Why Spotify’s Daniel Ek is sticking with Joe Rogan 7 Feb 2022 The streaming group’s CEO condemned the talk show host’s use of racial slurs but refused to axe him. Ek is betting that financially motivated music labels will resist artist boycotts, and that users are locked in. Rogan represents a podcast pivot that’s key to boosting earnings.
Rogan deal blunts Spotify’s edgy podcast appeal 31 Jan 2022 The streaming service is slapping advisories on its shows after a Joe Rogan Covid-19 misinformation spat. The compromise stops CEO Daniel Ek looking like a censor, and cuts the risk of music subscribers tuning out. But the promise of balance in podcasts may reduce their allure.
Vodafone intruder adds hope to activist toolbox 31 Jan 2022 Shareholder Cevian Capital lacks obvious levers to boost the 36 bln pound telco’s performance. Consolidation in markets like Spain, Italy and the UK would lower costs and improve pricing. But success depends on competition watchdogs dropping their opposition to fewer operators.
Nordic $20 bln deal sets high bar for oil mergers 22 Dec 2021 Aker BP is acquiring Lundin Energy’s fossil fuel assets using cash and stock. Both sides emerge with a stake in a low-cost big hitter, better able to negotiate oil’s decline. The billionaire Lundin brothers get a smoother path out of the sector, and arguably a small premium.
Embracer rolls the dice in $3 bln board-game play 16 Dec 2021 The $9 bln Swedish video-game firm is buying France’s Asmodee, maker of tabletop titles “Catan” and “Pandemic”. The price looks fair against rival Hasbro, and tie-ups between old-school and newfangled gaming have worked. But a lack of synergies makes a winning return tricky.
Nordic drug buyout flop highlights hidden gem 3 Dec 2021 The $8 bln takeover of Swedish Orphan Biovitrum failed after buyers could not secure 90% of the shares. The market reaction suggests the deal is dead. But investor AstraZeneca’s role in the failed bid and its interest in a respiratory disease treatment provides some comfort.
Ericsson makes puzzling $6.2 bln ascent into cloud 22 Nov 2021 That’s how much the Swedish telecom kit maker is paying for web-based communications firm Vonage. With few cost savings on offer CEO Börje Ekholm will take years to generate a decent return. Moving into a fast-growing but ultra-competitive sector highlights his need to diversify.
AstraZeneca’s virus fix becomes awkward appendage 10 Nov 2021 The $195 billion drug group is moving its Covid-19 jab and related treatments into a new unit. That could open the door to a sale to a peer like Johnson & Johnson. But the drug’s uncertain future and messy political history make any deal tricky and unlikely to deliver much value.
Swiss bank-tech buyout would hit returns glitch 27 Oct 2021 Private equity firm EQT may bid for $10 bln software group Temenos. The Geneva-based outfit should gain from banks outsourcing more IT to specialists. Yet a deal would need a large chunk of equity, and making the numbers work in an increasingly competitive sector could be tricky.
Volvo Cars’ IPO valuation is suitably smoggy 19 Oct 2021 The marque owned by China’s Geely could be listed at around $21 bln. Hiving off the combustion engine unit was meant to boost its green bona fides. Yet a reliance on gas guzzlers and optimistic battery targets mean the Swedish group will struggle to stand out from dirty rivals.
Sweden’s tiny tech investor is proxy bet on Klarna 8 Oct 2021 Sebastian Siemiatkowski is listing his investment firm in Stockholm, including a small stake in the $46 bln buy-now-pay-later lender he runs. Klarna will account for less than a third of the $31 mln portfolio. Still, Flat Capital offers rare exposure to the group before it lists.
Acquisitive Swedes may turn into overseas turnips 7 Oct 2021 Serial acquirer Storskogen has listed in Stockholm and is worth $8 bln. It makes its money hoovering up cheap, small companies from jewellery suppliers to trailer manufacturers. But rapid overseas expansion beyond its home territory will bring fresh risks, and more competition.
Viewsroom: Electric-car global roundup; Facebook 7 Oct 2021 Rivian drops its IPO prospectus, Volvo readies its public market return, Hertz brings on a car guy and GM gets a thumbs up from Engine No. 1. Antony Currie puts it all together. And what does Facebook’s outage mean for shareholders? Gina Chon and Richard Beales weigh in.
Polestar SPAC offers sober detour on EV hype road 27 Sep 2021 The Swedish electric-car maker is merging with Guggenheim Partners’ blank-cheque vehicle at a $20 bln valuation. A suitably racy revenue multiple needs turbocharged growth to avoid future potholes. But unlike rival Lucid, Chinese-owned Polestar at least has existing production.
EQT $3.9 bln pet bid typifies PE growth obsession 27 Sep 2021 The Swedish buyout firm topped Hellman & Friedman’s offer for online dog-food seller Zooplus. An absence of debt funding and limited scope for cost cuts mean the numbers only work if sales grow at a greyhound-worthy 15%. A possible counteroffer would stretch things even further.
Viewsroom: Breaking up Ant, smokes and flavors 16 Sep 2021 Beijing’s crackdown on Jack Ma’s fintech giant continues, but there may be some silver linings to the latest wrinkle, Robyn Mak tells Pete Sweeney. Meantime Dasha Afanasieva explains what a cigar spinoff at Swedish Match and carveouts at Royal DSM have in common.
Cigarless Swedish Match has pull for Marlboro Man 15 Sep 2021 The $15 bln oral tobacco maker is spinning off its stogies to quit the combustion business. With its ambitious smoke-free revenue targets, Philip Morris may be keen on what’s left. Judging by its pumped-up takeover of inhaler firm Vectura, it may take the hit, however pricey.
Juicy Nordic drug buyout needs safety label 2 Sep 2021 Advent and GIC are paying $8 bln for Swedish Orphan Biovitrum, which specialises in rare-disease treatments. The new owners will need to invest in fresh products and fend off rivals, all while keeping staff. The potential returns look appealing but come with a fair dose of risk.
Klarna’s list of suitors may not be that extensive 4 Aug 2021 Following the $29 bln swoop on Afterpay by Jack Dorsey’s Square, its $46 bln Swedish instalment-payment rival could be in play. Yet Klarna is pricey, not a pure pay-later player, and might not sell to a credit card giant. Stripe and PayPal look the most likely bidders.
Self-driving is pricey route to car parts future 23 Jul 2021 Magna International is paying $3.8 bln for Sweden’s Veoneer, which makes systems that help cars steer themselves. It reduces the $25 bln Canadian group’s exposure to combustion engines. But CEO Swamy Kotagiri will have to put his foot down to keep financial returns on the road.