Business
Inside the Controversy Surrounding Disney’s ‘Snow White’ Remake
Disney knew that remaking “Snow White and the Seven Dwarfs” as a live-action musical would be treacherous.
But the studio was feeling cocky.
It was 2019, and Disney was minting money at the box office by “reimagining” animated classics like “Aladdin,” “Beauty and the Beast” and “The Jungle Book” as movies with real actors. The remakes also made bedrock characters like Cinderella newly relevant. Heroines defined by ideas from another era — be pretty, and things might work out! — were empowered. Casting emphasized diversity.
Why not tackle Snow White?
Over the decades, Disney had tried to modernize her story — to make her more than a damsel in distress, one prized as “the fairest of them all” because of her “white as snow” skin. Twice, starting in the early 2000s, screenwriters had been unable to crack it, at least not to the satisfaction of an image-conscious Disney.
“Snow White and the Seven Dwarfs,” which premiered in 1937, posed other remake challenges, including how to sensitively handle Happy, Sneezy, Sleepy, Dopey, Bashful, Grumpy and Doc. (One stalled Disney reboot had reimagined the dwarfs as kung fu fighters in China.)
Still, Disney executives were determined to figure it out. They had some new ideas. More important, the remake gravy train needed to keep running.
“It’s going to be amazing, another big win,” Bob Chapek, then Disney’s chief executive, said of a live-action “Snow White and the Seven Dwarfs” at a 2022 fan convention.
Instead, “Snow White,” starring Rachel Zegler, arrives in theaters on Friday as one of the most troubled projects in Disney’s 102-year history. The movie became a cautionary tale about relevance — how trying to strike the right cultural chord at the right cultural moment can turn a seemingly innocuous movie into a proxy battle for special interests. And just about everything that could go wrong did, resulting in a case study of the perils of big-budget moviemaking in a volatile, fast-moving world and the risks of trying to endlessly mine existing intellectual property.
For Disney and Hollywood as a whole, this weekend will be a test: How much does prerelease Sturm und Drang even matter these days? Will family ticket buyers steer clear? Or will they ignore the negative chatter and trust a vaunted entertainment brand to provide a little escapist fun?
This article is based on interviews with more than a dozen people involved with the film. Together, their accounts show how “Snow White” went from promising idea to poisoned apple, and how the entertainment giant and the film’s creative team scrambled to save it.
Some “Snow White” challenges amounted to bad luck. Pandemic Covid cases flared up just as production got underway in London, forcing Disney to adopt stringent safety protocols and adding millions of dollars to the budget. One of the sets, a cottage with a thatched roof, caught fire on a soundstage. The 2023 actors’ strike forced Disney to halt reshoots. Gal Gadot, cast as the Evil Queen, suffered health complications from a pregnancy, delaying reshoots and visual-effects work.
Other problems were self-inflicted. Disney flubbed its response to leaked on-set photos of new characters (a troop of seven woodland inhabitants known as bandits) that appear in the new film alongside the seven dwarfs, but that led fans to worry the dwarfs had been expunged entirely for political correctness. And Ms. Zegler went rogue in interviews and on social media, sparking one controversy after another.
Perhaps the biggest challenge to the movie was the cultural shift that has taken place over the past several years.
In 2021, online trolls attacked Disney for casting Ms. Zegler, a Latina actress, as Snow White. “Snow Woke” briefly trended. But the pushback dissipated, and Disney shrugged it off. Inside the studio, executives were proud of the casting. They had been wowed by Ms. Zegler’s voice and screen presence. They saw her ethnicity as a bonus. The killing of George Floyd a year earlier by a police officer had roiled every sphere of American life, prompting institutions and individuals around the country to confront racism and inequity. In Hollywood in general and Disney in particular, “We must do better” rang in every hallway.
