ChatGPT Is Causing a Stock-Market Ruckus
Investors race to assess the rise of artificial intelligence as a possible ‘iPhone moment’
Investors race to assess the rise of artificial intelligence as a possible ‘iPhone moment’
The rise of artificial intelligence is taking the tech world by storm. The technology is also making waves on Wall Street.
It is early days for so-called generative AI, a form of artificial intelligence that can conjure original ideas in the form of text, video or other media. But the tool has caused a stir in companies, schools, governments and the general public for its ability to process massive amounts of information and generate sophisticated content in response to prompts from users.
Big technology companies are investing billions of dollars in the technology. Startups are raising cash and trying to develop business models using AI at a rapid pace.
Investors are gauging the extent to which AI’s arrival will upend companies, industries and contemporary business practices—and placing bets accordingly. That has sent stocks swinging wildly in both directions: Chip maker Nvidia’s shares are surging, while shares of study-materials company Chegg have plummeted.Enthusiasm for the potential of AI is one reason big tech companies are among this year’s strongest performers.
There is little doubt that generative AI chatbots are popular. ChatGPT reached 100 million users in two months, the fastest app on record, analysts at Goldman Sachs said in a research note. In comparison, TikTok took nine months to reach that milestone, while Instagram took 30.
“We view AI as huge, and we’ll continue weaving it in our products on a very thoughtful basis,” Apple Chief Executive Tim Cook said last week on a conference call with analysts.
Apple isn’t alone. There have been more than 300 mentions of “generative AI” on company conference calls worldwide so far this year, according to data from AlphaSense. The phrase barely garnered a mention before 2023.
Major health systems are experimenting with AI to see whether the technology can help boost the productivity of their medical staffs. Entrepreneurs and venture-capital investors hope generative AI will revolutionise businesses from media production to customer service to grocery delivery. Even Coca-Cola told investors it is experimenting with the technology.
Some investors wonder whether generative AI is the latest tech with the potential to disrupt entire industries. The dawn of online streaming spelled the end of home-video-rental companies such as Blockbuster, while cameras on phones helped render photo processing obsolete and helped spark Apple’s rise and Kodak’s decline.
Artificial intelligence is “almost certainly overhyped in its initial implementation,” said Michael Green, chief strategist at Simplify Asset Management. “But the longer-term ramifications are probably greater than we can imagine.”
Microsoft has added nearly $500 billion in market value since the tech giant announced a $10 billion investment in startup OpenAI, developer of ChatGPT, in January. Shares of Nvidia, which makes chips needed to power the chatbots, have risen 96% so far this year. Google parent Alphabet shed $100 billion in market value in a single day earlier this year after its chatbot Bard underwhelmed investors, though those losses quickly reversed.
Alphabet shares are up 22% this year.
Those moves might prove ephemeral as the technology’s power becomes clearer, said Daniel Morgan, senior portfolio manager at Synovus Trust. “The most difficult thing to ascertain is, what is going to be the impact of all that spending to these companies on revenues and profits?” His fund owns shares of Microsoft, Alphabet and Nvidia.
The flurry of investor interest has pushed valuations higher. Nvidia trades at 164 times its past 12 months of earnings, according to FactSet. Microsoft and Alphabet trade at 33 times and 24 times, respectively.
Portfolio managers said the race to understand the implications of AI’s emergence is essential, both to invest in the technology’s winners and to avoid its eventual losers. Shares of Chegg fell 48% last week after the study-materials company said that the rise of ChatGPT was harming its ability to attract new customers.
“You just don’t know all the knock-on effects,” said Will Graves, chief investment officer at Boardman Bay Capital Management. “If this really is an iPhone moment, nobody saw that Uber was coming out of the iPhone to hammer the taxi industry.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Fund raisers included one of the largest Saudi institutions, the Al Nahdi family office, Shurooq (the Sharjah Investment and Development Authority) and existing GII stakeholders
Leading shareholders in Gulf Islamic Investments (GII), plus new investors, have added an additional $100 million growth capital to the group’s balance sheet to develop private equity opportunities across the Kingdom of Saudi Arabia and the GCC, ahead of the forthcoming Financial Investment Initiative (FII8) in Riyadh on 29-31 October 2024.
The new raising, which was oversubscribed, brings additional growth capital for promising private equity (PE) and private credit projects across the GCC. Contributors to the fund raising included one of the largest Saudi institutions, the Al Nahdi family office, Shurooq (the Sharjah Investment and Development Authority), and existing GII stakeholders.
A leading Shari’ah-compliant global alternative investment group with over US$4.5 billion of assets under management (AUM), GII’s recent investments include two deals this year with Brookfield Asset Management in the UAE (the acquisition of GEMS Education in a consortium led by Brookfield, and the sale of GII’s UAE logistics network). GII also took a majority share in Al Meswak Dental Clinics (the largest chain of Saudi dental and dermatology centers), a significant stake in the Abeer Medical Company, a logistics joint venture with Logipoint in Jeddah, and investments through its GreenCorp food production and food processing platform in Badia Farms and Emad Bakeries in Jeddah. Additionally, GII runs two PE funds in India, and is examining further deals in the Indian PE space.
Mohammed Alhassan, co-founder and co-CEO of GII Group, commented, “This additional capital raise strengthens our balance sheet further, on the back of GII’s existing investments in GCC healthcare, food production and logistics ventures. The new growth capital will support projects in the Kingdom under Vision 2023, adding further foreign direct investment (FDI) and creating additional jobs for Saudi citizens, and other GCC projects being developed currently”.
Pankaj Gupta, GII’s co-founder and co-CEO, added “GII plans further expansion within the Arabian Gulf through acquisitions and co-investments with Saudi and other GCC investors. FII provides an important opportunity to discuss our business partnerships to invest in Saudi Arabia’s rapidly-expanding economy, bringing attractive returns and definitive benefits for our investors and shareholders, and to discuss and develop regional investment projects”.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Al Masar account will aid young customers in managing their budgets.
In line with its endeavors to promote a sound savings culture among the youth whilst adhering to Islamic Sharia principles, ahli islamic, ahlibank’s Islamic banking window, is pleased to announce the launch of its new youth segment “Al Masar”, which targets customers in the age group of 18 to 25 years. Al Masar is designed to bring a host of benefits to its young clientele, thus enhancing their experiences, while also meeting their daily needs and requirements.
Al Masar account will aid young customers in managing their budgets, as customers are provided with a uniquely designed debit card. Customers should be pleased to note there are no minimum balance charges, and ATM withdrawal fees have been waived. Moreover, the Al Masar Savings account earns a profit rate of up to 1% (based on the tier). Additionally, youth who are employed can attain credit cards, with preferential financing rates made available.
