Closing Bell: EA Rallies, Carnival Slides, Peloton To Reveal New Hardware

On this episode of Stock Movers:

Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Katie Greifeld, Carol Massar and Tim Stenovec.

- Video-game maker Electronic Arts (EA) has agreed to sell itself in the largest leveraged buyout on record to a group of investors that includes a firm managed by President Donald Trump’s son-in-law Jared Kushner and Saudi Arabia’s sovereign wealth fund. The massive deal, valuing the video-game company at about $55 billion, is the latest effort by Saudi Arabia to diversify beyond oil into sports and gaming, a financially tumultuous industry that is increasingly at the heart of youth culture around the planet. Saudi Arabia’s Public Investment Fund, along with Silver Lake Management and Kushner’s Affinity Partners, agreed to pay $210 per share in cash, a 25% premium to where EA traded before the talks leaked on Friday. JPMorgan Chase & Co. is providing $20 billion of debt, the largest debt commitment for a buyout ever.

- Carnival (CCL) raised its full-year earnings forecast for the third straight quarter, citing a record pace for forward bookings and improving net yields.The cruise operator now expects adjusted net income of about $2.93 billion, up $235 million from its projection in June and higher than analysts’ expectations of about $2.76 billion. Net yields are now seen growing 5.3% on a constant-currency basis, up from 5% previously. Cruise operators appear to be faring better than airlines and other holiday operators in the face of cooling consumer sentiment, with some travelers viewing bundled vacations at sea as higher-value alternatives to more complex itineraries.

- Peloton (PTON) is preparing to kick off its second comeback attempt in three years, following a previous effort that fell short of expectations and lacked any major consumer-facing upgrades. The New York-based fitness company is set to introduce refreshed hardware and a software overhaul that bakes in artificial intelligence for personalization, Bloomberg News has reported. The launch, taking place this week, is Peloton’s first major product unveiling in years and comes at a time when Chief Executive Officer Peter Stern, a former Apple Inc. executive, is working to reshape the pioneering brand into an AI-focused health and wellness company.

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