The Best One Yet - 🎢 “Roller Coaster Tycoon” — Travis Kelce’s Six Flag’s investment. OpenAI’s web browser. NHL’s predictions deal. +Google’s Bed Bugs

Starting point is 00:00:00 This is Nick. This is Jack. It's Thursday, the new Friday, October 23rd. And today's pod is the best one yet. This is a T-boy. The top three pop business news stories you need to know today. Yetis, we got another record here, and it's not a great one. Government shut down. Now the second longest in history. 750,000 people who work for the federal government are not getting paid right now. But otherwise, the economy hasn't been too impacted. Stocks pretty much at record highs. And we'll cover the next big economic update, government-related when it happens. But in the meantime, Jack and I whipped up the best mix of stories we've ever found. Jack, what have we got on today's tea boy? For our first story, Travis and Jason Kelsey just made their first big financial investment in six flags. The Kelsey's and a hedge fund are leading a hostile theme park takeover. For our second story, Nick and I spent all day Wednesday reviewing Atlas, which is the new web browser by Chat Cheapy-Tee.

Starting point is 00:01:00 Our takeaway, Sam Alman has a big tech burn book, and he is burning his way through it like Regina George. And our third and final story. The NHL is now the first of the four big U.S. sports leagues to partner with a predictions market. The NHL just did a deal with Kalshi. We predict it'll boost Kalshi's legitimacy. And we bet. Draft Kings is pissed about it. Oh, they're not happy.

Starting point is 00:01:25 But Yeties, before we hit that wonderful mix of stories. Whoa, fantastic mix of stories for the new. Friday. Feels like a Friday. Quick warning, nobody wants to hear. Nope, don't let the bag bugs bite. Because besties were just leaked that Google has an office infestation. Hey, Google, can bed bugs travel from my work trousers to my apartment? Yes, Jack, and this is so bad that Google had to close their building in New York City over the entire weekend. That's right, Google's got bagbugs. The Chelsea office location ordered a full-on fumigation situation. They sprayed the whole space till it was ungoogable, man. Now, to sprinkle on some context, from a business perspective, there's no correlation

Starting point is 00:02:05 between the stock market and bedbugs. But, Jack, there is a correlation between commercial real estate and bedbugs. Here it is. The return to office movement has led to a bed bug boom in New York. That's right. The extermination industry hasn't been this hot since the cockroach crash in 92. According to real data from Terminix, New York City fell during the pandemic to the number five most bedbug-infested city in America. But, Jack, where are we in New York City right now in the bedbug rankings? Back up to number two. It's basically, take your bedbud to work day over at J.P. Morgan right now.

Starting point is 00:02:42 One sec, one sec. Wait, I don't think they bite, do you that? What the heck is this, Jack? Besties, bedbugs are back to commuting just like you are. They're hitching a ride to your return to office. And Ground Zero, it's the Google headquarters on West 14th Street. So, best news, after this pod, Good night.

Starting point is 00:03:00 Sleep tight. And don't let the bed bugs steal your work laptop. Jack, let's hit our three stars. Fifteen years before this song, two boys from the Northeast met in the dawn. They had an idea that caused a cultural storm. It's the best one yet, but the best is an norm. Jack Nick, that's it.

Starting point is 00:03:18 I don't even think they need to practice. 50% that's a fat tip. Tea Boy City on your at list. If you know, you know, because we're ready to go. We can't wait no more, so just start the show. First, a quick word from our sponsor. For our first story, Travis Kelsey and a hedge fund have teamed up to buy 9% of Six Flags theme park. This is a standard Wall Street activist investor campaign to change the company.

Starting point is 00:03:57 But this time, with Star Power. And here's why. Well, Jack, if you want to know what's going on and what's wrong with Six Flags, what would you say you do? Take a ride on Sirens Curse, their new roller coaster. Their new roller coaster. Yeah, because Sirens curse over at Six Flags, it's actually cursed. Opened up in June, it was broken for days and left riders stranded 100 feet up in the air. That's not funny.

