📚 Social media, schooled.
📚 Social media, schooled.
Canada's largest school boards sue social media giants for C$4.5 billion...Visa, Mastercard settle for $30 billion; A McDonald’s, Krispy Kreme partnership; Home Depot buys SRS Distribution; and more.
Good morning fellow enthusiasts 👋,
A warm welcome to the 11 new enthusiasts who joined J. Nicholas this week! We now have 227 subscribers (22.7% to our 1,000 subscriber goal).
Not subscribed yet? Help us reach our goal, learn new things along the way, and join the community by clicking here or by subscribing below.
IN THIS ISSUE
💰 Visa, Mastercard settle for $30 billion
📚 Canadian school boards sue social media giants
🇺🇸 Trump takes Truth Social public
On this day. On March 29, 1867, under the British North America Act, the now provinces of Nova Scotia, New Brunswick, and Canada (separated into Québec and Ontario) were officially united as the Dominion of Canada.
FEATURED STORY
📚 Social media, schooled.
Three of Canada’s largest school boards—Toronto District School Board, Peel District School Board, and Ottawa-Carleton District School Board—have just filed a class action lawsuit action against Meta, ByteDance, and Snap, the parent companies of Facebook, Instagram, Snapchat, and TikTok.
The amount they’re suing for? A whopping C$4.5 billion (US$2.9 billion).
The lawsuit was filed in Ontario's Superior Court of Justice, and alleges that social media platforms are causing a crisis in attention, ability to learn, and even depression among students. The schools also claim they have seen an increase in ‘disruptive behavior’ among students, from participating in viral challenges, and vandalizing school property. Because of this, the schools say they are spending more on in-school mental health programs and other resources.
“There is an inability for students to focus.” — said Duncan Embury, a lawyer for the firm representing the school boards.
Meta and ByteDance did not immediately respond to comment, however, a spokeswoman for Snap argued that Snapchat differs from traditional social media apps and helps its users stay connected with their friends by opening directly to a camera, rather than a feed of content.
While some studies have backed the allegations by the schools, there is still a massive divide in opinions over the lawsuit, and suing hundred-billion-dollar conglomerates may not be the best use of resources:
“[School boards should] put all their resources into the kids rather than legal fees for this other nonsense that they’re looking to fight in court.” — Ontario Premier Doug Ford said following the lawsuit.
Speaking of social media…
🇺🇸 Flordia bans tweens from using social media: This week, Florida Gov. Ron DeSantis signed a bill that will ban any social media account for children under the age of 14 and require parental permission for 14 and 15-year-olds. (The bill takes effect Jan 1, 2025, and would have banned minors under 16, but a deal was worked out with legislature and a second bill was sent.)
FINANCE
💰 Visa, Mastercard settle for $30 billion
Visa and Mastercard have settled a longlasting lawsuit with merchants over swipe fees, agreeing to lower fees by four basis points (0.04%) over 3 years or $30 billion over 5 years. The settlement caps rates until at least 2030, and provides merchants with more flexibility at the point of sale.
While this is seen as a victory for merchants, experts believe it won't have a significant impact on consumers. The settlement is in addition to a $5.54 billion settlement in 2023 by 18 million businesses that accepted Visa or Mastercard during a 15-year period up to 2019, and a 2018 $6.2 billion settlement as part of a suit filed by 19 merchants.
🚚 Home Depot acquires SRS Distribution
Home Depot this week announced it is buying SRS Distribution, a supplier for landscapers and contracters, for a cool $18.25 billion (marking its largest aquisition ever). The acquisition, expected to finalize by the end of the year, will be financed through a mix of cash and debt.
With half of its current business already coming from professionals, Home Depot through this deal aims to capture more business from contractors especially as homeowner DIY projects decline. The deal expands Home Depot's total addressable market by $50 billion.
BUSINESS
🧑⚖️ Sam Bankman-Fried sentenced to 25 years
Once named the most generous billionaire, with a peak fortune of $26 billion, Sam Bankman-Fried (SBF), founder of the now bankrupt FTX crypto exchange, was just sentenced to 25 years in prison for defrauding its users from over $8 billion. Over $11 billion in forfeiture and repayment to victims was also ordered and will be repayed using seized assets. SBF plans to appeal the decison.
“A lot of people feel really let down. And they were very let down. And I'm sorry about that. I'm sorry about what happened at every stage” “My useful life is probably over. It's been over for a while now, from before my arrest.” — said Bankman-Fried as reported by CBC.
🍩 A McDonald’s, Krispy Kreme partnership
McDonald’s and Krispy Kreme recently announced plans to make its donuts available at McDonald's restaurants nationwide across the U.S. by the end of 2026. The companies tested the program in Kentucky and plan to roll it out throughout the whole country starting in the second half of 2024.
As part of the deal, Krispy Kreme won't supply its donuts to any other quick-service restaurant in the U.S. until 2027. Krispy Kreme shares rose 30% following the announcement. (According to sources, McDonald’s Canada will not be included in the partnership.)
POLITICS
🇺🇸 Trump takes Truth Social public
After successfully merging with Digital World Acquisition, Truth Social, under the ticker symbol ‘DJT’, just went public on the Nasdaq, soaring 15% on its first day of trading and valuing the company at over $8 billion.
Resulting in his 60% stake, former U.S. president Donald Trump's net worth doubled after the “IPO”, just briefly entering the Forbes 500, making him one of the world’s 500 wealthiest people. The platform as of February 2024 reportedly has 1 million monthly active users, and reported a net loss of $49 million in 2023.
🇨🇦 Canadian MPs get a raise
Canadian MPs are set to receive another pay raise on April 1st, making them the second-highest paid public servants in the world just after Americans. The raise is $8,500 for the average MP and $17,000 for the Prime Minister. Positions like House Speaker and cabinet minister will also receive raises.
In the past, MPs have frozen salaries during tough times, but it's not happening now even with the current Canadian economic climate. Some people are questioning whether it's right to give MPs more money, especially when they hold the salaries of the highest-paid politicians worldwide.
Thank you for reading today’s issue of Weekly Brief. If you would like to support me, consider buying me a coffee. ☕️
Have a great Easter!
— Jacob
📚 Book of the Week
Note: I don’t recommend books that I haven’t read or that I would never read. The books I recommend are books I have already read or that I will eventually read.
One Up On Wall Street — Peter Lynch
Book Description:
America’s most successful money manager tells how average investors can beat the pros by using what they know. According to Lynch, investment opportunities are everywhere.
By paying attention to the best ones, we can find companies in which to invest before the professional analysts discover them. When investors get in early, they can find the “tenbaggers,” the stocks that appreciate tenfold from the initial investment. Lynch offers easy-to-follow advice for sorting out the long shots from the no-shots by reviewing a company’s financial statements and knowing which numbers really count.
He offers guidelines for investing in cyclical, turnaround, and fast-growing companies. As long as you invest for the long term, Lynch says, your portfolio can reward you. This timeless advice has made One Up on Wall Street a #1 bestseller and a classic book of investment know-how.
As of Jan 31, 2024, (resulting from my Amazon.ca Associates account being terminated) I do not earn any affiliate commissons from the links below.