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CNBC

Berkshire's bet on Taylor Morrison suggests the housing market may have bottomed

The announcement of a megadeal between Berkshire Hathaway and top 10, publicly traded homebuilder Taylor Morrison Home came as a surprise to most in the industry. The consensus, however, is that it makes perfect sense and may signal optimism in a currently beleaguered housing market. Berkshire Hathaway agreed Sunday to acquire the nation's sixth-largest publicly traded builder in a $6.8 billion deal. The offer represents a 24% premium to the homebuilder's closing price on May 29 and values the company at about $8.5 billion, including debt. It comes at a time when the U.S. housing market is struggling under higher and volatile mortgage rates as well as elevated costs for construction and weaker consumer confidence. The war with Iran has also dealt a blow to the housing market. Taylor Morrison put out a somewhat aggressive, multiyear growth plan just about 15 months ago. "We've certainly seen some shifts in the market, so the targets we put out, we stand behind. The timing certainly might have been at risk," said Sheryl Palmer, CEO of Taylor Morrison, in an interview with CNBC's "Squawk on the Street" on Monday. "I think one of the things we're so excited about is homebuilding runs in five-, seven-, 10-year cycles. Berkshire thinks in probably seven-, 10-[year] and longer cycles. That alignment is very rare." It's that longer-term horizon that most analysts say is why the time is right for a deal. "What it says is that very sophisticated buyers think the valuations have bottomed," said Margaret Whelan, founder and CEO of Whelan Advisory, which specializes in homebuilder M&A. "I assume sophisticated buyers would wait and buy later or pay less if they thought the market was still going down." Stock values anticipate fundamental turns, Whelan explained, "so that means that the housing market itself is probably starting to bottom here soon, which is good, because I don't think anyone really knew that when we don't know what's going on with the rates." John Burns, founder and CEO of John Burns Research and Consulting, noted the outlook for the housing market over the next few years isn't bright, and stocks have been punished as a result. "But long-term thinkers like Berkshire Hathaway and the Japanese companies are seeing that as a platform to buy great companies for the long term, and it's really that simple," Burns said. CNBC's Property Play with Diana Olick covers new and evolving opportunities for the real estate investor, delivered weekly to your inbox. U.S. homebuilders have recently been the target of Japanese buyers. Sumitomo Forestry just closed on a $4.5 billion deal to purchase Tri Pointe Homes. All told, Japanese companies now own 33 homebuilders that operate in the U.S.

Berkshire's bet on Taylor Morrison suggests the housing market may have bottomed
North America
CNBC

'Disrupted or dead': AI is crushing a generation of startups built before ChatGPT

Five years ago, venture capitalists were pouring money into American startups selling everything from lingerie subscriptions to scheduling software, anointing them with billion-dollar valuations before most even turned a profit. It was a frothy era for startups, fueled by a combination of cheap money and pandemic-boosted demand. But even after the Federal Reserve took some froth off by starting to raise interest rates in 2022, many founders believed that they could grow into their inflated valuations, investors told CNBC. "The ChatGPT moment was when people said, 'Holy smokes, the next generation of entrepreneurs, their coding language is spoken English,'" said Samir Kaul, a partner at the venture firm Khosla Ventures, an early backer of OpenAI. "Now you're seeing 50 engineers do what it would've taken 500 engineers to do five years ago," Kaul said. "We had to completely reshuffle how we valued these companies." While the shares of public software companies like Salesforce, ServiceNow and Workday got hammered this year because of the threat from artificial intelligence, a quieter reckoning has been unfolding in the private markets. The AI boom that funneled more than $250 billion into OpenAI and Anthropic ahead of their expected mega-IPOs this year has left hundreds of startups built before ChatGPT's arrival in 2022 stranded — effectively cut off from venture funding because of their inflated valuations and outdated technology, yet not profitable enough for the public markets. There are 857 U.S. startups valued at $1 billion or more, the threshold for being deemed a "unicorn" company, according to PitchBook data. But nearly half of that group hasn't raised fresh funding in the last three years, making those valuations stale, according to the private markets data firm. Startups that last raised in 2021 are now worth 68% less on average, while those that last raised in 2022 saw a 52% decline, according to Pitchbook's own valuation estimates. As a result, more than 220 companies that had reached billion-dollar valuations in the venture boom are now fallen unicorns, according to PitchBook, which provided a list of the companies exclusively to CNBC. The estimates are based on factors including head count growth and comparisons with public companies. "A lot of those companies are pre-AI, not just in their cost structure, but also in their products," Mercury CEO Immad Akhund told CNBC. His company, which raised $200 million in funding last month, provides banking services to a third of early-stage U.S. venture-backed firms. "They're definitely in a difficult spot," he said. "All the attention's on AI, so if you're not an AI-first company, you need really strong numbers to raise." The list of fallen unicorns includes well-known brands like Glossier, The Farmer's Dog, Rothy's, Brooklinen and Savage X Fenty, the lingerie company founded by musician Rihanna. The companies were part of a wave of direct-to-consumer firms built on the hope that digital retailers could earn software-like margins.