Starting point is 00:04:22 What is funny, though, is that this is emblematic and symbolic of the whole Six Flags business. Because Six Flags and the company at bought last year, Cedar Fair, have half as many visitors today as they did pre-pandemic. Okay, get this, Jack, Six Flags owes twice as much more money in debt than the company is currently worth. That's right. Six Flags has negative value. Six Flags more like one flag, my friend. The stock is down 50% so far this year, and investors call it a vomit-inducing market ride. Hilariously, Six Flags blamed their most recent bad quarter on bad weather, air quotes here. But Nick and I have the receipts, and over the last three years, they've blamed all three of them on bad weather. Yeah, it rains. Sometimes. But here's what's so shocking. In the mean,

Starting point is 00:05:09 time, other theme parks are living their best lives right now, right, Jack? Like, you're a Disney shareholder. Disney revenue is at record high, and it represents 60% of the company's overall profits. Legoland, Peppa Pig Park, the new Universal Epic Universes in Orlando, all at record highs. Great Wolf Lodge, an indoor water park chain? That got acquired last year for $3 billion, which is more than six flags is even worth. Besties add it all up, and the theme park industry's doing fantastic, but six flags is the outlier doing the opposite. Which, Leads to the news. A hedge fund and a football player are teaming up to turn six flags around.

Starting point is 00:05:47 Yeah, the hedge fund is Janna Partners, located in New York City, which bought 9% of six flags for $200 million bucks. But they passed the opportunity across the desk of the Kelsey Brothers. Yeah, the Kelsey Bros are part of the investing team. The biggest deal in amusement parks, Jack, since you burned that tongue on the funnel cake in college, remember that? Dude, I used to hate roller coasters because as I would go to do that, you know, down, like with the G-forces, I would just hold it all in, and I almost imploded.

Starting point is 00:06:14 It's because you ate all that funnel cake before to reject. The key is you need to scream. Now, Basties, the Kelsey Brothers announced their involvement on the podcast as they're now roller coaster tycoons. No word on Taylor Swift's involvement, but Nick and I read the lyrics and... Cruel Summer? It appears to be inspired by a bad day she had at Six Flags. We actually made that up.

Starting point is 00:06:37 But the Kelsey Brothers say this deal is perfect. Because growing up in Ohio, Travis Kelsey was a Six Flags super fan. Cedar Fair, actually. His mom worked there, his uncle worked there. Travis Kelsey's favorite roller coasters? Yeah, they're the ones made of wood. But Yeti's Six Flags doesn't own their own IP like Disney does. They license characters like Superman and Batman and even Charlie Brown.

Starting point is 00:06:59 Which leads to the big upside opportunity, Jack and I see here. Now that the Kelsey's are part of Six Flags ownership, will they get their own ride? or maybe license an NFL-themed ride? Nick, the quarterback experience. I'm listening, Jack. You put a helmet on and you try to find an open receiver while dummies are coming at you and you have to dodge and avoid the pocket

Starting point is 00:07:20 and you could slap an NFL team logo on it thanks to the Kelsey Brothers involvement. And just like with my roller coaster experience, screaming helps. But Jack, I got to ask, what do the Kelsey's and the hedge fund actually want in this $200 million deal? Here are their demands.

Starting point is 00:07:34 They want to change the CEO and the marketing of Six Flags, and improve the customer experience and the technology too. Basically, be more like the profit puppy that is Disney World and bring Six Flags and Cedar Fair back to their old glory. But there's actually a more fundamental reason that this hedge fund tapped this tight end. Yeah, I know what you're thinking, Jack. Emotional Finance.

Starting point is 00:07:55 And Mahomes, you're going to have to wait in line like the rest of us. So, Jack, what's the takeaway for our buddies over at Six Flags? Finance is an election, and celebrity endorsements really help. Now, Yetis, activist investors only buy a minority stake in a company. In this case, they bought 9% of Six Flags. Since they don't have the majority, they can't push through changes on their own. So activist investors must rely on sway, influencing other shareholders to support their campaign to force change in the business at the top.