Upon opening the Al Masar account, youth customers are provided OMR 5 worth of Pearl Points. Furthermore, should customers transfer their salary to ahli islamic, they will gain an additional OMR 10 worth of Pearl Points. Complementing the youth lifestyles, certain discounts and offers can be exclusively arranged with merchants for youth account holders. These benefits have been designed to meet young customer’ expectations and support them through their journey of savings and creating promising financial future.
Commenting on the launch of the Al Masar Youth Account, Noora Sultan, AGM – Head of Retail Banking at ahli Islamic, stated, “ahli islamic seeks to cater to all segments and age groups, giving the youth various benefits, while instilling a strong culture of saving from a young age. In the upcoming years, Al Masar account will be deemed highly influential in making young people financially independent. ahli islamic is proud to have been a key contributor to that effect, setting the benchmark for customer service excellence.”
In keeping with the changing market demands, ahli islamic is set to enhance customer experience by offering a variety of distinguished services whilst adopting top-tier technologies and innovations. By providing access to high-quality products and services, ahli islamic continues placing an indelible mark upon the Sultanate as a strategic contributor to its overall growth.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Interior designer Thomas Hamel on where it goes wrong in so many homes.
The profits climb 15% to QAR 353mln as growth momentum continues
Estithmar Holding Q.S.P.C announced its financial results for the nine-month period ended September 30th, 2024.
The results reported a 15% increase in net profits compared to the same period in 2023, reaching QAR 353 million, up from QAR 307 million last year. Revenues also rose by 32%, amounting to QAR 2.9 billion. The company’s gross profits are QAR 719 million compared to QAR 568 million for the same period last year, reflecting a 26% increase. The company achieved an EBITDA of QAR 573 million, while earnings per share increased by 11% to QAR 0.099. The reported results exceeded projections, driven by the development of the company’s projects and the success of its operational policies.
The healthcare division, Apex Health recorded significant growth, driven by the ongoing development of its properties that have successfully established trust as a reliable service provider. The unique services offered by the hospitals under Estithmar Holding have led to the company’s hospitals, including The View Hospital in affiliation with Cedars-Sinai and the Korean Hospital, excelling in performance. With rapid advancements in local projects, Q3 of 2024 witnessed accelerated progress in construction of the Algerian Qatari German hospital, which is expected to transform healthcare in Algeria. Additionally, through its subsidiary Apex Health, Estithmar Holding continues to manage and operate Imam Al-Hassan Al-Mujtaba Hospital and Al-Nasiriya Teaching Hospital in Iraq.
Al Maha Island, a project by Estithmar Holding, provides a distinguished recreational tourism experience to Qatar’s residents and visitors. It attracts an average of 10,000 visitors daily, with expectations of increased numbers as the weather improves and the fall and winter seasons begin, coinciding with seasonal holidays in Qatar and neighboring countries. Q3 also witnessed the completion of all preparations for the launch of the third season of Lusail Winter Wonderland, which attracted hundreds of thousands of visitors in its previous two seasons. Construction continues for Rixos Baghdad project in the Iraqi capital and the Rosewood Maldives project. Rixos Baghdad offers a unique residential and hospitality experience in Iraq, featuring world-class facilities that reflect the luxurious essence of the global hotel brand, promising a notable leap in the tourism infrastructure in Baghdad. The Rosewood Maldives project is a luxury tourism development expected to attract interest in high-end islands and resorts tourism.
The commencement of operations in Saudi Arabia has boosted revenues and increased the sector’s contribution to profits. Local performance exceeded expectations, driven primarily by catering services. The sector’s expansion into facilities management services in Qatar and Jordan has also contributed to revenue growth by offering a comprehensive suite of services that provides an exceptional experience for clients. The sector’s results and expansions locally and regionally indicate ongoing upward growth through the end of the current year.
The specialized contracting sector continues to achieve positive results through its regional expansions, especially in Saudi Arabia, participating in major projects like NEOM, the Red Sea, and Amaala. Through its subsidiary Elegancia Arabia, Estithmar Holding has played a significant role in the urban development occurring in the Kingdom, becoming a trusted partner in world-class projects, including MEP works for primary hotels and resorts, fit out services for airports, residential facilities and others,
In Q3, Estithmar Holding listed sukuk worth QAR 500 million on London Stock Exchange, marking the first-ever listing in LSE denominated in Qatari riyals. The sukuk attracted significant interest from investors and both governmental and non-governmental institutions, with a diverse list of investors including banks, insurance companies, and asset managers. Additionally, Estithmar Holding secured a series of international partnerships and agreements aimed at enhancing and supporting the company’s developmental plans, notably a memorandum of understanding with the Italian SACE Group for financial insurance. The MOU aims to bolster Estithmar Holding’s expansion plans and support the exports of Italian companies.
Both milestones accentuate the trust Estithmar Holding is gaining regionally and internationally in its growth story.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
GCC Fixed Income markets sees $28.8bln in primary issuances, representing a 14.5% increase from the same period last year.
Kuwait Financial Centre “Markaz” has released its Fixed Income Report, revealing notable trends in primary debt issuances of Bonds and Sukuk across the Gulf Cooperation Council (GCC) countries for the third quarter of 2024. The total value of these issuances reached USD 28.2 billion through 84 transactions, marking a 14.5% increase compared to the same quarter in the previous year. Cumulatively, the first nine months of 2024 saw a total issuance of USD 102.7 billion, a significant rise from USD 79.3 billion during the same period in 2023.
Issuers from the United Arab Emirates led the market in Q3 2024, raising USD 11.7 billion through 28 issuances, an increase from USD 7.8 billion from 17 issuances in Q3 2023, thereby capturing 42% of the market. Saudi Arabia followed closely with USD 11.2 billion raised through 19 issuances, constituting 40% of the market. However, for the entire first nine months, Saudi entities emerged as the frontrunners, securing USD 47.8 billion through 60 issuances, which accounted for 47% of the market. UAE entities raised a total of USD 32.1 billion during the same period, representing 31.3% of the market share.
Qatari issuers ranked third in terms of value for Q3 2024, generating USD 3.5 billion from issuances, a remarkable 236% increase from USD 1 billion in Q3 2023. Kuwaiti issuers raised USD 1.7 billion through 6 issuances, marking a 334% increase from the prior year’s figure of USD 0.3 billion, while accounting for 6% of the market. Meanwhile, Bahraini and Omani issuers raised USD 35 million and USD 20 million, respectively, both representing just 0.1% of the market.
