Fintech shovel-makers bury most loan prospectors 14 Sep 2016 GreenSky, which sells online-lending technology, just doubled its value to $3.6 bln with an investment from U.S. regional bank Fifth Third. It's a notable upswing compared to the troubles facing Lending Club, Avant and On Deck. Even modern gold rushes favor the makers of tools.
Bayer can still be saved from $66 bln splurge 14 Sep 2016 The agreed takeover of U.S. rival Monsanto is too expensive. The German group's investors have probably lost $7 bln in value already. The question is whether antitrust regulators do what shareholders can't and nix the tie-up. Paying the $2 bln break fee would still be preferable.
Macau casino revival depends on Chinese fun police 14 Sep 2016 After an anti-corruption campaign on the mainland crushed gaming revenues in the Chinese gambling enclave, signs of recovery are starting to emerge. But magnates like Sheldon Adelson and Steve Wynn will have to deliver on family-friendly promises to avoid another smack-down.
Pandora’s change of tune may hasten M&A 13 Sep 2016 The $3 bln streaming-radio firm wants more of its 78 mln listeners to cough up money to hear songs. New direct deals with Sony and Universal Music help. But Spotify, Sirius and others are well ahead with subscriptions. Too many music services that charge risks consumer fatigue.
Wells Fargo boss should pay a price for scandal 13 Sep 2016 Over 2 mln alleged fake accounts have hurt the lender's reputation on both Wall Street and Main Street. Wells Fargo has shown no sign of holding its ex-retail chief accountable. The scale of the fiasco suggests it goes even higher and that CEO John Stumpf's bonus warrants review.
Fed governor’s rate view helps her Treasury pitch 13 Sep 2016 Lael Brainard struck a dovish note on interest rates ahead of the central bank’s next meeting. She’s also a leading candidate to be Treasury secretary in a Clinton administration. Her soothing words could help mollify progressives suspicious of her past role in trade deals.
Renesas programs model outbound Japan deal 13 Sep 2016 The world's No. 3 chipmaker has agreed to buy U.S. peer Intersil for $3.2 bln. Unusually for a Japanese buyer, Renesas has large, clear synergy targets. These are mostly based on higher sales but if achieved, would more than cover the deal's near-$1 bln premium.
Fertilizer duo bucks trend with $36 bln love-in 12 Sep 2016 Canada's Potash and Agrium are combining in a merger of equals. It's a contrast to past industry mash-up attempts, which gave off a whiff of exuberance before collapsing. There's plenty for both sets of shareholders to like, assuming the deal clears antitrust hurdles.
HarbourVest pushes SVG investors through open door 12 Sep 2016 Its aggressive $1.4 bln bid for the private equity fund comes just a week ahead of SVG updating its net asset value - which may make the offer less generous. Still, over half of the shareholders have accepted already. That suggests their main priority is a clean exit.
Samsung heir emerges from governance smoke 12 Sep 2016 Jay Y. Lee, son of the Korean technology group's chairman, is joining the company's board of directors. Lee already pulled strings, but from a less visible position. As the company deals with a rash of smartphones catching fire, this gesture towards transparency is helpful.
Pemex CEO’s Herculean efforts are just beginning 9 Sep 2016 The newish boss of Mexico's state-owned oil giant is doing the right things. But reversing Pemex's long decline requires billions of dollars of investment neither the company nor the government can spare. Foreign partners are interested, if they're given enough incentive.
Wells Fargo stoops to Wall Street’s level 8 Sep 2016 The U.S. lender led by John Stumpf has undertaken one of the biggest purges of bad bankers. It fired some 5,300 employees for opening 2 mln fake customer accounts that just led to $190 mln in fines. Failure of culture, incentives and accountability isn't limited to high finance.
F1’s new vehicle has the right engineers 8 Sep 2016 Media mogul John Malone is snapping up the race-car competition in an $8 bln deal. He has form making money out of live events and cable-TV businesses. And incoming Formula One Chairman Chase Carey is a sharp lieutenant. They'll need all their wiles to win financially, though.
Liberty’s $8 bln F1 deal calls for a team effort 8 Sep 2016 Motor racing is a sport of individuals, but the U.S. media company needs help to justify paying 17 times EBITDA for Formula One. Plans for U.S. growth will hinge on incentivising teams to work harder. Seller CVC, meanwhile, is left holding a large equity stake but no control.
Spotify’s investor pitch sounds off-key 8 Sep 2016 The Swedish group may restrict access to new albums to secure lower record-label fees. Music costs are rising faster than sales and need to be cut ahead of a possible IPO. An $8.5 billion private funding valuation hinges on the tricky task of weaning customers off free music.
Mario takes Nintendo up a level in mobile gaming 8 Sep 2016 Nintendo unexpectedly unveiled a Super Mario game at Apple's new phone launch. Following Pokemon's wild success, this confirms the Japanese group is no longer dragging its feet on reform and is ready to use top characters on mobile. It boosts the case for the new-look Nintendo.
Ctrip’s cash call heralds exotic adventures 8 Sep 2016 China's top online travel group has raised at least $2.4 bln. That will help the firm backed by Baidu and Priceline diversify as local airlines fight back against its core ticketing business. If recent deal making is a guide, Ctrip's latest haul will take it off the beaten track.
Intel takes schmuck insurance to cyber extremes 7 Sep 2016 The chipmaker run by Brian Krzanich is selling 51 pct of its McAfee security software business to TPG for $1.1 bln. It's an embarrassing comedown for a firm Intel acquired for $7.7 bln in 2010. Intel just may find some redemption, however, if the buyout firm can work some magic.
Meg Whitman’s simplifying job gets more complex 7 Sep 2016 After first splitting Hewlett-Packard, the HP Enterprise boss is now attempting her second spinoff. The transaction uses a messy structure but if it works would fetch $8.8 bln for the software division tax-free. Even a smaller HPE, however, will be plagued by hardware deflation.
TV broadcaster takes another wishful spin 7 Sep 2016 Tegna split from newspaper publisher Gannett last year hoping to lift its valuation. It didn't work as planned, but the company is now trying the same thing with auto-sales website Cars.com. Such financial engineering should work in theory. Markets sometimes have other ideas.