FDA Green-Lights Digital Pill, Vanity’s Fair Surprise, Livestream Today, Behavox New Frontier

Good Tuesday Morning. Sorry about being this late, but Silicon Valley is in full panic mode this morning, as a provision in the Senate tax bill would tax stock options when vested instead of exercised as they are now.

Daylight – Three Surprises – FDA gave the green-light to the world’s first digital medicine – a pill with an inbuilt sensor, opening a new combined front in pharmaceuticals and the Internet of things, as the tablet can be tracked inside the stomach for patient data.

Hot – The technology has been in the making for 10 years by Silicon Valley-based Proteus Digital Health. The first drug is Abilify, an antipsychotic drug taken by seven million people in the U.S. since it launched 15 years ago.

Culture – A surprise choice Radhika Jones, 44, an editor in the NYTimes’ Books section, will become Vanity Fair’s sixth editor since it was founded in 1913. To replace a legend like Graydon Carter, everybody guessed wrong and thought publisher Conde Nast would go with a big name. Instead, they went with brains – Ms. Jones graduated from Harvard College and received a doctoral degree in comparative literature from Columbia University. Her first job out of college was at the Moscow Times.

Buzzard’s Roost – Conde Nast is not necessarily a fun place right now, as this year will bring in $100 million dollars in revenue and, just this month, they started reducing the print frequency of titles like GQ and Glamour and totally stopped the print edition of Teen Vogue. Ms. Jones first day will be Dec 1, and Carter retires Dec 11.

Italian press headlines screamed “this is the apocalypse” – Italy failed to qualify for the first time in 60 years for the soccer finals tournament held in Russia next year.

Live Rounds – Working with Livestream and members, we will conduct our first switching test today for the Entrepreneur Channel and our plan for a broadcast network in the cloud.

Uber’s board finished off the founder yesterday and took votes to approve the removal of super-voting rights that gave founder Kalanick and his allies 43 percent voting power and increased the size of the board to 17 people. Uber will sign the $10 billion-dollar deal with SoftBank by the end of the year and by the way, the board dropped its legal suit against the founder after it reduced him to 1/17th of the board.

M&A – Buffalo Wild Wings stock jumps on report of $2.3 billion bid from Roark Capital.

Electronic Arts agreed to acquire Respawn Entertainment, a video game development studio, for up to $455 million in cash and stock.

GE said it will become less General, as it has earmarked $20 billion of assets to sell next year and will become a smaller company. Sign of a strategy? GE has not been an innovator since the early ’50s.

Economics – The White House found a replacement for Tom Price, the former Health and Human Services secretary, who resigned amid controversy over his use of chartered flights for government travel. The nominee is Alex Azar, a pharmaceutical executive, who had a top position at Eli Lilly until January. He’ll be a key player in the president’s efforts to crack down on drug prices.

Investment Banking – Citigroup has become the latest investment bank to invest money into artificial intelligence software for checking up on its staff by leading a fundraising round in Behavox, a three-year-old start-up based in the UK. Citi’s $20 million investment gives the company at $200 million. The software monitors phone calls, emails and electronic chats of bank employees and can tie their activity back to sales and service

Hedge Funds – Tengram Capital Partners agreed to acquire ReVive, a Stafford, Texas-based luxury skincare brand, from Shiseido Americas Corporation.

Spotlight – Thanks for feedback on the Morning Report – Jon’s comments summed up the majority and we are taking all of the comments as moments.

From: Jon Winsett <jwinsett@npifinancial.com>

Hey Cliff and team,

In response to the request for feedback, I would not want it shorter. If anything, more of the real direct coverage that we have grown accustomed to with the Morning Report, would be nice.



Events –
ScreenTimes: “The Shape of Water,” with Guillermo del Toro
New York, N.Y.
Monday, Nov. 27
7 p.m.
Don’t miss the opportunity to see an advance screening of “The Shape of Water” – one of this year’s hottest Oscar contenders and the winner of the Golden Lion at the Venice Film Festival. The acclaimed director and screenwriter Guillermo del Toro will join the veteran New York Times journalist Logan Hill for a post-screening discussion.
Claim your tickets here. Insiders receive 20 percent off with the code INSIDER.

Deal Stream>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Exits – Blue Sea Capital acquired RESA Power LLC, a Houston, Texas-based provider of electrical life extension products and services, from Audax Private Equity.

Quad-C Management, Inc. sold its stake in Vaco, an executive search, consulting, placement and strategic staffing firm, to Olympus Partners.

Seventure Partners sold Cambrooke Therapeutics, a provider of medical nutrition products for patients with serious chronic unmet medical needs, to Ajinomoto.

Venture Capital – ThreatQuotient, a threat intelligence platform, raised $30 million.

Loft Orbital, a company that leases space on satellites, raised $3.2 million.

ScoreStream, a crowdsourcing platform for live local sports, raised funding of an undisclosed amount from Intel Capital.

Private Equity – Katena Products acquired Rhein Medical Inc, a St. Petersburg, Fla.-based supplier of ophthalmic surgical instruments.

And that’s what’s ahead, Cliff