Corporate primary issuances across the GCC saw a dramatic increase of 233% in Q3 2024, totaling USD 26.3 billion. For the first nine months, corporate issuances reached USD 59.4 billion compared to USD 39.2 billion in the same period last year. Notably, government-related entities raised USD 12.2 billion in Q3, making up 46% of corporate issuances. In contrast, sovereign primary issuances dropped 89% in Q3 2024, amounting to USD 43.3 billion for the first nine months, a slight increase from USD 40.1 billion year-over-year.
Conventional debt issuances surged by 270% in Q3 2024, with a total of USD 69.2 billion raised in the first nine months. Conversely, Sukuk issuances fell by 63% during the same quarter, bringing the total to USD 33.5 billion for the first nine months. Sukuk accounted for USD 6.9 billion through 17 issuances in Q3.
The energy sector dominated the primary debt issuance landscape, raising USD 13.1 billion, which represented 47% of total GCC issuances in Q3 2024. The financial sector followed closely, generating USD 11.5 billion, accounting for 41% of the total. For the year-to-date figures, government issuers led with USD 43.3 billion, trailed by the financial sector with USD 39.4 billion.
In Q3 2024, issuances with tenors of less than five years constituted 36.4% of the GCC debt capital markets, totaling USD 10.2 billion through 62 issuances. Issuances with tenors between 10 to 30 years represented 26% of the market, with USD 7.4 billion raised from 8 issuances. Issuances with a tenor of 5 to 10 years raised USD 5.9 billion through 10 transactions.
The size of primary issuances during the quarter varied from USD 8 million to USD 2 billion. The largest issuances, those over USD 1 billion, accounted for USD 14.5 billion through 9 issuances, representing 52% of the total primary issuances.
US Dollar-denominated issuances were predominant, totaling USD 24.8 billion, or 88% of the total value of primary issuances in the GCC during Q3 2024. Saudi Riyal-denominated issuances followed with USD 900 million raised through 4 transactions.
In terms of credit ratings, 79% of the primary Bonds and Sukuk issuances in Q3 were rated by agencies such as Standard & Poor’s, Moody’s, Fitch, and Capital Intelligence, with 77% of these rated as investment-grade. For the first nine months of the year, 77% of both conventional and Sukuk issuances received ratings, with 73% categorized as investment-grade.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Through this partnership, AmiViz will integrate BigID’s advanced solutions into its extensive portfolio of cybersecurity products and services.
AmiViz announced a strategic partnership with BigID, a leader in data security, compliance, privacy, and AI data management. This collaboration is set to transform how organizations in the Middle East handle their data by providing a unified platform for enhanced data visibility and control.
Through this partnership, AmiViz will integrate BigID’s advanced solutions into its extensive portfolio of cybersecurity products and services. BigID stands out in the industry, having been recognized by CNBC as one of the top 25 startups for the enterprise, and has consistently been named to both the Inc 5000 and Deloitte 500 lists. Their expertise in AI-driven data management and robust compliance solutions positions them as a technology leader in the rapidly evolving data security sector.
“The alliance with BigID aligns perfectly with our mission to empower regional enterprises with top-tier IT security solutions,” said Ilyas Mohammed, COO at AmiViz. “BigID’s unique platform enables businesses to significantly reduce their data risks, automate security, meet compliance requirements, and gain a deeper understanding of their data spread across multicloud, hybrid cloud, IaaS, PaaS, SaaS, and on-premises environments.”
BigID’s platform offers organizations the tools to proactively discover, manage, and secure their data, enhancing operational efficiencies and protecting against data breaches. With data breaches on the rise and stricter compliance regulations being implemented worldwide, there is a growing need for comprehensive data management solutions that can address complex security landscapes.
“We are excited to partner with AmiViz and extend our reach into the Middle East market,” said Nick Maxwell, SVP of Sales for EMEA and APAC of BigID. “This partnership is a testament to BigID’s commitment to global expansion and our focus on helping organizations worldwide manage and secure their most valuable asset – their data.”
The partnership is expected to drive greater data governance across industries in the Middle East, enabling businesses to thrive in an era where data security is paramount. Customers in the region can now leverage BigID’s innovative technology through AmiViz’s trusted distribution network.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
The new partnership introduces seamless digital gift cards for enhanced customer convenience and shopping experience
Brands For Less Group (BFL) announces its new partnership with Resal, a top digital platform in Saudi Arabia. This collaboration will expand the Group’s presence in the Saudi market by offering digital gift cards through Resal, providing customers with easier access to the brand’s wide range of products and a seamless shopping experience.
Resal specializes in digital solutions, making it an ideal partner for BFL Group as it expands its digital offerings. By introducing BFL gift cards on Resal’s platform, customers will enjoy a fast, and user-friendly digital solution that supports an omnichannel experience. This allows them to use their gift cards seamlessly both online and in-store, giving them flexible options for a more convenient shopping experience.
As digital transformation continues to accelerate across the region, this collaboration solidifies BFL’s position as an innovative brand, addressing the growing demand for quick and efficient online transactions. By integrating digital gift cards with Resal, Brands For Less is set to better serve customers, improve satisfaction, and support long-term loyalty in Saudi Arabia’s competitive retail market.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
The mobile app will streamline the subscription process, saving customers time and effort
The OQEP offering is the largest IPO in the history of the Sultanate of Oman, with approximately two billion shares offered, representing 25% of the company’s total issued share capital.
BankDhofar’s customers confirmed the ease of the subscription process via the mobile banking application, saving them time and effort without having to visit any of the various branches spread across the Sultanate of Oman.
The customers mentioned that this subscription is an opportunity to grow their money and diversify their investment portfolios. This subscription is also important for the Muscat Stock Exchange and the injection of liquidity into it, and for the revival of the national economy in general.
Abdul Aziz Al Jahouri considered the subscription in OQEP a real opportunity to grow his long-saved money, stressing that the share price was convenient for him. “I subscribed for myself and my family through BankDhofar’s mobile application, and the process was very quick and took only few seconds.”
He also noted that technology has helped reduce the time and effort for individuals, as he no longer had to visit the branch to complete the subscription process, as the application allowed him to do it from his office.
Al Jahouri decided to establish a close relationship with the bank recently in September, when he saw the bank’s announcement regarding 0% interest financing for the IPO. Although he did not need financing for the IPO, the facilities offered by BankDhofar to individuals and investors prompted him to open a new bank account.
Al Jahouri said: The IPO contributes to attracting foreign investors to the Muscat Stock Exchange, which will lead to the recovery of the national economy in general. He is optimistic that the share price will be between 420 and 440 baisas when it is listed on the MSX.
Samra Sulaiman Al Harthi praised the speed of the subscription process through BankDhofar’s mobile application: “Subscribing through the app saved time and effort from visiting branches,” she said, emphasizing that she will continue to use the application for future subscriptions.
