding at a potential $1 bn valuation. ✋🛑
Mental models.. whaaaat! 🤯
My dad insisted we put this section in here, even though I protested saying its going to be a while before kids need to apply mental models. Mental models are nothing but ways of thinking, you can use as a framework, to take decisions or solve problems. Who knows, they might just be useful!
Rational Choice Theory - From Utility Maximisation to Rationality..
Or more appropriately the Rational Choice Theory 🤯, which states that people use rational (logical) reasoning to make choices that are aligned to their best interests. Hence making it another important Mental Model to keep hold of in Recession times. Make sure to act in your interest when making those purchases!✋🛑 #spendcontrolRead more from Investopedia here.
Tech, products, toys ++ 🤖
We’re all Robots 🤖 today, and are we glad someone thought of this awesome robot.. and not just anyone but a student! Zain Samdani from Saudi Arabia created the ExoHeal as an exosekelton glove 🦾 to help patients with neurological (brain) damage.. and won Microsoft’s Imagine Cup 🏆.
Pro Tip: The magic of learning is in curiosity. Don’t shy away from clicking those hyperlinked texts to read and learn more. We mostly hyperlink to text we have read ourselves to make sure it is safe, but please be aware that comments and ads shown on these pages are beyond our control. We recommend using a kids friendly browser to view the links. Please read all Disclaimers.
Take care. See you next week. Pray for Ukraine and for Russian citizens. 🙏