Starting point is 00:08:26 That's why Jaina brought in Travis Kelsey. He will put public pressure on Six Flags Management and the shareholders to come over to their side. And you know what, Jack? This hedge fund has done a celebrity takeover deal before, right? They got Shaquille O'Neal to co-invest in an activist campaign against Papa Johns, and they won that campaign. Besties, this is a celebrity finance hookup strategy that works, bring into pop culture what otherwise would remain buried in the Wall Street Journal. Because finance is democratic, and celebrity endorsements help win elections. For our second story, we use ChatGPT's new web browser, Atlas,

Starting point is 00:09:06 for a full day, and here is our review. Also, this web browser shows that Open AI is keeping a list. Oh, yeah. And all of big tech is on it. It's a big tech burn book, baby. But yet is, what's the main thing stopping us from using AI more often? Well, the answer is the F word of technology, friction. Switching from your web browser to your chatbot, it's a paint, total friction. Google Chrome finally added AI mode, but for users of chat, GPT, It's been clunky, frictiony, and like you got a two-window situation going on. Now, you might have been wondering, how come there isn't a Chrome plugin for ChatGTPT? Well, the answer is Tuesday's news. Here it is.

Starting point is 00:09:49 OpenAI is cutting Google out altogether with their own browser called ChatChapit Atlas. Now, Basties, Jack and I jumped in T-Boy style. We downloaded the new OpenAI web browser yesterday, and we used it for the entire day preparing this podcast. And here's our review after one day. It's powerful with some glitches and some scaries that might keep you up at night. You know what yeties are? I'm kind of worried. Yeah, more on that in a bit.

Starting point is 00:10:16 But besties, when you open the new chat GPT Atlas browser, honestly, you may never use Chrome again. Because Atlas is the same as Chrome. In fact, it's built off an open-sourced version of Chrome called Chromium. Oh my God, Jack. Google must be kicking themselves for making their code free to use. on their web browser. Like little did they know that Open AI, their arch rival, was going to use it to create a Chrome knockoff. So the first thing you notice when you use this new browser yeties is that it kind of looks like Chrome. It looks just like Chrome. Yeah, like Google and Open AI are siblings or something.

Starting point is 00:10:50 And then when you first launch Atlas on your computer after downloading it, it's going to ask you if you want to migrate all of your information from your Chrome browser. Boom, it looks, vibes, and feels just like your old Chrome browser, all your bookmarks, all your saved history. But Atlas has one big difference. It's an always there button on the top right called Ask Chatch EPT. And when you click it, it opens up a sidebar. So you can ask that chat bot any general questions or a question about the web page you're looking at or a question about the text you've highlighted right there. A great use case, summarizing. Oh, totally. That New Yorker article is about 12,000 words too long. What do you do, Jack? You're like, I like the headline, but I'm not sure I'm ready to commit to like the 15 minutes of reading it.

Starting point is 00:11:34 Just type in summarize and it'll tell you whether you should read the whole thing or not. And then explain the cartoon to me. So, like, you can stay in the flow here and ask the chatbot browser questions without leaving the web page. What's the homepage? It's not Google.com. It's the chatbot. But it also includes Google-like search options, like web search, image search, video search, or news search. Now, there are downsides here we should point out, right, Jack? Like, what kind of stuff? They don't have all the plugins. Like our password manager, we had to manually enter a username and passwords all day. It was pretty frustrating.

Starting point is 00:12:05 That'll probably get fixed, but there is actually a deeper existential downside here, right, Jack? This one's not going to get fixed. You are feeding OpenAI an incredible amount of data for yourself all day while you're using the browser. Yeah, there is incognito mode, but this thing will learn everything about you and it never forgets. Now, Google already gets our information, and they don't forget either, but they're just using our information for ads. On the other hand, OpenAI gets our information and launches products to replace us. So, Jack, what's the takeaway for all our buddies working in or interested in tech? OpenAI is keeping a list, and all of big tech is on it.

Starting point is 00:12:45 Yeties, in the last few months, OpenAI has set its sights on conquering all of big tech one product at a time. They're not just taking down Google. They also hired Johnny Ive to create a next generation hardware device to compete with Apple's iPhone. They launched Instant Checkout to compete with Shopify and aim to cut Amazon out of e-commerce entirely. They launched SORA, an AI video social media feed that competes with meta and TikTok. Okay, this may be the wildest. OpenAI is working on its own AI chips, potentially cutting Nvidia out one day. There's only two companies in the Mag 7 that we haven't mentioned yet, Tesla and Microsoft. Now, Open AI very much competes with Microsoft in AI, despite Microsoft having a huge investment in OpenAI.

