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Japanese technology conglomerate SoftBank Group Corp. posted a 421.8 billion yen ($2.9 billion) profit in the April-June quarter, rebounding from a loss a year earlier as its investments benefited from the craze for artificial intelligence. Quarterly sales at Tokyo-based SoftBank Group, which invests heavily in AI companies like Nvidia and OpenAI, rose 7% to 1.8 trillion yen ($12 billion), the company said Thursday. SoftBank’s loss in April-June 2024 was 174 billion yen. The company’s fortunes tend to fluctuate because it invests in a range of ventures through its Vision Funds, a move that carries risks. The groups founder, Masayoshi Son, has emphasized that he sees a vibrant future in AI. SoftBank has also invested in Arm Holdings and Taiwan Semiconductor Manufacturing Co. Both companies, which produce computer chips, have benefitted from the growth of AI. The era is definitely AI, and we are focused on AI, SoftBank senior executive Yoshimitsu Goto told reporters. An investment company goes through its ups and downs, but we are recently seeing steady growth. Some of SoftBank’s other investments also have paid off big. An example is Coupang, an e-commerce company known as the Amazon of South Korea, because it started out in Seoul. Coupang now operates in the U.S. and other Asian nations. Goto said preparations for an IPO for PayPay, a kind of cashless payment system, were going well. The company has already held IPOs for Chime, a U.S. neobank that provides banking services for low-credit consumers, and for Etoro, a personal investment platform. SoftBank Group stock, which has risen from a year ago, finished 1.3% higher on the Tokyo Stock Exchange after its earnings results were announced. Yuri Kageyama, AP business writer
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E-Commerce
ESPN’s much-discussed streaming service finally has its launch date.The network announced Wednesday that its direct-to-consumer service and enhanced app will debut Aug. 21. The announcement coincided with Disney’s quarterly earning report.This week’s expanded deals with the NFL and a new partnership with WWE provides ESPN the more inventory and offerings, which it hopes will bolster the company in a landscape that is divided among cable, satellite and streaming. Will the ESPN service result in more subscribers? According to Nielsen, streaming usage surpassed broadcast and cable combined in U.S. television usage for the first time. Streaming was at 44.8% compared to linear’s 44.2%. When Nielsen started keeping track in May 2021 linear was at 64% compared to streaming’s 26%.The ESPN DTC will start out with around 25 million subscribers as those currently getting ESPN+ will migrate to the new platform. Many of those though are cable and satellite subscribers who get the service through deals with their provider. ESPN is hoping that more cord cutters will pay up to $29.95 per month since it will offer all the ESPN networks ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, ESPN Deportes, ESPN on ABC, ESPN+, ESPN3, SECN+ and ACCNX as well as being able to bundle NFL Network and NFL RedZone through a deal with NFL+ Premium.Trying to determine how many of the DTC service subscribers are cord cutters will be more difficult though. Disney announced during its earnings call Wednesday that it will stop releasing ESPN streaming subscriber metrics beginning next quarter.ESPN was in nearly 100 million households in 2013. Over the past 12 years due to cord cutting and streaming, that number has dropped to 60 million. Over the next two years, that is expected to decrease to fewer than 50 million. What do the NFL and WWE deals mean for ESPN’s market footprint? Live sports remains valuable property, but the NFL is the beachfront house.For taking over NFL Network, which had also been steadily losing subscribers, ESPN gets three additional NFL games along with another outlet to air Monday night games when there are more than one, as well as the ability for its app users to get specialty highlights of their favorite players or teams. There will also be ways to access stats, betting and fantasy sports info on the app while watching games.The WWE premium live events (they’re no longer called pay-per-views) also makes sense when ESPN takes over from Peacock next year. After all, the E in ESPN stands for entertainment. As Netflix chief content officer Bela Bajaria pointed out when it started carrying “Monday Night Raw” earlier this year, the WWE has a multigenerational and loyal fan base that will flock to whoever carries the events.The WWE deal applies only to the U.S. though. Netflix has the rights for overseas. Can all of this turn around ESPN’s financial outlook? It does carry some risks. ESPN had $4.3 billion in revenue last quarter, an increase of 1% from last year, but the operating profit decreased 7% to $1 billion due to increased rights fees.It is paying the NFL an average of $2.7 billion per year while the NBA 11-year deal that begins this upcoming season averages $2.6 billion per year. The five-year WWE deal will average $325 million per year.This also comes at a time when the network opted out of its $550 million contract with Major League Baseball beginning next year and appears to be out of the running for Formula One rights. ESPN pays $75 million to $90 million per year under its three-year deal, but Liberty Media, which owns F1, is seeking at least $120 million for the next contract, which begins in 2026.ESPN needs more than cable and satellite subscriber affiliate fees, which is also why it is launching a DTC product to gain more revenue. The past two years, it was been involved in prolonged negotiations with DirecTV and Spectrum before reaching deals. How can viewers get the ESPN streaming service? If cable and satellite subscribers already get ESPN+, they will automatically migrate to the new service. For cord cutters, there is an offer where they can get the ESPN unlimited plan with Disney+ and Hulu for $29.99/month for the first 12 months. AP sports: https://apnews.com/sports Joe Reedy, AP Sports Writer
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E-Commerce
Actress, singer, and fashion icon Zendaya can add another line item to her résumé: shoe designer. On co-created its new Cloudzone Moon model with Zendaya and her stylist, Law Roach. It’s an update to the Swiss athletic apparel brands existing Cloudzone silhouette, which it released this year, and part of Ons fall/winter 2025 collection. Its the latest design to spring from a multiyear partnership with Zendaya that On announced last year. [Photo: On] Stylish and minimalist, the Nike-esque Cloudzone model is On’s all-day shoe made with “CloudTec,” the companys trademarked name for its soft midsole design. The style also has forefoot padding and a breathable mesh upper. Think of it as athleisure for your foot. This “footleisure”-forward sneaker has also had a few iterations since launch: Zendaya wore the shoes in her April campaign for the brand, and On collaborated with NYC-based lifestyle brand Kith for a pair in February. The new Moon iteration has a tan base with red laces and red on the sole; there are also gray and black colorways. [Photo: On] Like Zendaya’s spring/summer 2025 campaign for On, which featured its own trailer for a fake sci-fi movie, the creative behind the brand’s new season is highly produced. Photographer Emily Lipton shot stills of Zendaya wearing the shoes paired with the collection’s bodysuit, jacket, and shorts on a set that looks otherworldly. A companion film was directed by Bardia Zeinali, who’s directed ads for Calvin Klein and H&M, and music videos like Sabrina Carpenter’s “Please Please Please” and Tate McRae’s VMA-nominated “Sports Car” and “Just Keep Watching.” [Photo: On] On saw nearly 43% year-over-year growth in the most recent quarter with revenue of more than $807 million, according to data from PitchBook. The company says apparel is one of the major reasons why. Net sales of apparel nearly doubled in the first three months of the year, cofounder Caspar Coppetti said on an earnings call in May, and there’s more to come. CEO Martin Hoffmann said On has a “highly performance-driven product pipeline” in the works for the rest of the year. As apparel companies have leaned more and more into athleisure, they have also leaned into marketing their products as a lifestyle choice rather than an athletic one. That means signature sneakers arent just for basketball players anymore. Theyre for Zendaya, too.
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E-Commerce
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