Al Harthi expects the share price to be more than 400 baisas when it is listed on the Muscat Stock Exchange, stressing that the factor that prompted her to subscribe is the performance of the company, which is the most important company in the OQ Group, so the IPO was an opportunity for her to grow her funds and diversify her investment portfolio.
Al Harthi confirmed that this IPO contributes to the revival of the stock market and enhances liquidity, which reflects positively on the national economy.
Al Harthi has been a customer of BankDhofar for 15 years and has not thought of moving to another bank as she is satisfied with the services provided by the bank.
Hawa Mohammed Al Balushi did not hesitate to participate in OQEP’s IPO because she saw it as another opportunity to invest her money and earn an additional income on top of her main income from her full-time job.
She says: I have had a good relationship with BankDhofar for six years, and that is why I chose to subscribe through the bank’s mobile application, stressing that the subscription process was quick and easy and did not take much time.
She adds: Such IPOs certainly contribute to the development of the MSX and turn it into an emerging stock exchange in the future, as well as boosting the country’s economy in general.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
The new facilities in KAFD will drive fintech collaboration and support Saudi Arabia’s Vision 2030
Visa marks a significant milestone as it celebrates 40 years of operation in Saudi Arabia with the opening of a state-of-the-art Innovation Center and a new office in the prestigious King Abdullah Financial District (KAFD). Visa’s new facilities are integral to the company’s commitment to supporting Saudi Arabia’s Vision 2030, aiming to position the Kingdom as a global hub for fintech and digital commerce innovation.
The Riyadh Innovation Center – Visa’s fourth globally, will play a pivotal role in advancing next-generation payment solutions and strengthening partnerships with local fintechs, financial institutions, government entities, and businesses.
As part of Visa’s expansive global innovation network, this facility is designed to act as a hub for co-developing cutting-edge payment solutions tailored to the Kingdom’s needs. The center features payment solutions powered by advanced technologies like Artificial Intelligence (AI), virtual reality, biometrics, and the Internet of Things (IoT), with a focus on government solutions, e-sports/gaming industry, smart cities, retail and tourism.
The Center’s capabilities will not only serve the local market but also allow Saudi-made innovations to be transferred globally, positioning the Kingdom as a driving force in the global digital economy. With Saudi Arabia projected to see double digital growth, the Innovation Center is poised to accelerate this growth, propelling the Kingdom toward its Vision 2030 goals.
“As one of Visa’s largest markets in the CEMEA region, the Kingdom of Saudi Arabia has rapidly emerged as an innovative leader in digital commerce propelled by the clear vision of the government and efforts of the local industry. Our new Innovation Center in Riyadh has been designed to bring the next generation of payment technology and will serve as a collaborative platform to co-create the future of digital commerce,” said Andrew Torre, Visa’s Regional President for CEMEA. “We are proud to build on our 40 years of supporting digital payments in Saudi Arabia with our expanded innovation capabilities that will further strengthen the Kingdom’s position as a global hub for digital commerce, transforming how payments are made across the world.”
The new Innovation Center is part of Visa’s new office in the King Abdullah Financial District, where Visa’s payment experts and business development teams for Saudi Arabia, Bahrain and Oman will be based. This move to KAFD brings Visa closer to its key clients and partners, fostering deeper collaboration across sectors such as government, financial services, retail and fintech. The modern workspace is designed to support Visa’s growing team and expanding operations, with plans for significant headcount growth and senior talent acquisition across multiple departments, including technology, product development, and government engagement.
“Over the past 40 years, Visa has played a pivotal role in building Saudi Arabia’s payments infrastructure, transforming it into a key digital payments market globally,” said Ali Bailoun, Visa’s Vice President and Regional General Manager for Saudi Arabia, Bahrain and Oman. “The relocation of our office to the King Abdullah Financial District is a significant investment that underscores our confidence in Saudi Arabia as a thriving payments market. It strengthens our ability to collaborate and innovate with our clients and partners while ensuring we continue to support the Kingdom’s ambitious digital transformation goals in line with Vision 2030.”
Sultan Alobaida, Chief Commercial Officer of the KAFD Development & Management Company, noted, “The Saudi banking sector continues to thrive within a remarkably supportive operational climate, underpinned by a resilient and thriving financial sector, achieving a robust growth of 9.3% in 2023 and an impressive 3.9% in just the first quarter of 2024. At KAFD, we are committed to collaborating with the financial industry and international partners such as payment technology leaders like Visa to shape the financial and payments ecosystem of the future, which is integral to Saudi Arabia’s economic development and sustainable growth and in alignment with Vision 2030.”
He added, “Our strong financial presence helps bolster Riyadh’s stature as a premier global financial center, drawing a distinguished array of fintechs, banks and payment players, and we are delighted to welcome Visa to this esteemed portfolio. Their presence anchors our shared vision for the evolving financial and payments landscape in Saudi Arabia.”
Wholly owned by the Public Investment Fund, KAFD is one of the most visionary and transformative mixed-use developments that merges the worlds of business and lifestyle in the Kingdom of Saudi Arabia. It spans 1.6 million square meters of modern and innovative Grade A office spaces, world class facilities and upscale residences designed to transform how urban communities live, work, and play. A green district, KAFD is the world’s largest LEED platinum-certified business and lifestyle destination.
Visa’s 40-year journey in Saudi Arabia has been defined by ongoing investment in the Kingdom’s digital ecosystem. The company’s leadership is reflected in its role as a key enabler of digital payments, driving growth in areas such as data analytics, B2B payments, and the gaming industry. Visa’s Innovation Center and new office will further consolidate its position at the forefront of the GCC’s evolving digital landscape.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Launching a Comprehensive Program to Identify, Develop, and Retain Top Tech Talent in Saudi Arabia
Bayt.com and the Ministry of Communications and Information Technology (MCIT) in Saudi Arabia have signed a Memorandum of Understanding (MoU). The strategic partnership marks a key milestone in advancing the Kingdom’s talent ecosystem, particularly within the technology and telecommunications sectors, in alignment with Saudi Vision 2030.
The MoU establishes the foundation for the Tech Talent Hub initiative, a program designed to strategically identify, develop, and retain top tech talent in Saudi Arabia. Through this collaboration, Bayt.com, with over 52 million job seekers, and MCIT aim to support the growth of emerging tech companies and enhance the overall talent pool in the Kingdom’s technology sector. The initiative is a significant step toward empowering both employers and job seekers, ensuring that the Saudi workforce remains competitive in an ever-evolving digital landscape.
