1 00:00:02,520 --> 00:00:07,440 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,560 --> 00:00:12,440 Speaker 2: The Stock Movers Report, your roundup of companies making moves 3 00:00:12,480 --> 00:00:15,880 Speaker 2: in the stock market, harnessing the power of Bloomberg data. 4 00:00:16,680 --> 00:00:19,640 Speaker 3: Let's go down to market drivers. Christina Quino, the managing 5 00:00:19,720 --> 00:00:21,840 Speaker 3: editor for Bloomberg Market's Live, is here with us for 6 00:00:22,000 --> 00:00:25,520 Speaker 3: our market drivers. And it's an m and a Monday, Christine. 7 00:00:25,079 --> 00:00:27,639 Speaker 1: It's an m and a Monday scarlet. How about we 8 00:00:27,680 --> 00:00:33,000 Speaker 1: start with ken View over here. So ken View ticker KVUE. 9 00:00:33,000 --> 00:00:35,360 Speaker 1: This is the maker of tail and All, and their 10 00:00:35,400 --> 00:00:39,960 Speaker 1: shares are whopping today up seventeen percent from the open, 11 00:00:40,240 --> 00:00:42,440 Speaker 1: and that is because there is a deal that Kimberly 12 00:00:42,479 --> 00:00:46,320 Speaker 1: Clark will be buying the company for forty billion dollars. 13 00:00:46,440 --> 00:00:49,599 Speaker 1: And so the combination of both of these companies creates 14 00:00:49,840 --> 00:00:53,120 Speaker 1: a thirty a company with thirty two billion dollars in revenue, 15 00:00:53,240 --> 00:00:56,120 Speaker 1: and that makes them the second biggest seller of health 16 00:00:56,120 --> 00:00:58,960 Speaker 1: and wellness products after Procter and Gambles. This is a 17 00:00:59,000 --> 00:01:02,360 Speaker 1: monster deal. Heavy holder shareholders will get three dollars fifty 18 00:01:02,400 --> 00:01:06,160 Speaker 1: cents per share in cash. And so you know a 19 00:01:06,200 --> 00:01:09,400 Speaker 1: lot of analyst weighing in our own Bloomberg Intelligences Diana 20 00:01:09,400 --> 00:01:13,280 Speaker 1: Gooms and Daria Lima saying that this really just reinforces 21 00:01:13,400 --> 00:01:17,800 Speaker 1: the view that Kenvy was in need of a big investment, 22 00:01:18,160 --> 00:01:19,480 Speaker 1: and you know, if they were going to do that 23 00:01:19,520 --> 00:01:21,679 Speaker 1: on their own, that meant that they were going to 24 00:01:21,680 --> 00:01:24,039 Speaker 1: have to sacrifice mid term profit. But now we have 25 00:01:24,120 --> 00:01:27,920 Speaker 1: Kimberly Clark swooping in and providing some fresh capital in 26 00:01:27,959 --> 00:01:31,400 Speaker 1: here and hopefully helping them to really improve ourselves. 27 00:01:31,680 --> 00:01:33,959 Speaker 4: Look at the stock of Kimberly Clark. It's down twelve 28 00:01:34,120 --> 00:01:37,319 Speaker 4: percent today on the news. This suggests to me that 29 00:01:37,360 --> 00:01:41,160 Speaker 4: the street's saying, what I mean, A, did you overpay B. 30 00:01:41,800 --> 00:01:46,680 Speaker 4: Maybe not as many synergies as that you're suggesting. That's 31 00:01:46,720 --> 00:01:47,600 Speaker 4: you don't like to see that. 32 00:01:48,120 --> 00:01:50,680 Speaker 3: But that's typical for an acquiring company for the stock 33 00:01:50,720 --> 00:01:51,240 Speaker 3: to go down. 34 00:01:51,280 --> 00:01:52,840 Speaker 4: It seems a little bit more if you like, if 35 00:01:52,840 --> 00:01:54,200 Speaker 4: I were the banker, I would say it to expect 36 00:01:54,240 --> 00:01:56,040 Speaker 4: a five or six or seven percent this is your 37 00:01:56,120 --> 00:01:59,800 Speaker 4: scope decline. Speaking of bankers, JP Morgan and PJAT Partners 38 00:01:59,800 --> 