Deal Dispatch: Biden Punts TikTok Ban To Trump, Plus Another Legacy Retailer Goes Bankrupt
President Joe Biden prioritized freeing non-violent drug offenders during his final few days in the White House, but TikTok? That's President-elect Donald Trump's problem now.
According to the Associated Press, Biden has no intention of enforcing the ban, which takes effect on his last full day in office, Jan. 19, and one day before Trump’s inauguration.
With a deadline looming, the app's fate lands in the hands of the so-called People's Bid for TikTok—backed by none other than Kevin O'Leary of “Shark Tank” and billionaire Frank McCourt. Apparently, TikTok's U.S. assets are still up for grabs, but no word yet on the price tag or whether a deal can realistically get done in a few days.
Bankruptcy Block
Joann Inc. is stitching together a bankruptcy plan for the second time within 12 months. The Ohio-based fabric and crafts retailer is seeking a buyer for its portfolio of some 800 stores.
Gordon Brothers Retail Partners emerged as the “stalking horse” bidder, but Joann remains hopeful for better offers—perhaps from someone who knows how to thread the needle.
Previously, the 82-year-old retailer was under the stewardship of private equity firm Leonard Green & Partners, which acquired it via a $1.6 billion leveraged buyout in 2011. The firm buried the company under a pile of debt (reportedly $921 million in long-term debt as of Oct. 31, 2020) and sent it public in 2021.
Joann went private again in March 2024 while under Chapter 11 bankruptcy protection. The company managed to reduce its $1 billion total debt by about $500 million at the time.
Despite efforts to save itself last year, Joann is joining the growing quilt of recent retail casualties: Party City, Big Lots, LL Flooring, The Body Shop and The Container Store to name a few.
Kirkland & Ellis is handling legal matters, while Centerview Partners LLC offers financial advice. Alvarez & Marsal North America, LLC is overseeing the restructuring process.
New On The Block
- Investment firm KKR & Co. (NYSE:KKR) hired Goldman Sachs (NYSE:GS) to run an auction for its minority stake in Philippine fintech company Maya, Reuters reported.
- New York-headquartered KKR owns more than 20% of Maya and the potential sale, if it goes through, could value Maya at more than $2 billion, one of the sources said.
- DuPont de Nemours, Inc. (NYSE:DD) is looking to jettison its electronics business. The Wilmington, Delaware-based company expects the transaction to be completed by Nov. 1. DuPont also decided to retain its water business after evaluating strategic alternatives.
- Ingevity Corporation (NYSE:NGVT) is shopping its Performance Chemicals Industrial Specialties segment, which includes divesting parts of its North Charleston, South Carolina site. The company hopes to improve earnings cash flow and conclude the review process by year-end. Whether a transaction comes about remains to be seen.
- S&W Seed Company (NASDAQ:SANW) is up for sale. It’s also considering a merger or recapitalization as part of a larger strategic review. The Longmont, Colorado-based company has already sold its Australia subsidiary. “We continue to support all initiatives that optimize shareholder value and will consider the full range of potential strategic alternatives to ensure S&W Seed is best positioned for future success,” chairman Alan Willits said.
Updates From The Block
- Lourenco Goncalves raised eyebrows during a Monday press conference. According to Bloomberg, the CEO of Cleveland-Cliffs Inc (NYSE:CLF) called Japan, a U.S. ally, “evil” and accused it of teaching China harmful practices like dumping and overproduction. His comments came as Cleveland-Cliffs eyes a new bid for U.S. Steel (NYSE:X), following Biden’s decision to block Nippon Steel‘s (OTC:NPSCY) $14 billion acquisition attempt. While positioning his company as a potential buyer, Goncalves’ rhetoric escalated tensions within the steel industry. Nippon is now looking to Trump to help close the deal.
- T-Mobile (NASDAQ:TMUS) will buy Vistar Media for $600 million. The telecom company expects the deal to strengthen its advertising business, Reuters reported.
Deals in the biotech and pharmaceutical sectors piled up this week. Here’s a sample of Benzinga’s coverage:
- Biogen Inc. (NASDAQ:BIIB) submitted an unsolicited bid to acquire all of the outstanding shares of Sage Therapeutics Inc. (NASDAQ:SAGE) that it does not already own for $7.22 per share. Goldman Sachs analyst Salveen Richter believes the proposal makes strategic sense, considering the financial success of the Zurzuvae launch for postpartum depression (PPD).
- GSK plc (NYSE:GSK) agreed to acquire IDRx, Inc., a biopharmaceutical company focused on precision therapeutics for gastrointestinal stromal tumors (GIST), for $1 billion. The deal may require an additional $150 million from GSK after certain regulatory approval milestones.
- Eli Lilly (NYSE:LLY) scooped up Scorpion Therapeutics’ early-stage cancer program for $2.5 billion.
- Like Bristol-Myers Squibb (NYSE:BMY) and AbbVie Inc (NYSE:ABBV), Johnson & Johnson (NYSE:JNJ) is seeking to bolster its neuropsychiatric portfolio with a $15 billion deal
- Crown Laboratories (NYSE:CCK) offered to acquire all outstanding common shares of Revance Therapeutics (NASDAQ:RVNC) at $3.10 per share.
- Salarius Pharmaceuticals (NASDAQ:SLRX) agreed to a deal with Decoy Therapeutics, a preclinical biotech focused on peptide conjugate therapeutics. The merged entity will target unmet needs in respiratory diseases and GI oncology.
- Lantheus Holdings Inc (NASDAQ:LNTH) strengthens its radiopharmaceutical position with $350 million acquisition of Life Molecular Imaging.
For last week’s edition of Deal Dispatch, click here.
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