As “Snow White” finally comes to market, however, Disney finds itself in a very different climate. Companies, including Disney, have raced to distance themselves from diversity, equity and inclusion initiatives amid a broader backlash toward D.E.I. policies by President Trump. What had been a positive — a Latina in a role associated with whiteness (it’s in the title) — became a potential liability, with right-wing agitators (many of them adult men unlikely to see the film to begin with) hammering Disney and Ms. Zegler.
Some news outlets followed suit. The New York Post alone has published 20 articles about “Snow White” over the last week. “Grumpy, Dopey and Woke — Disney’s ‘Snow White’ Disaster” was the headline on one.
The tumult around “Snow White” had grown so intense by the movie’s premiere in Los Angeles last weekend that Disney heightened security and curtailed red carpet interviews. The entrance to the theater was hidden from public view by tall hedges on movable platforms. (The eagerness to see “Snow White” fall on its face was such that some online haters began insisting, incorrectly, that the premiere had been canceled.)
After the screening, a few Disney executives and people who worked on the film stood in the lobby searching people’s faces for responses and hoping for a last-minute plot twist — that reviews would be positive and their work to keep “Snow White” on track would pay off with strong ticket sales. Maybe, in the end, the movie would not go down in the Hollywood history books as a cautionary tale. Maybe I.P. really can be reimagined for every generation, just as every studio executive loves to dream.
“Our job is to delight,” Marc Platt, the film’s lead producer, said to The New York Times after the premiere. “I’m hopeful that once audiences actually experience the film, all the noise around it will fade away and people will discover a family entertainment that is joyful, aspirational and delightful.”
A naïve princess no longer
As the first feature-length, fully narrative animated film, “Snow White and the Seven Dwarfs” defined a new art form. It contributed “Heigh-Ho,” “Whistle While You Work” and “Someday My Prince Will Come” to the Great American Songbook.
The movie cost about $1.5 million to make (about $34 million today) and collected $184 million (roughly $4 billion) in the United States and Canada. Walt Disney bought the land for Disney headquarters with part of the profit. To this day, Disney leaders work in a building adorned with monumental statues of the seven dwarfs. Disney Animation offices sit nearby, along Dopey Drive.
Any effort to remake the movie would carry extra weight.
Knowing this, Disney movie executives lined up an A-plus creative team. In the producer’s chair would be Mr. Platt, now a four-time Oscar nominee for “Wicked,” “La La Land,” “Bridge of Spies” and “The Trial of the Chicago 7.” Marc Webb, who had experience with big-budget blockbusters, including two “Spider-Man” movies, came aboard as director. Benj Pasek and Justin Paul, the EGOT-winning songwriting partners (“Dear Evan Hansen,” “The Greatest Showman”), would contribute new tunes.
Ms. Zegler was winning raves for playing Maria in Steven Spielberg’s “West Side Story.” Ms. Gadot was literally “Wonder Woman.”
The production would be colossal, sprawling across 10 soundstages in suburban London. Eight visual-effects companies in three countries would digitally create the dwarfs, the magic mirror and a multitude of cutesy animals (owls, bunnies, birds, turtles, squirrels). For the deer, puppeteers would be employed.
Most important, the screenwriter Erin Cressida Wilson (“The Girl on the Train”) had collaborated with Mr. Pasek and Mr. Paul to modernize the story. Snow White, now named after a wintry storm, was no longer a naïve princess defined by her looks; she was a leader in training, someone the Evil Queen despised because she was beautiful, yes, but also because she prized fairness as a leadership quality. The prince was dropped; that love interest became a Robin Hood-esque scofflaw. And the dwarfs, especially Dopey, were given character arcs of their own — more emotional depth, less bumbling physical comedy.
Greta Gerwig (“Barbie”) and five other writers did polishes. Satisfied by their work, Alan F. Horn, then chairman of Walt Disney Studios, pushed the project forward with a budget of $210 million.
‘I was born to play Dopey’
From the beginning, Disney knew the seven dwarfs could become a public-relations nightmare. Disney fans delight in them. The dwarfism community, however, tends to view the characters as infantilizing, dehumanizing and hurtful.