Starting point is 00:13:27 And will Open AI launch self-driving software in the future? Probably making it a competitor with Tesla. Bestie's OpenAI is keeping a list. It's a burn book, and all of big tech is in it. Now a quick word from our sponsor. For our third and final story, the NHL just became the first of the big four sports leagues to strike a deal with the predictions markets.

Starting point is 00:13:55 Because early business innovations need arm candy. Besties will be on. honest, you could not have predicted this. The NHL announced yesterday a multi-year licensing deal with both Kalsh and Polly Market, who are the Coke and the Pepsi of the predictions markets. Now, both of the biggest prediction startups will have access to the National Hockey League's private data and team logos. So instead of just describing the betting category as hockey, they can actually say the NHL. There you go. So now, Jack, you could bet on whether the New York Rangers are going to beat the New Jersey Devils or whether Mika Zabanajad's slap shot will break 100 miles per hour in the third period.

Starting point is 00:14:35 By the way, the NFL considered a deal with the predictions markets, but passed on it. Football is being cautious about entering the unregulated predictions industry, which competes with regulated sports betting. But hockey's just happy to be picked by the public market. Hockey's a sport where you take your gloves off, Jack. So honestly, whatever, they'll give anything a shot, good for him. But Nick, pause the puck drop for a second. How is predicting about a sports outcome different from betting on them?

Starting point is 00:15:04 I hear you, Jack. It is the same action, right? Like, besties, Jack and I wrestle with this too. Like, in both cases, you put money on a potential outcome, and you win money if you're right or you lose money if you're wrong. If I bet that the Oilers will hoist the Stanley Cup at the end of the season, or I predict that they will, what's the difference? It's a fair point.

Starting point is 00:15:22 So, Yeties, there is a difference here. It's really, really nuanced, but technically it does exist. The difference is in the pricing structure and the function of the market. Okay, here's our explanation. In betting, the odds are set by the house. So Vegas, for example, determines which team has the advantage. But in the predictions market, it's supply and demand. The predictions are a contract that you buy on which team will win.

Starting point is 00:15:44 So in the sports betting industry, the house always wins. But in the predictions industry, the house just takes a fee. Seems like a very small difference to me. Yeah, it's a little bit of a gray area right there, Jack. There is, however, real difference when it comes to regulation. That may be the biggest difference of all here. Because sports betting is heavily regulated by the states, whereas predictions markets are lightly regulated by the feds.

Starting point is 00:16:10 For example, in the state of California, you can put money on a prediction that the Los Angeles Kings will win a game. But you can't put money on a sports bet in California because sports betting is illegal there. And this big difference in regulations is how the prediction market have grown so fast. It's like sports betting has to pass through TSA to get on the airplane. The predictions markets go right past TSA and get on. It's the same outcome. Just one's regulated, one's not. Exactly. And that is why Polly Market is now worth $10 billion as a predictions market.

Starting point is 00:16:44 Feels like Jack, I should hit the ching buttons. Jack wants the takeaway for our buddies over in the predictions markets. Early innovations need arm candy to stand out. Yet he's the real winner of this deal. It is an ice hockey. It's the entire predictions market. Because the NHL is an established brand that's 100 years old. Partnering with them is great for the predictions industry. It legitimizes them. Like celebrities dating a man or a woman hotter than them is arm candy. They get cool by association. It's the same in business. When a stock gets inducted to the S&P 500, that's a legitimizer. It's financial arm candy. Or Jack, when a new movie studio wins their first Oscar, that's a legitimizer. It's Hollywood arm candy. And now, one of the four major

Starting point is 00:17:30 U.S. men's professional sports leagues partnering with predictions, that's a legitimizer, too. Because sometimes an innovator needs some arm candy. Jack, could you whip up the takeaways for us for the new Friday? For our first story, Six Flags is now 9% owned by a hedge fund and the Kelsey Brothers, who are demanding changes in the C-suite. Finance is Democratic and celebrity endorsements help win shareholder votes. For our second story, OpenAI's new browser, ChatGPT Atlas eliminates the friction of using AI and the internet. Sam Momin's keeping a list, not a Santa list, and all of big tech is on it. And our third and final story, the NHL is licensing their brand and team logos to Kalshi and Polymarket. The NHL is now the arm candy of the

