In today’s newsletter we discuss Luckin Coffee vs. Starbucks in China, Softbank’s ARM raises $4.87 Billion in IPO, FAA to approve SpaceX’s Starship to launch in October, Taylor Swift goes to the movies, and Lionel Messi buy a humble abode in Fort Lauderdale for $10.8 Million.

Business

A funny thing happened recently on a podcast of an interview between Kai Ryssdal and Jennifer Pak, Marketplace’s China correspondent. They were walking and talking during an interview, and stopped to get coffee. Jennifer Pal mentioned that when Starbucks recently raised their prices all other coffee companies in China raised their prices in lockstep. I thought that was fascinating, and I was reminded of it when I recently read that Luckin Coffee has surpassed Starbucks coffee chains in China with a record 10,829 coffee locations as of June 2023, compared to Starbucks 6,480 locations.

Even though China is typically thought of as a tea drinking country, coffee sales have been taking off in recent years as chains such as Luckin Coffee have continued to expand.

How Luckin Coffee overtook Starbucks as the largest coffee chain in China

Tech

Chip designer ARM, wholly owned by SoftBank, raised $4.87 billion in their IPO in what some are hoping is a thawing of the frozen IPO market. This values the company around $54.5 billion - not a bad return on SoftBank’s investment considering they bought ARM for $32 Billion back in 2016. After continuing losses on their investment in WeWork, a $22.5 Billion profit has got to make a lot of SoftBank’s execs smile today.

All eyes are on ARM as the chipmaker prepares to start trading in 2023's biggest IPO. It will be a massive test of confidence in the AI boom.

Space

Did I speak too soon? The other day I wrote about what I perceived as the FAA holding SpaceX back from being able to launch their Starship Super Heavy launch vehicle. Today’s there’s news that the FAA, as well as environmental approval from the U.S. Fish and Wildlife Service, could come in October. Following the FAA’s investigation they identified 63 "corrective actions" for SpaceX to take, which Elon Musk wrote in a post on X that all 57 items required by the FAA for Flight 2 have been completed. Let’s light this candle!

SpaceX could get license for 2nd Starship launch in October, FAA says

Entertainment

I swear I'm going to stop fanboying about Taylor Swift real soon, but I just haven't gotten out of my system yet. The woman is a business force of nature! Not only did she want one of the most successful worldwide tours of all time, she's now found a way to monetize it by converting one of her shows into a movie at a time when theaters are still struggling to pull in moviegoers.

With the writer strike Studios have been pushing the releases of their films into 2024 because the stars of their movies are also on strike and prohibited from promoting films unless they are Independence or have a waiver. In the case of Taylor Swift even though she is a member of the actors guild her movie required no script and is a musical performance which did not require any acting (although I could go on a long rant about that, but I digress).

Being the Taylor Swift fanboy that I am, will I go see the movie in the theater? No, but will I watch it when it streams on whichever platform offers a pair the most? You better believe it!

Taylor Swift could change the movie theater industry with her Eras Tour concert film — here’s how

Real Estate

Stop the presses! The search has ended! Lionel Messi’s long search for a humble abode in South Florida has concluded with the purchase of a 10,500-square-foot, eight-bedroom estate in Fort Lauderdale’s Bay Colony that he paid $10.8 million for the estate. I could go on and on about the property’s amenities, but I’ll just leave you with this tidbit of real estate porn: Lionel Messi’s master bedroom suite spans a massive 1,600 square feet (which is nearly as big as my entire house).

Before you shed a tear for Lionel Messi’s bank account, keep in mind he signed a reportedly 2 ½ year contract with Inter Miami FC which is worth up to $150 million total from his salary, signing bonus, and equity in the team. And that’s before we learn more about the revenue split from his sponsorships with Apple and Adidas. I have a feeling Lionel Messi will be just fine!

Lionel Messi buys waterfront Fort Lauderdale mansion

So much news, so little time. Until tomorrow we’re signing out.

— Chris