Facebook dating reality may fall short of fears 1 May 2018 News of a matchmaking add-on to the social network tanked the shares of Match and owner IAC on Tuesday. People are spending less time on Facebook and this could persuade some to linger. But they’d have to believe Mark Zuckerberg’s promiscuous data-sharing days are behind him.
Power Rangers alone won’t win toy war for Hasbro 1 May 2018 The $11 bln Play-Doh parent is buying the superhero franchise from Haim Saban for $522 mln. Disney’s reboot of older brands like Marvel inspires copycats. But tangible toymakers have little edge over digital ones. Hasbro’s best hopes still reside in taking over $5 bln Mattel.
Squeezed Facebook is set to squeeze others 1 May 2018 Mark Zuckerberg has touted a new, responsible privacy approach since the Cambridge Analytica mess. Outside developers fear it will dent their business. And users of WhatsApp – whose founder is quitting Facebook – may need reassurance they aren’t the social network’s next product.
Computers come for debt capital markets jobs 1 May 2018 Citi, JPMorgan and Bank of America will later this year roll out an online platform that will streamline the way in which companies issue bonds and help investors to compare credits. A successful launch could over time help these banks to shrink their sales and syndicate teams.
KLX purchase gives Boeing a boost over Airbus 1 May 2018 Paying $4.25 bln for the parts provider lifts the U.S. plane maker’s services arm. It’s the latest bolt-on enabling Boeing to bring more manufacturing in-house and maintain aircraft long after delivery. Yet CEO Dennis Muilenburg still has more to do to reach cruising altitude.
BP’s marathon repair job gets sprint finish 1 May 2018 The UK oil major’s first-quarter results beat expectations. Costs from the Gulf of Mexico spill mean it needs higher oil prices than peers to generate free cash flow. But a mix of cost discipline on new projects and higher crude values mean BP should be able to keep gushing cash.
Mooch returns to place that’ll have him: Wall St 30 Apr 2018 Anthony Scaramucci is heading back to SkyBridge, the investment firm he founded, after HNA dropped its bid. The Chinese conglomerate’s rationale for buying it was more absurd than his chaotic turn as a White House flack. With HNA out and the Mooch back in, order is restored.
Apple may double capital returned to investors 30 Apr 2018 Memories of nearly going bankrupt scared the $840 bln firm into keeping an absurdly conservative balance sheet for two decades. Returning about $50 bln to investors annually shows progress in overcoming the trauma. Eliminating over $160 bln of net cash could be next.
Xerox-Fujifilm prints merger-frenzy warning 30 Apr 2018 This year’s $1.7 trln of announced tie-ups is a record. But withdrawn deals are rising too, not least due to regulators. A U.S. judge temporarily blocking Xerox’s takeover is rare. But it’s a reminder to boards and executives that there’s a cost to pushing M&A boundaries.
Arconic is sorely testing Elliott’s mettle 30 Apr 2018 Investors wiped $2 bln off the parts maker’s value after it slashed its earnings outlook. Activist Elliott helped oust CEO Klaus Kleinfeld last year. But new boss Chip Blankenship faces the same old production snafus and aluminum price hikes. It’s looking like a long campaign.
T-Mobile US avoids risk that gave it new life 30 Apr 2018 The U.S. telco is offering no reverse break fee to Sprint if watchdogs nix its $26 bln deal. Boss John Legere knows better. His success shaking up his rivals came partly thanks to a $6 bln payout from AT&T. Sprint’s willingness to forgo the insurance underlines its weak position.
Marriott Vacations makes pricey time-share buy 30 Apr 2018 The operator of fractional vacation homes is paying $4.7 bln for rival ILG. It helps close the gap with market leader Wyndham. But cost savings cover barely half the premium and debt may exceed four times EBITDA. It underscores the high cost of time-share ownership.
Marathon faces hard slog to justify $23 bln outlay 30 Apr 2018 The Midwestern oil group is paying a 24 pct premium for rival Andeavor. Becoming the largest U.S. refiner has merits. But its target’s stock was already up more than 50 pct in a year. Adding value means nailing cost cuts despite only limited geographical overlap.
Sainsbury’s tries to succeed where Walmart flopped 30 Apr 2018 The UK grocer is buying the U.S. giant’s Asda subsidiary for 7.3 billion pounds in cash and stock. Even after passing on some cost savings to shoppers, Sainsbury’s could make a double-digit return on investment. Unless demands from competition authorities eat into the benefits.
Glencore can dig its way out of Kinshasa quagmire 30 Apr 2018 A former partner is threatening to freeze two of the $71 bln commodity giant's operations in Congo, demanding $3 bln. It's the latest in a list of woes in the African country, including a tough new mining code. But the 6 pct drop in the stock over the past week is overblown.
T-Mobile and Sprint pitch America First 5G deal 29 Apr 2018 The Nos. 3 and 4 mobile operators agreed to an audacious $146 bln merger. Antitrust concerns stymied earlier talks, but T-Mobile US boss John Legere said the deal would create rural jobs and keep the country ahead of China. That’s likely to appeal to Donald Trump’s regulators.
Sainsbury’s and Walmart test UK merger taboo 28 Apr 2018 Britain’s second- and third-largest grocers plan to merge, with Asda’s U.S. parent as the junior partner. Joining forces is a logical response to the threat from Amazon and rival Tesco’s tie-up with wholesaler Booker. Still, it’s an audacious challenge to competition authorities.
Deripaska’s sanctions sale may have silver lining 27 Apr 2018 The Russian oligarch plans to reduce his stake in power and aluminium group En+ below 50 pct, after heat from U.S. sanctions. That risks locking in losses on shares that have halved since April 5. Still, if restrictions are eased, his remaining holding should recover.
Impact investing will brush off Trumpian scorn 27 Apr 2018 The U.S. Department of Labor wants pension funds to downplay environmental, social and governance issues that don’t demonstrably improve investment performance. That will provide cover for some holdouts, but should also prompt the $23 trln ESG industry to up its game.
Puerto Rico budget ignores the human element 27 Apr 2018 The bankrupt island’s federal oversight board certified plans that include cuts to pensions and other austerity measures. Some are in line with what Puerto Rico’s governor proposed. But they don’t adequately address the risk of yet more working-age people jumping ship.