Investor's Playbook

📖Today’s Agenda

• Stock Market: Microsoft Completes $69 Billion Activision Blizzard Purchase

• Entrepreneurship: TOP 3 AI TOOLS OF THE WEEK

• Personal Finance: One Big Reason to Think Twice Before Renting Out Your Home on Airbnb

📈Stock Market

Microsoft Completes $69 Billion Activision Blizzard Purchase

The biggest-ever acquisition in the video game industry gives the maker of Xbox consoles a more formidable position against rivals, vaulting it from fifth to third place globally, behind Tencent Holdings Ltd. and Sony Group Corp. The acquisition is a stunning turnaround after Microsoft executives underestimated the magnitude and longevity of antitrust objections, forcing the software giant to seek a three-month extension of the deal’s expiration period from Activision.

Microsoft was able to close after making alterations to its merger agreement to win over UK authorities. The US Federal Trade Commission, which lost an attempt to block the transaction in court, continues to pursue legal action in its own administrative hearing. That could still force the two companies to unwind the deal if the commission is successful.

The UK’s Competition and Markets Authority announced on Friday that it had approved the deal after accepting a restructuring plan involving selling some gaming rights to French publisher Ubisoft Entertainment SA. The regulator was concerned about preserving competition in the nascent market for games streamed via the cloud.

Other parts of the gaming landscape have shifted since the Activision deal was first announced in January 2022. The metaverse, a persistent online world where consumers would play games and shop, hasn’t turned out to be as big a commercial opportunity as many in the industry believed. That business was identified as a key driver for the acquisition when it was announced.

The delays also meant Microsoft could only now begin the process of reforming Activision’s culture in the ways the company wants to see. While Microsoft has traditionally taken a hands-off approach to the gaming studios it acquires, it may be more involved this time.

🎯Entrepreneurship

TOP 3 AI TOOLS OF THE WEEK

1. MagicFlow

TEXT TO AI WORKFLOW

MagicFlow is an innovative no-code drag-and-drop tool that helps users build AI workflows quickly and easily. It integrates seamlessly with existing systems and applications, enabling users to take advantage of advanced technologies from HuggingFace, Stability AI, Replicate and ChatPGT.

2.Synthesys

TEXT TO MEDIA

Synthesys is a powerful AI tool designed to help you create remarkable AI content. It is the perfect platform to generate sophisticated AI images from text, create appealing videos with AI avatars, and make efficient voice-overs with 400+voices.Synthesys is primarily used to create branded content, generate voice acting, and make captivating AI avatars. It is a great tool for businesses that want to make their content remarkable and engaging.

3. Zeroscope

TEXT TO VIDEO

Zeroscope is an innovative AI tool designed to help users create customized short videos from text. This powerful tool employs an experimental model to generate photorealistic results, with some exceptions in certain cases. Zeroscope is ideal for all sorts of tasks related to video production. It is a practical and cost-efficient solution for businesses as well as for individuals who simply want to quickly create engaging and visually-attractive short videos.

💸Personal Finance

One Big Reason to Think Twice Before Renting Out Your Home on Airbnb

Many people like to turn to the gig economy to drum up extra cash. And seeing as how we're still dealing with lingering inflation, that makes sense. A side hustle could be your ticket to boosting your savings when your cash reserves have largely been depleted. And if you're carrying a balance on one or more credit cards, a side gig could make it possible to eliminate it or at least whittle it down. Now, there are different options you can explore in the realm of side hustles. But one route you may be interested in taking is renting out your home on a site like Airbnb.

The idea of scoring some cash by renting out your home might seem appealing. But doing so might also backfire on you.

When your tenant refuses to leave

Most of the time, people who rent homes on a short-term basis through sites like Airbnb arrive when they're supposed to and leave when their stay is up. But you still run the risk of having someone occupy your space and refuse to vacate it when they're required to.

Such a thing happened to a Los Angeles homeowner named Sascha Jovanovic. Jovanovic rented his accessory dwelling unit (ADU) to a tenant via Airbnb whose stay was supposed to end in April 2022. As of October 2023, that same tenant was still occupying that ADU and hadn't paid rent in over a year.

Since the ADU in question was subject to different code violations, Jovanovic is not legally allowed to evict that tenant -- a tenant who, incidentally, will not allow Jovanovic access to the unit to bring it up to code. Also, Los Angeles recently adopted an ordinance that requires landlords to pay relocation costs for tenants they wish to evict without a legal reason.

You'd think an unplanned extended stay without rent payments would qualify as a legal reason. But apparently, they don't. And now, Jovanovic is stuck in a major bind.

Be careful when renting out your home temporarily

Renting out your home for short-term stays can be tempting for quick cash, but it's essential to be aware of potential consequences. A recent extreme case in LA, although unique, highlights the need to understand local regulations. To protect yourself, investing in a legal expert to create a robust rental agreement for short-term tenants is a wise step.

This document can safeguard your rights and prevent situations where tenants argue for prolonged stays. It's also crucial to recognize that managing short-term rentals is labor-intensive, involving tasks like cleaning before and after guests, along with various logistical challenges. Considering these complexities, exploring alternative side hustles might be a safer and more efficient way to earn income, allowing you to invest your time and effort wisely while avoiding potential legal issues.

In conclusion, renting your house on platforms like Airbnb can be financially appealing, but it comes with significant risks. Local regulations, unpredictable guests, potential damages, and legal complexities make this venture challenging. Without proper precautions, you might find yourself in legal disputes, facing property damage, or dealing with difficult guests. It's essential to thoroughly research local laws, draft a comprehensive rental agreement, and weigh the risks against the benefits before deciding to list your property on Airbnb.