United States of America

Private funds’ regulatory dream meets logical end

23 Aug 2023

Securities watchdogs are proposing safeguards for private equity and hedge fund investors. The now-$25 trln industry owes its growth partly to lighter regulation than at the banks it is displacing. Tighter rules will irk some, but growing up should bring new responsibilities.

Beware the hedge fund deal that’s not about money

23 Aug 2023

Bill Ackman, Marc Lasry and Boaz Weinstein want to buy Sculptor, which manages $34 bln. Instead, Daniel Och’s former shop accepted a lower bid from real estate investor Rithm. Sculptor’s doubts about the moguls’ funding sounds fishy, as does the idea they couldn’t work it out.

Bond rout will amplify Powell’s Jackson Hole words

23 Aug 2023

Yields on 10-year US debt are near a 16-year-high. That’s lifting borrowing costs even though the Federal Reserve is likely done with raising rates. More expensive loans may cause a recession. When he speaks on Friday, the Fed chair needs to calm markets without caving into them.

Leaving the office for dead may haunt investors

23 Aug 2023

Landlords’ valuations are half pre-pandemic levels due to the boom in hybrid work. Yet looser labour markets are giving bosses more power and companies like Google want staff to spend more time in their buildings. Fund managers betting on a trend reversal may be on to a winner.

Microsoft rethink puts big tech M&A back on table

22 Aug 2023

The $2.4 trln tech giant will sell streaming rights to Ubisoft in a bid to get UK approval for its $69 bln Activision deal. The big concession is likely to work. It shows a path for tech giants to buy rivals, while sidelining regulators' fears that M&A will kill nascent markets.

DeSantis chose wrong Disney battle, right war

22 Aug 2023

Homing in on the $157 billion entertainment company was politically foolish. But the Florida governor is right that Disney's sweetheart deal doesn't make sense. Other similar arrangements are finite and fairer, and still end up bad for states' finances.

US Steel should hold out for a better deal

21 Aug 2023

The world’s first $1 bln company has rejected a $7 bln takeover bid from rival Cleveland-Cliffs. The suitor is touting union support that could short-circuit a broader sale process. A merger makes strategic sense, so much so that the target’s shareholders deserve more.

TikTok challenger backpedals into public arena

21 Aug 2023

After nixing a $5 bln reverse merger last year, Triller plans to sell shares in a direct listing. Music videos and live-streamed brawls hosted by stars such as Snoop Dogg have attracted brands. A pivot to social media tools and questionable growth, however, make it a lightweight.

Union fights grow US workers’ slice of profit pie

18 Aug 2023

Collective bargaining groups who negotiate for workers in industries from steel to trucking are making life hard for companies. The still-hot job market is giving unions a leg up. With employees getting $120 billion less of corporate cash than in late 2019, workers can win more.

Crypto survivors will be severely scarred

17 Aug 2023

Digital asset custodian BitGo says it raised money at a $1.7 bln valuation, days after a rival filed for bankruptcy. As with stablecoins, exchanges, and currencies, winners are emerging in crypto. Stumbles will still happen, though – a painful but necessary process.

Private equity bites off mostly what it can chew

17 Aug 2023

KKR, GTCR and others are clawing out of a deal bust with modest aims. A recent spate of sub-$2 bln buyouts, including ones involving Simon & Schuster, Avid and ADT, speaks to the trend. It’s a good way to stay active, but a $1 trln hoard of capital can’t sit unspent indefinitely.

Arm float may deepen cracks in IPO market

17 Aug 2023

The chip designer is preparing a stock market listing in the US. Orders are already being lined up from customers like Amazon.com but in this Viewroom podcast Breakingviews columnists explain why it may not get a lofty valuation and how that could put off possible followers.

China does Intel a small favor

16 Aug 2023

The chipmaker aborted its $5 bln acquisition of Tower Semiconductor after failing to secure approval from Beijing. The questionable deal was made worse by the target’s struggles. And given the cross-border tech tension, a $350 mln break fee at this stage is a small price to pay.

‘Lipstick effect’ boosts beauty’s resilience

15 Aug 2023

Despite rising inflation and sluggish spending, beauty and skincare have bucked the trends dragging on other parts of retail. Tarang Amin, CEO of e.l.f. Beauty, explains in this Exchange podcast how the $400 bln-plus segment can survive economic hardship.

Mastercard’s African fintech bet is VC, but better

15 Aug 2023

Mastercard is investing in telecoms company MTN Group’s $5.2 bln mobile payments unit after backing an Airtel Africa-owned rival. The price is higher than past deals. But historical underinvestment in African fintech helps, as does its ability to spread money around.

PayPal would slot well in a different wallet

15 Aug 2023

As the $70 bln fintech company’s next CEO, Intuit veteran Alex Chriss brings small-business bona fides, but also dealmaking nous. It could be an opportunity for Citi, Meta or Stripe to advance their respective strategies. Fiserv, however, would make the most sensible partner.

Hostile $7 bln steel war will be forged in fire

14 Aug 2023

Cleveland-Cliffs’ run at 122-year-old metal producer US Steel comes amid a post-Covid slump in the commodity. Strategically and economically it makes sense. But the industry would go from four major producers to three. And the target is, at best, a reluctant participant.

Wynn shrewdly pares online betting chips

14 Aug 2023

In the face of fierce competition from MGM, DraftKings and others, Wynn Resorts is concentrating its digital sports betting in markets with actual casinos. Like poker, online betting is a winner-takes-most game. That means there will be loads of losers.

CFOs are stepping into a rapidly revolving door

14 Aug 2023

From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.

Arm IPO depends on more than Big Tech support

14 Aug 2023

The UK chip designer may sell shares to Apple or Amazon as part of its $10 bln stock offering. Backing from large clients could help prop up its valuation. But antitrust concerns mean the stakes will be small. To succeed, owner SoftBank needs to win over big institutional funds.