00:02:04,480 Speaker 4: were the advising the acquirer and Centerview Partners in Goldman 39 00:02:04,560 --> 00:02:08,480 Speaker 4: Sech's advising ken U. So bankers getting a I'd like 40 00:02:08,520 --> 00:02:09,600 Speaker 4: to see what else you. 41 00:02:09,560 --> 00:02:11,799 Speaker 1: Got, Well, let's take a look at Amazon, shall we, 42 00:02:11,880 --> 00:02:15,720 Speaker 1: Paul so amazoned ticker am Z and another winner. This morning, 43 00:02:15,800 --> 00:02:18,080 Speaker 1: shares are up more than four percent, and of course 44 00:02:18,160 --> 00:02:21,320 Speaker 1: that is because of their deal, well, Amazon Web Services 45 00:02:21,360 --> 00:02:25,960 Speaker 1: deal with chat open Ai Chat GPT maker. They're going 46 00:02:26,040 --> 00:02:30,120 Speaker 1: to be providing hundreds of thousands of Nvidia GPUs graphic 47 00:02:30,200 --> 00:02:33,120 Speaker 1: processing units as part of a seven year deal worth 48 00:02:33,240 --> 00:02:36,240 Speaker 1: thirty eight billion dollars. So, you know, AWS was actually 49 00:02:36,320 --> 00:02:37,960 Speaker 1: a bit of a laggard in this space. You know, 50 00:02:38,000 --> 00:02:41,040 Speaker 1: they've kind of stepped back, but now they're joining the 51 00:02:41,080 --> 00:02:44,560 Speaker 1: ranks of companies that are building retrofitting data centers to 52 00:02:44,720 --> 00:02:48,000 Speaker 1: back open Ai. And so we actually got Bloomery Intelligence 53 00:02:48,040 --> 00:02:50,640 Speaker 1: is man Deep Singh and Robert Bigger kind of weighing 54 00:02:50,680 --> 00:02:54,040 Speaker 1: in on the deal. Thirty eight billion dollars over seven 55 00:02:54,120 --> 00:02:57,120 Speaker 1: years sounds big, but it's actually smaller than a lot 56 00:02:57,120 --> 00:03:00,280 Speaker 1: of other open ai compute deals. It's about to a 57 00:03:00,400 --> 00:03:03,280 Speaker 1: times smaller than the deals that they have with Microsoft 58 00:03:03,280 --> 00:03:07,600 Speaker 1: and Oracles. So there's definitely room for that to grow, exactly. 59 00:03:07,840 --> 00:03:10,720 Speaker 1: And so you know, lots of room there, especially because 60 00:03:10,720 --> 00:03:13,400 Speaker 1: the AWS is a leader in this space, and so 61 00:03:13,760 --> 00:03:16,200 Speaker 1: and from open AA's perspective, it seems like this is 62 00:03:16,400 --> 00:03:19,959 Speaker 1: them really seeking to diversify their computing power, right because 63 00:03:19,960 --> 00:03:22,520 Speaker 1: they already have deals with Microsoft Oracle, but then they 64 00:03:22,560 --> 00:03:24,800 Speaker 1: really want a broad base of support for this so 65 00:03:24,840 --> 00:03:28,040 Speaker 1: that they can bolster of advantage over other lms. 66 00:03:28,080 --> 00:03:30,560 Speaker 3: And to your point, who has open A not signed 67 00:03:30,560 --> 00:03:31,520 Speaker 3: a deal with at this point? 68 00:03:31,639 --> 00:03:31,760 Speaker 4: Right? 69 00:03:31,919 --> 00:03:36,520 Speaker 3: Microsoft? Yes, Oracle, yes, Alphabet yes, Core Weave yes. Who's left? 70 00:03:36,560 --> 00:03:38,400 Speaker 4: Who's funding these guys? 71 00:03:39,000 --> 00:03:39,200 Speaker 2: They? 72 00:03:39,360 --> 00:03:43,560 Speaker 3: While Sam Altman has been traveling the world looking for investors, right, 73 00:03:44,000 --> 00:03:45,280 Speaker 3: Christmas comes early for all. 74 00:03:45,320 --> 00:03:46,760 Speaker 4: Love to see capital structure. 