Mr. Ibrahem AlNasser, Deputy Minister for Future Jobs and Capabilities, commented on the collaboration: “We are excited to partner with Bayt.com on this crucial initiative. The Tech Talent Hub will play a pivotal role in developing the skills and expertise necessary for Saudi Arabia to thrive in the rapidly growing technology sector. This partnership aligns with our commitment to achieving the goals of Saudi Vision 2030 by fostering innovation and building a sustainable, knowledge-based economy.”
Under this partnership, the MCIT will lead the establishment of the Tech Talent Hub in collaboration with Talentera, Bayt.com’s specialized Software recruitment platform providing an Applicant Tracking System (ATS). The Tech Talent Hub will feature a dedicated track for technology talent, and MCIT will provide key data on job seekers to enable a more targeted and effective approach to talent management. Bayt.com will contribute by offering a range of services tailored to tech companies, such as organizing workshops and providing continuous support to help develop and connect tech talent with industry needs.
Rabea Ataya, Founder and CEO of Bayt.com added: “At Bayt.com, we are deeply committed to supporting the Kingdom’s vision of becoming a global technology hub. By partnering with MCIT, we are ensuring that top tech talent in Saudi Arabia is identified, nurtured, and connected with the right opportunities. This initiative not only benefits job seekers but also empowers companies to access a highly skilled and diverse talent pool, driving the growth of the technology sector.”
The Tech Talent Hub initiative will be rolled out in three phases over the course of one year, which underscores the commitment of both Bayt.com and MCIT to drive innovation and foster the development of the technology and telecommunications workforce in the Kingdom. The Tech Talent Hub Initiative will not only support the Kingdom’s Vision 2030 goals but also enhance the career prospects of thousands of job seekers across Saudi Arabia, showcasing Bayt.com’s dedication to delivering cutting-edge recruitment solutions and strengthening its role as a key partner in the Kingdom’s economic and technological transformation.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
As Japanese animation and comics go global, opportunities abound for investors
Move over, Marvel. The next blockbuster entertainment franchise might come from Japan.
Anime is shaping up as the country’s next big export industry, beyond cars and electronics. This once-niche entertainment form is entering the worldwide mainstream , and its growth could light up investors’ portfolios.
The global market for Japanese animation, known as anime, and its related products has more than doubled between 2012 and 2022 to 2.9 trillion yen, equivalent to $20 billion, according to the Association of Japanese Animations. The overseas market has been driving that growth. Markets outside of Japan made up around half of the total in 2022, compared with around 18% a decade earlier.
Streaming companies such as Netflix are certainly taking notice. Its live-action series “One Piece,” based on a Japanese comic, was its most-watched show in the second half of 2023. In fact, anime content on Netflix in the period logged 14% viewing growth from the first half of 2023, compared with a 4% drop overall, according to Jefferies. These streaming platforms will continue to introduce more anime-related content to their global audiences.
Japan’s anime and manga, the Japanese word for comics, have created many well-known characters and franchises over the years, such as Pokémon. And it looks to be getting even more mainstream. The anime market in North America has grown from $1.6 billion in 2018 to $4 billion this year, according to Jefferies. And Asia, which has long been more receptive to anime, will likely continue to grow strongly, especially in China. Anime has also been popular on Chinese streaming platforms such as Bilibili .
Apart from streaming, selling merchandise can be even more lucrative. Sanrio , which owns characters like Hello Kitty , has reported record profits, with its share price rising nearly sixfold over the past five years.
Sony would be another major beneficiary of this trend . The company owns animation streaming service Crunchyroll, which had 15 million subscribers as of June. That compared with around 3 million subscribers when Sony announced the acquisition of the streaming service from AT&T for nearly $1.2 billion in 2020. This contrasts with Sony’s approach in online streaming for other content: It acts more like an “arms dealer,” selling movies and shows to platforms such as Netflix and Amazon.com . That means the company could benefit more directly from the anime boom. And anime also has strong synergies with its movie and game businesses .
Anime maker Toei Animation, which owns popular franchises such as “One Piece” and “Dragon Ball,” is another listed company that would benefit. It makes anime itself, but more important for the overseas markets, it also earns licensing revenue from the copyrights to popular franchises that it owns. Sales outside of Japan accounted for more than half of its total revenue in the latest fiscal year ended in March. Season two for Netflix’s “One Piece” is already in production. Toei stock has nearly tripled since the end of 2019.
Anime has blockbuster potential, not just for audiences but for investors as well.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
More men are staying home to facilitate the complex juggle of family life and their wives’ high-powered careers
Suzanne Donohoe , a top executive at the private-equity firm EQT , started the month of September with a 10-day business trip through Asia and Europe. Back in New York, her husband, Matt Donohoe , was helping their three teenagers begin a new school year.
That was no simple task. Though the Donohoe children are close in age, each goes to a different school and has different extracurricular activities. Matt drove their 13-year-old to hockey practices in New Jersey and took all three children to Boston for a tournament. In between, there were groceries to buy, meals to prepare and homework to assist with.
It was all in a day’s work for Matt, who quit his job in 2007 to help out at home. A former emerging-markets trader with degrees from Georgetown and Columbia, he is part of a quiet but growing force of men who hold down the fort at home while their wives climb to the upper echelons of finance.
Wall Street has long struggled to elevate and retain women. A hotly competitive industry that demands long hours, frequent travel and the need to be on call constantly, it has been an unwelcoming environment for women, particularly those with children.
Women who have leadership roles in finance say that having a spouse who stays home—a househusband, if you will—can relieve that burden and allow them to rise. Even these privileged women, who have a spouse at home and often extra help beyond that, say maintaining the arrangements is a complex feat.
For the men, being a househusband can come with a stigma: Society often still assumes men will be the bigger earners and women the primary caregivers. But that is starting to change.
In 45% of U.S. opposite-sex marriages, the wife earns as much as or more than her husband, a share that has roughly tripled over the past 50 years, according to a 2023 report from Pew Research Center. Dads represented 18% of stay-at-home parents in 2021, up from 11% in 1989, another Pew study found.
There are now househusbands at the highest levels of power. Doug Emhoff , married to Democratic presidential nominee Kamala Harris, gave up his career—as an entertainment lawyer—to facilitate her political rise after she was elected vice president. On Wall Street, the list of women with husbands at home includes the chief executives of Citigroup and TIAA, the chief financial officer of the private-equity firm Vista Equity Partners, and the global co-head of Blackstone’s real-estate business, among others.
Senior female executives whose partners also work say they have to manage an intense balancing act and admit to being envious at times of their peers whose husbands don’t work.
“The prototype of the person you are competing with, the people in nearly all of the successful positions, have a stay-at-home partner,” says Suzanne Donohoe, who was a partner at Goldman Sachs and KKR before joining EQT in 2022. “The disheartening part of the message is somehow you can’t achieve if one parent isn’t at home.”
