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Good morning,
“Ugly” shoes are all the rage. Brands like Birkenstock, Hoka, Crocs and On Running reported record-breaking first-quarter sales, driven by changing consumer demand.
The Covid-19 pandemic accelerated a shift toward dressing comfortably and not sacrificing comfort for style. Since 2020, comfort-first brands, including Ugg and Birkenstock, saw an almost 200% increase in media impact value—a metric that measures the monetary value earned by media exposure.
Some brands have also utilized celebrity endorsem*nts: Margot Robbie wore a pair of pink Birkenstock Arizona sandals in the Barbie movie, leading searches for the German shoemaker to surge.
Let’s get into the headlines,
FIRST UP
The European Union’s central bank lowered interest rates for the first time since 2019 on Thursday, and while it was heavily anticipated by economists and investors alike, the cut represents a major pivot in the global economy’s monetary policy. Though central banks do not move in lockstep, the growth-friendly shift from decision makers abroad puts increased focus on when the U.S. Federal Reserve will follow suit.
Two months after Disney and Florida Gov. Ron DeSantis settled their legal beef, Disney is now authorized to expand with a potential fifth park sometime over the next decade. The plans include potentially expanding Disney’s footprint with a fifth major theme park as well as adding two smaller parks (such as waterparks) and hotels. Disney’s parks and experiences division generated $32.5 billion in revenue for fiscal year 2023, accounting for more than a third of the company’s total annual revenue.
BUSINESS + FINANCE
Shares of video game retailer-turned-social media phenomenon GameStop soared Thursday after Keith Gill, the unofficial commander of the meme stock movement, scheduled his first public appearance since he ignited the latest rally with his multimillion-dollar bet on the stock. Gill’s YouTube channel “Roaring Kitty” scheduled a livestream for 12 p.m. ET Friday, which would be the popular account’s first video since April 2021.
WEALTH + ENTREPRENEURSHIP
Tesla CEO Elon Musk overtook LVMH chief Bernard Arnault to become the world’s richest person again Thursday, after briefly losing the title to Arnault hours earlier, when LVMH shares jumped in morning trading in Europe. Musk’s estimated net worth reached $210.4 billion Thursday afternoon, surpassing Arnault’s $209.4 billion estimated net worth.
TECH + INNOVATION
Andreessen Horowitz is leading a $50 million initial funding round into a secret defense startup led by a serial entrepreneur who is planning to build weapons for electronic warfare, an emerging need for the U.S. military, Forbes has learned. Led by Nathan Mintz, a cofounder and former CEO of the defense tech unicorn Epirus, the new company is called CX2, and is finalizing talks to close on the massive seed funding round.
The controversial law that could ban TikTok nationwide come January has also thrust other apps from its parent company ByteDance onto the chopping block—including one that’s just as popular in the U.S. but gets a fraction of the scrutiny: AI video editing app CapCut. CapCut has become core to American internet culture, responsible for some of today’s most viral moments on and off TikTok: Last year, it was used by half a billion people globally.
Ed Craven and Bijan Tehrani run Stake.com, the largest offshore crypto casino in the world, which generated $2.6 billion in revenue last year—despite crypto gambling being unavailable in the U.S., U.K. and much of Europe. It’s made them two of the youngest self-made billionaires in the world, worth an estimated $1.3 billion each, but their focus has shifted lately to protecting what they’ve built. More countries around the globe have adopted—or are considering—online gambling legislation, including Curaçao, where Stake is licensed.
MONEY + POLITICS
InfoWars founder Alex Jones asked a court Thursday to convert his personal bankruptcy filing into a Chapter 7 liquidation, amid legal pressure from the families of the Sandy Hook Elementary School massacre victims to pay $1.5 billion in damages for spreading baseless conspiracy theories about the shooting. The liquidation would mean Jones would give up control of InfoWars and its parent company Free Speech Systems.
SPORTS + ENTERTAINMENT
Who runs the world? Maybe not literally, but Taylor Swift and Beyoncé have had blockbuster years, with hugely popular tours, super successful movies based on those tours and new albums to boot, lifting their net worths and raising their ranks on Forbes’ recently released list of America’s Richest Self-Made Women. Swift is now worth an estimated $1.3 billion, up from $740 million on the 2023’s list, while Beyoncé’s estimated $760 million fortune has seen a $220 million boost since last year.
