“Everything is practice.” ― Pele
1) World Cup Kicks Off: The 2022 World Cup officially kicked off in Qatar on Sunday, with the event expected to draw in an accumulated audience of 5 billion. According to some estimates, the World Cup could generate over $5.4 billion, more than the record in 2018. The 2022 FIFA World Cup has been riddled with controversy, with sports-washing accusations lashed at the governing body FIFA.
Titan's Takeaway: Underneath all the noise surrounding the World Cup, a new controversy emerged at the tail end of last week in a rather unlikely spot: a beer can. Qatar is set to ban alcoholic drinks at the World Cup, which puts the tournament's $75 million sponsorship deal with Budweiser in suspense. Budweiser will still be able to sell its non-alcoholic beverage Bud Zero, but is 0% ABV worth tens of millions of dollars?
2) Home Sales Continue Free Fall: Home sales fell for a ninth consecutive month as rising rates and inflation are depressing the housing market. Previously owned home sales dropped 5.9% in October, the slowest rate since 2011. Home sales are down 28.4% year over year.
Titan's Takeaway: While mortgage rates are rising and pushing home buyers out of the market, limited supply continues to be a pervasive problem, propping up the price of homes. Surprisingly, home improvement retailers like Lowe's and Home Depot continue to power through the downturn as homeowners are undeterred in plans to remodel amid high home equity levels.
3) Hasbro to Sell its eOne Brand: The legacy toy and game brand is in talks to sell most of its film and television business, Eone, which includes over 6,500 titles. The division accounts for roughly 16% of the entire company's revenue. Last year, Blackstone bought eOne's music business for $385 million.
Titan's Takeaway: The toy company that created Dungeons and Dragons is looking to reinvest in its core units and focus on building its direct-to-consumer business. Hasbro was likely over-monetizing its 'Wizards' franchise leading to wallet fatigue in its largest players.
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