Deal Dispatch: Musk Merger Talk, LIV Golf Stakes, And A Flurry Of M&A From AI To Athleisure

New On The Block

• Elon Musk is reportedly weighing a potential merger across his entire business empire: SpaceX, Tesla (NASDAQ:TSLA) and/or xAI. A SpaceX-Tesla deal could leverage Tesla's energy storage and solar capabilities for space-based infrastructure, while a Tesla–xAI merger may be the cleanest industrial fit—highlighted by Tesla's recent $2 billion investment in xAI. But the timing of this is strange, considering SpaceX is exploring an IPO.

• LIV Golf is preparing to sell minority stakes in some of its teams for the first time, targeting valuations of up to $300 million, according to Bloomberg. The Saudi-backed league has hired Citigroup to run the sale process and is expected to seek new investors for two teams later this year, with a full control sale for one team also on the table. LIV Golf, which is primarily owned by Saudi Arabia's Public Investment Fund, has said it ultimately aims for each of its 13 franchises to be valued at $1 billion, with team captains currently holding 25% ownership stakes. League executives say the push is focused on boosting sponsorship revenue, building new team-level businesses, and monetizing name, image, and likeness rights.
  
• Enterprise artificial intelligence software provider C3.ai Inc (NYSE:AI) is in talks to merge with software company Automation Anywhere, The Information reported. If the deal materializes, Automation Anywhere would buy C3.AI and go public through a reverse merger. C3 stock is down 10.2% at last check on Friday.

Updates From The Block

• Brynwood Partners agreed to sell Great Kitchens Food Co., a maker of private-label take-and-bake pizzas, to family-owned food company Rich’s.

• Anta Sports of China has agreed to buy a 29% stake in German sportswear maker Puma from the Pinault family for €1.51 billion, making Anta Puma's largest shareholder. The deal strengthens Anta's push to become a global rival to Nike (NYSE:NKE), adding to a portfolio that already includes Arc'teryx, Wilson, Fila, and Jack Wolfskin. While Anta says it has no plans for a full takeover—which would be triggered at 30% ownership under German law—Puma shares jumped as much as 20% on the news. The investment positions Anta to benefit from rising global demand for sportswear and athleisure, particularly in China.

• Steel Partners Holdings offered to acquire a controlling stake in InMode Ltd. (NASDAQ:INMD) for $1.1 billion. Steel Partners also criticized InMode's stock performance, capital allocation, and repeated guidance cuts. Steel Partners approached InMode about acquiring 51% of the company’s outstanding shares at $18 per share. The offer represents a 29% premium to InMode’s January 23 closing price, before media speculation surrounding a possible transaction emerged. Steel Partners is already a shareholder, with roughly 800,000 InMode shares. That's about 1.3% of the company.

Off The Block

• Francisco Partners completed its $2.2 billion take-private acquisition of software company Jamf. The deal marks Vista Equity Partners‘ full exit from Jamf.

• Mitsubishi Electric has completed its $1 billion acquisition of San Francisco–based Nozomi Networks, an industrial cybersecurity firm that previously raised about $250 million from investors including Notable Capital, Lux Capital, Energize Capital, Honeywell Ventures, and Partners Group.

Bankruptcy Block

• Federal prosecutors have indicted First Brands Group founder Patrick James and his brother Edward James on charges of defrauding lenders ahead of the auto-parts company's collapse into Chapter 11 bankruptcy. Authorities allege the brothers carried out wide-ranging schemes—including falsifying invoices and financial statements, double- and triple-pledging collateral, and hiding liabilities—to secure billions of dollars in financing and personally reap millions. The case emerged after advisers uncovered roughly $2.5 billion in questionable factoring invoices that could not be substantiated and were sometimes sold multiple times, according to The Wall Street Journal. Both brothers deny the allegations. First Brands, now under new management, is cutting operations and relying on emergency funding during the restructuring process.

• Amazon.com (NASDAQ:AMZN), LVMH (OTC:LVMUY), and Chanel have been named to Saks Global's newly formed creditors committee, giving them an influential role in shaping the luxury retailer's bankruptcy restructuring. The 10-member panel—which represents all junior creditors—also includes Zegna, Kering Americas, Brookfield Properties Retail, a union representing Saks employees, a logistics provider, and the Pension Benefit Guaranty Corporation, with legal costs covered by Saks during the case.

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