VOLUME 48

Happy Thursday! Today we have some exciting stories for you in the world of sports media, fashion, tech and more.

Enjoy!

— Jacob Pace

WNBA Scores a Record Breaking $2.2 Billion Media Rights Deal

The WNBA has secured a groundbreaking media rights deal worth $2.2 billion over 11 years, marking a 500% increase compared to its previous deal, which was closer to $50 million annually. The new agreement includes Disney, NBC, and Amazon, who are hopping on board to be the league’s exclusive streaming partners. Cathy Engelbert, the first commissioner of the WNBA who joined in 2019, stated that her goal was to double the league’s rights fees; and that goal has clearly been surpassed by a long shot.

Barstool Sports founder Dave Portnoy took to X to give WNBA superstar Caitlin Clark credit for this groundbreaking deal. I must say, I do believe a deal of this magnitude is largely due to the recent popularity of Clark, who recently signed a deal with Nike for $28 million. At the end of the day, people want to see people they can root for and relate to, especially in sports, and fans seem to have found that in Clark.

This is just the beginning for the WNBA’s continued rise, as well as its lineup of superstars. This lucrative partnership will absolutely see players getting paid more as well as increased growth in the overall presence of the league.

Streetwear Brand Supreme Sells for $1.5 Billion

Supreme, the iconic skate-streetwear brand known for its collaborations with legendary brands such as Louis Vuitton and Burberry, has sold for $1.5 billion in cash to Essilor Luxottica, the company behind brands like Ray-Ban and Oakley.

VF Corporation, the previous owner of Supreme, bought the brand for $2.1 billion in 2019, which means that the sale is happening at a loss. Some speculate that this is because of a change in trends, as younger consumers move towards newer, emerging categories such as sustainable fashion or athleisure.

Regardless, EssilorLuxottica has a vision for this acquisition and is claiming that Supreme will operate within a new division dedicated to its brand. In a joint statement on Wednesday, EssilorLuxottica’s chief executive Francesco Milleri and deputy Paul du Saillant said, 'It perfectly aligns with our innovation and development journey, offering us a direct connection to new audiences, languages, and creativity.'

The deal is expected to be completed by the end of 2024. I think it will be interesting to see what this new company can do with Supreme. If they can really put behind the resources they’re promising, I think this deal has a ton of potential.

Google in Advanced Talks to Acquire Cybersecurity Startup Wiz for $23 Billion

Google is in advanced discussions to acquire cybersecurity startup Wiz for approximately $23 billion, making it the tech giant’s biggest acquisition to date. Wiz is a software provider known for its cloud security solutions, that has grown rapidly since its inception in 2020. Wiz reached $100 million in annual recurring revenue (ARR) by mid-2022 and, earlier this year, said its ARR had surpassed $350 million. The company was last valued at $12 billion when the company raised $1 billion two months ago.

If the acquisition goes through, the deal shows Google’s real commitment to enhancing its cybersecurity capabilities and competing with industry giants like Microsoft and Amazon, who each have multi-billion dollar cybersecurity businesses. Especially as the AI industry begins to heat up, cybersecurity will also boom as business with new threats looming that organizations need to be ready for.

Also, fun fact, the Wiz founders will each net about $2 billion if the transaction goes through. And the company started in 2020 — wild!

Microsoft Lays Off Entire DEI Team

Microsoft has reportedly laid off the entirety of its diversity, equity, and inclusion (DEI) team, citing their lack of relevance to business operations. An internal email revealed that DEI programs were no longer seen as business-critical. Despite this move, Microsoft has reiterated its commitment to diversity and inclusion.

This has been a growing trend in the tech industry, as other large organizations such as Google, Meta, and Zoom have also downsized their DEI teams.

DEI departments became a larger priority in 2020 following the unfortunate death of George Floyd, but more recently, I think most organizations are starting to question the large investment into DEI teams as opposed to other parts of the business.

The sentiment seems to be that there can still be a large focus on diversity, equity and inclusion, without the need for entire teams dedicated to it.

What a week! Hope you have a great Thursday, and enjoy the weekend. See you next time.