'Disrupted or dead': AI is crushing a generation of startups built before ChatGPT
North America
CNBC

McDonald's unveils new global growth strategy to win over diners as competition rises

McDonald's on Monday unveiled its latest global growth strategy to help the fast-food giant become customers' first choice as it faces new rivals and consumer spending stretched by high gas prices. A new restaurant design, better-tasting food and drinks, consumer-led innovation and improved customer service are the four cornerstones of the new plan, which the company calls "McDonald's > NEXT." Executives made the announcement at McDonald's biennial Worldwide Convention for franchisees, held this year in Las Vegas. The chain released its last global strategy, known as "Accelerating the Arches," in November 2020 as its sales bounced back from the pandemic. The growth plan comes as restaurants compete for a smaller pool of customers, and a new crop of chains, including Raising Cane's and 7 Brew Drive Thru Coffee, threaten McDonald's sales. So far, McDonald's, the largest U.S. restaurant chain by revenue, has managed to hold onto its dominant spot, with four straight quarters of same-store sales growth. "Traditional competitors are upgrading their menus, and a new wave of specialists are emerging and redefining taste and quality across chicken, beef, and beverages," McDonald's CEO Chris Kempczinski wrote in a memo to the chain's global system. "In a world where every restaurant is a swipe away, there is no such thing as second place," he added. To become diners' first option, McDonald's plans to focus on menu innovation that elevates taste and quality, like improvements to its McCrispy chicken line. For years, the chain has sought to improve and expand its chicken offerings as rivals like Chick-fil-A stole its customers. Plus, Americans have been eating more chicken than beef for the past 16 years, due to health concerns tied to the consumption of red meat and higher beef prices, according to U.S. Department of Agriculture data. "We're raising the bar for our menu by improving quality and consistency at scale and innovating in spaces where we see growth potential and know matter to our customers, like chicken, beef and beverages," said Jill McDonald, the chain's global chief restaurant experience officer. The chain also wants to "co-create" with customers by listening more closely to what consumers want and how they interact with brands. Recent examples include the popularity of its viral Grimace milkshake and its collaboration with "A Minecraft Movie." The new restaurant design will give McDonald's a recognizable look, but it should also ease employee headaches and improve kitchen operations. The company said back-end systems will be more intuitive and connected, for example. McDonald's is also testing automated order taking at five U.S. restaurants using a system it named ARCHY to let employees focus on other tasks. More broadly, the chain also said it wants to "redefine hospitality" by improving customer service and training employees to interact more with diners. In September, the company will hold an investor day that will include more details about the strategy and relevant financial targets.

