Business
💺 $4.3B 🧳
Max Knoblauch

Its recent changes might be unpopular, but Southwest Airlines says it has a reason for making them. That reason: $4.3 billion.

Southwest CEO Bob Jordan said at a Bernstein conference on Thursday that the airline’s new bag fees, upcoming assigned seating policy, and continued cost cutting would make it $4.3 billion in earnings before interest and taxes next year. According to Jordan, $1 billion of that would come from revenue management improvements, $1.5 billion from assigned seating and extra legroom, $800 million from baggage fees, and another $1 billion from further cost cutting.

The math is something of a U-turn from eight months ago, when Southwest said that charging for bags would add up to $1.5 billion in revenue but ultimately result in $1.8 billion in lost market share.

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business
Max Knoblauch

Report: OpenAI won’t pay a dime in cash for its 3-year licensing deal for Disney IP

More financial details behind the landmark deal that will grant OpenAI three years of access to Disney intellectual property are coming out, and they’re pretty surprising.

The deal will reportedly see OpenAI pay zero dollars in licensing fees, instead compensating Disney in stock warrants. It was previously reported that Disney would invest $1 billion into OpenAI as part of the agreement.

It’s very abnormal for Disney to grant anyone access to its massive IP library without a cash payment, and the entertainment juggernaut has been known to strike down even crocheted Etsy Yodas for infringing on its turf. In its fiscal year 2025, Disney booked more than $10 billion in revenue from licensing fees across merchandising, television, and theatrical distribution.

OpenAI Deal to License Disney Characters Is Entirely in Stock

OpenAI Deal to License Disney Characters Is Entirely in Stock

It’s very abnormal for Disney to grant anyone access to its massive IP library without a cash payment, and the entertainment juggernaut has been known to strike down even crocheted Etsy Yodas for infringing on its turf. In its fiscal year 2025, Disney booked more than $10 billion in revenue from licensing fees across merchandising, television, and theatrical distribution.

business
Max Knoblauch

Ford says it will take $19.5 billion in charges in a massive EV write-down

The EV business has marked a long stretch of losing for Ford, and today the automaker announced it will take $19.5 billion in charges tied, for the most part, to its EV division.

Ford said it’s launching a battery energy storage business, leveraging battery plants in Kentucky and Michigan to “provide solutions for energy infrastructure and growing data center demand.”

According to Ford, the changes will drive Ford’s electrified division to profitability by 2029. The company will stop making its electric F-150, the Lightning, and instead shift to an “extended-range electric vehicle” that includes a gas-powered generator.

The Detroit automaker also raised its adjusted earnings before interest and taxes outlook to “about $7 billion” from a range of $6 billion to $6.5 billion.

Ford’s write-down is one of the largest taken by a company as legacy automakers scale back on EVs, giving EV-only automakers a market share boost.

business
Max Knoblauch

GM adds Apple Music to select new vehicles, racing to fill the gap left by CarPlay’s absence

Earlier this year, General Motors said it plans to end support for in-vehicle phone projection systems like Apple CarPlay and Android Auto on all of its vehicles (a big expansion of the move it announced for its EVs back in 2023).

Now, the automaker appears to be stocking its replacement system with native apps to fill the void. On Monday, GM announced it was rolling out Apple Music to select 2025 Chevrolet and Cadillac models.

Losing CarPlay is a sore subject for many drivers: 39% of respondents to an American Trucks survey this month said a lack of the system (or Android Auto) is a “deal-breaker” when it comes to buying a new vehicle.

Many automakers appear willing to risk alienating those potential customers in exchange for access to lucrative data. Others, including Tesla, are working to allow CarPlay to boost sagging sales, according to reporting by Bloomberg.

GM Strikes Deal to Put Apple Music in All of Its New Vehicles

GM Strikes Deal to Put Apple Music in All of Its New Vehicles

Losing CarPlay is a sore subject for many drivers: 39% of respondents to an American Trucks survey this month said a lack of the system (or Android Auto) is a “deal-breaker” when it comes to buying a new vehicle.

Many automakers appear willing to risk alienating those potential customers in exchange for access to lucrative data. Others, including Tesla, are working to allow CarPlay to boost sagging sales, according to reporting by Bloomberg.

Claire Yubin Oh
CART VS. GOLIATH
12/12/25
The economics of Instacart’s grocery delivery are pretty tight — AI might help, or hurt

AI proved to be a double-edged sword this week for Instacart, as the gains from a new ChatGPT integration were wiped out by an AI pricing allegation.

Instacart gift card display in Costco store, Queens, New York
Tom Jones
flight club
12/11/25
A new pass to access American Airlines’ loyalty program will set you back $5,000

AA is doubling down on perks and partnerships, as the nonflying parts of the operation have become a billion-dollar business.

Silhouettes of passengers waiting at an airport

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