HBO’s Emmy-winning series dropped a major plot bomb in its final season. Here’s how the twist could be more realistic than you might think.
First and foremost, for our friends who watch the popular HBO series ‘Succession,’ this article contains spoilers, so we’d strongly recommend finishing the show before returning to learn how the equivalent of a major plot point could affect the financial landscape.
Now, for those of us who are caught up on this brilliant show, let’s go over how its twist shocked the world while also shining a light on how a comparable real-life event could shake markets to their very cores. In the third episode of the fourth and final season of ‘Succession,’ Logan Roy, founder and CEO of Waystar Royco, passes away.
When he dies, the share price of his multi-billion-dollar empire begins to plummet, leaving his heirs scrambling. At the same time, it might have left viewers wondering if any real-life founders and CEOs have that type of sway on their company’s stock. To discuss, I spoke with Insider for an article about similar situations and comparable businesspeople whose deaths have or could have a profound impact on market value.
Our first comparison comes with Steve Jobs, the founder and longtime CEO of Apple. At his death, Apple shares dropped 6% and cut the company’s value by billions of dollars. We went further, however, to ponder living CEOs who essentially are their business’s brand.
“When you think of Tesla, what do you think would happen if Elon Musk died tomorrow? It’d be a pretty bad day for Tesla in the markets. Logan’s power is depicted in the show as being manifest. When he says the others are pygmies and he’s 100 feet tall, everyone in the world of ‘Succession’ probably saw Waystar that way, too. So it’s definitely very realistic.”
It is important to remember that the death of a problematic CEO could push a stock to rally, as investors could see new leadership as a chance to expand the business or explore new opportunities. It’s also crucial to consider that ‘Succession’ is fictional, and though some of the show’s commentary rings so true in the modern world, its writers still have free rein to choose how events affect the world they occur in, meaning it’s possible that the aftermath has been exaggerated for entertainment.
Still, it can be a good principle to have in the back of your mind when investing. Influential and front-facing CEOs can have sway over the value of their companies, so we’d always recommend considering all aspects of an investment before risking your hard-earned money. We’d also advise speaking with us about any financial matter, as we at Prime Capital Investment Advisors are experienced holistic financial planners.