🚀 Google seems set to lose Chrome

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. Perplexity AI’s $34.5 billion bid for Google’s Chrome browser has injected fresh drama into the Justice Department’s looming antitrust remedies decision, which could force Alphabet to divest Chrome following last year’s monopoly ruling on its search business. While analysts doubt the offer’s seriousness and value Chrome closer to $50 billion, the move marks the first public attempt to strip a core product from Google. The browser, responsible for an estimated 35% of search revenue, sits alongside other highly valued Alphabet units that could be affected by a breakup: Google Cloud (valued between $549 billion and $682 billion), YouTube ($271 billion to $550 billion), and Waymo ($45 billion to $300 billion). With AI-driven competitors like ChatGPT challenging traditional search and regulators in the U.S. and Europe pressing harder, Alphabet faces the dual challenge of defending its integrated ecosystem while justifying massive AI infrastructure spending. A forced Chrome spinout could cut Alphabet’s stock value by up to 25%, but some analysts believe a breakup might unlock greater shareholder value.

2. Carolina Hurricanes owner and Dallas-based investor Tom Dundon has reached a tentative agreement to purchase the NBA’s Portland Trail Blazers from the estate of late Microsoft co-founder Paul Allen, with Allen’s sister Jody managing the team since his 2018 death. While Dundon did not disclose financial terms, CNBC values the Blazers at $3.65 billion, far above the $2 billion bid Nike co-founder Phil Knight reportedly made in 2022. Already the majority owner of the Pro Pickleball Association and Major League Pickleball, Dundon is known for aggressive sports investments, having acquired control of the Hurricanes in 2017. The sale, first reported by Sportico, still requires NBA approval, which could formally transfer the franchise from one of the league’s most stable ownership estates to a hands-on, expansion-minded sports entrepreneur.

3. Some of America’s biggest employers, from Microsoft to McDonald’s to Amazon, are increasingly using AI to cut labour needs, especially in lower-skilled, entry-level, and automation-prone roles, while boosting productivity and margins. Microsoft claims it saves hundreds of millions of dollars annually by automating support functions. PayPal’s AI assistant has reduced customer service calls, and Amazon has over a million robots in its facilities to speed up delivery and cut costs. Analysts note that roughly half of companies discussing internal AI use mention headcount reductions, while others cite efficiency gains that slow future hiring. The shift has hit tech workers hardest in fields such as marketing, call centers, and software development, although some firms emphasize AI as a supplement rather than a replacement for human work. Despite current job losses and hiring freezes, Wall Street expects AI to eventually create new roles, with layoffs more closely tied to post-COVID corrections than to mass automation and selective hiring to continue in high-impact areas.

   Headlines

   1. Kodak is still struggling to repay its debts, even with a resurgence in the market for film cameras due to increased demand for “retro” aesthetics from Gen Z consumers.

   2. Economist Marc Sumerlin, one of the reported candidates to replace Jerome Powell as Federal Reserve Chair, has publicly stated that he would be interested in the position and that he would immediately implement aggressive interest rate cuts.

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