Good Morning! Wall Street’s finally getting sick of the GameStop saga. The stock plunged 40% on Friday after Roaring Kitty failed to spark enthusiasm in his live stream. Meanwhile, the U.S. economy added 272k jobs in May as hiring stays hot. Household wealth is reaching new heights thanks to the stock market rally, while affluent families are fueling a $20 billion private equity buyout surge. Apollo’s co-president shares why he remains comfortable with higher interest rates. Plus, a Moelis managing director was caught on video in Brooklyn, violently knocking a woman to the ground.

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_{SQUEEZ OF THE DAY}

Podcast Bubble Burst

Do you remember when, not long ago, podcasts were supposed to be the next big thing? Production companies, often with journalists involved would round up big, reported stories and auction them off to the highest bidder. Deals for an eight or ten-episode series could fetch $500,000.

Take Joe Rogan, for example. He landed a $200 million podcast deal with Spotify in 2020. That was before everyone and their mother decided to start a podcast, leading to a podcast bubble.

Now, budgets for these shows are typically between $150k to $250k, and even then, finding a buyer is harder than ever because they’ve become pickier. And if you do manage to snag a buyer, getting a specific idea approved can take months before receiving the green light. 

This budget crunch has had some major fallout. Teams are trimming down episodes and cutting staff. Podcast companies have been laying off employees over the past 18 months, and some are even losing money on projects because the budgets are just too tight. But this shake-up is also pushing production companies out of their comfort zones. Many are now releasing their own shows and becoming distributors.

There’s a silver lining - podcast producers can still finance their creations and release them independently with minimal barriers. This shift could lead to more self-financed shows, more mergers, and a bigger focus on creatively diversifying production businesses.

Takeaway: The podcast industry is finding out first-hand the risk of leaning too heavily on a few major buyers. While the days of massive podcast budgets might be over, you’ll probably see a lot more independent podcast producers financing and releasing their own shows independently, because they can’t count on a shrinking pool of buyers.

_{PRESENTED BY PORTLESS}

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_HEADLINES

Top Reads

• GameStop stock plunges as 'Roaring Kitty' reappears, company plans big stock sale (YF)

• Moelis investment banker punches woman on NYC street (NYP)

• U.S. economy adds 272,000 jobs in May as hiring stays hot (Axios)

• Wall Street is putting its foot down as ‘Roaring Kitty’ strikes again (CNN)

• US household wealth soars to a new record as stocks march higher (Fox)

• Apollo is one of the few private equity firms OK with higher rates (CNBC)

• Wealthy families are fueling $20B private equity buyout wave (YF)

• The U.S. added 600,000 new millionaires last year as AI fueled markets (CNBC)

• The Texas Stock Exchange has its work cut out for it (Axios)

• Spirit Airlines isn't considering Chapter 11, 'encouraged' by post-JetBlue plan (CNBC)

• Private equity titans' nerves on edge at lavish industry party (YF) 

• Synapse bankruptcy trustee says $85 million of customer savings is missing (CNBC)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed lower as the Tech rally took a breather.

Movers & Shakers

• (+) Oddity Tech ($ODD) +21% after the beauty and wellness company announced a share buyback program.

• (–) Vail Resorts ($MTN) -10% because the ski resort owner announced disappointing quarterly results.

• (–) GameStop ($GME) -39% after trader “Roaring Kitty” said little new about the video game retailer during a livestream.

Private Dealmaking

• Bain to take K-12 education software provider PowerSchool private for $5.6 billion

• Blackstone bought a 45% stake in Copeland, an HVAC manufacturer, for $3.5 billion

• Fibe, a digital lending platform, raised $90 million

• Pika, a text-to-video AI platform, raised $80 million

• Prolific Machines, a protein cell production tech startup, raised $55 million

• Nium, a cross-border payments company, raised $50 million

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

_{BOOK OF THE DAY}

The Whole Story

Whole Foods Market’s Cofounder and CEO for 44 years, John Mackey offers an intimate and provocative account of the rise of this iconic company and the personal and spiritual journey that inspired its remarkable impact.

The growth of Whole Foods isn’t just a business success story—it’s the story of a retail, cultural, and dietary revolution that has forever changed the industry and the way we eat. After more than four decades at the helm, John Mackey is ready to share never-before-told tales of the people and passions behind the beloved brand.

The Whole Story invites readers on the adventure of building Whole Foods Market: the colorful cast of idealists and foodies who formed the company’s DNA, the many breakthroughs and missteps; the camaraderie and the conflict, and the narrowly avoided disasters.

Mackey takes us inside some of the most consequential decisions he had to make and honestly shares his regrets looking back.

“An upbeat self-portrait of a business titan."

_{DAILY VISUAL}

Global Economic Outlook Improving

Consensus probability of a recession in Europe, UK and US has declined significantly

_{PRESENTED BY 10 EAST}

Where Sophisticated Investors Access Private Markets

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Benefits of 10 East membership include:    

• Flexibility – members have full discretion over whether to invest on an offering-by-offering basis.   

• Alignment – principals commit material personal capital to every offering.    

• Institutional resources – a dedicated investment team that sources, monitors, and diligences each offering.   

10 East is where founders, executives, and portfolio managers from industry-leading firms diversify their personal portfolios.  

There are no upfront costs or minimum commitments associated with joining 10 East.

_{DAILY ACUMEN}

Achieving Your Financial Goals

Step #1: Define Your Financial Goals

Morning Task: Spend 10 minutes writing out your financial goals for the day, week, month, and year. Make sure they are specific, measurable, and realistic. 

Step #2: Visualize Your Ideal Financial Life

Reflection Time: Take 5 minutes to envision what your ideal financial life looks like. Consider the lifestyle you want and when you realistically want to achieve your financial goals. Write these visions down to reinforce your commitment.

Step #3: Automate Your Finances

Action Step: Ensure all your payments, investments, and debt payoffs are automated. Use autopay for bills and automatic transfers for savings and investments to simplify your financial management.

Step #4: Develop and Refine Systems

Evening Task: Review the financial systems and methods you used today. Identify what worked and what didn’t. Make small adjustments and note any improvements needed for consistency.

Step #5: Use Technology for Reminders

Daily Routine: Set reminders on your phone for financial tasks such as checking your account balances, updating your budget, or any other routine financial activities. For example, use a reminder to track your daily water intake if it’s part of your health goals.

Step #6: Start Small and Prioritize

Daily Goals: Identify and prioritize a few key financial tasks you want to achieve each day. Break them down into manageable steps to avoid feeling overwhelmed. Remember the principle, “One bite at a time.” Focus on incremental progress rather than trying to achieve everything at once.

_{ENLIGHTENMENT}

Short Squeez Picks

• Amazon’s CEO on the power of attitude

• How to be charismatic in group conversations

• Uncertainty is a blessing

• The relationship between happiness and leadership

• How to become a better manager

_{MEME-A-PALOOZA}

Memes of the Day

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