Considered View

Trump SPAC is the last thing U.S. watchdogs need

22 October 2021

A blank-check firm’s deal with former President Donald Trump could be a toxic cocktail for top markets cop Gary Gensler. Not because of the potential for investor abuse, but because it risks drawing the SEC and other regulators further into a counterproductive political quagmire.

Gerson Lehrman IPO “edge” is it doesn’t have one

22 October 2021

Linking investors eager for insight with industry insiders is lucrative. Gross margins over 70% look ripe for rival expert networks to eat. GLG's emphasis on compliance after an insider-trading scandal, however, makes it look like a safe source of validation for clients.

Snap is better off without the rose-tinted filters

22 October 2021

Losing $25 bln of market value in a day is a blow for the disappearing-message app, which has blamed Apple for making it harder to squeeze profit from users. But Evan Spiegel’s firm is still growing its audience, and by some measures looks cheap relative to its rivals.

CoComelon owner faces channel-changing risk

22 October 2021

The producers of the hit toddlers’ show may list with a $3 bln valuation, according to the Wall Street Journal. Fresh cash would help them spot the next big sensation. The risks are clients like Netflix cutting out the middleman and kids getting hooked on a rival’s rhymes.

Altice Portugal sale would fuel Drahi M&A machine

22 October 2021

CVC and Blackstone are eyeing a 7 bln euro deal for the telecom tycoon’s Iberian unit, Bloomberg reported. They could net a tidy return since it has already done the heavy lifting on fibre investment. A sale would give the Sotheby’s owner cash to fund a tilt at France’s Eutelsat.

Evergrande payment wins some restructuring credit

22 October 2021

The developer has wired an $84 mln coupon to bondholders just days before a potential default. It suggests goodwill ahead of an inevitable debt rejig. If boss Hui Ka Yan is prepared to actively work with creditors, he could set standards for other distressed situations in China.

Capital Calls: Australian coal, Liquor groups

22 October 2021

Concise views on global finance: An Australian goods transporter’s effort to reduce its coal exposure is very underwhelming; Rémy Cointreau and Pernod Ricard leave less inflation-cushioned groups like Unilever crying into their drams.

Lockdown scars will linger Down Under

22 October 2021

With a 70% vaccination rate, Melbourne is ending its record run of strictly confining a fifth of Australia’s population. A burst of consumer spending should help the economy bounce back. The tab for mental health strains, closed borders and related issues keeps growing, however.

Intel moves one nanometer forward, two back

21 October 2021

The U.S. chip champion has dialed down ambitions to spend $20 billion this year to regain its manufacturing leadership, though stopped the bleeding at one of its core businesses. There is a long way to go, and Intel needs to regain credibility on delivering its promises.

Trump app is ultimate art of the SPAC deal

21 October 2021

The former president’s social network ticks many boxes for a blank-check firm. He has a checkered business history, would struggle to launch a regular stock offering, and is valuing the yet-to-be-launched service at up to $1.7 bln. It’s also a huge test for securities regulators.