The studio hired three dwarfs as consultants to help navigate potential pitfalls.
The first real blowback came in January 2022 when the actor Peter Dinklage (“Game of Thrones”) criticized Disney for remaking “Snow White” during an appearance on Marc Maron’s “WTF” podcast. “I was a little taken aback when they were proud to cast a Latina actress as Snow White,” Mr. Dinklage said. “You’re progressive in one way, and you’re still making that backwards story about seven dwarfs living in a cave? Have I done nothing to advance the cause from my soapbox?”
Disney swiftly put out a statement: “To avoid reinforcing stereotypes from the original animated film, we are taking a different approach with these seven characters and have been consulting with members of the dwarfism community.”
Because Disney did not explain its “different approach,” however, damaging theories began to wash across the internet. Had the studio decided to do away with the dwarfs? After all, they had disappeared from the title of the film.
Then an on-set photo leak turned what had been an online brush fire into an inferno. In July 2023, The Daily Mail published images that appeared to show the seven dwarfs being played by actors and actresses of various races and ethnicities; only one of them was a dwarf. The headline was “Snow White and the Seven … Politically-Correct Companions?”
At first, a Disney publicist said the photo was fake. The company then reversed itself. But Disney, worried about spoilers, did not provide a crucial piece of information: Those weren’t the dwarfs. This movie would feature two groups of seven — a troop of bandits (depicted in the photo) and a separate troop of C.G.I. dwarfs, to be added in postproduction.
As the initial March 2024 release date moved back — Disney was underwhelmed by the first cut and ordered reshoots — the studio found itself playing Whac-a-Mole with one dwarf controversy after another. When it finally emerged that Disney had opted to use C.G.I. to render Doc, Sleepy, Bashful and the gang, the company came under attack for the “erasure” of people with dwarfism.
Others criticized Disney for denying them jobs. “I was born to play Dopey,” Matt McCarthy, an actor with dwarfism, told reporters on Monday as he and his wife, an actress with dwarfism, planned a protest outside Disney headquarters in Burbank, Calif. “When you’re a little person, opportunities are few and far between,” he said.
The star goes rogue
On Aug. 9, 2024, Disney’s marketing campaign for “Snow White” kicked into a higher gear with the release of a teaser trailer. It did not go well.
Some people criticized the dwarves. Others mocked Ms. Zegler’s wig, likening her helmet hair look to Lord Farquaad from “Shrek.” Many simply questioned the wisdom of remaking the 1937 original. (As of Wednesday, roughly 102,000 people had clicked “like” on the trailer on YouTube, while 1.5 million had clicked “dislike.”)
But the real headache came a few days later when Ms. Zegler shared the trailer on X and added, “And always remember, free Palestine.” In an instant, “Snow White” became part of a highly divisive global political conversation — the opposite of what Disney wanted. Ms. Zegler’s comment also caused a severe rift with Ms. Gadot, who is Israeli. (Both actresses declined to comment for this article.)
Hollywood’s studio system days are long gone. Stars are free to express themselves as they wish. All studios can do is beg: Please, pretty please, stay on message. (Ms. Zegler had already angered fans of the original movie. “People are making these jokes about ours being the PC Snow White,” she said in 2022. “Yeah, it is — because it needed that.”)
The best containment strategy, Disney decided, was silence. Asking Ms. Zegler to take her post down could generate more attention — especially if she told her followers that she had been pressured to do so. But Mr. Platt flew to New York from Los Angeles to have a heart-to-heart with Ms. Zegler. He explained how much was at stake, both for Disney and for her career, and asked her to post heedfully.
She seemed to understand.
In November, however, Ms. Zegler took to Instagram to sound off about the presidential election. In a post salted with expletives, she harshly criticized Mr. Trump and those who had voted for him.
It had only been a short time since Disney had tried to turn a corner with MAGA followers by ending a spat with the governor of Florida, Ron DeSantis, over Disney World. A new skirmish could threaten the détente.