She says she doesn’t think that is the case and knows and admires people in demanding jobs who make it work with neither spouse at home.
Many couples say they started out with parallel professions but reached a point at which the woman’s career accelerated. When one person needed to devote more time to parenting, it made more sense for it to be the man.
Chip Kelly was working in tech sales at an international startup in 2009 when his wife, Natalie Hyche Kelly, who is a Visa executive, gave birth to their first child. After the couple didn’t move quickly enough to get a spot at the daycare they wanted, Chip volunteered to care for the baby and work while she slept.
He took calls while pushing their daughter in the stroller. When she went to sleep, he worked through dozens of emails. The couple had twins a few years later. Around that time, Natalie was promoted and started commuting to San Francisco four days a week from Charlotte, N.C., where the Kellys lived. Chip tried to work while caring for the twins and their older daughter when she wasn’t in preschool.
After the family moved to San Francisco, Chip realised that he was neither doing his job nor parenting as well as he wanted to. He decided to devote himself full time to the latter.
“It was kind of becoming a no-brainer because my wife’s career was going so well,” he says.
The Kellys are now starting their third year in London, where Natalie serves as the payments company’s chief risk officer for Europe. Chip considered going back to work a few years ago, but so far has decided against that because his family relies on his being at home.
“I’m like the safety net for a trapeze artist,” he says. “You don’t think about it unless they take it away.”
Kathleen McCarthy Baldwin, Blackstone’s global co-head of real estate, was nursing her second child in 2015 when her husband, Matt Baldwin, left his job as the CFO of a research firm and decided to take some time off.
“The idea of him not working made me very anxious, mostly because of my fears about what it would do to our marriage,” she says. “Would I be envious that he had more time with the children? Would he resent that I had this really exciting and demanding job?”
Matt told her he wasn’t worried. After spending a summer with their daughters at the Jersey Shore while Kathleen mostly worked in the city, Matt decided to make the change permanent.
These days, he rises at 5:30 a.m., before the rest of the house is awake. He makes oatmeal for the family four mornings a week, giving himself one morning off. On most days, Kathleen takes the girls to school while Matt goes indoor rock climbing.
After school, he and their nanny divide the responsibilities, with one taking the older daughter to sports practice, drama and guitar lessons and the other transporting the younger one to swimming lessons, violin and dance. Matt, who has become a skilled cook, usually makes dinner. Specialties include salmon, soft-cooked eggs and spicy pasta.
Kathleen says her husband’s decision to stay home created the flexibility for her to pursue other interests outside work, such as serving on the board of an anti-hunger nonprofit.
“When I talk with other women in this position, we all say our husbands are a very special breed,” she says. “They don’t define themselves by their jobs.”
Not all men are as comfortable in the position.
One stay-at-home dad whose wife works in private wealth at an investment bank says he sometimes tells other men that he manages real estate—technically true because the family owns a few buildings. He says he can identify other men in his position at private-school functions when they say they “manage investments” or “run a boutique hedge fund.”
“We’re all out there, but we can’t say anything about it,” he says.
Paul Sullivan has been trying to change that. He founded a group called the Company of Dads after leaving his job as a columnist for the New York Times in 2021. Sullivan’s wife runs an asset-management firm and became very busy with work after the Covid-19 pandemic.
Sullivan already defined himself as what he dubs a “lead dad,” the go-to parent for everything from playdates and doctors’ appointments. But he found no support groups for men in his position. He reached out to senior female executives and asked them about the idea of creating one. They approved. Some said their husbands didn’t help enough. Others said their husband’s friends made fun of them, calling them names like “Mr. Mom.”
“Two things can be true at once,” Sullivan says. “Moms can be discriminated against in the workplace, and dads can be afraid to take a lead role at home.”
Sullivan now organises events for lead dads such as a Father’s Day beer fest and a March Madness get-together. He gives talks at workplaces and hosts a podcast on which he interviews therapists, parenting coaches and fatherhood advocates. He counts the husbands of Goldman Sachs partners, JPMorgan Chase managing directors and top law partners among his members.
For the Donohoes, having Matt at home has meant that he has developed a close bond with his children. Suzanne says it has given her credibility with her colleagues when she needs to attend one of their doctor’s appointments or sporting events.
There are still mix-ups. Schools often call Suzanne first if one of the children is sick or needs permission to do something even though Matt is listed first on contact forms. Once it happened when she was in London on business. She gently asked the school administrator to call her husband. He was at their apartment five minutes away.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
To get ahead, learn how to be a connector
Connectors always know just who you should talk to. They send the perfect introductory emails: warm, crisp, direct. And they make it look so effortless.
“It’s almost like music or something,” says David Dewane, a Chicago architect who loves introducing contacts from all parts of his life. “If you do it right, what you get is a little flash of possibility for both people.”
And possibility for the connector, too. Call it karma, the power of networks , or even just luck . If you become that hub for your friends and colleagues, it will come back to you, enriching your circles.
I think of people I know in my own life, the ones I speed text when I need a doctor for my kid. I feel so grateful, like they’re these life buoys that help keep me afloat. I wonder: Can the rest of us do that?
“We all develop a point at which the network that we’re in can’t satisfy our needs anymore,” says Brian Uzzi, a professor at Northwestern’s Kellogg School of Management who studies social network science.
When we become brokers, dipping in and out of various groups, we have access to all kinds of new information: little tips, fresh opportunities. Synthesizing multiple viewpoints, we’re better able to solve problems in innovative ways, Uzzi says. People love us for it.
Connectors are more likely to get promoted and win bigger bonuses , Uzzi says. In one study of M.B.A. students, those who acted as brokers between cliques were twice as likely to get the best job offers upon graduating, he adds.
The key is to give before you ask.
“The idea of reciprocity is very powerful,” says Greg Pryor, a longtime human-resources executive who now researches organizational psychology topics.
Need a favor while you’re building a relationship, and you’re automatically in debt, he says. Instead, his career has been guided by a pay-it-forward mentality. He ends most calls by asking, “Is there anything I can do to help you?”
One time, a colleague asked if Pryor could get an acquaintance of hers up to speed on the topic of corporate culture and values. He spent a day with the friend-of-a-friend and connected her to others in the industry he thought could help.
The woman ended up becoming the chief human resources officer at software company Workday. When Pryor was looking for his next job, he reached out to her. A few weeks later, he was the new head of talent at Workday.
He spent a decade there, the best stretch of his career, he says.
There’s an art to crafting the perfect email intro. Dewane, the Chicago architect who’s orchestrated thousands of introductions, is constantly scanning his mental Rolodex for pairs of contacts who can solve each other’s problems. He usually gets preapproval to reach out from both parties, then turns to his formula.
