Elon Musk is the eccentric founder of one of the most valuable tech companies in the world. After netting millions from his first two companies, PayPal and Zip2, Musk decided to dream bigger. Fascinated by space and the potential for colonization on Mars, he founded SpaceX.
Ed. Note: This is cross-posted from the Bureau of Economic Analysis's blog. It highlights the coordination and collaboration between BEA and NOAA to bring value in data and services to the American public.How many jobs are created from the construction of a new bridge or an increase in tourism?
The Bureau of Economic Analysis’ (BEA) new Web portal on the ocean
and Great Lakes economy shows how the Bureau’s Regional Input-Output
Modeling System (RIMS II) can be used to provide answers to such
questions. The new Web site stems from a joint project with the Commerce
Department’s National Oceanic and Atmospheric Administration.
RIMS II, a regional economic model, is used by investors, planners,
and elected officials to objectively assess the returns to projects
ranging from a new sports stadium to a new bridge. The returns include
the short- and long-term increases in jobs and spending associated
with the projects.
The idea behind the results of RIMS II is that an initial change in
economic activity leads to additional changes in economic activity in
other parts of an economy—for example, building a new bridge leads to
increased production of concrete and steel. The increased production of
concrete and steel leads to more mining. Workers benefiting from these
increases may also enjoy bigger paychecks, so they may then spend more
by eating out at nicer restaurants or splurging more on entertainment.
Rite Aid Corporation (NYSE:RAD) announced the buyout of EnvisionRx yesterday. The pharmacy benefits manager was projected to generate revenue of $5 billion and EBITDA of $150-160 million for fiscal year 2015 (FY15). Valued at $2 billion, the transaction implies a 2015 enterprise value to EBITDA (EV/EBITDA) multiple of 12.9, or 11.1 if one includes the tax benefits expected worth $275 million.
Rite Aid Corporation (NYSE:RAD) has agreed today to buy a leading pharmacy benefit manager, Envision Pharmaceutical Services, in a cash-and-stock deal worth $2 billion. Also known as EnvisionRx, Envision Pharmaceutical Services is owned by the global private equity firm TPG Capital.
Shares of Rite Aid escalated 8.84% in pre-market trade today after the deal was announced, which could potentially enhance its competitive position in the rapidly changing pharmacy retail market.
Rite Aid Corporation (RAD) has retreated roughly 19% in the last three months, underperforming competitor Walgreen Company (WAG) by about nine percentage points (ppts); the company has continued to underperform Walgreen in terms of topline growth.