Fresh Deals on the Market

Mitsubishi Electric is ready to part ways with its automotive equipment division, and it's asking potential buyers—think car-parts suppliers and private equity firms—to submit first-round bids by January 26. The unit manufactures EV and hybrid inverters, motors, and in-car entertainment systems, but profitability has been elusive. The global electric vehicle market slowdown hasn't helped matters. Mitsubishi expects the sale to bring in somewhere between ¥200 billion and ¥300 billion (roughly $1.3 billion to $1.9 billion), which would help the company boost earnings and redirect resources away from this underperforming segment.

Meanwhile, Devon Energy (DVN) and Coterra Energy (CTRA) are reportedly hammering out merger discussions that could reshape the U.S. shale landscape. If the deal goes through, it would create one of the largest independent shale producers in the country. There's also speculation that Coterra might be using these talks to drum up interest from other potential suitors—a classic M&A chess move. Markets had mixed reactions: Devon shares dropped about 4%, putting the company's valuation at roughly $23 billion, while Coterra's stock climbed 1.5%, pushing its market cap to nearly $20 billion. Adding another layer to this story, energy-focused private equity firm Kimmeridge holds stakes in both companies. Kimmeridge has been pushing for changes at Coterra, and its position in Devon could influence how any potential transaction unfolds.

Deal Updates in Progress

A Delaware judge threw cold water on Paramount Skydance's request to fast-track its lawsuit against Warner Bros. Discovery (WBD). The court ruled that Paramount failed to demonstrate the irreparable harm necessary to expedite disclosure related to the $82.7 billion Netflix deal. Paramount, whose $108.4 billion bid for Warner expires next week, is planning a proxy fight for seats on Warner's board, while Netflix is preparing an all-cash counteroffer. In related news, Paramount named Dennis Cinelli as its new CFO.

Boston Scientific (BSX) struck the biggest deal in its recent history, agreeing to acquire medical device maker Penumbra for approximately $14.6 billion. Boston Scientific will pay $374 per share in either cash or stock. The acquisition significantly expands Boston Scientific's footprint in blood clot and stroke treatments, including neurovascular devices and mechanical thrombectomy technology. Penumbra will continue operating as a standalone unit, and its CEO Adam Elsesser will join Boston Scientific's board. The company expects the deal to create a slight earnings drag in the first year but believes the combination of complementary products and sales networks will drive long-term growth. Investors sent Penumbra shares up 11% on the news, while Boston Scientific shares fell 5.3%.

Affinity Partners is backing a merger between Playlist—the parent company of ClassPass, Mindbody, and Booker—and German connected fitness startup EGYM. The combined entity will carry a $7.5 billion valuation. Vista Equity Partners, Temasek, and L Catterton are among the participating insiders.

In one of the more unexpected deals of the week, BitMine Immersion Technologies (BMNR) announced a $200 million equity investment into MrBeast's Beast Industries. The transaction is expected to close on January 19. Chairman Tom Lee is betting that the YouTuber with 330 million subscribers will become "the most impactful entertainment brand in the world" while integrating crypto into a new financial services platform. For context, BitMine is the world's largest Ethereum (ETH) treasury company, holding 4.17 million ETH worth roughly $13 billion.

Deals That Closed

GTCR completed its C$2.2 billion take-private acquisition of Dentalcorp, a Canadian dental practice network.

Bankruptcy Watch

Sailormen Inc., a Miami-based Popeyes franchisee that's been operating 136 locations since 1987, filed for bankruptcy Thursday. The company is drowning in approximately $130 million of debt and cited a perfect storm of problems: a failed attempt to sell 16 restaurants, lingering pandemic effects, inflation, rising interest rates, and labor market challenges. Sailormen also faced lawsuits from its lender, along with mounting legal and financial pressure from landlords and vendors, creating a severe cash crunch.

Vodka and bourbon producers Stoli Group USA LLC and Kentucky Owl LLC filed to convert their Chapter 11 bankruptcies to Chapter 7 liquidation after being unable to reach acceptable terms with their senior lender that would have allowed them to keep operating. Control of the U.S. entities will now transfer to a court-appointed trustee who will oversee the liquidation process.

The companies originally filed for Chapter 11 protection on November 27, 2024, after defaulting on more than $78 million in secured debt owed to Fifth Third Bank. The U.S. subsidiary of Luxembourg-based Stoli Group, which produces vodka, bourbon, and other spirits for both domestic and international markets, pointed to numerous operational and financial challenges that led to the bankruptcy filing.