CNBC.com’s MacKenzie Sigalos brings you the day’s top business news headlines. On today’s show, CNBC.com’s Megan Graham explains the latest developments in the Facebook ad boycott, now that more and more big corporations are pulling advertising spending as the platform struggles to contain rampant hate speech and misinformation. Plus — CNBC’s Ylan Mui dives deep into the police budgets in America’s biggest cities.
Companies joining the Facebook ad boycott risk their bottom lines to take a stand
Some advertisers that rely heavily on Facebook but want to join the recent advertising boycott are faced with a dilemma: Do they risk hurting business in the near term, or risk losing customers who might punish them for not participating in the long term?
With hundreds of businesses joining a boycott of Facebook ads (and some taking it a step further by pausing spending on all social media), some have speculated why some companies have yet to press pause. Others have taken a more cynical view, saying that joining the boycott is simply providing cover for broader marketing cost-cutting associated with the coronavirus pandemic.
But Facebook is a massively efficient channel for many businesses, and experts say cutting out the platform can be a major sacrifice, especially those that rely on it to bring in new customers.
U.S. food delivery service Postmates has received acquisition offers from Uber and a special purpose acquisition company as it simultaneously makes plans to go public, according to people familiar with the matter.
Postmates hasn’t decided which path to take, though it’s expected to make a decision in coming days, said the people, who asked not to be named because the discussions are private. Uber’s offer is valued at about $2.6 billion, according to The Wall Street Journal. Postmates is working with JPMorgan Chase as a financial adviser, the people said. Spokespeople for Postmates, Uber and JPMorgan declined to comment.
Repeated police killings of black Americans have sparked the widest push for law enforcement reform in years.
The nationwide movement fueled by George Floyd’s death last month has already kick-started change in cities and states. The coming months will help to determine just how far officials go in reshaping departments — and whether Congress will join state and local lawmakers in taking steps to overhaul policing.