Starting point is 00:18:18 predictions markets. But besties, this pod's not over yet. Here's what else you need to know today. First, Tesla earnings announced yesterday, just as the market closed, we are in the middle of earnings season, baby. Revenues rose 12% as electric car buyers rushed to snag that $7,500 tax credit before it expired. But profits for Tesla fell big. Their operating profit dropped 40% from the year before. Jack, could you sprinkle on some context, please? General Motors is worth way less than Tesla, but its operating profit was nearly twice as big last quarter. And second, Netflix. Their revenue jumped an impressive 17%, but the stock dropped because of a random unexpected tax payment to the country of Brazil. Bigger news? Netflix announced a deal with the settlers of Catan.

Starting point is 00:19:06 Oh, turning the famous board game into a world of TV, shows, movies, and schmovies, Jack. Plus, they'd signed a deal with Hasbro to make K-pop Demon Hunter action figures. And finally, the star of the San Antonio Spurs, Victor Wembenyama, apparently got even taller over the summer. The French NBA star, who you may remember from the Olympics, he's huge. He almost blocked Seth Curry's three-pointer, but wasn't tall enough?

Starting point is 00:19:34 Okay, he's 21 years old, but he's still growing physically. Last season, when he was 20 years old, he was listed as 7 foot 3, the second tallest player in NBA history. Okay, we double-checked the numbers, but this year he's listed as 7-foot-4, tied for tallest player in the league. He's 21 and he's still growing. Puberty, it's a profit puppy. Now time for the best fact yet. This one's sent in by a legendary Yeti, Khaled, all the way over in Kuwait.

Starting point is 00:20:03 On Monday, we did a story on the date industry, how dates the fruit are surging. Well, Caled is from Kuwait, the heart of the date industry. And the Arabian Peninsula and Iraq are the top date producers in the world. More than 80% of homes in the region have at least one day. date palm tree on the property, which families harvest as a family. In fact, the official emblem of Saudi Arabia has two swords and a date palm tree right in the middle. And dates are typically used to break the fast during Ramadan. The date, the dessert that your mom will let you eat as a snack. Yeties, you look fantastic today. And remember, when you get home, you got to wash those clothes because you may have some buddies with you. Yeah, let's just all be thankful that Google does

Starting point is 00:20:46 software, not hardware. Good night. sleep tight, and don't bring the bedbugs into the 101 with your boss. Don't read that nursery rhyme to max you tonight. If you know, you know, Jack and I will see you tomorrow. And before we go, a happy birthday to legendary Yeti, Colin Curran, turning 38 in Spring Valley, California celebrating at the Chargers game. Happy birthday to Eileen Diograsius in Atlanta, Georgia, who's listening since the Snacks Days.

Starting point is 00:21:16 Snacker turned Yeti and Eric Glow in Saratoga, California, celebrating the best birthday yet. Happy birthday to David Raznick in Richmond, Virginia, who shared T-boy with his bestie Nick at an office happy hour. Thank you for doing that. And a happy birthday to Anika Carlson turning three and Papa Carlson sharing the same birthday in lovely Plymouth, Minnesota. And happy 11th birthday to Sloan Laria in Boca Raton, Florida, who's going to have a legendary 11. And Israel P. is turning nine years old in New York City, the biggest T-boy fan with the biggest

Starting point is 00:21:48 birthday yet. And a big shout out to Kyle Uribe in Dallas, Texas, who worked. at Qualtrix, a snacker turned Yeti. And just a special shout out to Austin Patry, a fantastic founder of the date company Reelsie Dates, almond-filled dates. He loved our date story the other day because he's got one of the fastest growing date brands

Starting point is 00:22:06 in the entire industry. Check them out. And to anyone else, celebrating something today, make it a tee boy. Celebrate the wins. This is Jack, Nick owned stock of Shopify. We both own stock in Apple, and we both own ETFs of the S&P 500.

The Best One Yet - 🎢 “Roller Coaster Tycoon” — Travis Kelce’s Six Flag’s investment. OpenAI’s web browser. NHL’s predictions deal. +Google’s Bed Bugs

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