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| Happy Wednesday, N2K reader! | This week’s world-famous news haiku competition™ is about how Waymo is under federal investigation after a driverless car hit a child near a school (and thankfully the child survived). It’s a heavy topic, but I believe that you, yes, you, dear reader, can craft a worthy haiku on the subject that will bring moral and spiritual clarity to the moment, just as you do each and every week. So: Send me your entry — to our spiffy new email address, haiku at cheddar dot com — by noon ET Thursday, for consideration by your Cheddar peers! | And now for something completely different. | Matt Davis — Need2Know Chedditor | | News You Need2Know | | | What’s the stock market up to, eh? | $SPX ( ▼ 0.84% ) $DJI ( ▼ 0.34% ) $NDX ( ▼ 1.43% ) | | Companies mentioned in today’s newsletter | $DIS ( ▼ 0.22% ) $PEP ( ▲ 4.93% ) $KO ( ▲ 2.07% ) $NVDA ( ▼ 2.84% ) $MSFT ( ▼ 2.87% ) $PLTR ( ▲ 6.85% ) $PEP ( ▲ 4.93% ) $DVA ( ▲ 21.17% ) $PYPL ( ▼ 20.31% ) | | Mickey Mouse passes the baton to a new CEO |  | New Disney CEO Josh D’Amaro (left, next to the podium) and Disney’s outgoing CEO Bob Iger (right, next to the podium). |
| Disney $DIS ( ▼ 0.22% ) is ushering in a new era of leadership with Josh D’Amaro, the current head of Disney Parks, assuming the role of CEO next month. I’m not sure if you remember this, but the character of Tom Wambsgans in the TV show “Succession” also ran the parks department before, you know…SPOILER ALERT…ascending to the top job. | The transition will follow Bob Iger’s departure on March 18, marking the end of his storied tenure. Dude left the top job once already, then came back and replaced his replacement. Cold. Investors will be hoping the second time’s a charm. D’Amaro’s compensation package reflects his key role in guiding Disney’s future — a whopping $38 million, according to SEC filings. I mean, he’s no Elon Musk. | D’Amaro is set to earn a base annual salary of $2.5 million, complemented by a $9.75-million one-time bonus. Perhaps his most significant perk is an annual long-term stock incentive of $26.2 million, along with a bonus of 250% of his base salary, contingent on hitting performance goals. Known for his hands-on leadership style, D’Amaro is celebrated among Disney staff for his deep connection to the company’s culture. Reports suggest he’s a “forward-facing executive who spends time in parks [and] talks directly with employees.” | Although, you know, I imagine he probably wrote those reports. Dana Walden, the runner-up for the CEO position, will assume a newly created role as President and Chief Creative Officer, earning $24 million annually. Walden is praised for her deep credibility among Hollywood talent and for stabilizing Disney’s entertainment business during challenging times. Her contract runs through March 17, 2030. My guess is she’ll be CEO by then if Josh taps out. The firm’s shares were down about 1% on the news. | | | Markets suffer their biggest fall in a while | | Wall Street experienced turbulence Tuesday as Big Tech stocks dragged markets lower. New worries about the threat posed by new AI tools to software companies sparked the slump. Meanwhile gold and silver rebounded after recent sell-offs. The S&P 500 $SPX ( ▼ 0.84% ) fell 1.1%, the Nasdaq $NDAQ ( ▼ 9.4% ) slumped 1.9%. Nvidia $NVDA ( ▼ 2.84% ) dropped 3.2%, and Microsoft $MSFT ( ▼ 2.87% ) fell 3.9%, as worries lingered over their prolonged dominance and high valuations. | Gold surged 6.1% to $4,935 per ounce, and silver climbed 8.2%, marking a rebound after sharp declines last week. This comes after gold’s price nearly doubled in the past 12 months before a steep fall last week. | Select companies had standout performances. Palantir Technologies $PLTR ( ▲ 6.85% ) rose 6.2% after surpassing profit expectations and forecasting 61% revenue growth. PepsiCo $PEP ( ▲ 4.93% ) gained 5.2%, announcing slight price cuts on snacks like Lay’s and Doritos (see the story below!) to attract inflation-weary customers. Dialysis firm DaVita $DVA ( ▲ 21.17% ) soared 20% after beating earnings estimates, while PayPal $PYPL ( ▼ 20.31% ) plunged 19.6% following weak quarterly performance. Just another day in the markets, my friends. I always say buy the dip. #NotFinancialAdvice | | | Musk’s big merger aims to create orbital data centers |  | Elon Musk: Just created a $1.25 trillion company |
| Elon Musk has orchestrated the largest merger ever, with his rocket company, SpaceX, acquiring his artificial intelligence startup, xAI. The deal, valued at $1.25 trillion, was confirmed Tuesday, cementing SpaceX’s valuation at $1 trillion and xAI at $250 billion. “We’re creating the most ambitious, vertically integrated innovation engine on (and off) Earth,” Musk wrote in a blog post, highlighting the merger’s focus on combining AI, rockets, space-based internet, and the X social media platform. | Central to this merger is Musk’s vision to develop “orbital data centers,” leveraging SpaceX’s expertise in satellites and reusable rockets to revolutionize infrastructure for AI. Musk’s aim is to address booming AI demand by deploying data centers in space, enhancing functionality for tools like xAI’s Grok chatbot. However, Grok has faced criticism recently for allowing users to create controversial content, including (checks notes) sexualized images of children. | Sigh. | The merger is structured as a share exchange, with each xAI share converting to 0.1433 shares of SpaceX stock. Bank valuation documents place SpaceX’s worth between $859 billion and $1.26 trillion. Observers also anticipate a highly lucrative SpaceX IPO later this year, expected to raise $50 billion at a valuation nearing $1.5 trillion. | Musk’s bold integration of AI and space technologies signals a new chapter in innovation, reflecting his ongoing ambition to push boundaries both on Earth and beyond. There’s just the slightest chance, of course, that this merger and its valuation could be over-hyped. Weigh in in today’s poll! | | | Song of the Day: Bruce Springsteen, ‘Streets of Minneapolis’ |  | Bruce Springsteen - Streets Of Minneapolis (Official Audio) |
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| Bruce Springsteen has never sounded angrier than on his new song, “Stree |
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