MxM News

Quick Hit:

Nissan is reportedly abandoning merger talks with Honda, scrapping a $60 billion deal that would have created the world’s third-largest automaker. The collapse raises questions about Nissan’s turnaround strategy as it faces challenges from electric vehicle competitors and potential U.S. tariffs.

Key Details:

• Nissan shares dropped over 4% following the news, while Honda’s stock surged more than 8%, signaling investor relief.
• Honda reportedly proposed making Nissan a subsidiary, a move Nissan rejected as it was initially framed as a merger of equals.
• Nissan is struggling with financial challenges and the transition to EVs, still reeling from the 2018 scandal involving former chairman Carlos Ghosn.

Diving Deeper:

Merger talks between Nissan and Honda have collapsed, according to sources, after months of negotiations to form an auto giant capable of competing with Chinese EV makers like BYD. The proposed deal, valued at over $60 billion, would have created the world’s third-largest automaker. However, differences in strategy and control ultimately derailed the discussions.

Reports indicate that Honda, Japan’s second-largest automaker, wanted Nissan to become a subsidiary rather than an equal merger partner. Nissan balked at the idea, leading to the collapse of negotiations. Honda’s market valuation of approximately $51.9 billion dwarfs Nissan’s, which may have fueled concerns about control. The failure of talks sent Nissan’s stock tumbling more than 4% in Tokyo, while Honda’s shares rose over 8%, reflecting investor confidence in Honda’s independent strategy.

Nissan, already in the midst of a turnaround plan involving 9,000 job cuts and a 20% reduction in global capacity, now faces mounting pressure to restructure on its own. Analysts warn that the failed merger raises uncertainty about Nissan’s ability to compete in an industry rapidly shifting toward EVs. “Investors may get concerned about Nissan’s future [and] turnaround,” Morningstar analyst Vincent Sun said.

Complicating matters further, Nissan faces heightened risks from U.S. tariffs under President Donald Trump’s trade policies. Potential tariffs on vehicles manufactured in Mexico could hit Nissan harder than competitors like Honda and Toyota. The stalled deal also impacts Nissan’s existing alliance with Renault, which had expressed openness to the merger. Renault holds a 36% stake in Nissan, including 18.7% through a French trust.

While both Nissan and Honda have stated they will finalize a direction by mid-February, the collapse of this deal signals deep divisions in Japan’s auto industry. With Nissan’s financial struggles and the growing dominance of Chinese EV makers, the company must now navigate an increasingly challenging market without external support.

MxM News

Quick Hit:

President Trump has appointed Jon Voight, Sylvester Stallone, and Mel Gibson as “special envoys” to Hollywood, aiming to restore a “Golden Age” and challenge the industry’s entrenched liberal bias. According to RealClearPolitics’ Ethan Watson, the move highlights the necessity of reclaiming cultural institutions from leftist control.

Key Details:

• Trump’s Truth Social post described the trio as his “eyes and ears” in Hollywood, advising on business and social policy.

• Hollywood’s leftist dominance, as seen in Disney’s political agenda and the cancellation of Gina Carano, has alienated conservatives.

• Watson argues that Trump understands “politics is downstream from culture” and that influencing Hollywood is vital to shaping American values.

Diving Deeper:

President Trump’s latest move to reshape Hollywood has the entertainment industry buzzing. By appointing Jon Voight, Sylvester Stallone, and Mel Gibson as his “special envoys” to Tinseltown, Trump is signaling that conservatives no longer need to cede cultural institutions to the left. As RealClearPolitics’ Ethan Watson writes, “Donald Trump understands something many right-wingers haven’t for a long time: It’s time to take back institutions.”

Trump, who has long criticized Hollywood’s liberal slant, sees the entertainment industry as a battleground for shaping public opinion. “Although studies have shown that many Americans, particularly younger people, are unaware of the biggest news story of the day, nearly all of them consume media produced by Hollywood,” Watson notes. This cultural dominance, Watson argues, has been exploited to push a left-wing agenda, alienating conservative voices.

The case of Gina Carano exemplifies Hollywood’s intolerance toward dissent, Watson writes. The former “Mandalorian” star was fired by Disney in 2021 after posting a historical comparison on social media. “In truth, her cancellation was most likely due to her mocking pronoun virtue signaling and COVID-19 precautions that were essentially an entrance fee into the upper echelons of Hollywood,” Watson states. The politicization of entertainment didn’t stop there—Disney executive Latoya Raveneau openly admitted to inserting a “not-at-all-secret gay agenda” into children’s programming.

Watson pushes back against the idea that conservatives should simply “build their own” Hollywood, arguing that the industry is too integral to American culture to be abandoned. “Casting it aside would be like trying to create an alternative to Mount Rushmore or baseball – it’s irreplaceable,” he writes. Trump’s decision to highlight conservative-friendly stars like Stallone, Voight, and Gibson sends a powerful message: conservatives in Hollywood no longer have to stay silent.

Trump’s envoys are a step toward restoring balance in an industry that has become a one-party echo chamber. “Hollywood, along with social media, has become the ‘town square,’ the medium by which Americans share ideas,” Watson explains. With leftist cancel culture stifling dissent, Trump’s initiative is not just about entertainment—it’s about ensuring freedom of expression in America’s most influential industry.