Corona Capital: Food delivery, Video games 25 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Hedge fund Tiger Global gets a taste for food-delivery investments; and Jagex, developer of fantasy game “RuneScape,” is flipped to Carlyle less than a year after its last sale.
ByteDance casts shadow over rival Kuaishou’s IPO 25 Jan 2021 The Chinese video app is eyeing a valuation of up to $62 bln, over 30 times forecast EBITDA. Top sovereign funds have backed the premium multiple, about three times that of smaller peers. But a costly battle with TikTok-owner ByteDance looms large over its future prospects.
Reliance’s shop window distorts India view 25 Jan 2021 The $185 bln conglomerate led by Mukesh Ambani grew quarter-over-quarter net profit by 40%, partly reflecting the country’s rebound. The bottom line also was flattered, however, by lower interest costs after selling stakes in its digital business. That masks gaps in the recovery.
Google threat demands that Australia find allies 22 Jan 2021 The tech titan says it’ll disable search Down Under if Canberra enacts a law forcing it to pay media companies for news. It goes to show how much clout $1.3 trln parent Alphabet thinks it has. Such corporate dominance suggests global regulators may have to put up a united front.
Chinese edge of India’s fintech star is too sharp 22 Jan 2021 The $16 bln Paytm sought to emulate China’s e-commerce and mobile wallet pioneers, including backer Ant. But that model has come under Beijing’s scrutiny, and rivals like Google have broken Paytm’s grip on payments. Founder Vijay Shekhar Sharma’s startup has hit a tricky patch.
Options trading bubble draws frothy M&A equivalent 21 Jan 2021 Britain’s IG is buying tastytrade for $1 bln in cash and shares. The price seems high, even allowing for surging demand for the Chicago-based group’s derivatives products. As with the current stock-market boom, success depends on continued interest from flighty retail traders.
Chinese monopoly rules threaten super-app model 21 Jan 2021 The central bank has defined payments dominance in market-share terms, squarely targeting Ant and Tencent. Its new draft rules also separate transactions from interest-bearing products. That will complicate cross-selling more profitable services, and deter new competitors.
Corona Capital: ESG investing, U.S. moves, P&G 20 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: ESG opens up investing opportunities; home values in U.S. resort towns rise faster than rural areas; and Procter & Gamble cleans up.
Birkenstock buyout calls for heavy buffing 20 Jan 2021 CVC may buy the maker of strappy sandals worn by Hollywood stars and monks. Private equity has a good history with niche footwear brands, but the German group is already well-run. To justify a mooted 4 bln euro price tag, the new owner would have to target luxury-style margins.
Elliott’s HK exit reflects Asia activist reality 20 Jan 2021 The hedge fund is closing its Hong Kong base and will run its Asian campaigns from Tokyo and London. Moving amid the city’s political strife raises eyebrows, but the region’s rapid growth in shareholder shake-ups is passing China by. Paul Singer’s group is following the money.
Indian beauty shop all dolled up with places to go 20 Jan 2021 Nykaa makes it easy for millennials in far-flung cities to buy branded cosmetics online. The TPG-backed startup is growing fast without discounting deeply while keeping a lid on losses. That should help a mooted $3 bln IPO valuation – if it isn’t snapped up by a tech titan first.
Activist scratches at surface of Danone malaise 19 Jan 2021 Bluebell wants the yoghurt maker to split the role of chair and CEO and for boss Emmanuel Faber to quit. His underperformance relative to peers means that Danone should at least do the former. But boosting sales growth will require more than a corporate governance revamp.
Corona Capital: Bank of America, Halliburton, NBA 19 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Bank of America’s animalistic analogies; Halliburton sees a recovery that can’t come soon enough; The New York Knicks’ valuation has its top spot to lose.
Bumble IPO is less alluring than its profile pic 18 Jan 2021 The online matchmaking service’s upcoming offering could be worth as much as $10 bln based on competitor Match. That’s much higher than what Blackstone paid for its stake in 2019. But growth is slowing, and the aging, founder-backed firm has baggage.
KKR owes $1.3 bln debt of gratitude to China 15 Jan 2021 Applied Materials will pay the buyout shop $3.5 bln for smaller peer Kokusai instead of the $2.2 bln agreed in 2019. Beijing has delayed giving its blessing so long that the microchip sector improved. The rare upward price negotiation should help even if the deal falls through.
Xi rewrites China’s rags to riches tale 15 Jan 2021 Zhong Shanshan sits atop Asia’s largest fortune, at $84 bln, thanks to bets in bottled water and vaccines. His rise reflects a new economy, where property and tech bosses have fallen out of favour. But as Beijing frets over stock bubbles, new wealth can be just as easily lost.
Data is the key to reining in Big Tech’s excesses 14 Jan 2021 A mob attack gives Congress another reason to rethink a 25-year-old law that shields social media firms from liability over user content. New rules should also focus on how Facebook and Twitter amass and use data to amplify user content. The volume matters as much as the message.
Wells Fargo is 2021’s financial dark horse 14 Jan 2021 The scandal-plagued $140 bln lender has been the worst stock-market performer among big U.S. lenders for years. But it has something peers lack: huge room for improvement. If boss Charlie Scharf can match the cost efficiency of Bank of America, the shares could be worth 50% more.
Corona Capital: Inflation, Poshmark 14 Jan 2021 Concise views on the pandemic’s corporate and financial fallout: Breakingviews panel predicts the end of the free-money era; and Poshmark’s IPO looks overdressed.
Toshiba gets in its own way yet again 14 Jan 2021 The $13 bln Japanese conglomerate is under fire from hedge fund Farallon over its strategy while Effissimo wants a probe into a vote scandal. Their demands for shareholder meetings reflect a lack of trust in boss Nobuaki Kurumatani that’s also evident in a lacklustre valuation.