Billionaire Michael Bloomberg has agreed to join a group vying to buy the Minnesota Timberwolves, along with former MLB star Alex Rodriguez and e-commerce mogul Marc Lore, The Athletic reported Thursday—as the group remains embroiled in a months-long dispute over its bid to buy the NBA franchise. Bloomberg is joining as the group tries to boost its stake in the NBA team from 40% to 80% through a $600 million investment, buying most of majority owner Glen Taylor’s remaining 60% stake.
SCIENCE + HEALTHCARE
The FDA rescinded its marketing ban on Juul Lab’s e-cigarette products Thursday—placing them back under scientific review—nearly two years after ordering a ban that was halted pending the company’s appeal. The agency rescinded its marketing denial orders for the e-cigarette maker’s products after further review of information provided by Juul—as well as new case law.
DAILY COVER STORY
Eric Schmidt Is Secretly Testing AI Military Drones In A Wealthy Silicon Valley Suburb
Last year, billionaire technologist Eric Schmidt quietly founded a secretive military drone company, White Stork. Now, the stealth startup has begun testing its artificial intelligence-guided aircraft, both at the Menlo Park headquarters of Schmidt’s family office Hillspire and on the frontlines of the war in Ukraine, where the former Google CEO has continually touted himself as the country’s preeminent defense tech guru.
After Forbes revealed the venture in January, Schmidt quietly renamed it and accelerated its development, which sources in a position to know said involves using artificial intelligence to help drones home in on battlefield targets. Neighbors of Hillspire’s 25,000 square-foot office block, which sits between a row of homes, restaurants and a Caltrain station in the wealthy suburb, recently spotted individuals flying small drones from the building’s gated courtyard. And two people familiar with Schmidt’s activities in Kyiv told Forbes that his team has been testing drone prototypes with the Ukrainian Ministry of Defense and is soliciting their feedback.
Schmidt, who has previously held a government security clearance, and who recently urged U.S. lawmakers to approve the foreign aid package that will provide Ukraine with $61 billion in military funding, has been to the frontline before. In 2023, he traveled to Ukraine to see drone warfare firsthand, which earned him plaudits from Mykhailo Fedorov, the country’s Minister of Digital Transformation, who called Schmidt “bold and heroic.”
White Stork’s drone development has been aided by a steady stream of notable hires. Over the past several months, White Stork has poached at least a dozen employees from Apple, SpaceX, Google, federal government agencies and the billionaire’s own philanthropic organization, Schmidt Futures, multiple sources told Forbes.
WHY IT MATTERS “Since leaving his post as Google chairman in 2017, Schmidt has largely focused his career on linking the worlds of Silicon Valley and the Pentagon,” says Forbes senior writer Richard Nieva. “His secretive drone project represents his most fulsome dive into defense technology, with marquee hires from the biggest companies in the tech industry. The initiative comes as other giants, like Palantir, focus their efforts on the Ukraine war as well.”
MORE Ex-Google CEO Eric Schmidt Is Working On A Secret Military Drone Project
FACTS + COMMENTS
Marketing for beer has a long and entertaining history—from Coors Light’s color-changing cans to the Budweiser Clydesdales. This summer, one of America’s oldest beer brands plans to celebrate its birthday with a clever (and rather heavy) promotion:
180: The number of beers that Pabst Blue Ribbon will package together to coincide with the brewery’s 180th anniversary.
2,160: How many ounces of PBR will be housed in the 180-pack, equivalent to nearly 17 gallons of beer.
1844: The year Pabst Brewing was founded, making it the third oldest beer brand in the U.S., with only Schaefer and Yuengling brewing longer
STRATEGY + SUCCESS
Dare Day kicks off every June by encouraging people to step out of their comfort zones, and the challenge can also be helpful when it comes to your money. Push yourself to create and stick to a budget, increase your savings, aim to pay off $1,000 of debt, and review and optimize your subscription services. You can also consider starting a side hustle to earn some extra income and enhance your financial literacy by reading books or enrolling in online courses.
VIDEO
QUIZ
A highly anticipated film for Netflix is expected to enter production later this year. What TV show first released by the BBC is the movie based on?
A. Sherlock
B. Peaky Blinders
C. Doctor Who
D. Luther
Check your answer.
ACROSS THE NEWSROOM
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