75 00:03:46,800 --> 00:03:50,920 Speaker 1: There last one that you're watching, well another AI related 76 00:03:51,680 --> 00:03:55,440 Speaker 1: of course, of course, So we're looking at Iron, so 77 00:03:55,520 --> 00:03:59,040 Speaker 1: taker i r E and those shares are up nineteen percent, 78 00:03:59,040 --> 00:04:01,760 Speaker 1: so extending those gains from the open So okay, get 79 00:04:01,760 --> 00:04:04,520 Speaker 1: this Iron. It's a renewable energy company. 80 00:04:04,200 --> 00:04:05,680 Speaker 3: Based in Sydney. 81 00:04:05,760 --> 00:04:09,440 Speaker 1: They mostly have Australian clients, but you know they are 82 00:04:09,440 --> 00:04:11,640 Speaker 1: listed in the US and now they just signed a 83 00:04:11,640 --> 00:04:15,840 Speaker 1: deal with Microsoft for nine point seven billion dollars and 84 00:04:15,920 --> 00:04:18,880 Speaker 1: Iron's going to be providing AI computing power and so 85 00:04:19,040 --> 00:04:23,720 Speaker 1: now Microsoft is their biggest customer and so this is 86 00:04:23,760 --> 00:04:27,880 Speaker 1: going to be providing access to their Texas based. 87 00:04:29,360 --> 00:04:29,880 Speaker 3: Centers. 88 00:04:30,160 --> 00:04:34,440 Speaker 1: Microsoft will get access to that and they're especially built 89 00:04:34,480 --> 00:04:38,280 Speaker 1: for air workloads. The deal also includes a twenty percent prepayment, 90 00:04:38,400 --> 00:04:41,160 Speaker 1: so they got a lot of that cash upfront. And then, 91 00:04:41,200 --> 00:04:43,680 Speaker 1: of course the other winner in this deal is Dell 92 00:04:43,960 --> 00:04:47,279 Speaker 1: because Iron has agreed to buy the necessary chips to 93 00:04:47,360 --> 00:04:49,640 Speaker 1: be able to deliver on this deal from Dell for 94 00:04:49,720 --> 00:04:52,280 Speaker 1: five point a billion dollars. So everyone is a winner 95 00:04:52,360 --> 00:04:52,880 Speaker 1: in this deal. 96 00:04:53,320 --> 00:04:55,920 Speaker 3: Does it feel a little bit like two thousand. 97 00:04:57,080 --> 00:05:01,520 Speaker 4: No, because again, these companies have real earnings, real cash flows. 98 00:05:01,520 --> 00:05:03,400 Speaker 4: So this is the stuff I was selling back in 99 00:05:03,480 --> 00:05:07,039 Speaker 4: ninety eight, ninety nine. Nothing, It was ball. That's what 100 00:05:07,040 --> 00:05:10,600 Speaker 4: they're coming on their potential eyeballs. So this is different. 101 00:05:10,640 --> 00:05:14,640 Speaker 4: But these circular deals are very to me. They're concerning, 102 00:05:14,880 --> 00:05:17,200 Speaker 4: and Bloomberg News had to peace out maybe a week 103 00:05:17,200 --> 00:05:20,960 Speaker 4: ago with a tremendous graphic that just shows how these 104 00:05:21,000 --> 00:05:24,039 Speaker 4: deals work. Because I've lost arrow. 105 00:05:23,880 --> 00:05:26,040 Speaker 3: Is pointing to one another. It's like concentrative circle has 106 00:05:26,040 --> 00:05:26,720 Speaker 3: gone a book. 107 00:05:26,760 --> 00:05:28,960 Speaker 1: And it seems like the circle is broadening too, like 108 00:05:29,040 --> 00:05:32,120 Speaker 1: a little bit more bigger each day with new companies involved. 109 00:05:33,320 --> 00:05:37,320 Speaker 2: This stock movers report from Bloomberg Radio Check back with 110 00:05:37,400 --> 00:05:40,000 Speaker 2: us throughout the day for the latest roundup of companies 111 00:05:40,080 --> 00:05:43,159 Speaker 2: making news on Wall Street, and for the latest market 112 00:05:43,200 --> 00:05:47,680 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 113 00:05:47,760 --> 00:05:51,240 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 114 00:05:51,320 --> 00:05:52,799 Speaker 2: the Bloomberg Business app.