SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off 
Nintendo Shares Slide After Earnings Miss Raises Switch 2 Margin Concerns 
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised 
Global PC Makers Eye Chinese Memory Chip Suppliers Amid Ongoing Supply Crunch 
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil 
Alphabet’s Massive AI Spending Surge Signals Confidence in Google’s Growth Engine 
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate 
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
Nasdaq Proposes Fast-Track Rule to Accelerate Index Inclusion for Major New Listings 
FDA Targets Hims & Hers Over $49 Weight-Loss Pill, Raising Legal and Safety Concerns 
CK Hutchison Launches Arbitration After Panama Court Revokes Canal Port Licences 
Ford and Geely Explore Strategic Manufacturing Partnership in Europe 
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
Anthropic Eyes $350 Billion Valuation as AI Funding and Share Sale Accelerate 
Once Upon a Farm Raises Nearly $198 Million in IPO, Valued at Over $724 Million 
Nvidia, ByteDance, and the U.S.-China AI Chip Standoff Over H200 Exports 
U.S. private equity firm Apollo Global Management Inc. is in discussions to purchase a minority stake in the Middle East, North Africa, and Central Asia Starbucks franchise operated by Kuwait's AlShaya Group. The privately-owned retailer is seeking to sell approximately 30% of its business in a minority stake, as reported earlier by Reuters.
Potential Involvement of Saudi Arabia's Sovereign Wealth Fund
According to Reuters, the talks also involve Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), which had previously been shortlisted as a potential buyer for the stake. The Starbucks franchise operates around 2,000 outlets across 13 countries in the Middle East and North Africa, as well as Kazakhstan and Azerbaijan.
Before the franchise exited the Russian market in 2022, its valuation was estimated to be between $4 billion and $5 billion.
Impact of Israel-Hamas Conflict on Starbucks Business
Nasdaq noted that Starbucks disclosed in January that the Israel-Hamas conflict negatively affected its operations in the region, significantly impacting sales. The company missed market expectations for its first-quarter results.
Consumer protests and boycott campaigns emerged, urging Starbucks to take a stance on the issue. However, Starbucks clarified that it is a non-political organization and dismissed rumors of providing support to the Israeli government or army.
Despite the challenges faced during the conflict, Starbucks affirmed its commitment to its growth ambitions in the international segment. If the deal materializes, it would broaden the investor base of the Alshaya family's privately owned business, which has been held since 1999. This move aligns with the trend among major private companies in the Middle East seeking outside investors through strategic stake sales or listings.
Established in 1890, Alshaya is a prominent retail operator in the region. It owns rights to popular Western brands, including The Cheesecake Factory, Shake Shack, and Pottery Barn. In 2022, AlShaya complied with Starbucks' decision to withdraw from Russia and closed 130 stores due to the country's war with Ukraine.
Photo: Sorin Sîrbu/Unsplash
