Good morning readers. With Donald J. Trump, it's never just headlines; it's a whole saga. In an episode that could be dubbed 'Law & Disorder: Electoral Antics Unit,' a lawyer buddy of President Donald J. Trump apparently drafted a sly plan using phony elector slates to flip the 2020 election script. Prosecutors are now holding this memo up like a dramatic courtroom reveal, calling it the 'smoking gun' of the Trump team's plot twist into conspiracy territory. You just can’t make this stuff up.

Let’s jump into today’s storylines.

In today’s digest:

• ESPN launches ESPN Bet

• WeWork on the brink of collapse…again?

• Pulse Points: What’s Trending

ESPN and Penn pen a new deal

Disney's sports darling, ESPN, is trading its Mickey Mouse ears for poker chips and diving into the high-stakes world of sports betting.

In an exciting twist, Penn Entertainment is teaming up with ESPN, transforming its current sportsbook into the all-new "ESPN Bet." This marks a historic move, as it's the debut of the ESPN name on a sports wagering platform.

The transition means that ESPN Bet will replace Penn's existing Barstool Sportsbook, making it the sole sportsbook under ESPN's banner. Keep an eye out, because this platform will be rolling out in the 16 states where betting's greenlit. Disney's top brass have spilled the beans in the past about ESPN's hunt for a solid sports-betting ally. And while they're not placing bets themselves, they've clearly found their partner in crime with Penn.

So, what's the deal? Announced with fanfare on Tuesday, Penn gets an exclusive 10-year pass to the "ESPN Bet" name in the U.S., with a chance to extend this for another decade if both parties are singing from the same hymn sheet. The financials? Penn's parting with a cool $1.5 billion over the decade to ESPN. Plus, ESPN gets a golden ticket, roughly valued at $500 million, to buy a significant chunk of Penn shares during this time.

ESPN isn't just stopping there. They get a seat, albeit without a vote, at Penn's boardroom table. Give it three years, and they might just get a voting seat, provided they jump through some regulatory hoops and meet ownership criteria.

Meanwhile, Penn's handing the Barstool Sports keys back to its founder, David Portnoy, after buying it out earlier this year for a whopping $388 million. But Penn's not walking away empty-handed: they're pocketing half of whatever Portnoy makes if he ever decides to sell or monetize Barstool.

The market's reaction? Let's just say investors had a field day. Penn's shares skyrocketed by nearly 20% in the evening trade, with Disney also enjoying a little uptick. Both corporate giants are spilling their quarterly beans soon.

In a statement on Tuesday, Penn was bullish, estimating that the deal could rake in an extra $500 million to $1 billion annually for its interactive division. Notably, just a few months back, Penn became the first U.S. sportsbook to post profits in what's usually a tough part of the year, thanks to its savvy marketing and the Barstool promotional blitz.

In Summary: Disney's ESPN is embracing the betting world in a landmark deal with Penn Entertainment, promising both companies financial gains and reshaping the future of sports gambling.

WeWork? Nah, we bankrupt

From setting trends to selling assets, WeWork raised concerns about its ability to keep on keeping on. In a recent heart-to-heart with the SEC, WeWork confessed, “There’s some serious doubt we can keep the lights on.” Blunt? Maybe, but honest.

What's shocking? Remember when SoftBank flaunted a hefty $40 billion valuation tag on WeWork? Well, the past few years have been less about climbing corporate ladders and more about a cascading fall. A bad mix of the pandemic, companies flirting with remote work, and an economic hiccup left WeWork in a financial hangover, brimming with debt.

Their game plan now? Well, it's more of a "whatever it takes" approach: restructuring, hunting for more capital, selling some assets, and even flirting with the idea of a U.S. bankruptcy relief.

WeWork's shares have been lounging below $1 since March and took a 26% nosedive recently. The current market cap? A mere shadow of former glory at under $500 million. Peek at their financial diary and you’ll see a $700 million loss in the first half of this year, after a cringe-worthy $2.3 billion loss the previous year. With only $205 million in cash and an intimidating $2.91 billion in long-term debt, the outlook's looking cloudy.

Let’s flashback to 2019 for a sec. WeWork teased us with their public debut plans, when the world got a closer look at their balance sheets and some, let's say, 'quirky' leadership dynamics. The result? The IPO party got canceled. SoftBank's Masayoshi Son admitted his WeWork gamble was less than genius. WeWork's Adam Neumann? He exited stage left.

Yet, in a plot twist, WeWork went public in 2021 via a SPAC merger. But their financial rollercoaster continued with dwindling growth rates and SoftBank itself keeping a tighter leash on its investments in the company. The current pulse? It's a juggling act for WeWork: cut expenses, boost revenue, and maybe pass around the hat for some more funds.

Boardroom drama isn't helping either. Three board bigwigs recently dropped their microphones and exited, one of them being the chair, Daniel Hurwitz. CEO hunt? Still on. Sandeep Mathrani is prepping his farewell speech, and David Tolley's warming the CEO chair in the interim.

In Short: WeWork's journey from the 'next big thing' to 'what just happened?' continues with financial turbulence, boardroom drama, and a CEO hunt. Stay tuned for the next episode.

Pulse Points

Credit card debt in US tops a new high. As summer approached, more Americans swiped their credit cards to get by, pushing total balances past the $1 trillion mark for the first time. Read more about it here.

You need to see this. Advocacy group Demand Progress Action, which focuses on tech issues, unveiled a deepfake video starring Meta's CEO Mark Zuckerberg, humorously appreciating Congress for not taking action on tech antitrust legislation.

Possible downgrade for US banks? Moody’s is reviewing the credit scores of six prominent US banks hinting at potential downgrades. This move rattled stocks as investors braced for further turbulence in the banking sector.

Changes coming for iPhone users. Brace yourself iPhone-ers. Apple is tweaking the iPhone's software, and it might just throw off your usual routine: That prominent red "end call" button is changing its spot.