Good morning readers. If you’re a fan of charcuterie meats, we have some not-so-great news. Salmonella's shadow looms larger in the US, with cases linked to charcuterie meats skyrocketing to 47 across 22 states, a leap from 24 cases reported earlier in January. The CDC's widened safety alert now includes twin-pack Busseto and Fratelli Beretta charcuterie sold at Sam’s Club and Costco. The recommendation? Toss them out and scrub up. This outbreak, with 10 hospitalizations, spotlights the stealthy nature of salmonella, prompting a cautionary tale for meat lovers and a stark reminder for the vulnerable: when in doubt, throw it out.

Let’s jump into today’s storylines.

In today’s digest:

• CEOs eye tech acquisitions amid shifting market dynamics

• Headline Hustle: Bitcoin ETFs see inflow of $2 billion in 3 days, Macy’s to let go of 13% of workforce and close 5 stores, Congress dodges government shutdown

• Voice assistants mimicking you

• Pulse Points: What’s Trending

BUSINESS

Some CEOs see a new era of strategic acquisitions on the horizon

In the world of corporate mergers and acquisitions, a new era is dawning. Chief executives, with an eye for strategic growth, are actively scouting for tech company acquisitions. With rising interest rates over the past two years, traditional companies have regained some leverage in M&A negotiations compared to private-equity firms and other financial buyers who thrived during the era of ultra-low interest rates.

It’s time we went shopping

Many CEOs are capitalizing on this shift as some tech companies find themselves under pressure. Raising follow-on capital at an affordable rate and navigating the challenging path to going public have become increasingly difficult for these firms. As a result, companies that raised capital in the 2020-2021 period and are still struggling to turn a profit are finding the idea of a sale more enticing than in previous years.

Recent deals illustrate this trend:

1. Synopsys acquired Ansys for $35 billion in a cash and stock deal in the software sector.

2. Hewlett Packard Enterprise made a significant $14 billion move to buy Juniper Networks, betting on networking and artificial intelligence.

3. SandboxAQ acquired Good Chemistry for around $75 million in cash and stock, focusing on technology that accelerates drug and material development.

The global trend in tech deals tells a similar story. In 2023, over half of all tech transactions involved companies as buyers, signaling a surge in corporate participation in the tech M&A market. But it's not just about acquiring; it's about integrating. Successful M&A is a delicate dance of blending cultures, leadership, and strategic visions. Just look at Cisco Systems, a company that views M&A as a vital supplement to organic innovation, preferring “tuck-in” deals that broaden their market scope.

Looking ahead…CEOs and corporate tech leaders are viewing M&A as a way to infuse their organizations with external innovation, acquire talent, and expand their market reach. However, while the allure of M&A is strong, CEOs are treading cautiously, mindful of past lessons where high-profile mergers, like Time Warner's ill-fated union with AOL, serve as cautionary tales.

Headline Hustle

🪙 Bitcoin ETFs see nearly $2 billion in first three days of trading. A whopping $1.9 billion flooded into nine new U.S. bitcoin ETFs in just three days, outshining past launches like ProShares Bitcoin Strategy ETF and SPDR Gold Shares ETF. BlackRock and Fidelity are grabbing the lion's share, with inflows over $700 million and $500 million, respectively. Despite Bitcoin's 8% dip since Jan. 11, investors are buzzing. The real test? Long-term appeal and drawing institutional investors. With fees as low as 0.12% (BlackRock) to 0.39%, and some even waiving fees initially, the race is on.

🛍️ Macy’s to let go of 2,350 employees, close 5 stores. Macy's is slashing about 13% of its corporate staff (roughly 2,350 jobs) and shuttering five stores, all part of a strategic pivot to enhance customer shopping experiences. This big shake-up, just as Tony Spring steps up as CEO, includes investing in visual displays and digital shopping improvements. Meanwhile, it's feeling the heat from a $5.8 billion activist buyout bid. Amidst broader job cut trends in major companies like Google and Amazon, Macy's remains optimistic, not revealing its holiday sales yet but promising detailed strategy updates soon.

🇺🇸 Congress just dodged another shutdown. In a bipartisan move, they've extended government funding into March, with the Senate and House voting convincingly in favor. This short-term fix keeps federal workers employed but skirts around bigger issues like the U.S. debt, border security, and Ukraine aid. The GOP's internal rifts are on full display, with nearly half of House Republicans opposing the bill. Speaker Mike Johnson, relying on Democratic votes, faces challenges from hard-liners demanding cuts and border policy wins. With eyes on the 2024 race, former President Trump's influence looms large, particularly on border issues. This resolution is a temporary band-aid, leaving the tough negotiations for a full-year budget and other pressing matters up in the air.

TECH

Your voice assistant could be more persuasive if it sounded like you

In a world increasingly reliant on voice assistants, a recent study sheds light on a fascinating aspect: if your voice assistant sounded more like you, chances are, you'd trust it more.

The study, involving 401 adults across the U.S., explored the impact of voice assistants' (VAs) voice personality. Researchers developed five distinct voice profiles varying in pitch, volume, and speed, each representing different levels of extroversion. Participants rated these voices on attractiveness, trustworthiness, service quality, and credibility.

The results were telling. Participants felt a stronger connection to voice assistants whose tonal qualities mirrored their own, ranking them higher across all metrics. The implications are significant for both manufacturers and consumers. As noted by the study's lead, the tech industry must consider the psychological impact of voice characteristics. Designers could enhance user experience by incorporating varied personalities into these devices, but it must be balanced with social responsibility to prevent undue trust.

Big picture: The study's findings also highlight the importance of transparency and effective communication about the effects of voice matching and customization. With an estimated 145.1 million Americans using voice assistants, primarily via smartphones and smart speakers, the potential for greater customization through generative-AI technology is vast. This advancement could lead to a new era of voice assistants, tailored not just to our needs but also to our very voices.

SNIPPETS

Pulse Points

• The European Union's competition authority plans to reject Amazon's $1.7 billion proposal to acquire iRobot, the maker of Roomba.

• After a federal judge halted its acquisition by JetBlue Airways, Spirit Airlines is exploring solutions for its financial difficulties.

• Mark Zuckerberg’s new goal is creating artificial general intelligence.

• Meta is investing heavily in Nvidia's AI-focused computer chips, with plans to incorporate 350,000 H100 graphics cards into their infrastructure by 2024, as revealed by Zuckerberg in an Instagram Reels post.

• OpenAI has announced its inaugural partnership with a university, granting Arizona State University full access to ChatGPT Enterprise for use in coursework, tutoring, research, and more, starting in February.

• Reddit is set to launch its initial public offering (IPO) in March, with plans to make a public filing in late February, more than three years after first considering an IPO.

• Subway is launching footlong-sized snacks – a chocolate chip cookie, a Cinnabon churro, and an Auntie Anne's soft pretzel – as part of its turnaround efforts, hoping to boost sales and customer interest amid recent business challenges.

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