Within seconds of Ms. Zegler’s Instagram post, screenshots of the screed pinged between phones at Disney headquarters. How could the studio possibly trust her to participate in the coming “Snow White” publicity tour?
This time, members of Ms. Zegler’s management team, including agents at Creative Artists Agency, sprang into action. Her post was quickly replaced with an apology. “I let my emotions get the best of me,” she said. “I’m sorry I contributed to the negative discourse.”
But it was too late. Ms. Zegler, “Snow White” and Disney had already been in the cross hairs of right-wing pundits. Now, it was open season.
Megyn Kelly called for Ms. Zegler’s replacement in the film. An anti-D.E.I. agitator, Robbie Starbuck, went on the attack. Elon Musk weighed in with a post that skewered Disney for race-swapping iconic characters.
Ms. Zegler’s fans rallied around her. “So overjoyed knowing that little Latinas will be able to see themselves as such an iconic Disney princess,” one commented on Ms. Zegler’s Instagram page.
Disney hoped that prominent voices on the left would step up to deliver a pushback to the pushback. But it didn’t happen.
“Really never, but especially right now, no studio wants its movie branded as a D.E.I. lesson,” said Martin Kaplan, who runs the Norman Lear Center for entertainment, media and society at the University of Southern California.
Disney largely managed to avoid this critique as recently as 2023, when it remade “The Little Mermaid” with a Black actress in the title role; defenders were plentiful. But last month, when Disney released “Captain America: Brave New World,” with a Black actor in the title role for the first time, the company had a harder time.
It’s not an entirely new phenomenon: Think of the male-Internet uproar over the all-female “Ghostbusters” from 2016, or the ongoing fan vitriol around Disney’s efforts to bring diversity to the “Star Wars” franchise. But the “anti-woke right” has grown more powerful, Mr. Kaplan noted, while defenders on the left have grown quieter, either because they feel cowed or frustrated or because even they have come to see Hollywood’s aggressive diversity efforts as clumsy.
“I’m not sure anyone could have predicted that a reactionary force could so quickly and dramatically reverse the cultural winds, but that is certainly what has happened,” Mr. Kaplan said. “What once were uncontroversial or proud decisions are suddenly somehow un-American.”
Digital wig fixes
As “Snow White” bounced from one controversy to the next, the Hollywood gossip mill kicked into high gear: Surely, Disney would cut its losses and send this beast straight to streaming.
But sweeping “Snow White” under the rug (as the company had done with other problem movies, including the critically reviled “Artemis Fowl” in 2020) was never something that Disney considered. The budget for “Snow White” had risen to $270 million, not including marketing. Disney+ would need to absorb that cost (minus tax incentives) if it took the film. And that would undercut one of Disney’s key promises to Wall Street: greater streaming profitability.
Disney also knew something the outside world did not: After the reshoots (“additional photography” in studio parlance) and extensive visual-effects work, the movie was starting to jell.
A second-act song called “Hidden in My Heart,” a tear-jerker sung by one of the dwarfs, had been cut to speed the story along. A new scene near the finale involving the Evil Queen and magic mirror had added spectacle. That troublesome wig had undergone digital fixes.
Was it possible that “Snow White” was becoming … a decent movie? At least one that would entertain the Disney faithful?
In October, executives from across the company had been scheduled to fly to Disney World in Florida for a corporate retreat. When the summit was called off at the last minute because of Hurricane Milton, the studio team used the time to focus on “Snow White.” Disney’s new live-action film chief, David Greenbaum, who had inherited the troubled project, gathered a dozen studio leaders in a screening room on the Disney lot and spent two days scrutinizing the movie — stopping it, starting it — to see what could be improved, according to three people with direct knowledge of the session, who spoke on the condition of anonymity to discuss a private process.
The C.G.I. dwarfs looked “waxy,” Mr. Greenbaum worried. They could also be better integrated with live-action woodland footage shot on location. What trims could be made? The bandit story line, it seemed, could be tightened by a lot.
