Rio finds gold plating for Mongolia copper mess 12 Apr 2021 The $131 bln miner and its partner Turquoise Hill have made peace over financing the troubled Oyu Tolgoi project. It’s a deft solution that tries to get most stakeholders to pitch in. Other prickly issues remain, like getting back into Ulaanbaatar’s good books. But it’s progress.
Capital Calls: Netflix, GameStop 9 Apr 2021 Concise views on global finance in the Covid-19 era: The video-streaming service sprays webs of money to secure movies; GameStop’s “Chewy of Gaming” strategy.
Gaming weakness puts Ubisoft on M&A last life 9 Apr 2021 Shares in the “Assassin’s Creed” publisher have languished since a failed takeover by Vivendi in 2018. Despite a pandemic boost, CEO Yves Guillemot’s $10 bln group suffers from dour profitability. That leaves him open to attack by rivals like Activision Blizzard or Tencent.
China wealth management ventures build on sand 9 Apr 2021 Western funds like BlackRock are partnering with local banks to tap a market forecast to hit $23 trln in assets by 2030. It’s the latest rush into a promising financial sector where foreigners can take majority stakes. But control may prove illusory while hidden risks abound.
Memory giants delay consolidation at own risk 9 Apr 2021 Selling Japan's Kioxia to a larger rival would help rationalise a sector prone to price wars and over-capacity. Regulatory risks and volatile returns may deter buyers like the $107 bln Micron. Without more scale, though, chip champions will be vulnerable to Chinese entrants.
Capital Calls: Cellebrite good times 8 Apr 2021 Concise views on global finance in the Covid-19 era: The Israeli cracker of mobile-phone encryption is going public via a SPAC at a $2.4 billion valuation.
CVC’s Toshiba bid puts a breakup on the table 7 Apr 2021 The buyout barbarians at Tokyo’s gates may be offering more than $20 bln for the conglomerate. Toshiba has been struggling amid governance issues. But its assets could collectively be worth more than double CVC’s bid. Carving up the company could give shareholders a better deal.
India’s shopping aisle cleanup risks bigger mess 1 Apr 2021 Amazon and Walmart would have to treat small and large vendors alike and could be forced to shed stakes in their wholesale arms. The leaked draft rules overlook e-commerce realities. And targeting foreigners sits especially uneasily after Reliance’s international cash call.
Capital Calls: Elon Musk, LeBron James 1 Apr 2021 Concise views on global finance in the Covid-19 era: Endeavor, Ari Emanuel’s entertainment group, is hoping the Tesla boss’s stardust will help a second attempt at an IPO; the basketball star’s stake in the Red Sox is a foil to Steve Cohen’s Mets deal.
Chinese AI dragon confronts fiery new realities 1 Apr 2021 Megvii wants to raise over $900 mln in a Shanghai IPO after a U.S. blacklist torpedoed its 2019 Hong Kong listing. Revenue growth is slowing and losses widening, as Beijing proceeds with its own crackdowns. It also may not be the best time to have Alibaba and Ant as big backers.
Xiaomi becomes ultimate electric-car test driver 31 Mar 2021 The smartphone maker is spending $10 bln to expand into smart vehicles. There are no shortcuts to success. But it has ample resources, manufacturing experience and a formidable founder, Lei Jun. If Xiaomi falters, it could prompt other tech industry EV wannabes to steer clear.
Hong Kong softens the G in ESG 30 Mar 2021 A new proposal would limit access to information about company bosses. Labyrinthine structures and easily confused names make such data invaluable for bank and investor due diligence. Going against the tide of governance and disclosure will taint the city’s business standing.
China delisting drama stings U.S. investors worse 26 Mar 2021 Stocks like $70 bln Baidu have been whomped as Washington pushes to kick out Chinese firms unless Beijing allows audit inspections. That might tempt bosses to exit New York early. Recent lowball bids suggest minority shareholders have more to lose than the companies themselves.
New Zealand’s diluted punch bowl may tempt others 26 Mar 2021 Prime Minister Jacinda Ardern is combatting a hot housing market by stopping property investors from deducting mortgage interest. This mitigates side effects of low rates and allows the central bank to defer policy tightening. The approach might appeal to governments elsewhere.
Deliveroo’s main sustainability doubt is financial 25 Mar 2021 Some fund managers are shunning the food delivery group’s IPO over its treatment of workers. Unlike most ESG laggards, the $11 bln group is loss-making. Concern about labour rights and founder Will Shu’s super-voting stock are secondary to whether it can turn a consistent profit.
Capital Calls: Twitter time-wasting, News Corp 25 Mar 2021 Concise views on global finance in the Covid-19 era: Congressional hearings on Big Tech get ever less productive; meanwhile, the parent of the Wall Street Journal snaps up Investor’s Business Daily.
Tencent faces a worthy opponent in ByteDance 24 Mar 2021 Quarterly results underscore the $776 bln group's dominance in online games. A purchase of a rival studio by the TikTok owner pits the two Chinese companies against each other. With tech giants’ business practices under regulatory scrutiny, the underdog has timing on its side.
Capital Calls: Defence IPO, ViacomCBS and GameStop 24 Mar 2021 Concise views on global finance in the Covid-19 era: Italy’s Leonardo postpones the initial public offering of its U.S. unit; ViacomCBS and GameStop's rising stocks give them both a chance to raise fresh cash.
Geely’s electric drive is all over the road 24 Mar 2021 A new battery-vehicle unit could help the $29 bln carmaker and its Li Shufu-owned parent compete with startups like Nio. But they’re also chasing a luxury brand, contract manufacturing and a novel share-ownership scheme while shifting CEOs. A more focused route would be better.
Kuaishou’s timely pivot to advertising pays off 24 Mar 2021 The $161 bln Chinese short-video app made more money from advertising than live-streaming for the first time last quarter, and e-commerce revenue popped, mimicking bigger rival Bytedance. Expense growth slowed. That helps cushion a worrying fall in streaming revenue per user.