There’s two paragraphs—one for each person. He describes what they do, why he thought of them, and how they’re perfect to connect on this particular thing. He includes hyperlinks to both LinkedIn profiles. And he always puts the person who stands to gain more from the interaction last, queuing them up to initiate contact.
“I get kind of paranoid if intros just hang there,” he says.
If there’s a big difference in power between the two people, he choreographs the thread even more intricately. When connecting architecture students with professionals he knows at design studios, he’ll inform the students that he’s sending the email at 8 a.m. They are to reply by 8:04 a.m.
“I am going to open the door and then you are going to walk through it,” he says.
Oftentimes people freeze as they sit down to pen an email, scared of overpromising, says Erica Dhawan, a St. Petersburg, Fla.-based leadership consultant and author of a book about digital communication. Sliding into someone’s inbox involves risk. You’re encroaching on their time and looping yourself to two disparate contacts who may or may not hit it off.
Dhawan recommends using the phrase, “no guilt, no obligation,” when asking people if they’re open to connecting.
“I want them to feel like there’s mutual benefit,” she says, not like they’re doing her a favor.
Being on the receiving end of an introduction can also leave your stomach in knots, if it’s not done right.
“I’m in an email thread and I’m like, I don’t know why I’m here,” says Khaled Bashir, the founder of a marketing agency and AI startup in Toronto. “What am I supposed to do?”
Fellow founders will often connect him with potential clients. At least he thinks that’s what they are. The context is sometimes missing, and he’d appreciate a funny icebreaker so he can slide into the conversation without it having to be all business.
Bad intros can have happy endings, though.
Years back, Bashir was thrown into a random WhatsApp group by a client. No explanation, just him and one other guy. It turned out the other person was a fellow agency owner. The pair became fast friends. They bonded over the synergies in their work and a love of Japanese comics. Now, Bashir is selling the marketing part of his business to the friend, a move that will let him focus on growing his AI offerings.
To make connections less awkward, add food. Michael Magdelinskas, who works in government affairs for a consulting firm, hosts frequent dinner parties at his Manhattan apartment. Over sous-vide pork chops and cognac ice cream, he brings together everyone from former colleagues to acquaintances visiting from overseas.
He crafts guest lists by thinking about common hobbies, hometowns and the ratio of introverts to extroverts. Recently, a group of attendees formed their own Instagram chat thread, bonding over an inside joke. They didn’t even think to include Magdelinskas.
“That’s a good thing,” he says. “That means the process is working.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Alexandre de Betak and his wife are focusing on their most personal project yet.
Agache intends to provide the second-tier Parisian club with the resources it needs for its economic and sporting development
Agache, the holding company of LVMH founder and Chief Executive Bernard Arnault ’s family, is in exclusive talks to buy a majority stake in storied soccer club Paris FC, extending one of Europe’s richest families’ foray into sports.
Agache said in a statement Thursday that the Arnault family is teaming up with Austrian energy-drink maker Red Bull, which is currently negotiating a minority stake in the second-tier Parisian club.
While Red Bull will be involved with the sporting element in an advisory function, the Arnault family intends to provide the club with the resources its needs for its economic and sporting development.
Though the move would be the family’s first step into soccer, Red Bull is already heavily invested in the sport with stakes in top-level clubs in Germany, Austria and the U.S.
Through LVMH, however, the family has ramped up its sports involvement and sponsorships recently.
Earlier this month, the company struck a 10-year partnership deal with Formula One, capitalising on the sport’s global ascendance. And this summer, LVMH brands were hard to miss at the Paris Olympics after the luxury-goods maker paid roughly 150 million euros to be a sponsor of the global event.
With the controlling stake in Paris FC, the family aims to establish both the men’s and women’s side among the elite of French football, Agache said.
“With the arrival of Agache as the club’s majority shareholder, the club will take on a new dimension with new goals and criteria for success,” it said.
The current owner of Paris FC, Pierre Ferracci, will remain president, Agache said. Antoine Arnault will be Agache’s representative on the club’s board of directors.
Paris FC, founded in 1969, returned to professional ranks in 2015 after spending four decades in the amateur leagues. It hasn’t been a part of France’s top flight league since the late 1970s, but currently sits at the top of the second-best division in the French leagues.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Sydney’s prestige market is looking up, here’s three of the best on the market right now.
Impact investing is becoming more mainstream as larger, institutional asset owners drive more money into the sector, according to the nonprofit Global Impact Investing Network in New York.
In the GIIN’s State of the Market 2024 report, published late last month, researchers found that assets allocated to impact-investing strategies by repeat survey responders grew by a compound annual growth rate (CAGR) of 14% over the last five years.
These 71 responders to both the 2019 and 2024 surveys saw their total impact assets under management grow to US$249 billion this year from US$129 billion five years ago.
Medium- and large-size investors were largely responsible for the strong impact returns: Medium-size investors posted a median CAGR of 11% a year over the five-year period, and large-size investors posted a median CAGR of 14% a year.
Interestingly, the CAGR of assets held by small investors dropped by a median of 14% a year.
“When we drill down behind the compound annual growth of the assets that are being allocated to impact investing, it’s largely those larger investors that are actually driving it,” says Dean Hand, the GIIN’s chief research officer.
Overall, the GIIN surveyed 305 investors with a combined US$490 billion under management from 39 countries. Nearly three-quarters of the responders were investment managers, while 10% were foundations, and 3% were family offices. Development finance institutions, institutional asset owners, and companies represented most of the rest.
The majority of impact strategies are executed through private-equity, but public debt and equity have been the fastest-growing asset classes over the past five years, the report said. Public debt is growing at a CAGR of 32%, and public equity is growing at a CAGR of 19%. That compares to a CAGR of 17% for private equity and 7% for private debt.
According to the GIIN, the rise in public impact assets is being driven by larger investors, likely institutions.
Private equity has traditionally served as an ideal way to execute impact strategies, as it allows investors to select vehicles specifically designed to create a positive social or environmental impact by, for example, providing loans to smallholder farmers in Africa or by supporting fledging renewable energy technologies.
Future Returns: Preqin expects managers to rely on family offices, private banks, and individual investors for growth in the next six years
But today, institutional investors are looking across their portfolios—encompassing both private and public assets—to achieve their impact goals.
“Institutional asset owners are saying, ‘In the interests of our ultimate beneficiaries, we probably need to start driving these strategies across our assets,’” Hand says. Instead of carving out a dedicated impact strategy, these investors are taking “a holistic portfolio approach.”
An institutional manager may want to address issues such as climate change, healthcare costs, and local economic growth so it can support a better quality of life for its beneficiaries.
To achieve these goals, the manager could invest across a range of private debt, private equity, and real estate.