Mr. Webb, the director, kept tinkering with sound and color until February.
A fairy tale ending?
On Tuesday, Mr. Webb was in an upbeat mood. Reactions from people invited to the premiere had been positive. He positioned his “Snow White” as a throwback to a simpler time.
“Now that people are seeing the movie, I think they’re surprised and warmed by how nostalgic it is,” he said in a phone interview. “This movie is nostalgic not just in its aesthetic but in its worldview. It’s wholesome and kind, and that’s what I’ve held sort of dear through this whole process.”
Reviews arrived on Wednesday. Critics praised Ms. Zegler’s performance, but were underwhelmed by the film as a whole. “It’s just, well, fair,” Nell Minow wrote on RogerEbert.com.
Based on ticket presales and surveys of moviegoer interest, “Snow White” is expected to collect $45 million to $50 million at domestic theaters over the weekend, according to box-office analysts. That start would be slow for a Disney live-action remake: In the 15 years that the company has been producing them, none of the big-budget entries have exclusively arrived in theaters to less than $58 million, after adjusting for inflation. (That was “Dumbo” in 2019.)
David A. Gross, a box office analyst, noted that some of the thrill of seeing an animated classic reimagined as a live-action spectacle has worn off in the years since “Snow White” went into production. The film’s ultimate box office tally will probably come down to what he called “the babysitter effect.”
“Never underestimate the need for a 6-year-old to be entertained,” Mr. Gross said.
Business
Another tech company says it will cut hundreds of jobs amid pivot to AI
Layoffs have continued with another tech company saying it was cutting people to enable it to use more artificial intelligence.
Groupon announced in a security filing this month that it will cut up to 400 jobs, or nearly 25% of its worldwide workforce, as part of a broader restructuring plan to make the platform AI-native. The Chicago company plans to carry out the layoffs in the coming months.
Earlier the company’s Chief Executive Officer Dušan Šenkypl had said the company “fell short of our expectations” last quarter.
Since 2022, more than 800,000 tech workers have been laid off, according to Layoffs.fyi, a website that tracks job cuts.
The surge in pink slips started in 2023, when companies that had gone on hiring sprees during the COVID-19 pandemic began to cut back. From January to April this year, U.S. tech employers announced 85,411 job cuts, up 33% from the same period last year, according to global outplacement and executive coaching firm Challenger, Gray & Christmas.
Groupon said in the filing that the decision to shift toward an AI-based company is to “better deliver on our mission, serving both customers and merchants.”
The company said the layoffs will cost it as much as $13 million, but save it more than $20 million per year.
This announcement comes as many e-commerce companies are shifting their business models to AI to reduce costs by automating many roles.
Artificial intelligence has also triggered fierce competition for top talent and is also fueling tens of thousands of layoffs this year. The result is that the class divide is widening in Silicon Valley as a tiny group of employees are landing unprecedented packages for AI skills, while many others struggle to find work.
The have-nots are doing everything that used to guarantee great jobs — refreshing resumes, optimizing LinkedIn profiles and doing interviews — but companies are much more picky these days. The tech jobless are rethinking their lives. Some are taking pay cuts, while others are leaving tech. Some are going back to study or launch startups. Some have retired.
Groupon shares, which have fallen 27% over the last 12 months, slipped 1% on Thursday to $21.20.
Business
ABC files applications ‘under protest’ for early renewal of TV station licenses
Walt Disney Co.’s ABC has filed renewal applications with the Federal Communications Commission “under protest” after an order mandating a years-early review of the network’s eight television station licenses.
The criticism was part of the network’s applications for the FCC review, which were filed ahead of a deadline Thursday. In an objection to the early renewal, Disney’s New York station WABC called the FCC order “unlawful, arbitrary and unconstitutional” and said it was “legally indefensible.”
“The Commission had not demanded early renewal in over five decades,” the station wrote in its filing. “And it has never before demanded simultaneous license renewal applications from a group of stations commonly owned with a network as it has here. The order has no legitimate purpose.”
