Hadas: Different rules for new corporate giants 30 Oct 2019 Cheaper information and global markets have produced a new generation of vast and entrenched companies. Abuses of competitive power are likely, but old-style breakups don’t work. Lawmakers and enforcers need to monitor behaviour – and maybe even control prices.
The clock is ticking on TikTok’s U.S. business 21 Oct 2019 A senator wants parents to delete the popular video app owned by China’s ByteDance. Even Facebook is taking potshots. TikTok, meanwhile, is building lobbying strength in Washington. But the mood in D.C. is ripe for curbs on any Chinese upstart with global ambitions.
Facebook would be wise to just give up on politics 15 Oct 2019 Over the past 90 days, political ads brought in less than 1% of forecast Q3 sales. But after presidential hopeful Elizabeth Warren showed up Facebook’s patchy vetting, they continue to garner way more in the way of negative vibes. Mark Zuckerberg can afford to exit the category.
Viewsroom: Mark Zuckerberg is stuck in 2006 3 Oct 2019 That’s when the Facebook CEO rejected Yahoo’s $1 bln takeover bid. Now he uses the decision to justify his grip on control and decisions on data, privacy and the chance of a breakup under a Democratic president. Plus: How a spat over shrubbery almost felled Credit Suisse’s CEO.
U.S. antitrust effort cries out for a monopoly 19 Sep 2019 The U.S. Department of Justice and FTC admit to squabbling over turf as they target the likes of Amazon and Facebook. Both agencies also could use more money and people to take on deep-pocketed tech giants. Pooling resources and power through a merger is a natural solution.
Data turns from asset to M&A liability 17 Sep 2019 Minority stakes in U.S. firms with sensitive information on Americans may soon be subject to national security reviews – a sensible acknowledgement that data has value. There’s a cost though. Casting the net that wide will put a chill on inbound deals, and not just from China.
HKEX bids $37 bln to halt London rival’s escape 11 Sep 2019 Hong Kong’s exchange is dangling a 23% premium to LSE shareholders if they reject a $27 bln deal with data provider Refinitiv. It’s a last-ditch attempt to snag the perennial takeover target. But the tie-up has only vague financial benefits and faces a tricky political reception.
American cities risk becoming new weak data link 10 Sep 2019 Los Angeles’ trip info program for e-scooters and bikes is expanding to other towns. It manages congestion but also sparks privacy and hacking concerns. Contractors may also try to avoid a stricter California data law. Including ride hailing makes proper controls more critical.
China’s 5G fix reflects a costly global reality 10 Sep 2019 Two of the three state telecom outfits will join forces to build a next-generation network. Cooperation could shave about $50 bln off a bill likely to be several times larger. It's a solution that suits Beijing’s ambitions, but a sensible one; overseas rivals may not be so lucky.
Data-centre IPO is safer proxy for tech bubble 4 Sep 2019 UK-based Global Switch aims to raise $1 bln in Hong Kong. Rising internet usage requires more server warehouses. Returns have been better for this type of real estate than other humdrum property, too. It’s a neat way to play the cloud and 5G era for buyers with a weaker stomach.
Viewsroom: Vicious trade cycle traps U.S., China 8 Aug 2019 The White House’s decision to brand Beijing a currency manipulator is the latest move in a conflict riven by miscommunication, unrealistic expectations and no obvious way out. Plus: Why the LSE is paying $27 bln for Refinitiv, and which of the data firm’s owners comes out on top.
U.S. exchanges have reasons to stay in their lanes 1 Aug 2019 ICE and CME show no interest in butting in on data outfit Refinitiv, the LSE’s $27 bln target. The NYSE owner is pushing into fixed-income data, while CME is dominant in futures. Exchanges may yet consolidate further, but the big players have plenty to do on their own turf.
Refinitiv’s unequal exchange 1 Aug 2019 As the London Stock Exchange reveals plans to merge with data provider Refinitiv, run the numbers to see which of the target’s backers, Blackstone and Breakingviews parent Thomson Reuters, comes off best.
Thomson Reuters beats Blackstone in Refinitiv deal 1 Aug 2019 If the financial data provider clinches a $27 bln takeover by the London Stock Exchange, the buyout firm will make a handsome return. Yet an insurance policy designed to protect its downside works in its Canadian co-investor’s favour. Thomson Reuters may almost triple its money.
LSE’s data download needs growth to add up 1 Aug 2019 The stock exchange operator confirmed its $27 bln takeover of financial information provider Refinitiv. To earn an adequate return on investment, CEO David Schwimmer will have to cut costs, but also find new sources of revenue. LSE shareholders’ expectations are already high.
Capital One provides one more reason for data laws 30 Jul 2019 A hack at the $46 bln credit-card firm exposed more than 100 mln customers’ information. Puny U.S. deals, like Equifax’s $700 mln or Facebook’s $5 bln, aren’t enough to produce tighter protocols elsewhere. Legislation protecting data is a surer way to get companies’ attention.
Breakdown: Silicon Valley privacy caught in a jam 29 Jul 2019 IBM is the latest to call for changes to a 23-year-old law that exempts the likes of YouTube and Facebook from lawsuits over content on their sites. The provision no longer encourages the kind of policing their platforms need. Yet scrapping it wouldn’t solve that, either.
Blackstone’s quick data flip is a paper two bagger 27 Jul 2019 Less than 12 months after buying Thomson Reuters’ financial data unit, the buyout firm is in talks to sell Refinitiv to London Stock Exchange in a $27 bln deal. There are risks, notably what Brexit could do to LSE shares, but an implied money doubling provides plenty of cushion.
Equifax shows how little it values consumers 22 Jul 2019 The credit-scoring firm gathers troves of sensitive financial information, making it systemically important. Yet it’s paying less than $3 in compensation for each of the nearly 150 mln Americans affected by its 2017 data breach. That provides little incentive to tighten security.
Review: Blaming big data is political diversion 19 Jul 2019 The documentary “The Great Hack” shows how Cambridge Analytica targeted voters in the 2016 U.S. election and Brexit referendum, partly using Facebook. It’s chilling but ignores how economic forces swayed those polls. Focusing on tech’s threat to democracy oversimplifies politics.