VOLUME 53

Good morning and welcome to yet another exciting volume of The Pace Report! From 6 figure podcast deals to more groundbreaking AI partnerships, we cover it all. Stay tuned.

— Jacob Pace

Alex Cooper Secures $125 Million Deal with SiriusXM, Ending Spotify Partnership

What happened: Alex Cooper, the host of the hit podcast "Call Her Daddy," has inked a multiyear deal with SiriusXM valued at up to $125 million, bringing her exclusive content to the satellite radio giant. 

For context: This marks the end of her Spotify partnership, which was initially worth $60 million over three years. The new deal includes advertising, distribution, content, and events, set to launch in 2025.

Why it matters: Following Joe Rogan's $250 million deal with Spotify in 2020, this partnership indicates that podcasting remains a highly attractive entertainment vertical for audio companies like SiriusXM. Many speculated that the podcasting was merely a temporary bubble, but deals like this suggest there's certainly still growth in the space.

OpenAI Strikes Major Licensing Deal with Condé Nast

What happened: OpenAI has secured a multiyear licensing agreement with Condé Nast, allowing the AI giant to display content from top brands like Vogue, The New Yorker, and Wired across its platforms, including ChatGPT and the new SearchGPT prototype. While financial terms weren’t disclosed, the deal mirrors similar arrangements OpenAI has recently made with The Atlantic and News Corp.

Why it matters: As AI continues to grow, the relationship between platforms and publishers will be critical. While different, partnerships like this mirror the nature of Meta's recent collaboration with UMG to tackle illegal AI remixes using their copyrights on their platform.

AMD Finalizes $4.9 Billion Acquisition of ZT Systems to Bolster Data Center Capabilities

What happened: AMD has officially completed its $4.9 billion acquisition of ZT Systems, a prominent server builder, in a bold move to strengthen its presence in the rapidly expanding data center market. This acquisition is expected to enhance AMD’s ability to offer end-to-end solutions, particularly as it competes with industry leader NVIDIA.

AMD CEO Lisa Su emphasized the importance of this acquisition, stating, "ZT Systems' expertise in server design and manufacturing will accelerate our data center ambitions and drive long-term growth." With this move, AMD solidifies its position as a key player in the data center sector, building on its previous $35 billion acquisition of Xilinx.

Starbucks Replaces CEO Laxman Narasimhan with Chipotle's Brian Niccol

What happened: Starbucks has replaced CEO Laxman Narasimhan with Brian Niccol, the current CEO of Chipotle, effective September 9th. This announcement sent Starbucks’ stock soaring by 24.5%, marking its best day ever, while Chipotle’s stock fell over 10% on the news of Niccol's departure.

For context: Brian Niccol, known for turning around Chipotle after its foodborne illness scandals and driving strong growth during the pandemic, is expected to bring his expertise in digital operations and customer experience to Starbucks.

By the numbers: Brian Niccol, the incoming CEO of Starbucks, is set to receive a substantial compensation package worth approximately $113 million. This includes a $10 million signing bonus, a $75 million equity grant, and up to $23 million in additional annual stock awards starting in fiscal 2025.