McDonald's unveils new global growth strategy to win over diners as competition rises
Europe
The Guardian

60 Minutes correspondent Scott Pelley accuses Bari Weiss of ‘murdering’ show

‘She’s murdering 60 Minutes,’ Scott Pelley said, according to sources with knowledge of the situation. Photograph: Michele Crowed/CBS via Getty ImagesView image in fullscreen‘She’s murdering 60 Minutes,’ Scott Pelley said, according to sources with knowledge of the situation. Photograph: Michele Crowed/CBS via Getty ImagesCBS60 Minutes correspondent Scott Pelley accuses Bari Weiss of ‘murdering’ showPelley reportedly rebuked CBS ousting show’s executive producer, executive editor and two top correspondents Scott Pelley, a veteran 60 Minutes correspondent, called out CBS News management in a heated meeting on Monday morning, attacking the network’s decision on Thursday to fire the show’s executive producer, executive editor, and two fellow correspondents, Sharyn Alfonsi and Cecilia Vega, as part of a broader overhaul of the show, sources tell the Guardian. During a meeting of the show’s staff and Nick Bilton, its newly appointed executive producer, along with the CBS News managing editor Charles Forelle, Pelley took direct aim at Bari Weiss, the network’s controversial editor-in-chief. “She’s murdering 60 Minutes,” Pelley said, according to sources with knowledge of the situation. “She does not love this place. She was brought in to kill it and is doing exactly that.” Forelle accused Pelley of being rude, and Pelley countered by saying that the network had been rude by the way it treated Tanya Simon, the show’s executive producer who was fired on Thursday. 60 Minutes staff who were present for the meeting showed strong support for Pelley, giving him a standing ovation, sources said. A CBS News spokesperson declined comment on the meeting. A source with knowledge of the situation said that overtures have been made to Pelley, who is seen as an important part of the show. (Pelley has also been contacted for comment.) Still, the exchange on Monday raises questions about Pelley’s long-term future at the show. Last Wednesday, hours after Alfonsi announced that the network had opted not to renew her contract for the show’s 59th season, Pelley gave her a shoutout at the News & Documentary Emmy awards. “There have been many great 60 Minutes correspondents over the years. I see Sharyn Alfonsi in the audience,” he said. Pelley was also effusive in praising Santiago Campos, an 18-year-old high school senior who called out the network’s direction under Weiss, saying that it “stains the legacy of Mike Wallace”, the namesake of the award that Campos received. “I know that Mike Wallace is looking down on you with pride at this very moment,” Pelley said. On Wednesday, Alfonsi – who had reported a December 2025 segment about a notorious prison in El Salvador that got shelved by Weiss – released a blistering statement, saying: “The wall between editorial independence and corporate interest at CBS is being methodically torn down.” She added: “Journalists willing to challenge authority are being pushed aside in favor of those who will not. If this continues, the result will be a broadcast that looks like 60 Minutes but lacks the courage and character to produce journalism that matters.”