The licenses for the eight ABC-owned TV stations, including KABC in Los Angeles, were originally scheduled for renewal between 2028 and 2031.
The FCC order came shortly after ABC late-night host Jimmy Kimmel made a joke about First Lady Melania Trump looking like an “expectant widow” days before a gunman tried to breach the White House Correspondents’ Assn. gala last month that President Trump attended.
Trump has frequently threatened to have TV station licenses pulled when he is unhappy with their coverage, but the order is the first time the government has acted on his wishes, sparking anger from free speech advocates. The FCC has said the order is part of an investigation into whether Disney’s diversity and inclusion policies violate federal law and the agency’s rules against “unlawful discrimination.”
In its response, WABC said the “only plausible reason” to issue the order was to “punish the station for speech the government does not like.”
“The ultimate injury here is not to the station or its parent company. It is to the public,” WABC wrote. “When a broadcaster must weigh regulatory retaliation before making editorial decisions, the public loses access to journalism that is free from government influence.”
FCC Chairman Brendan Carr said in a statement Thursday that Disney filed its applications to renew its broadcast licenses only after the company was told its previous answers were “disingenuous, deficient and improper.”
“Contrary to Disney’s claim that the FCC called in their broadcast licenses for early renewal for no reason, the record shows something very different,” Carr said. “Broadcast licensees have a unique obligation to operate in the public interest. The FCC will follow the facts and law wherever they may lead.”
FCC Commissioner Anna M. Gomez, the panel’s only Democrat who has backed Disney in its fight, cheered the Burbank media and entertainment company’s filing, saying in a post on X that she was “glad to see them expose the FCC’s actions as nothing more than naked political retribution and an unlawful assault on free speech and a free press.”
Times staff writer Meg James contributed to this report.
Business
The Google Insider Trading Case Hits Polymarket
Andrew here. Warning: If you bet on prediction markets about things you could know about from your work, it may be insider trading. That’s the lesson from new charges against an employee of Google.
Also, Jamie Dimon is thinking about spending $20 billion on acquisitions; we go through some possible targets. And take our quiz about the U.F.C. fight scheduled to take place at the White House.
Gaming prediction markets
In the public’s view, prediction markets are a way to bet on the N.B.A. playoffs, the Texas Senate race or what Costco executives will say on their next earnings call.
They’re also often seen as a hive of insider trading, a view reinforced by charges filed on Wednesday against a Google employee who made more than $1 million on Polymarket. The case raises more questions about how these platforms are policed — and who should do the policing.
What happened: The Google employee, Michele Spagnuolo (who used the handle AlphaRaccoon), was accused of betting on what people were searching for on Google — wagers he was sure to win because he had access to internal search data.
“Spagnuolo correctly predicted virtually all of the outcomes on these positions,” the Commodity Futures Trading Commission wrote in its complaint.
A Google representative said in a statement that using confidential information for making these kinds of bets was “a serious breach of our policies.”
Spagnuolo isn’t the only person charged with insider trading on Polymarket. Federal prosecutors in Manhattan last month accused Master Sgt. Gannon Ken Van Dyke, a U.S. Special Forces soldier, of betting on the capture of Nicolás Maduro of Venezuela, an operation he participated in.
Insider trading is an increasing problem for prediction markets. Polymarket has faced significant scrutiny because its unregulated offshore platform has long made it easy to bet anonymously. (Kalshi, which is regulated in the U.S., has also suffered from insider trading.)
Polymarket has started clamping down on that practice, according to The Information — though some longtime users have chafed at those efforts. “Polymarket will go down the drain if they make KYC mandatory,” one user wrote on the company’s Discord discussion forum, referring to “know your customer” practices.
What are policymakers doing? Critics have accused the C.F.T.C., the primary American regulator of prediction markets, of failing to adequately police the industry. (Mike Selig, the commission’s chairman, told ABC News that his agency actively patrolled for wrongdoing.)
