Pearson’s $1 bln Penguin sale papers over cracks 11 Jul 2017 The education group is selling almost half its 47 pct stake in Penguin Random House to co-owner Bertelsmann. Pearson has maximised the cash proceeds, but the valuation looks low. With a still-troubled core business, boss John Fallon is running out of assets to sell.
Yoga-studio IPO stretches investor chakras 10 Jul 2017 A California chain wants to raise $75 mln for centers teaching cobra and other poses. Despite the popularity of the discipline and fitness broadly, YogaWorks' model is easy to copy. After the pain of trendy Blue Apron and Snap, resistance now offers a better path to inner peace.
Companies will have their day in Trump’s courts 10 Jul 2017 The White House travel ban and environmental rollbacks got blocked in court, but there are over 100 judicial vacancies for the famously litigious president to fill. Aging jurists could leave even more open seats. That may reshape upcoming battles in finance, tech and beyond.
Rare sense prevails in reworked U.S. utility deal 10 Jul 2017 Great Plains tried to buy next-door power provider Westar, but regulators nixed the plan. In a new roughly equal $14 bln merger, the target gets a lower headline price and the buyer less control. It's an unusually pragmatic compromise considering how often egos undermine M&A.
Newspapers push wrong solution to online duopoly 10 Jul 2017 The Wall Street Journal and others want the right to bargain collectively with Facebook and Google. The titans’ dominance of the $83 bln U.S. digital ad market is a concern, but not just for print media. Combating it requires antitrust enforcement, not an industry carve-out.
Blackstone’s diversification drive circles home 7 Jul 2017 Steve Schwarzman’s $370 bln buyout shop has vastly expanded into real estate, hedge funds and credit. It's now using capital that had been focused on hedge funds to take a stake in fellow private-equity firm Leonard Green. The return comparisons are too stark to ignore.
Campbell Soup deal is mmm mmm meh 7 Jul 2017 The canned-cream-of-mushroom-to-Goldfish-crackers maker is buying organic-focused Pacific Foods for $700 mln. Like other big grocery brands, Campbell finds itself squeezed by such rivals. At more than three times sales, it's a steep price to pay to try and get healthier.
AT&T boss becomes top story in CNN showdown 7 Jul 2017 Randall Stephenson's $85 bln deal to buy Time Warner is now embroiled in Trump's feud with the news network. Unless CNN President Jeff Zucker goes, the administration may not sign off, a media outlet reported. That suggests an abuse of power that demands stiff resolve from AT&T.
Healthy U.S. payrolls hide pain of working-age men 7 Jul 2017 Employers added a robust 222,000 positions in June while the jobless rate stayed low, at 4.4 pct. At the same time, opioid usage and extensive incarceration have kept many males in their prime years out of the workforce. Wiser policy decisions could help bring them back.
Buffett may have to turn on charm for Oncor encore 7 Jul 2017 Berkshire Hathaway is taking a second stab at Texas utility Energy Future, six years after a $2 bln investment led to big losses. Two other suitors failed to agree with regulators. Buffett's structure sounds smarter, but sealing the $18 bln deal could yet require some sweet talk.
SoundCloud flags music’s lopsided digital revival 7 Jul 2017 The German streaming service is cutting 40 percent of staff, according to reports, after Spotify shelved a possible purchase last year. With most of the returns from the industry’s digital renaissance going to labels, streamers have yet to prove they have an independent future.
Konica Minolta deal helps develop clearer picture 6 Jul 2017 The Japanese company that abandoned cameras for copiers a decade ago is now putting its focus squarely on medical diagnostics. An up-to-$1 bln acquisition of Ambry Genetics alone won't assure Konica Minolta's future. It is, however, an affordable way to start changing its DNA.
Jana’s EQT breakup pitch is short of fuel 6 Jul 2017 The activist fund reckons cutting the natural gas company in two rather than buying Rice Energy would boost its value by up to 50 pct. It’s coy with the details, though, and rivals’ multiples imply a far smaller gain. Without more information, Jana’s idea may sputter to a halt.
Victoria’s Secret catches investors gawking 6 Jul 2017 The intimate-apparel chain badly missed expectations for June sales, prompting the loss of some $2 bln from its parent company's market value. Disappearing shoppers is all too common a refrain these days, and far beyond L Brands. There's no excuse for being sanguine about retail.
White House freed for business conflicts as usual 6 Jul 2017 America's ethics chief is resigning after months of clashes with Donald Trump. Walter Shaub regularly called out the president's corporate holdings and rebuked his deputies for unseemly behavior. Without even official public shaming, U.S. esteem and influence may slip again.
Japan and EU find solace in Trump trade rejection 6 Jul 2017 Last year both were focused on negotiations with the United States. But the U.S. president’s protectionist stance prompted them to revive long-standing talks. Though the “political agreement” is far from complete, it’s a sign that trade liberalisation can still happen.
John Malone papers over QVC woes with HSN purchase 6 Jul 2017 Liberty Interactive is taking full control of the home-shopping channel in a $2.1 bln deal. Merging two cable vendors makes sense, and investors should end up with something more valuable than a tracking stock. But a complex share swap alone won’t solve deeper retail challenges.
Volvo’s electric shift gives Tesla a shock 5 Jul 2017 The Sweden-based carmaker will phase out gasoline-powered vehicles starting in 2019. It has less than 1 percent of the global market but its plan challenges Elon Musk’s growth ambitions, especially in China, where Volvo owner Geely is based. The road to the future may be bumpy.
Exchange Podcast: Bill Emmott 5 Jul 2017 The system of political and economic openness built after World War Two is under threat, Bill Emmott argues in his new book "The Fate of the West." He joins us to discuss globalization, populism and why there's still cause for optimism about the future of liberal democracies.
JPMorgan puts UK corporate broking in right place 5 Jul 2017 Jamie Dimon may face awkward questions from British clients after his bank almost bid for one of them, Worldpay. But the potential benefit of buying the online-payments firm easily outweighs the dubious value of giving free advice in the hope of winning lucrative business later.