Snowflake’s $2.7 bln IPO is so hot it could melt 9 Sep 2020 The data-warehouse firm is growing astonishingly fast and offers clients an alternative to Amazon. But the Zoom-like valuation it’s chasing of nearly 60 times trailing sales takes it close to the sun. The imprimatur of Berkshire Hathaway and Salesforce could lift it even nearer.
Corona Capital: Palantir presents 9 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Potential shareholders have had their first look at the data company ahead of its planned direct listing later this month. One of the more memorable moments was boss Alex Karp making his pitch from a nature trail.
Buyout baron special pleading faces uphill battle 9 Sep 2020 A UK review of capital gains taxes may close the infamous carried interest loophole. Private equity’s threats to move abroad have less force since others, like U.S. presidential candidate Joe Biden, are also hostile. The industry’s growing heft makes it a bigger global target.
Reliance becoming the envy of big conglomerates 9 Sep 2020 Silver Lake’s purchase of a 1.75% stake values the shopping arm of Mukesh Ambani’s empire at $57 bln. KKR wants in too. It prices up the third pillar, after the core energy unit and digital platform Jio, without a discount. The tycoon’s challenge will be to keep it that way.
AstraZeneca delay dents hope of fast Covid cure 9 Sep 2020 The $144 bln pharma group halted trials for its coronavirus vaccine after a human guinea pig fell ill. Such events are routine in drug development, but it shows that a remedy will take time and face setbacks. That means more travel and social curbs, and a slower recovery.
What is Ant really worth? 9 Sep 2020 Key to the Chinese fintech giant’s success is its cut from lining up credit, insurance and wealth customers. Rivals could eat into those take rates and regulators loom large. For now, though, a Breakingviews calculator suggests a reasonable starting point would be about $275 bln.
China’s bad financial habits crack Baccarat 9 Sep 2020 The 256-year-old French crystal maker is under court administration after its owner, a cash-strapped Hong Kong wealth manager, defaulted on private loans used to acquire it, prompting a court battle. It’s safer to sell luxury goods to Chinese consumers than brands to China Inc.
Ant’s valuation hill 9 Sep 2020 The Chinese fintech giant could raise up to $30 bln in what would be the world's largest IPO. Its value is largely predicated on fees for matching customers to financial services providers. At current rates, $275 bln is possible, but even small changes could make a big difference.
Palantir investor day is direct-listing bonus 8 Sep 2020 The data-analytics firm is making its big pitch this week. There is plenty to cover, like the rationale for variable-voting shares. Unlike an IPO, at least it’s a public event. Work-management outfit Asana is next. Future candidates for direct listings may raise capital, too.
Nikola deal electrifies GM’s dilemma 8 Sep 2020 Both expect more than $4 bln in benefits from the Detroit automaker taking an 11% stake in the electric-truck startup. But investors are more convinced by Nikola’s share. Dissatisfaction with traditional players is part of it. But so is GM’s decision to cannibalize itself.
Unilever’s latest race row shows drawbacks of size 8 Sep 2020 An ad for the $156 bln group’s TRESemmé line that appeared to denigrate Black people’s hair sparked protests in South Africa. After a similar firestorm in June over skin cream, the error suggests a lack of focus. Repeated blunders may expose CEO Alan Jope to calls for a breakup.
The Exchange: Netflix’s Reed Hastings 8 Sep 2020 The co-chief executive of the video-streaming firm is out with a new book, “No Rules Rules.” Hastings zoomed in with Jennifer Saba to discuss Netflix’s unorthodox approach to management – like unlimited vacation – and how it sets up the company nicely in a post-Covid world.
Corona Capital: Vaccine politics, Peloton 8 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Pharma firms like Merck and Pfizer are putting long-term profit first by promising to wait for full approvals for Covid-19 treatments; Peloton cycles towards more profit by cutting the price of its high-cost bikes.
Arm M&A calls for Boris Johnson veto 8 Sep 2020 The $32 bln chip designer’s owner, SoftBank, may sell to a U.S. giant. That would put UK jobs at risk and reduce the country’s sway over an important asset. The prime minister, who wants to boost the country’s digital credentials, has the power to stop a deal.
Paris spat offers Mediobanca a pricey M&A lesson 8 Sep 2020 Dealmaker Erik Maris may leave the advisory firm he founded amid a rift with partner Jean-Marie Messier. It’s a blow to the $8 bln Italian bank which acquired Messier Maris last year. Buying boutiques is always risky. Fierce French rivalry may worsen CEO Alberto Nagel’s pain.
SMIC selloff downplays U.S.-China trade friction 8 Sep 2020 The Hong Kong shares of the chipmaker plunged 23% on news that the White House might blacklist it. The immediate financial hit looks manageable, but long-term prospects are darkening. SMIC's still-frothy valuation hints at more volatility for the company and its peers.
Diet drive could spell leaner years for Big Pharma 7 Sep 2020 People with diabetes are more vulnerable to Covid-19. Now the UK is giving patients free shakes to help them lose weight. Evidence that slimmer waistlines and healthy living can beat the disease is good news; less so for drugmakers that sell $48 bln of insulin and other drugs.
Corona Capital: Movies, Magazines 7 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: the U.S. opening weekend of Christopher Nolan’s time travel epic “Tenet” suggests punters aren’t hurrying back to cinemas; Future, publisher of “Metal Hammer” and “Horse & Hound” rocks its way through the crisis.
Big Oil’s green turn is justified by the numbers 7 Sep 2020 BP’s call to hike spending on renewables risks a repeat of past goofs. But hard data implies oil majors have been the ones eroding shareholder value in recent years. By comparison, the falling expense of wind and solar power and their lower cost of capital make them a safer bet.
Yum China adds spice to its tech credentials 7 Sep 2020 The operator of KFC and Pizza Hut has raised $2.2 bln in Hong Kong at a valuation above Alibaba. The secondary listing was permitted as digital orders dominate sales. But the hot badge has downside too: volatility in internet stocks risks a not-so-finger-lickin’ good debut.