Some lawmakers are seeking to crack down on insider trading, including Representative James Comer, the Kentucky Republican who leads the House Oversight and Government Reform Committee, and several bipartisan groups of senators.
Why it matters: Prediction markets have become big businesses. (Kalshi was most recently valued at $22 billion.) But a growing perception that they’re rife with cheating could threaten their popularity.
HERE’S WHAT’S HAPPENING
The Trump administration is reportedly preparing to fund U.S. drone companies. Shares in Unusual Machines, a drone start-up in which Donald Trump Jr. is an investor and advisory board member, are soaring in premarket trading after The Wall Street Journal, citing unnamed sources, reported on the potential investments. (The Times hasn’t independently confirmed the report.) The deals, aimed at bolstering domestic production, are still in the negotiation stage — equity stakes are a possibility — as the Pentagon vets the companies, The Journal adds.
Investors brace for Thursday’s inflation data. The Personal Consumption Expenditures report for April, which will be closely watched by the Fed, is expected to show on Thursday that headline inflation hit a three-year high of 3.9 percent. The wartime energy spike is a big culprit, and that’s likely to tie the Fed’s hands on interest rates. Lisa Cook, a Fed governor whom President Trump has tried to fire, is the latest policymaker to say that there’s even a rate increase in the cards.
Jensen Huang reportedly agrees to join the board of a Chinese university. Huang, the Nvidia C.E.O., is expected to be the latest U.S. business leader to join the advisory board of Tsinghua University School of Economics and Management, The Financial Times reports. Tim Cook, Apple’s departing C.E.O., is the chairman, and Michael Dell and Elon Musk are members. (Nvidia is trying to jump-start business in China as the Washington-Beijing trade war continues.) Laura Loomer, a right-wing agitator, quickly seized on the Huang news, calling it “a massive scandal!!!!” on social media, and a national security risk.
What might Dimon buy?
Jamie Dimon, the C.E.O. of JPMorgan Chase, is sitting on a pile of cash and says he’s open to a deal. He even put a number on it: up to $20 billion.
While that’s not a big sum relative to the bank’s assets, it got us thinking: Where could JPMorgan, whose last major acquisition was First Republic during the 2023 regional-banking crisis, go fishing for a company to buy? Brian O’Keefe asked Mike Mayo, a banking analyst at Wells Fargo.
Here are three possibilities:
Wealth management. Driven by solid margins and lucrative high-net-worth customers, this area of finance has experienced an M.&A. boom in recent years. (The First Republic deal already bolstered JPMorgan’s wealth-advisory ranks.) Such a move would tick a lot of boxes, Mayo said, adding, “It could be a high-end private bank, it could be kind of a mass-affluent brokerage firm, it could be wealth advisory.”
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Mary Erdoes, who runs JPMorgan’s wealth management division, told analysts in February that her unit had reviewed 25 potential deals last year and passed on all of them.
Payments. JPMorgan has invested heavily in new payment platforms, including in JPM Coin, a digital token it has tested with Coinbase and Mastercard. The bank handles between $5 trillion and $10 trillion in transactions daily, Mayo said. “There could be more opportunities to enhance the efficiency, the effectiveness, the timeliness or the geographic reach in the payments area,” he added.
Digital banking. Dimon recently singled out Revolut, the British banking app that is plotting expansion into the U.S., as an emerging competitive threat. “To the extent that an acquisition could help JPMorgan become the next Revolut outside the United States, that would seem to be attractive,” Mayo noted.
There are some big asterisks to consider. Because of its size, JPMorgan would most likely be barred from buying another U.S. lender on antitrust grounds. For that reason, Mayo thinks that a deal, if there is one, would probably happen abroad.
Dimon himself is being coy. The bank may have amassed ample capital for acquisitions, but “it’s not burning a hole in our pocket at all,” Dimon said on Wednesday at an investor conference. “If it sits there for a while, no problem,” he added.
Dimon did not suggest any potential targets on Wednesday.
