Facebook rebrand more Altria than Alphabet 28 Oct 2021 The tech giant will call itself Meta, to reflect Mark Zuckerberg’s focus on creating a “metaverse” blending immersive virtual experiences with reality. Delivering the many technologies needed may take decades. For today, the rebrand just applies gauze to a tarnished name.
Google antitrust boogeyman is lurking in the wings 26 Oct 2021 Parent Alphabet’s quarterly revenue rose 41% and its stock has outperformed rivals. U.S. political anger is fixated on Facebook, but the search engine is more exposed in regulatory probes. A lawsuit revealing evidence of anti-competitive behavior is a reminder of the threat.
Microsoft revs up for return to office 26 Oct 2021 The $2.3 trln software giant benefited from work from home in the past quarter as cloud and PC software sales boomed. Spending on IT is shifting focus, but not letting up. Microsoft’s scale, the fact it’s not Amazon, and rising security awareness set it up for continued growth.
French cloud IPO is a bet on EU tech sovereignty 5 Oct 2021 OVHcloud is listing in Paris for up to 3.7 bln euros. Slow growth and the tight grip of founder Octave Klaba justify the IT group’s low valuation. But sales could surge if European businesses and governments push to keep data at home rather than with Amazon, Google or Microsoft.
Data center holdout needs new class of buyer 1 Oct 2021 The nearly $10 bln CyrusOne is exploring a sale after missing out on previous consolidation. A historical discount to rivals is an opportunity for infrastructure investors keen on the expanding sector. But any suitor will have to overlook challenges that put off others.
Chancellor: Tech growth comes at irrational price 9 Sep 2021 So overwhelming is the desire to find the next Alphabet, Amazon or Facebook that investors are giving nosebleed valuations to just about any software firm offering cloud-based services. The discount rates by which these enterprises are valued make no sense. Caveat speculator.
Capital Calls: AMC, German pet retailer 8 Sep 2021 Concise views on global finance: The movie theater chain enjoyed bumper Labor Day attendance; a trio of private equity suitors are circling Zooplus.
Italian data land grab comes at a price 31 Aug 2021 Fintech group ION has upped its bid for risk intelligence provider Cerved to 2 bln euros. An overall premium of 45% reflects growing demand for financial information. Offloading Cerved’s debt collection unit, worth perhaps 400 mln euros, would help recoup some of the cost.
Guest view: Climate’s lessons for the water crisis 27 Aug 2021 Tackling carbon emissions is at last mainstream thanks to data, science, a clear message and plenty of capital. Martijn Wilder, co-founder of climate advisory and investment firm Pollination, argues that drawing on those can help alleviate worsening floods and water scarcity.
Telecom floor price threatens toppy Indian tech 20 Aug 2021 Mobile operators want regulators to impose minimum rates to help ease financial stress. Without higher charges, Vodafone’s local unit might struggle to repay debt. Rational tariffs, however, would hurt the voracious data consumption underpinning soaring tech valuations.
LSEG data drive shows everywhere except its stock 6 Aug 2021 Financial information now brings in roughly two-thirds of the $60 bln London Stock Exchange owner’s revenue. Yet its shares trade closer to European exchange operators than more highly valued data purveyors. CEO David Schwimmer faces a long haul to win over sceptical investors.
Nationalist flame wars will singe China Inc 14 Jul 2021 Angry users are ditching Didi’s ride-hailing app for alleged data leaks to foreigners. Patriotic extremism has stung overseas brands like H&M; now it’s turning on domestic companies, sometimes with official encouragement. It sets a dangerous precedent that could get out of hand.
Beijing sets wolf to guard equity sheep 12 Jul 2021 China’s cyberspace agency may take the lead deciding which companies can tap offshore markets. The move risks undoing progress made integrating financial regulation following the 2015 stock crash. A turf war also might clog the domestic IPO queue and encourage corruption.
China’s prolonged credit-scoring saga amasses risk 24 Jun 2021 Ant may be trying to wriggle out of a co-op with rivals by forming a venture with state-owned companies. That would be better for the fintech giant, but not necessarily for the public. As consumer debt grows, Beijing’s inability to devise a decent system wastes precious time.
Medline deal subdues the buyout club 7 Jun 2021 Blackstone, Carlyle and Hellman & Friedman are buying a majority stake in the $34 bln medical supplies maker. Compared with past club deals, there’s less leverage and financial wizardry, but also less scope for friction, with the founding Mills family keeping a strong upper hand.
Unloved Cloudera tries $5.3 bln revamp in private 1 Jun 2021 The cloud software company went public in 2017 when its hype was already fading, and competition from Amazon has only intensified. A low return on the current business for the private equity buyers suggests the upside is chasing bigger markets rather than cutting costs.
Biden’s vaccine pledge looks too modest 12 Mar 2021 The U.S. president wants to make shots available to all Americans by May 1 – but vaccine production rates and real-time data like air traveler numbers show things are moving quicker. Wall Street may also be underestimating how fast sectors from aviation to hotels will recover.
Sports data a better bet than sports wagers 1 Feb 2021 Genius Sports, which collects live data for betting shops, is going public with a blank-check company for $1.5 bln. As U.S. legalized gambling grows and teams diversify revenue, data should become more valuable. Gaining an early advantage gives it an edge over future competitors.
LSE’s big deal makes its fortunes data-dependent 1 Feb 2021 The London Stock Exchange Group’s takeover of Refinitiv, which has closed after 18 months, lifts its value to $82 bln including debt. Most revenue now comes from charging for information, not handling trades. Investors aren’t giving CEO David Schwimmer full credit for the shift.
Stage is set for a record year of M&A 6 Jan 2021 S&P Global, AstraZeneca and Salesforce helped push fourth-quarter deal volume over $1 trln. Flush balance sheets and ultra-cheap money add momentum. So do CEOs struggling to find growth on their own. Regulators could get tougher, but the 2015 peak of $4.2 trln is within reach.