60 Minutes correspondent Scott Pelley accuses Bari Weiss of ‘murdering’ show
Europe
The Guardian

Nvidia launches ‘superchip’ putting AI power into laptops and PCs

A new front has opened up in the battle for dominance in AI chips, as Nvidia said its latest development could replace the mouse and keyboard in how people use computers. The $5tn (£3.7tn) US semiconductor company has launched a “superchip” that puts AI capabilities into laptops and desktop computers, a move that will pit it against Intel, Apple, Qualcomm and AMD. The RTX Spark chip will be launched this year, and will be used by computer makers including Dell, Lenovo, Asus and HP, paired with Microsoft’s Windows software, according to the Nvidia chief executive, Jensen Huang. Speaking at the Computex conference in Taiwan, Huang said the chip would “reinvent the PC” for the AI era, after three years of collaboration between Nvidia and Microsoft. A combination of a microprocessor and a graphics chip, developed with help from Taiwan’s MediaTek, it is designed to run AI agents locally rather than relying on cloud computing. It will allow agents to navigate PCs autonomously, replacing humans’ traditional mouse and keyboard interactions. Because the chip is very powerful, computers will still be thin and light, the company said. The company’s foray into the consumer PC industry will open up a new business line, but this will take time, analysts said. Nvidia, which dominates the booming AI semiconductor market, is pushing beyond graphics cards into integrated chips that power the whole computer. Neil Shah, a co-founder of Counterpoint Research, compared the “RTX Spark moment” with the advent of the iPhone, ChatGPT and DeepSeek. “The RTX Spark looks to transform the traditional app-centric PC to a real useful agentic AI personal computer which will eventually be in every home in coming years as private edge AI agents become pivotal,” he said. The new chip and Nvidia’s Vera central processing unit (CPU) demonstrate the company’s growing focus on PC and CPU products. The Vera CPU is designed for AI agents and early adopters, including OpenAI, Anthropic and SpaceX. Susannah Streeter, the chief investment strategist at Wealth Club, said: “Nvidia’s latest push into AI-powered personal computers marks a bold attempt to extend its dominance beyond datacentres and into consumers’ everyday lives. The unveiling of the RTX Spark chip reinforces Jensen Huang’s vision of PCs evolving from simple productivity tools into hyperintelligent digital co-workers. “While strategically significant, investors are likely to view the move as a longer-term growth opportunity rather than an immediate earnings driver. For now, Nvidia’s fortunes still depend overwhelmingly on relentless global demand for AI infrastructure and datacentre computing power.”

Nvidia launches ‘superchip’ putting AI power into laptops and PCs
Europe
The Guardian

Media mogul Barry Diller’s People offers to buy MGM Resorts for over $18bn

Aerial view of the south Las Vegas Strip, including the MGM Grand, Excalibur and New York-New York casinos, in 2022. Photograph: Michael Quine/Las Vegas Review-Journal via Getty ImagesView image in fullscreenAerial view of the south Las Vegas Strip, including the MGM Grand, Excalibur and New York-New York casinos, in 2022. Photograph: Michael Quine/Las Vegas Review-Journal via Getty ImagesBusinessMedia mogul Barry Diller’s People offers to buy MGM Resorts for over $18bnFocus on casino operator is sharp departure from media for Diller as markets remain volatile Media mogul Barry Diller’s People Inc said on Monday it had proposed to buy MGM Resorts, valuing the casino operator at more than $18bn. The offer comes just weeks after Diller, the digital media company’s chair, told shareholders in a 28 April letter that People would sharpen its focus on its MGM stake, calling the stock “wildly undervalued”. People currently owns 26.1% of the outstanding common stock of MGM. It is planning to bid $48.30 a share in cash for the remaining company, representing a premium of about 10.6% to MGM’s Friday close of $43.67. MGM’s shares rose more than 10% in premarket trading, while those of People – renamed from IAC in April – rose nearly 3%. Diller’s interest in MGM dates back to the Covid-19 pandemic, when he began accumulating shares in the casino operator when its shares were battered by closures and travel restrictions. MGM owns marquee properties that account for roughly 40% of the Las Vegas Strip. However, the casino operator has been struggling with sluggish footfalls in Las Vegas, and in recent quarters has relied on growth in its China properties, including Macau, and digital operations. The company’s BetMGM venture has also emerged as one of the leading US online sportsbooks, giving higher exposure to a digital gambling market that analysts have been bullish on. For Diller, MGM is a sharp departure from digital media, giving his group access to an industry focused on travel and tourism at a time when markets remain volatile. The offer also marks another major takeover attempt in the casino sector. Last week, the hospitality billionaire Tilman Fertitta’s firm announced the takeover of Caesars Entertainment in a $17.6bn deal.

