Wall Street Breakfast Podcast: BlackRock To Acquire Prequin

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BlackRock (BLK) to buy data provider Preqin in $3.2B deal. (00:24) Boeing (BA) agrees to Spirit AeroSystems (SPR) takeover for $37.25 a share. (01:05) EU to charge Meta over ‘pay or consent’ model – report. (02:04)

This is an abridged transcript of the podcast.

BlackRock (NYSE:BLK) said Sunday night it has agreed to acquire U.K. private markets data provider Preqin for £2.55B (~$3.2B) in cash.

BlackRock says this will add a highly complementary data business to its investment technology.

In 2024, Preqin is expected to generate ~$240M of highly recurring revenue and has grown ~20% annually in the last three years.

The deal is BlackRock’s (BLK) second major acquisition this year to expand into the fast-growing world of private markets investing.

In January, BlackRock said it would buy Global Infrastructure Partners for ~$12.5B.

Boeing (NYSE:BA) has agreed to acquire Spirit AeroSystems (NYSE:SPR) for $37.25 a share in an all-stock deal.

The two companies shared the news shortly after midnight in separate news releases.

The deal values Spirit at more than ~$4.7B billion, Boeing said. Including debt, the total transaction value is ~$8.3B.

Spirit said that it entered into a binding term sheet with Airbus SE (OTCPK:EADSF) that calls for the companies to enter into agreements for Airbus (OTCPK:EADSY) to acquire some Spirit assets that support Airbus programs, along with the closing of its acquisition by Boeing.

The acquisition would effectively reverse Boeing’s spinoff of Spirit in 2005 as a separate publicly traded company. At that time, Boeing (BA) had sought to cut costs by outsourcing the assembly of fuselages and other parts.

The EU is set to charge Meta Platforms (NASDAQ:META) with violating the Digital Markets Act.

In March, the European Commission launched a non-compliance investigation against Apple (AAPL), Alphabet’s (GOOGL) (GOOG) Google and Meta Platforms (META) for potential violations under the Digital Markets Act.

The Financial Times is reporting, citing three people with direct knowledge of the matter, that in preliminary findings to be issued this week, regulators will say that they are worried about Meta’s “pay or consent” model.

Meta (META) introduced a no-ads subscription service for Facebook and Instagram in Europe late last year to comply with the evolving European regulations, enabling users to opt out of the company’s data tracking for advertising purposes. Meanwhile, users who consent to be tracked get a free service.

According to the FT report, the regulators are expected to say that the choice presented by Meta’s model risks giving consumers a false alternative, with the financial barrier potentially forcing them to consent to their personal data being tracked for advertising purposes.

The report concluded that if found in breach of the act, Meta (META) faces hefty penalties of up to 10% of its global turnover, and up to 20% for any repeat offense.

The report comes after EU antitrust regulators last week pressed a similar case against Apple (AAPL). The European Commission said that Apple’s App Store rules breach the DMA as they prevent app developers from steering consumers to alternative channels for offers and content.