Jack Dorsey leaves one company, helps out two 29 Nov 2021 Twitter is better off without its co-founder, who was also busy being CEO of fintech firm Square. The $38 bln social network hasn’t set a clear strategic direction, unlike rival Facebook. Square, meanwhile, could use the extra attention as it faces a growing crowd of rivals.
UK energy shakeout will hit price comparison sites 26 Nov 2021 Britain is pumping $2.3 bln into collapsed gas and electricity provider Bulb, the latest in a string of bankruptcies. The clear-out should mean a healthier array of UK energy suppliers. But having fewer operators will hurt the firms that make their money from customers switching.
Airline investors weigh up more pandemic baggage 24 Nov 2021 U.S. travelers may log their busiest day since the pandemic during Thanksgiving. In Europe, government clampdowns may crimp winter travel. And airlines on both sides still have to contend with what happens in China, which could knock some wind out of valuations.
The Exchange: Fintech evolves 23 Nov 2021 Companies from JPMorgan to Goldman Sachs are upgrading their banking businesses. Al Goldstein, one of the pioneers of peer-to-peer lending and online funding, tells Lauren Silva Laughlin how he reshaped those areas and why he is moving into private equity and venture capital.
Bezos could be $90 bln richer with Amazon breakup 19 Nov 2021 The $1.8 trln giant manages its AWS cloud group separately from e-commerce. On its own, the former may be worth as much as the entire company is now. J&J, GE and Toshiba are heading to splitsville. The world's richest man could become even wealthier by adding Amazon to the list.
Capital Calls: Biden’s deficit, Austria lockdown 19 Nov 2021 Concise views on global finance: A nonpartisan analysis finds a $160 billion hole in the U.S. president’s social programs; while new Covid restrictions spark selloff in European airlines and hospitality.
Icahn’s Southwest Gas mixtape has all the hits 19 Nov 2021 The activist is blasting overspending, making a hostile tender offer, criticizing a major deal and pushing for a breakup in his campaign at the $4 bln U.S. utility. They are classic Icahn tactics. But history suggests investors might do best if he gets only some of what he wants.
Capital Calls: SEC turns tables on vote advice 18 Nov 2021 Concise views on global finance: The U.S. watchdog wants to reverse Trump-era rules restricting firms that advise investors how to vote on corporate matters.
Elliott seeks hidden tech treasure in dull grocer 17 Nov 2021 Paul Singer’s fund took a 3% stake in $35 bln retailer Ahold Delhaize. Rather than cost cuts, the activist’s interest lies in the Dutch group’s online unit, worth perhaps $8 bln. But competition is fierce and rich valuations may not last. Elliott’s bet also needs good timing.
GE split should start with insurance black box 17 Nov 2021 Its $38 bln of old-age care policies – historically the source of some nasty surprises – will be lumped with the jet-engine division when the conglomerate breaks into three. Covid-19 may have made those policies less of a liability. That’s all the more reason to cut them loose.
Capital Calls: CalPERS and private equity, Art market 16 Nov 2021 Concise views on global finance: The biggest U.S. public pension fund is taking on more risk; works collected by the Macklowes sold for $676 million on Monday in a reminder that the richest have prospered through the pandemic.
Data-center valuations enter the metaverse 15 Nov 2021 CyrusOne has struck a deal with buyout firm KKR for a rich $15 bln, while peer CoreSite is selling itself to American Tower for $10 bln. Both deals show from different angles how financial and industrial buyers are banking on the arrival of Silicon Valley’s new virtual reality.
AT&T deal is a drama in search of a plot 16 Nov 2021 The $177 bln telecom giant hasn’t detailed the structure of the deal with Discovery it announced in May. It hasn’t articulated an operational strategy either, and its pay-TV unit HBO looks like it’s in a sweet spot. AT&T is committed to a deal – but maybe it shouldn’t be.
J&J breakup about more than financial engineering 12 Nov 2021 The $429 bln maker of shampoo and vaccines is splitting in two. A valuation uplift looks likely as consumer giants like P&G fetch higher multiples than pharma groups. Giving the business a separate life, with its own currency, opens the door to other possibilities, including M&A.
Gensler crypto crackdown would be gift in disguise 12 Nov 2021 The SEC chair’s push to add investor defenses to a $2.8 trln industry might dampen digital assets first, yet should over time make them more attractive. But Gensler’s to-do list is long, from SPACs to hedge fund fees. Getting overlooked is a risk for crypto, not an opportunity.
Capital Calls: Lordstown Motors, CVC 12 Nov 2021 Concise views on global finance: Shares of the short seller-targeted electric vehicle startup are falling as it drifts into the slow lane; the private equity company aims to bulk up with a 1.6 billion euro offer for Amsterdam-listed Intertrust.
TSMC’s global expansion will chip away at its edge 12 Nov 2021 The world’s biggest semiconductor maker is building a $7 bln plant with Sony in Japan, and it has similar U.S. plans underway. Diversifying production outside Taiwan offers a useful geopolitical hedge. The trade-off is higher costs, which threaten to erode its valuation premium.
India’s record IPO sets tough stage for next one 11 Nov 2021 Unprofitable Paytm sold $2.5 bln of shares at a dizzying valuation multiple but a muted reception defied the payments giant’s early buzz. It suggests another household name, state insurer LIC, whose issuance will be multiples larger, faces a slog unless it checks its ambition.
Capital Calls: Tesla, Daimler 11 Nov 2021 Concise views on global finance: The electric-car maker’s directors have, like Elon Musk, cashed in; the German company is racing against Agnelli-controlled CNH Industrial to spin off a trucks division.
Sweetgreen IPO is flavored with star power 10 Nov 2021 The Naomi Osaka-backed upstart touches all the food fads: online ordering and appeal to the health-and-time conscious. But it is asking for a premium valuation compared to established fast food companies like Chipotle as a result. Osaka can’t compensate for salads’ lack of spice.