But the public markets offer opportunities, too. Using public debt, a manager could, for example, invest in green bonds, regional bank bonds, or healthcare social bonds. In public equity, it could invest in green-power storage technologies, minority-focused real-estate trusts, and in pharmaceutical and medical-care company stocks with the aim of influencing them to lower the costs of care, according to an example the GIIN lays out in a separate report on institutional strategies.
Influencing companies to act in the best interests of society and the environment is increasingly being done through such shareholder advocacy, either directly through ownership in individual stocks or through fund vehicles.
“They’re trying to move their portfolio companies to actually solving some of the challenges that exist,” Hand says.
Although the rate of growth in public strategies for impact is brisk, among survey respondents investments in public debt totaled only 12% of assets and just 7% in public equity. Private equity, however, grabs 43% of these investors’ assets.
Within private equity, Hand also discerns more evidence of maturity in the impact sector. That’s because more impact-oriented asset owners invest in mature and growth-stage companies, which are favored by larger asset owners that have more substantial assets to put to work.
The GIIN State of the Market report also found that impact asset owners are largely happy with both the financial performance and impact results of their holdings.
About three-quarters of those surveyed were seeking risk-adjusted, market-rate returns, although foundations were an exception as 68% sought below-market returns, the report said. Overall, 86% reported their investments were performing in line or above their expectations—even when their targets were not met—and 90% said the same for their impact returns.
Private-equity posted the strongest results, returning 17% on average, although that was less than the 19% targeted return. By contrast, public equity returned 11%, above a 10% target.
The fact some asset classes over performed and others underperformed, shows that “normal economic forces are at play in the market,” Hand says.
Although investors are satisfied with their impact performance, they are still dealing with a fragmented approach for measuring it, the report said. “Despite this, over two-thirds of investors are incorporating impact criteria into their investment governance documents, signalling a significant shift toward formalising impact considerations in decision-making processes,” it said.
Also, more investors are getting third-party verification of their results, which strengthens their accountability in the market.
“The satisfaction with performance is nice to see,” Hand says. “But we do need to see more about what’s happening in terms of investors being able to actually track both the impact performance in real terms as well as the financial performance in real terms.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
When couples who make their living online split up, assessing the accounts’ future value and divvying them up fairly is a drag
When Kat and Mike Stickler filed for divorce, their lawyers had a math problem.
Among the couple’s biggest assets was MikeAndKat, a channel on TikTok and YouTube in which they shared their lives with about four million followers. No one knew how to evenly split MikeAndKat between Mike and Kat.
“The judge was like, ‘what?’” Kat said last month during a podcast interview with Northwestern Mutual. “It’s a whole new terrain.”
Social media pays the bills for millions of Americans. But making a living online is more financially complicated than working a 9-to-5. Influencers need an audience to win advertising deals, and changing what they post risks turning followers away. Couples who showcase their love life online face an existential threat to the family business when they split.
For the lawyers charged with pinning a dollar value to the accounts to divide them fairly, it’s way harder than assessing a house or car. Fortunes can swing depending on which ex has the keys to the account. That was Kat’s argument in fighting for control of the TikTok channel.
“If the TikTok account was left to me, it would keep growing, but if it wasn’t, it would stop,” said Kat, 29, in the podcast interview.
She was right.
Kat got the TikTok, changed that handle to KatStickler and now has almost 10.5 million followers. She has another three million across Instagram, YouTube and Facebook. The channels, where Kat posts skits impersonating her mother and snippets of her everyday life, have earned her enough to buy a condo and become a small business investor.
Mike ended up with the YouTube account, which is now defunct. He now works in sales and declined to comment.
There are 27 million paid content creators in the U.S., and 44% of them say social media is their full-time job, consultant The Keller Advisory Group found.
The big bucks don’t come from views or followers. Brands pay influencers to recommend a product or service to their audience. U.S. advertisers paid content creators $26 billion in 2023, according to Statista.
Once divorce specialists tally up how much money the accounts are raking in, the couple can divide them, or one partner can take more and buy out the other.
But there’s one elusive factor in a digital asset’s value: the account’s potential to keep making money. Both partners have to make a case for their role in that potential. How many pranks did they think of? How many hours did they spend editing videos?
“There’s typically one person in the relationship who is passionate about social media, who’s driving the business,” says Cameron Ajdari, who runs a talent management group with his wife representing some of TikTok’s most followed couples.
It’s not always clear who that person is by the time divorce rolls around. Social media success often evolves quickly, and couples may not be prepared to track finances and labour.
Reza and Puja Khan say everything they’ve done to amass about five million followers on shared channels has been a team effort. They started posting about their wedding in 2020 and, within months, Puja was able to quit her office job. Now, they estimate social media brings in about half a million dollars a year.
Almost all of that goes into a joint bank account. It was a little overwhelming to see their incomes jump so fast, far above what their parents made, say Reza, 28, and Puja, 27. They hired a financial adviser earlier this year, but the idea of dividing their empire has never crossed Puja’s mind.
“This is the first time we’re actually thinking about it,” she says. “If I really went public with a hypothetical split, that could create its own momentum.”
The way influencers rebuild their brands after breaking up can make or break their careers.
If the person got popular by posting memes or makeup tutorials, they probably won’t take much of a financial hit from a divorce. But there could be more damage if a lot of the videos feature family time.
“One could take it over and they just rebrand, which is risky,” says Nina Shayan Depatie, a divorce attorney in Los Angeles who has worked with influencers. “When you’re looking at the valuation, you would have to consider that.”
Ayumi Lashley, 34, started creating social media videos with her husband in 2017. They made it their full-time job in 2020 and the accounts paid for her car and house, she says.
When they divorced in 2023, they both tried to elevate their personal profiles, but their fan base is still attached to a nonexistent relationship. She says she chose not to share much about the split and lost a few thousand followers, while her ex posted more about the divorce.
“A lot of people were very upset with me for not talking about it,” Lashley says. “His career is doing amazing and mine is not.”
Many content creators don’t intend to make videos of their daily outfits forever, even if it isn’t divorce that ends their careers.
“I always joke we’re like NFL players. You get five or 10 good years, but you take one bad hit to the knee and you’re done,” says Vivian Tu, 30, who posts about financial literacy to roughly eight million followers. “You can’t control the algorithms. You can’t control what is in vogue and what’s not.”
Tu says she is preparing for a life away from social media by developing other streams of income, including writing a book and hosting a podcast.
She is also aware of what divorce could do to her business. Tu wrote up a prenuptial agreement that included all her social-media accounts before she got married in June.
“My social media is my résumé,” Tu says. “Why would I allow anybody else to put my work on their résumé?”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Self-tracking has moved beyond professional athletes and data geeks.