Tokyo jobs giant makes pricey hire with Glassdoor 9 May 2018 Japan’s Recruit has bought the U.S. job-reviews site for $1.2 bln, or about seven times trailing sales. That is a big sum for a startup that is still unprofitable. Even so, Glassdoor’s insights and data could be useful as technology brings radical change to the HR department.
A Fujifilm cash bid for Xerox would work on paper 8 May 2018 Carl Icahn is fighting the Japanese company's complex plan to take control of its U.S. partner, but he's open to a cleaner $11 bln deal. That just about stacks up for Fujifilm in terms of debt needed and an investment return. It'd be far harder to justify strategically, though.
Takeda swallows big dose of risk to buy Shire 8 May 2018 The Japanese drugmaker finally reached a deal to buy its Irish peer, for $62 bln. Takeda can just about make the deal math work with $1.4 bln of annual cost savings. It requires big cuts to R&D, however, and operating with excessive debt for a while. That's a dangerous mix.
Japan’s carmakers brace for fanciful currency ride 7 May 2018 Honda reckons FX moves could lop nearly $2 bln off earnings this year. If the yen rises, automakers often suffer, as does much of Japan Inc. The $60 bln maker of the Accord typically errs on the side of caution, though. And a truly painful exchange rate is unlikely.
Japanese odds may be growing longer for casinos 3 May 2018 MGM and Melco are among those keen to bet on the new market, estimated at $25 bln. They got lucky with Prime Minister Shinzo Abe, who helped advance plans in the face of opposition. His political woes, though, could deal the efforts some public backlash and crippling regulation.
Sprint sale sharpens SoftBank’s vision 30 Apr 2018 Ceding control of the $59 bln U.S. wireless carrier is a U-turn for the Japanese parent company's boss, Masayoshi Son. The deal would nevertheless fix SoftBank’s biggest problem and shore up its balance sheet. It also should put greater emphasis on its extravagant tech fund.
Once-bitten merger arbitrageurs are twice Shire 27 Apr 2018 The $62 bln Takeda bid should in theory be an attractive hedge-fund plaything. A yawning gap between the offer value and the target's share price suggests otherwise. Multiple currencies and time zones act as deterrents. So too do the scars from Shire's deal with AbbVie.
Sony offers an increasingly entertaining story 27 Apr 2018 The Japanese group made a record annual operating profit of nearly $7 bln, helped by a rebound in music sales and continued success in games. Yet Sony’s sprawl, including hardware, means it is stuck with an unglamorous valuation despite a global race to acquire content.
Nintendo aims splat bomb at Japan’s gerontocracy 26 Apr 2018 The maker of hit video game Splatoon is getting a 46-year-old boss. That’s refreshing in an ageing country where seniority counts for so much. Youth can be a liability too, as evidenced by the growing pains of Uber or Facebook. But Nintendo’s business is a young man’s game.
Nomura targets are so close and yet so far 26 Apr 2018 Weighed down by a legal charge, the Japanese bank's annual profit fell 8 pct to $2 bln. At least there were encouraging signs in trading and investment banking in the last quarter. With earnings at just 62 yen a share, though, Nomura will struggle to reach a goal of 100 by 2020.
India is prize worth keeping for Uber 20 Apr 2018 The ride-hailing giant says it won’t exit the market with a minority stake as it did in Southeast Asia and China. Uber has a narrower gap with local rival Ola and the country can serve as a good test-bed for new ideas. Without India, Uber would also look less global in an IPO.
Japan would take turn for worse without Abe 20 Apr 2018 Allegations of cronyism could bring Shinzo Abe’s five-year run as deflation killer to an end. While ultra-loose monetary policies may live on, one potential successor is more focused on North Korea than structural reforms. Markets are being sanguine about the potential fallout.
Shire makes needy suitors work for risky bet 19 Apr 2018 The London-listed pharma group has rejected a 42 bln pound offer from Osaka-based Takeda, and may now face a bid from Botox-maker Allergan. Shire’s business has its challenges, but its would-be acquirers have strategic issues and need a deal. The risk of overpaying is going up.
Shire cancer sale boosts weak takeover defences 16 Apr 2018 The $47 bln drugmaker facing a potential bid from Takeda sold its cancer treatments for $2.4 bln. Shire’s debt and doubts over its business weaken its resistance. The best bet may be to show that a Takeda offer undervalues its business. But more radical surgery could be tricky.
SoftBank financially engineers banking gravy train 9 Apr 2018 An $8 bln loan backed by Alibaba shares is the latest wizardry from boss Masayoshi Son. A bevy of banks signed up for a client who has spent $750 mln on fees since 2015. The hyperactivity, ambition and assets mean SoftBank can get support for even the most fiendish of ideas.
Review: The ultimate truth about blockchain 6 Apr 2018 The technology behind bitcoin has applications that extend far beyond the crypto-currency hype. But is it the panacea for humanity’s problems? “The Truth Machine” takes a positive view of decentralised digital ledgers, but underplays fundamental questions of safety and trust.
SoftBank’s less risky Swiss Re bet is still silly 4 Apr 2018 The Swiss insurer says any investment by the Japanese tech and telecom group won’t exceed 10 percent. A $3 billion stake would be substantially smaller than previously suggested. Given the dubious benefits of any tie-up, though, it’s still a questionable use for SoftBank’s cash.
Tricky Renault-Nissan deal would be rewarding 29 Mar 2018 The French and Japanese groups chaired by Carlos Ghosn may merge to create a carmaker that trades as a single stock. The Gallic state, which owns 15 pct of Renault, would put up roadblocks. But after 19 years of cooperation, margins are low enough to make the union worth a try.
Takeda takes a turn at Shire’s risky M&A strategy 28 Mar 2018 The $42 bln Japanese drugs group may bid for $45 bln takeover machine Shire. There’s not much overlap, and uncertainties hang over key businesses. But Shire is cheap, and its shareholders exasperated. That may appeal to Takeda boss Christophe Weber, but it's also a warning.
Japan steels itself for worse on trade 26 Mar 2018 U.S. metals tariffs won’t hurt Tokyo much. But trade tensions can cause indirect harm too, since Japan is a big supplier to China, and market jitters unhelpfully boost the yen. President Trump’s scorn for a close ally hints at pressure to come over cars, agriculture and currency.