Three months after Amazon founder Jeff Bezos and author MacKenzie Bezos announced reaching a divorce settlement, it was finalized by a Seattle-area judge Friday, Bloomberg reported.
The settlement leaves MacKenzie Bezos with a 4% stake in the online shopping giant worth more than $38 billion, according to Bloomberg, making her the third richest woman.
MacKenzie Bezos said in a tweet in April about the divorce that the Amazon CEO will retain 75% of the couple’s Amazon stock, along with voting control of his ex-wife’s shares “to support his continued contributions with the teams of these incredible companies,’’ she said.
Jeff Bezos, the founder of Amazon and owner of The Washington Post, remains the richest man in the world.
When is Amazon Prime Day?: The date is out – and it's just around the corner
Who's the richest person in your state: Check out the list.
In late May, MacKenzie Bezos signed the Giving Pledge to donate at least half her wealth to charity. She is one of more than 200 philanthropists who have signed on to the initiative to encourage the world's billionaires to give away their wealth toward charitable causes.
In a letter posted to the website for the Giving Pledge, MacKenzie Bezos said she has a "disproportionate amount of money to share."
"My approach to philanthropy will continue to be thoughtful," wrote MacKenzieBezos. "It will take time and effort and care. But I won’t wait. And I will keep at it until the safe is empty."
According to Bloomberg, the court papers formalizing the divorce revealed little else about the terms of the separation. The couple filed a parenting plan for their children earlier this week.
Contributing: Charisse Jones, Brett Molina and Dalvin Brown
Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko
(Reuters) - Cruise, a U.S. self-driving vehicle company majority-owned by General Motors Co, told Reuters on Friday that a U.S. national security panel approved a $2.25 billion investment in the firm by Japan’s SoftBank Corp.
FILE PHOTO: People walk near the logo of SoftBank Corp in Tokyo, Dec. 18, 2014. REUTERS/Toru Hanai/File Photo
SoftBank has come under increasing U.S. scrutiny over its ties to Chinese firms in the face of an escalating trade and technology war between Washington and Beijing. It is in the process of raising its second $100 billion investment vehicle, dubbed Vision Fund, after deploying its first one of equal size.
The Committee on Foreign Investment in the United States (CFIUS), which reviews deals for potential national security concerns, approved the investment based on fresh assurances that Cruise’s technology would be completely off limits to SoftBank, a source familiar with the matter said.
A SoftBank spokesman declined to comment. The Treasury Department, which leads CFIUS, did not respond immediately to a request for comment.
The approval unlocks a seat for SoftBank on Cruise’s board, formalizing its oversight, and cements key financing for Cruise, which has raised $7.25 billion in capital since last year, the company said.
“Today’s news is another important step toward achieving our goal to develop and deploy self-driving vehicles at massive scale,” Cruise CEO Dan Ammann said in a statement to Reuters.
However, approval for the deal did not always appear certain as CFIUS scrutinized it closely, according to two people close to the deal.
The $2.25 billion investment was unveiled by SoftBank in May 2018 amid a wave of investments by the Japanese technology and telecommunications conglomerate in artificial intelligence, data analytics, financial services and self-driving cars.
RED FLAGS
The investment raised red flags with CFIUS because SoftBank invests in numerous mobility units, some based in China, and encourages companies it invests in to share information.
CFIUS was especially concerned about SoftBank’s co-investments with Tencent Holdings Ltd, a Chinese social media and gaming giant, and its investment in China ride-hailing firm Didi, which it fears could take technology from Cruise, sources said.
The committee, emboldened by a law last year aimed at strengthening the inter-agency panel, has flexed its muscles increasingly against Chinese companies as Beijing and Washington remain locked in a heated trade and technology row.
Reuters reported that Chinese gaming company Beijing Kunlun Tech Co Ltd has been seeking to sell Grindr LLC, the popular gay dating app, after CFIUS said its ownership posed a national security risk. CFIUS halted a plan last year by Ant Financial, owned by the chairman of China’s internet conglomerate Alibaba, to acquire MoneyGram International Inc.
The Cruise deal was structured to allow $900 million of the investment to be disbursed initially, with the remainder provided once Cruise AVs are ready for commercial deployment and contingent on regulatory approval. The two tranches would combine to give SoftBank a nearly 20 percent stake in Cruise.
However, the Japanese firm separately announced a joint investment with GM, T. Rowe Price, and Honda of $1.15 billion earlier this year, further boosting its stake.
Softbank’s investment, followed by Honda’s announcement in October that it will pour $2.75 billion into Cruise, is still one of the biggest and most high-profile investments in self-driving technology to date.
