The daily business briefing: October 1, 2019

1. WeWork parent cancels IPO

The We Company, parent of office-sharing startup WeWork, filed Monday to withdraw its initial public offering of stock. The company had already postponed the IPO as investors concerned about losses pushed for the ouster of co-founder Adam Neumann, who stepped down last week as CEO. Scrapping the IPO will let the company's leaders focus on turning around the business without having to disclose as much information as they would as a public company. We Company now will have to secure a new source of funding as it runs low on cash, because it had a $6 billion loan deal with banks that required it to sell shares worth at least $3 billion.

Reuters

2. California law lets college athletes make endorsement deals over NCAA objection

California Gov. Gavin Newsom (D) on Monday signed a law making his state the first in the nation to allow college athletes to hire agents and make money by endorsing sneakers, soft drinks, and other products. The NCAA had called on Newsom to veto the bill, warning it would turn amateurs into professionals and give California schools a huge recruiting advantage. The NCAA said it is working on changing rules on generating income from players' names, but called for any changes to be made nationwide. Newsom and other supporters of the legislation said it was only fair to let college athletes share in the wealth their sports make for their schools.

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The Associated Press

3. UAW members qualify for strike pay as GM strike continues

About 48,000 United Auto Workers members became eligible for $250 per week in "strike pay" as they enter their third week on picket lines at General Motors factories and parts distribution centers. The work stoppage is estimated to be costing the Detroit automaker up to $100 million a day due to lost production. The strike pay falls far short of the $640 to $1,200 per week GM hourly assembly workers normally make, before taxes and overtime pay. Longtime labor consultant and negotiator Colin Lightbody said workers' finances could become a difficult issue for the union. "I would assume the strikers are going to start feeling the pain this week and unfortunately there's no guarantee that the economics of the deal will improve from the original GM offer," Lightbody said Monday.

CNBC

4. Netflix orders 4th season of Stranger Things

Netflix announced Monday that it has ordered a fourth season of science fiction hit Stranger Things. The streaming giant also signed the show's creators, brothers Matt and Ross Duffer, to a nine-figure TV and film deal. "The Duffer Brothers have captivated viewers around the world with Stranger Things and we're thrilled to expand our relationship with them," Netflix chief content officer Ted Sarandos said in a statement. Netflix released the third season of Stranger Things, a drama set in the 1980s, three months ago. The Duffers said they were "absolutely thrilled to continue our relationship with Netflix," saying the company "took a huge chance on us and our show — and forever changed our lives."

The Hollywood Reporter Vulture

5. Stock futures rise further after Monday's gains

U.S. stock index futures rose early Tuesday, pointing to a higher open after solid Monday gains. Futures for the Dow Jones Industrial Average and the S&P 500 were up by 0.2 percent, while those of the Nasdaq climbed by 0.3 percent. All three of the main U.S. indexes closed higher on Monday on renewed optimism about next week's high-level U.S.-China trade talks after a U.S. Treasury spokesman said the Trump administration "is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time." Reports last week indicated the White House was considering such a move to curb U.S. investment in China as part of an effort to increase pressure on China to make trade concessions.

CNBC