Media mogul Barry Diller’s People offers to buy MGM Resorts for over $18bn
North America
CNBC

Disney is poised to ramp its already booming advertising business. Rita Ferro is behind the push

As Rita Ferro, Disney president of global advertising, prepared to take the stage at the company's recent upfront presentation, she had actor Paul Anthony Kelly on her mind. Kelly recently portrayed John F. Kennedy Jr. in the limited FX TV series "Love Story," and met Ferro at an earlier event. After a fangirl moment that included an iPhone snapshot, Ferro requested that Kelly introduce her at the annual pitch to advertisers. "That's the Disney difference: trust, innovation and unrivaled fandom. Not just with the stories they tell, but how they operate as a company," Kelly said on stage earlier this month. "And all of this is in large part due to Rita Ferro." Ferro is a 29-year veteran at Disney and has risen through various roles to the top of its advertising business. That places her at the center of a media industry rediscovering the importance of advertising, as traditional TV, streaming, digital and social platforms all jockey for viewers and ad dollars. While Disney and other media companies held shows in mid-May to dazzle advertisers, the negotiations to lock in commitments are currently underway. Ferro said in interviews with CNBC that she thinks fandom — from sports to entertainment franchises — is key to driving the Disney portfolio and what unites the company's divisions under newly installed CEO Josh D'Amaro. "When you think of 'One Disney,'" Ferro said, referring to the strategy being undertaken by D'Amaro, "and all of the opportunities to tie in brand partnerships with our movie studio partners, [and] the corporate alliance pieces that can tie into park activations, it's a far more interesting and dynamic opportunity than just a traditional media sales role." Ferro previously held roles at Disney at ESPN International, Disney Media Network's Kids and Family, and Disney Interactive, which no longer exists but had focused on the development and distribution of video and mobile games, social media and other digital products. In 2018, Ferro became president of advertising in the U.S., and in 2023, she took over the business globally. She now leads all advertising sales for Disney's entertainment, news and sports properties across linear TV, digital and streaming. "Everyday you're learning, everyday is different and we spend so much time outside learning our partners' businesses," she said. "That's what I love." The daughter of Cuban immigrants who came to the U.S. just before the start of the Cuban Revolution, Ferro was born and raised in Miami. She moved to New York City after graduating from Florida International University with the intention to become a copywriter and art director. After one class, she said, it became clear she wasn't suited for that career. Ferro said she soon got involved in fundraising for a production company that showcased Latino comedians and "realized that I was much better at that side." She got her start in the media ad industry working for MTV in Latin America before its official launch.

Disney is poised to ramp its already booming advertising business. Rita Ferro is behind the push
North America
CNBC

A hotly debated lung cancer drug cut the risk of death by 34% in a late-stage trial in China

An experimental lung cancer drug from Akeso and Summit Therapeutics reduced the risk of death by 34% in a closely watched late-stage trial, according to results released Sunday. When combined with chemotherapy, the drug kept people with squamous non-small-cell lung cancer alive for a median of four months longer than the standard combination of immunotherapy and chemotherapy, a result that was statistically significant, according to an abstract released Sunday ahead of a presentation at the American Society of Clinical Oncology's annual meeting. The Phase 3 trial was conducted in China, and a global Phase 3 study is ongoing. "The fact that it shows an improvement in overall survival in a difficult-to-treat patient population is very encouraging," said Dr. Suresh Ramalingam, executive director of the Winship Cancer Institute of Emory University. "I'm mindful of the fact that this trial was done exclusively in China, and that brings up the question of how do these data apply to patient populations outside of China, and that will require future investigations." Called ivonescimab, the bispecific antibody targets PD-1 — similar to Merck's best-selling drug Keytruda —and VEGF — similar to Roche's Avastin. It's become the subject of intense debate in the oncology and investment communities. Some say ivonescimab and similar drugs could be a successor to Merck's wildly successful cancer drug Keytruda, while others warn it'll disappoint like other once-promising ideas such as drugs targeting TIGIT, an immune receptor. The dueling narratives are reflected in the stock price of U.S.-based Summit Therapeutics, which licensed the rights to ivonescimab outside of China from Akeso. Shares of Summit have skyrocketed nearly 600% in the two years since Summit said ivonescimab more effectively controlled tumors than Keytruda in a separate China trial. The stock has slid in the past month over concerns the drug won't be as effective in a global population. Previous studies have showed ivonescimab can effectively control tumors, an endpoint known as progression-free survival. That's typically not enough to seek approval from the U.S. Food and Drug Administration, which wants proof that cancer drugs can keep people alive longer. Older VEGF drugs that effectively controlled tumors struggled to improve survival, which raised doubts that ivonescimab's early promise would hold. In the Harmoni-6 trial being presented Sunday, ivonescimab combined with chemotherapy kept people alive for a median of 27.9 months versus 23.7 months for people who received a standalone PD-1 drug and chemotherapy, an improvement of four months. "It's not clear how meaningful that is," said Dr. Deborah Doroshow, associate professor of medicine, hematology and medical oncology at the Icahn School of Medicine at Mount Sinai. "It's certainly, it's not two months, but it's also not a huge difference, and I think in terms of whether or not living four months longer is meaningful absolutely depends on the person who is living it." People receiving immunotherapy in the control group lived an average of six months longer than expected, raising questions about whether the trial enrolled a representative patient population and whether the advantage of ivonescimab might be better than reported in the study, said Doroshow, who serves on the steering committee for the ongoing Harmoni-3 global trial of ivonescimab. One possible reason for the discrepancy is that the study was conducted in China, where people have historically responded better to standalone PD-1 and VEGF drugs, said Emory's Ramalingam. The only way to determine whether combining the two in one molecule produces different results for broader populations is to run additional studies in the West, he said. Until then, Ramalingam called the trial results "good news" for Chinese patients. "There is a new approach in squamous cell lung cancer that extends survival by about four months, which is a substantial improvement given that this is a patient population where progress has come in small steps," he said.