Its Vision Fund, the world’s largest technology fund, unveiled a $1.5 billion investment in China’s top used car platform, Chehauduo Group, in February. Reuters reported in December that the same fund was hiring an investment team based in China to boost its presence in one of the world’s most vibrant tech markets.
It is not the first time SoftBank has gone through a protracted CFIUS review. It has had to accept U.S. restrictions on how it runs some of its companies, including wireless carrier Sprint Corp and investment firm Fortress Investment Group.
FILE PHOTO: A self-driving GM Bolt EV is seen during a media event where Cruise, GM's autonomous car unit, showed off its self-driving cars in San Francisco, California, U.S. November 28, 2017. REUTERS/Elijah Nouvelage/File Photo
SoftBank lost its claim to two seats on the board of Uber Inc when the ride-hailing giant floated in the stock market in May. SoftBank never received permission for the board seats from CFIUS following an agreement in 2017 to invest $9 billion in Uber.
The autonomous vehicle industry could revolutionize transportation but faces engineering, safety and regulatory challenges, as well as skepticism among potential users.
GM Cruise and Alphabet Inc’s Waymo are often described as leading the pack of technology and auto companies competing to create self-driving cars and integrate them into ride services fleets.
Additional Reporting by David Shepardson; Editing by Cynthia Osterman, Paul Tait & Shri Navaratnam
The Dow was down just 35 points in mid-afternoon trading Friday after the government reported that 224,000 jobs were added last month — much better than expected. The Dow was down more than 200 points at its lowest level of the day.
The S&P 500 and Nasdaq each fell about 0.2%. All three indexes closed at record highs in an abbreviated trading session Wednesday. US markets were closed Thursday for July 4th. Stocks are enjoying a solid week too. The Dow and S&P 500 are each up more than 1% while the Nasdaq has gained more than 1.5%.
"This month's strong jobs report is certainly uplifting after we saw such disappointing numbers in May, and shows that the labor market is still has plenty of fight left," said Steve Rick, chief economist at CUNA Mutual Group, in a report Friday morning. "The economy is still healthy right now, despite some concern rising from shakier, more volatile markets."
But the big rebound in jobs growth — only 72,000 jobs were added in May according to revised figures released Friday — may complicate the picture for the Fed.
As recently as June 20, investors were pricing in a nearly 40% chance of an aggressive half-point rate cut at the Fed's next meeting on July 31, according to futures traded on the Chicago Mercantile Exchange.
After Friday's job report, the likelihood of a half-point cut fell all the way to 5%.
"The plot thickens with respect to the Federal Reserve's decision on interest rates at the end of this month," said Mark Hamrick, senior economic analyst with Bankrate.com, in a report.
Still, it is highly unlikely that the Fed will just sit tight at its next meeting. Investors are still worried about the US multi-front trade war and the impact that's having on China's and Europe's economies.
Hamrick said the Fed may "still attempt to mollify investors by putting a modest, so-called insurance cut in place. The array of headwinds associated with slowing global growth, trade disputes and tariffs haven't gone away."
Investors still think there is a 100% chance of at least a quarter-point rate cut by the Fed on July 31.
But the decreased likelihood for a big rate cut boosted bank stocks, as higher interest rates boost the profitability of banks' lending businesses.
Shares of Bank of America(BAC), Citigroup(C), Goldman Sachs(GS), JPMorgan Chase(JPM), Morgan Stanley(MS) and even troubled Wells Fargo(WFC) were all higher.
Bond yields spiked as well following the jobs report. The rate for the benchmark 10-year US Treasury rose back above 2%. The US dollar also rallied, which it tends to do after solid domestic economic reports.
Gold prices, which have moved higher recently in part due to expectations of a slower global economy, fell Friday.
President Donald Trump lambasted the Federal Reserve yet again on Friday, saying he thinks the economy will "be breaking records" even though the central bank has rates set too high.
"If we had a Fed that would lower interest rates, we'd be like a rocket ship. But we're paying a lot of interest and it's unnecessary but we don't have a Fed that knows what they're doing so it's one of those little things," Trump said. "But if we had a Fed that would lower rates, we would have a rocket ship."
Trump has repeatedly criticized the Fed's decision to maintain interest rates this year, even as Chairman Jerome Powell has highlighted the slowing global economy. Trump has been heavily critical of Powell's decisions at the Fed, going as far as to say that "the Fed has gone crazy" with how it's managed interest rates.
The president's disagreements with Powell – who Trump picked to lead the Fed – have escalated as far as the White House reportedly looking into demoting Powell from Chairman earlier this year. At the same time, Powell has reiterated the central bank's independence, saying last month that "the Fed is insulated from short-term political pressures."
