Spotify and its direct listing win popular vote 3 Apr 2018 The music service earned a stonking $29 bln valuation in its early moments as a public company. Its non-traditional float scored insiders more liquidity, while saving on fees. Was it a real success, either for the company or for its unusual method? Ask this time next year.
CBS boss kisses off Viacom against the odds 3 Apr 2018 Les Moonves is pondering a bid at less than market value for the $12 bln MTV operator and wants to run the combined show. That seems an unenthusiastic start. But the Redstone family, which controls both companies, wants a tie-up. And CBS can nowadays afford a 30 pct premium.
Telegram sends warning to Wall St and Sand Hill Rd 3 Apr 2018 Russian entrepreneur Pavel Durov’s messaging service raised $1.7 bln from private sales of its crypto-currency this year, besting all but three IPOs. Booming coin offerings face more oversight and many ring hollow. But Durov’s tech chops should give bankers and VC firms pause.
Disney and Fox open door to higher Sky bid 3 Apr 2018 The U.S. media giant may buy the UK group’s news business to ease regulatory concerns over merger partner Fox’s bid for the whole company. Given Disney probably has little interest in the loss-making channel, the tactic shows a readiness to fight off Comcast’s rival bid for Sky.
China’s soybean trade card is difficult to play 3 Apr 2018 New tariffs target $3 billion worth of U.S. imports. But they don’t touch a big American pressure point: soybeans. This first round is a warning shot, to be sure. But retaliating against this commodity would hurt Chinese farmers and consumers, so Beijing might save it for last.
Spotify direct listing piles risks upon risks 2 Apr 2018 The music-streaming service’s market debut is unusual – both the price and the number of shares are up for grabs. And it comes as specific fears over Facebook and Amazon are spilling over into wider tech valuations. Those uncertainties could add up to a heap of volatility.
Dodd-Frank sheds surprising light on Wall St pay 2 Apr 2018 The widest income disparities in finance don’t involve the biggest CEO paychecks. And median comp can say more about geography and sector than inequality. The law’s pay-ratio disclosures offer useful data for investors and job seekers, and could revive a debate about offshoring.
Qualcomm’s director election offers double rebuke 30 Mar 2018 Support for incumbents averaged under half the U.S. chipmaker’s outstanding shares. That’s a warning after the board resisted Broadcom’s $117 bln hostile bid, nixed by Donald Trump. Meanwhile, the convoluted process and an error voting Vanguard’s shares shame an archaic system.
Walmart may have hit on healthy kind of disruption 30 Mar 2018 Merging with insurer Humana could put clinics in the U.S. retailer’s stores, keeping patients out of hospitals and insurance costs down. Walmart isn’t given to big acquisitions and $37 bln Humana wouldn’t come cheap. But a broader partnership could bring many of the benefits.
Review: China fraud will always have a sequel 30 Mar 2018 It’s hard to know whether China or the U.S. financial-services industry comes off worse in a new movie about scam companies in the People’s Republic. Both emerge looking greedy and amoral. But “The China Hustle” forgets to lay blame on another group: overly credulous investors.
Viewsroom: Facebook’s multiplying problems 29 Mar 2018 The social network founded by Mark Zuckerberg is reeling from a data harvest on some 50 million users. It will take time for the $440 billion firm to feel the impact but people are starting to slowly unplug. Plus, the world’s largest consumer-drone maker may go public.
Holding: #MeToo is putting corporate law on trial 29 Mar 2018 Claims of sexual misconduct at the likes of Fox and Wynn Resorts have led to suits over board duties and disclosure. They’re long shots, largely because business governance is an awkward tool for social change. Yet investors and victims are giving it a new and useful purpose.
Melrose wins battle for GKN, UK M&A may be loser 29 Mar 2018 The takeover specialist's 8 billion pound bid for engineering group GKN has won the day. It now needs a turnaround plan that squares with pledges that were made to placate politicians. And potential bidders for other UK companies know they face a more interventionist government.
Index inclusion promises Saudi a pre-Aramco bump 29 Mar 2018 FTSE Russell will add the kingdom to global and emerging-markets indexes. MSCI is likely to follow suit, which could steer billions in index funds to the Riyadh exchange. That will make the Saudi market more international even if Aramco’s privatization stays local – or on hold.
Barclays settlement fixes one of several headaches 29 Mar 2018 The UK lender is paying $2 billion to settle U.S. regulators’ claims of mortgage securities mis-selling. That’s less than peers paid and removes some uncertainty. But the outcome of a UK investigation is still pending and CEO Jes Staley has yet to turn the investment bank around.
Facebook’s size is its other looming problem 28 Mar 2018 The social network – like Google – collects massive amounts of intel on users to sell advertising. The more Google knows, the better its search results get. But adding ever more data risks making Facebook less entertaining – and its users more wary of compromising their privacy.
CME stretches to kill NEX bidding war 29 Mar 2018 The Chicago Mercantile Exchange owner is buying Michael Spencer’s broker for 3.9 billion pounds. Meshing U.S. Treasury futures trading with NEX’s currency and bonds business is a good idea. The hefty premium may deter rival bidders but requires the deal to be perfectly executed.
Legal woes could impair SocGen’s 2020 vision 29 Mar 2018 The French lender says it is close to settling with U.S. regulators over investigations relating to Libya and Libor. A sanctions-busting probe could pose a sterner test, though. Any fine above 1.8 bln euros could threaten SocGen’s capital target – and put pressure on dividends.
Rocket-fueled stocks finally feel the burn 28 Mar 2018 Amazon lost as much as $50 bln in value, perhaps partly because Donald Trump isn’t a fan. Tesla’s stock fell another 8 pct-plus. Facebook has shed nearly $100 bln of market cap. Investors once whistled past concerns that haven’t changed much. Maybe they are opening their ears.
FDIC risks memory loss with old-guard exit 28 Mar 2018 Thomas Hoenig, the U.S. watchdog’s No. 2, used his swan song to criticize recent moves to ease bank-capital standards. It’s a cry in the wind given the deregulatory bent of Jelena McWilliams, likely the next FDIC chair. Yet forgetting history can sow the seeds of future crises.