🔵 Zucky McLucky

Mark Zuckerberg is a noted fan of BBQ.

He’ll likely be throwing some celebratory steaks on the grill after Monday’s big news: a DC federal court has thrown out 2 antitrust suits against Facebook.

The Federal Trade Commission (FTC)…

… and several state attorneys general were looking to break up your uncle’s favorite social network for being a monopoly. But according to the court, they couldn’t properly define what industry in which Facebook is actually a monopoly.

Politico writes that US District Judge James Boasberg made 2 key critiques against this suit:

• What is a social network? The prosecution didn’t make clear the bounds of features of the market they were describing.
• What is Facebook’s share? Prosecutors said Facebook holds a 60%+ share in said market, but the explanation was “vague.”

The other big blow

A separate suit painted Facebook’s previous acquisitions of Instagram (2012) and WhatsApp (2014) as anti-competitive.

However, Judge Boasberg said that the prosecution took way too long to bring these cases to court. Attempting to unwind these deals now seems to be quite a big ask.

While Zucky McLucky has won this round…

… the court’s decision is far from final. Per Matt Stoller, there is a silver lining for Big Tech critics. The FTC can actually refile its complaint within 30 days with new market share data (and perhaps a stronger case).

More broadly, these failed suits are a call to action for legislators.

“It’s evident that Congress needs to step in and rewrite antitrust laws across the board,” writes Stoller.

In the meantime, Facebook investors may enjoy some BBQ themselves: Shortly after the news came out, $FB passed $1T for the first time.

There’s a very random fight happening on TikTok.

Gen Z users are making fun of millennials for wearing skinny jeans. As it turns out, skinny jeans actually are falling out of favor… but for a logical reason.

People put on pounds during the pandemic

Which means that sales trends are shifting from skinny jeans to more comfortable fits, per Forbes. (The same is true of underwear — we wrote about that here.)

It’s not just a change in taste, either. Denim demand is rising overall.

At Levi, sales for men’s relaxed fits and chinos are up 20%+ YoY, while women have been choosing Loose and Stay Loose styles. According to Levi Brand EVP and president Jen Sey, it’s a combo of ’90s nostalgia, comfort, and sustainability (Levi’s loose fits use more sustainable fabrics).

Over at American Eagle, AE’s Mom Jeans became the top seller for the first time this spring.

And it’s not just here

Vogue India talked to 3 denim designers — Dhruv Kapoor, Kanika Goyal, and Pooja Shah — who all said wider-leg, looser pants have become the top sellers.

Overall, the market value for denim was $90B in 2019 and is expected to hit $105B by 2023.

But the real question is, will JNCO ever really make a comeback?

The Los Angeles Lakers, winners of 17 NBA titles, were already eliminated from this year’s playoffs — but their owner just scored big.

According to Joe Pompliano at Huddle Up, sports and entertainment mogul Philip Anschutz will sell his 27% minority stake in the storied franchise.

The deal values the Lakers at $5B, and the buyers are locals: Mark Walter and Todd Boehly, the owners of the Los Angeles Dodgers baseball team.

NBA franchises have exploded in value

In 2011, the average NBA franchise was worth ~$367m. Today, that figure is ~$2.2B.

The 6 largest franchises — all in big markets (New York, San Francisco, LA x2, Chicago, Boston — make up two-thirds of the total league value, per Pompliano.

Anschutz’s sale marks another trend: minority owners willing to cash out. PE firm Arctos Sports Partners recently bought a 5% stake from minority owners of the Golden State Warriors, valuing that franchise at $5.5B.

While Anschutz is selling the team…

… his firm — the Anschutz Entertainment Group (AEG) — owns the Staples Center, where the Lakers play.

Meanwhile, basketball is only one part of the AEG empire:

• Other stadiums include The O2 (London), T-Mobile Arena (Las Vegas), and Mercedes-Benz Arena (Shanghai)
• Other sports teams include the LA Kings (hockey) and LA Galaxy (soccer)
• Music festivals such as the New Orleans Jazz & Heritage Festival and sweatfest Coachella

And… AEG also owns… well, you get the point. Anschutz has a lot of stuff, and funds from the Lakers sale will surely finance more.