A hotly debated lung cancer drug cut the risk of death by 34% in a late-stage trial in China
North America
CNBC

Investors and labels are buying into the growing South Asian music business in the U.S.

When music executive Anjula Acharia began launching superstar actress Priyanka Chopra Jonas into Hollywood in the early 2000s, her label partner Jimmy Iovine — the name behind pop sensations such as Eminem and Lady Gaga — told her she was 20 years too early to bring South Asian talent to the U.S. Now, Acharia is the founder and CEO of 5 Junction, a joint label with Warner Music Group focused specifically on investing in South Asian artists in the U.S. "That sounded crazy, to think we were 20 years too early, but now, 20 years later, with the explosion of people like Diljit Dosanjh and Karan Aujla ... there's all these South Asian acts that are coming here and really selling out, particularly in the live arena," Acharia told CNBC. The South Asian music market in the U.S. has remained largely untapped, but as music becomes more globalized, as with the success of K-pop and Latin acts, South Asian talent is making a case to investors as the next big business opportunity, Acharia said. Global music revenues are reaching all-time highs, surpassing $30 billion in 2025, according to the International Federation of the Phonographic Industry. Spotify said last year that streams of Indian artists in international markets grew more than 2,000% between 2019 and 2023, and nearly 50% of royalties from Indian artists on the platform in 2024 were from listeners outside India. With South Asia's growing population and diaspora, it's set to be one of the fastest-growing segments within global music, according to Acharia. "We're in a different time, and I think digitally things travel just so much faster," she said. "A lot of big hits were made with samples from Indian music, so it's been in the zeitgeist for a long time — it's just not been given a face." As more labels look to the subcontinent, Acharia said the business is currently in a stage of experimentation, figuring out what works and how the fan bases will evolve. Warner Music Group is the third-largest music label in the U.S., holding roughly 17% market share by distribution ownership as of the first quarter of 2026, according to Billboard. "I think the business proposition is this global Indian fandom," she said. "How do we galvanize this audience and this fandom, and how do we serve it?" 5 Junction represents top artists such as singer and songwriter Rhea Raj, who told CNBC she's seeing South Asian music become more mainstream in the U.S. "We're seeing more artists at bigger festivals and at award shows, and I think the best of it's yet to come," Raj said. Raj and her sister, Lara Raj, of the girl group Katseye, are two of many South Asian artists in the U.S. building out fan bases that span backgrounds and ethnicities.

Investors and labels are buying into the growing South Asian music business in the U.S.