Feed the beast

[The beef 675] "So, does Watson have a say in all this?" - Jeff Hey there carnivores, Markets rose again on Thursday as stimulus hopes continued to climb. Today we’re talking Morgan Stanley’s insatiable appetite. Keep raging, Jeff & Jason Feed the beast Big dog’s gotta eat.” - James Gorman referring to himself in the third person While his peers were busy trimming the fat (D-Sol at Goldman) and cutting deals with Uncle Sam (Mike Corbat at Citigroup… and also D-Sol), Jimmy G. was doing what he does best: shopping. Morgan Stanley is buying fund manager Eaton Vance for $7B, which represents a 40% premium above Wednesday’s closing price. The Gor Man had this to say about the price: “People who hang around trying to buy great companies cheaply never get anything done.” Was that a shot at Warren Buffett? Eaton Vance will bring over roughly $500B in assets under management, helping the Morgan Stanley money management biz break through the $1T threshold ($1.2T to be exact). The combined company is expected to generate $5B in revenue annually. Mr. Missionary Speaking of revenue, Gorman likes his top line like his intercourse… safe. Asset management produces a reliable stream of income, and is relatively risk-free. At least compared to the Wall Street giant’s trading biz. Gorman has made it his mission to de-risk the bank, going all in on wealth and asset management. So what did markets think? Investors sent Eaton Vance shares up more than 50% after the announcement, which shouldn’t come as a shock considering the premium paid (40%) and a $4.25 per share special dividend. Morgan gained roughly half of a percent on the day which isn’t too shabby considering Jim’s penchant for overpaying. The bottom line... This deal comes on the heels (literally, right on the heels) of Morgan Stanley’s $13B purchase of E*Trade which closed last week. In fact, Eaton Vance approached Morgan Stanley regarding a sale, but, always the class act, Morgan waited until E*Trade went final. Together, the roughly $20B worth of acquisitions means that more than half of the bank's revenue will come from investment management or asset management. Jeff Bishop’s #1 Stock For Q4 2020 (Hint: It’s Not What You Think) [Trading Graph]( [Watch Now]( ☑️That’s an...investment alright. Square is bullish on crypto, announcing on Thursday that it had purchased [more than 4.7k bitcoin]( for $50M. Somebody hasn’t been listening to Warren Buffett. The mobile payment giant paid an average of $10,617 each and was able to make the purchase in one day without disrupting the markets. The silent, but deadly, transaction. According to Square, bitcoin now represents less than 1% of its total assets as of the end of Q2. The move comes as Square CFO Amrita Ahuja said that bitcoin “has the potential to be a more ubiquitous currency in the future.” Whatever you say, Amrita. On the news, Square shares climbed 3%, while, believe it or not, bitcoin did the same. ☑️ LAN Party. Gamestop and Microsoft are starting a party chat, as they [agreed]( to join forces as part of a strategic partnership. The deal will see Gamestop using Microsoft’s cloud service to handle operations like finance, inventory, and e-comm. Employees will also be given Microsoft Surfaces to help customers. If it’s good enough for the NFL, it’s good enough for a bunch of virgins. Gamestop, in return, will offer Xbox All Access, a subscription service for Microsoft’s Xbox that gives users an Xbox, and 24 months of Xbox Game Pass Unlimited for free. On the news, GameStop shares jumped 27%. If you sell shares back to them, however, they’ll only give you $5 in store credit. ☑️Good Guy Moderna. Moderna is planting its flag as the large pharmaceutical company of the people. The company [said]( that it will not be enforcing ‘rona vaccine patents through the duration of the pandemic. *Martin Shrkreli begins “borrowing” Moderna’s patents* The company has seven patents related to its vaccine, but the announcement means that governments and competitors can develop at will, and Moderna won’t block other vaccines that may be based on proprietary technology. The minute the last person tests negative, though, you better believe Moderna will be lawyering up. ☑️Canceled. WarnerMedia is putting some employees on hiatus. A permanent hiatus. The AT&T entity is cutting [up to 20%]( of its workforce as it continues to lose income during the pandemic. You mean HBO Max isn’t picking up the slack? Shocker. The layoffs won’t be isolated to one business unit either. Warner Bros. studios, HBO, TNT, and TBS could all be affected by the cuts. Oh no, who is going to press play on King of Queens re-runs on TBS? For a company like WarnerMedia, a pandemic has meant the loss of revenue from movie tickets, cable subscriptions, and TV ads. Warner’s not alone, though. Walt Disney and Comcast’s NBCUniversal also cut jobs. Fine company to have, if you ask me. RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website,application or other service ("Services"), please review our full disclaimer located at [(disclaimer. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. AnyRagingBull Service offered is for educational and informational purposes only and should NOT beconstrued as a securities-related offer or solicitation, or be relied upon as personalizedinvestment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision. 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