Here are some guesses:
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Aberdeen Group, Invesco or Julius Baer in wealth management?
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Revolut is too big, but how about Wise or Toast in payments?
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Or what about Monzo or Bunq, fintech banks that have grown rapidly in Europe?
Meta will charge for its chatbot
Meta will begin charging customers for access to its A.I.-powered chatbot, a big change for a company best known for its free products — and the latest sign that even deep-pocketed companies are wrestling with the enormous cost of artificial intelligence.
On Wednesday, we looked at how companies were reining in the costs of consuming A.I., including by switching to cheaper models. Meta’s move shows that the companies supplying A.I. models are also reckoning with ballooning costs, and seeking revenue to make up for those losses.
Meta is spending a fortune on A.I. Last month the company increased its 2026 capital expenditure forecast to as high as $145 billion, and Meta’s C.E.O., Mark Zuckerberg, said it would spend at least $600 billion on A.I. infrastructure in the next few years.
Some investors have looked skeptically on that plan. The company’s stock is down 2.3 percent this year.
Meta will use paid subscriptions to offset some of its A.I. investment. The basic tier of the chatbot, Meta One Plus, will be $7.99 per month. A premium version, Meta One Premium, will cost $19.99. From Bloomberg, which reported the subscription news earlier:
Meta has long argued that its A.I. investments are already paying off in the form of highly targeted and efficient advertising, which is improved thanks to A.I. models. But the company is also looking for other ways to recoup its A.I. spending, and consumer chatbot subscriptions have become popular with several other A.I. competitors, including Alphabet Inc.’s Google and OpenAI. Both rivals offer similarly priced subscription tiers.
The company has sought to expand its subscription business, testing plans for WhatsApp, Instagram and Facebook. It has also tried to cut costs in other corners of its business. This month, Meta laid off 10 percent of its employee base, about 8,000 workers.
Investors, eager to see revenue gains from A.I., cheered Meta’s subscription-chatbot plan. The company’s stock price was up 3.7 percent at the market close on Wednesday.
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Elsewhere, shares in the software maker Snowflake are soaring in premarket trading on Thursday after it reported strong quarterly results that suggested that A.I. agents weren’t clobbering its core subscription business. Salesforce’s analyst call on Wednesday, however, renewed fears that this sector was still vulnerable to A.I. disruption.
Quiz: U.F.C. on the South Lawn
This question comes from a recent Times article. Click an answer to see if you’re right. (The link will be free.)
President Trump is getting ready to celebrate his 80th birthday — and America’s 250th — with an evening of mixed martial arts. Preparations are underway to host Ultimate Fighting Championship matches in an octagon on the White House’s South Lawn on June 14. Construction of the temporary arena, along with a 90-foot-tall arch known as “The Claw,” featuring LED lights and audio equipment, began this week.
U.F.C. plans to spend around $60 million on the event, said Mark Shapiro, the president and chief operating officer of TKO Group Holdings, U.F.C.’s parent company, on a recent earnings call. (He added that U.F.C. would lose about $30 million on the event but that it would be “an investment for the long term.”)
The expenses include about $700,000 to repair the lawn after the fight, Dana White, the U.F.C. president and chief executive, told Sports Business Journal.
How many people will the temporary arena hold for the U.F.C. event at the White House?
THE SPEED READ
Deals
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“SpaceX-Tesla Merger Is ‘Only a Matter of When,’ Early Investor Says” (Bloomberg)
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Shares in the European food-delivery company Delivery Hero are down sharply on Thursday after Uber, which is pursuing a takeover bid for the company, raised its stake to nearly 37 percent. (WSJ)
Politics, policy and regulation
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The attorneys general of New York and New Jersey subpoenaed FIFA over soaring World Cup ticket prices. (WSJ)
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Gov. Gavin Newsom of California said he would impose a 100 percent tax on payouts to state residents from the $1.8 billion fund tied to the Justice Department’s settlement with President Trump. (Politico)
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