EXPLOREMY LIBRARY
Business & Finance
Fortune

Fortune September 1, 2018

FORTUNE covers the entire field of business, including specific companies and business trends, tech innovation prominent business leaders, and new ideas shaping the global marketplace. FORTUNE is particularly well known for its exceptionally reliable annual rankings of companies. FORTUNE furthers understanding of the economy, provides implementable business strategy, and gives you the practical knowledge you need to maximize your own success. Fortune currently publishes 3 double issues. Each count as two of 12 issues in an annual subscription.

Country:
United States
Language:
English
Publisher:
Meredith Corporation
Frequency:
Monthly
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12 Issues

in this issue

3 min.
profit for progress

“FEW TRENDS COULD SO THOROUGHLY UNDERMINE the very foundations of our free society as the acceptance by corporate officials of a social responsibility other than to make as much money for their stockholders as possible.” So wrote the late Nobel Prize–winning economist Milton Friedman in Capitalism and Freedom, his 1962 paean to limited government and unfettered markets, which has influenced some three generations of readers and counting. Friedman’s concerns, it seems, were pragmatic as well as principled: “If businessmen do have a social responsibility other than making maximum profits for stockholders,” he asked, “how are they to know what it is? Can self-selected private individuals decide what the social interest is? Can they decide how great a burden they are justified in placing on themselves or their stockholders to serve that…

3 min.
done playing with wall street

WITH THE MARKET’S attention fixated in recent days on how Elon Musk would achieve his proposal of taking Tesla private, where he would get the money to do so, and the peculiar (and legally controversial) way he tweeted out the idea, one key question has gone largely overlooked: Does going private even make sense for Tesla? When public companies say they want to go private, they usually fall into one of a few challenged categories: a middling player grasping for growth in an industry dominated by A-list brand darlings (case in point: Burger King, which went private—then public again—twice); an aging icon struggling to reign over (and rein in) a sprawling archipelago of businesses (take Hilton, private in 2007, public since 2013); or a cash cow in a niche industry (e.g.,…

1 min.
privatize? we’re watching you

$53 B RJR NABISCO Adjusted for inflation, KKR’s 1988 leveraged buyout of food and tobacco maker RJR Nabisco for $25.1 billion is the largest such deal on record. RJR Nabisco boss Ross Johnson, who launched a rival bid to fend off KKR, became a poster child for corporate greed and pocketed $50 million in the fallout. $24 B DELL We may soon see the jury of the markets deliver a verdict on Michael Dell and Silver Lake’s blockbuster deal to take his namesake company private in 2013. Dell recently announced plans to list Class C common stock on public markets on the New York Stock Exchange. +44% YEAR-OVER-YEAR INCREASE IN BUYOUTS Private equity is writing checks like nobody’s business. The volume of leveraged buyouts in 2018 is expected to beat every year since 2007 with an estimated $156…

1 min.
analytics

THERE’S A RISING SUPERPOWER in oil exports: the United States. Thanks to the fracking revolution, U.S. oil production has more than doubled in a decade, hitting 10.4 million barrels a day in May and putting America on track to surpass Saudi Arabia and Russia as the biggest crude producer. Meanwhile, the repeal by Congress, in 2015, of a 40-year-old ban on U.S. exports has begun to reshape the world market. In late June, U.S. crude exports hit 3 million barrels a day—nearly six times as much as the total from a year earlier. MAJOR CRUDE OIL TRADE MOVEMENT, 2017 (SHARE OF TOTAL CRUDE OIL MOVEMENT) WORKERS START SEEING THE BENEFITS With an economy at full employment, competition for workers is growing fierce in the U.S. Employers dished out the largest pay raises in…

1 min.
turnover at the top

THE CORNER OFFICE has grown a bit more white and a bit more male. Indra Nooyi, who has spent 12 years as chief executive of PepsiCo, will be clearing out her desk this month after 24 years with the company. Nooyi is the latest in a continuing string of Big Food and consumer packaged goods departures. This past year has seen the exits of Irene Rosenfeld from Mondelez and Denise Morrison from Campbell Soup. Those two plus Nooyi were replaced by men, leaving just 24 women running Fortune 500 companies. With Kenneth Chenault leaving American Express and Marvin Ellison leaving J.C. Penney, the number of black CEOs in the Fortune 500 is now just two—TIAA’s Roger Ferguson and Merck’s Ken Frazier—the lowest number since we started tracking in 2002. In total, 91 chief executives…

1 min.
disney loses, and wins, summer box office

WINNER THE INCREDIBLES 2 A sequel 14 years in the making shattered box office records in The Incredibles’ heroic return, including the biggest opening weekend gross for an animated movie in North America with $182.7 million. LOSER SOLO: A STAR WARS STORY Adjusted for inflation, Solo is the lowest-grossing live-action Star Wars movie, with $210 million in domestic box office as of August. Disney sank $250 million into the project. ELLISON: DIMITRIOS KAMBOURIS—GETTY IMAGES; NOOYI: MONICA SCHIPPER—GETTY IMAGES; MORRISON: EMMA MCINTYRE—GETTY IMAGES; INCREDIBLES 2: WALT DISNEY STUDIOS MOTION PICTURES/COURTESY EVERETT COLLECTION; SOLO: LUCASFILMS/WALT DISNEY STUDIOS MOTION PICTURES/COURTESY EVERETT COLLECTION…