Good Morning! Hyatt is buying Playa’s all-inclusive resorts in Mexico, DR and Jamaica for $2.6 billion. TD Bank dumped $14B in Schwab shares as it cleans up after its money-laundering mess.

The Super Bowl broke records with 126 million tuning in to watch the Eagles win. OpenAI is developing its own chips to cut dependence on Nvidia, and Coca-Cola’s $7 billion bet on Fairlife is paying off… just not enough to impress Wall Street.

Plus: Meta will lay off thousands of low-performers, the deals market is losing its Trump euphoria, and the right way to look for a new job.

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_{SQUEEZ OF THE DAY}

Drake vs Kendrick_Tech Version

Elon Musk just lobbed a $97.4 billion unsolicited bid to buy OpenAI’s nonprofit parent, throwing a wrench into Sam Altman’s plan to restructure the company and raising serious questions about its valuation.

Musk co-founded OpenAI in 2015 but left in 2018 after a power struggle. Since then, OpenAI has gone from a nonprofit AI research lab to a Microsoft-backed AI powerhouse with a for-profit subsidiary. Now, as Altman works to spin off the nonprofit and raise $40 billion from SoftBank, Musk is pushing back, both in court and with his latest bid.

On Monday, Musk—backed by xAI, Vy Capital, and Hollywood power player Ari Emanuel—offered $97.4 billion for the nonprofit parent. The catch? Nonprofits don’t have shareholders, so buying one isn’t even straightforward. But the offer puts OpenAI in a tight spot: if they won’t sell for $97.4 billion, then they clearly think it’s worth more, which undermines Altman’s claim that the nonprofit is fairly valued at $40 billion.

Altman dismissed the bid immediately, trolling Musk on X: “No thank you but we will buy Twitter for $9.74 billion if you want.” Musk clapped back with “Swindler.”

Takeaway: Musk may just be trolling OpenAI as part of his ongoing lawsuit, but his offer still creates chaos. Regulators could now take a harder look at OpenAI’s nonprofit status, the SoftBank deal could be in jeopardy, and Musk has exposed a major valuation problem. If OpenAI won’t take nearly $100 billion, how does it justify pricing the nonprofit at $40 billion? Whether Musk is serious or not, he’s made one thing clear, Altman’s plan just got a lot messier.

_{PRESENTED BY MACABACUS}

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_HEADLINES

Top Reads

• Hyatt to acquire Playa Hotels for $2.6 billion (CNBC)

• TD Bank plans to sell its entire equity investment in Schwab (YF)

• Super Bowl sets all-time ratings record for second straight year (HR)

• Trump suggests US may have less debt than thought because of fraud (Fox)

• Coca-Cola bets big on Fairlife milk (YF)

• OpenAI to finalize first custom chip, reducing Nvidia reliance (YF)

• DOGE targets federal leases, shaking commercial real estate’s recovery (CNN)

• For CEOs and bankers, Trump euphoria is fading fast (WSJ)

• Trump says he's instructing Treasury to "stop producing new pennies" (Axios)

• Meta starts eliminating jobs in shift to find AI talent (YF)

• GameStop, MicroStrategy shares rise after Ryan Cohen photo (CNBC)

• Billionaire questions US funding of the United Nations (Fox)

• AI chip startup Groq secures $1.5B commitment from Saudi Arabia (YF)

_{CAPITAL PULSE}

Markets Rundown

Stocks Rise as Markets Look to Inflation Data

U.S. stocks started the week higher, with the S&P 500 up 0.7% and the Nasdaq gaining 1%, led by technology and energy. Markets shrugged off new tariff announcements as President Trump outlined a more targeted approach to trade policy. Bond yields held steady, with the 10-year Treasury at 4.5%. 

Inflation data due Wednesday will be key for Fed policy. January CPI is expected to show a 2.9% annual increase, with core CPI at 3.1%. A strong economy and moderating inflation suggest the Fed can ease policy gradually, with markets pricing in just one rate cut this year.

Stock market gains have broadened beyond mega-cap tech, with value stocks up 4.5% year-to-date, outpacing growth stocks. With both expected to see strong earnings growth in 2025, a balanced approach between growth and value remains prudent.

Movers & Shakers

• (+) Cleveland-Cliffs ($CLF) +18% after Trump imposed tariffs on steel imports.

• (+) GameStop ($GME) +10% because its CEO posted a photo with Michael Saylor.

• (–) ON Semiconductor ($ON) -8% after missing Q4 earnings.

Private Dealmaking

• Hyatt Hotels acquired Playa Hotels & Resorts for $2.6 billion

• MBK Partners will lead an acquisition of FCIT for $660 million

• Rapyd, a fintech API company, in talks to raise $300 million

• Multiples will acquire control stake in QBurst for $200 million

• United Energy acquired Apex International, an oil and gas company, for $150 million

• Validus, a financial risk management software provider, raised $45 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

House of Huawei

On the coast of southern China, an eccentric entrepreneur spent three decades steadily building an obscure telecom company into one of the world’s most powerful technological empires with hardly anyone noticing.

This all changed in December 2018, when the detention of Meng Wanzhou, Huawei Technologies’ female scion, sparked an international hostage standoff, poured fuel on the US-China trade war, and suddenly thrust the mysterious company into the global spotlight.

In House of Huawei, Washington Post technology reporter Eva Dou pieces together a remarkable portrait of Huawei’s reclusive founder, Ren Zhengfei, and how he built a sprawling corporate empire—one whose rise Western policymakers have become increasingly obsessed with halting.

Based on wide-ranging interviews and painstaking archival research, House of Huawei dissects the global web of power, money, influence, surveillance, bloodshed, and national glory that Huawei helped to build—and that has also ensnared it.

“The untold story of the mysterious company that shook the world.”

_{DAILY VISUAL}

13% of US Imports Come from China

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_{DAILY ACUMEN}

Job Loss

Fear of job loss can be a debilitating stressor, triggering anxiety, sleep deprivation, and impaired decision-making.

This stress can have far-reaching consequences, affecting not only our mental well-being but also our physical health and relationships.

However, research reveals that social support and gaining control over the situation can be potent buffers against this stress.

By cultivating a strong support network of colleagues, friends, and family, exploring new job opportunities, and prioritizing self-care activities like exercise, meditation, and spending time in nature, individuals can mitigate the negative effects of job insecurity and emerge more resilient and adaptable.

Ultimately, recognizing that we are not alone in our struggles and taking proactive steps to manage our stress can help us navigate even the most uncertain of times with greater confidence and clarity.

_{ENLIGHTENMENT}

Short Squeez Picks

• Why hybrid training is the superior training method

• How to accomplish daunting change

• The right way to look for a new job

• Body language hacks that lead to instant trust and respect

• The decade that changed fitness forever 

_{MEME-A-PALOOZA}

Memes of the Day