Deals

Li Ka-shing raises fresh glass to diversification

19 August 2019

Hong Kong’s richest man is buying the Greene King pub chain for $5.6 bln including debt. Most of his empire’s sales are abroad already. But given the deal injects new capital into the UK, it’s still a boon for Brexit Britain and a minor thumbs-down for his troubled home turf.

CBS-Viacom merger is more whimper than Big Bang

13 August 2019

The broadcaster and the MTV owner, both controlled by the Redstone family, have finally inked a $30 bln reunion. Rogue CEOs, supine boards and dumb disputes gummed up the process. Hefty synergies won’t make up for perhaps more than $15 bln of value lost in three years of limbo.

Verizon’s best media strategy is not having any

13 August 2019

The wireless giant’s bet on internet advertising never made sense. The sad trajectory of high profile, low revenue Tumblr illustrates the divide. The site’s sale carries an embarrassing price tag. That’s another wake up call for Verizon to pull the plug on AOL and Yahoo.

BlackRock private-equity pivot grinds away in beta

12 August 2019

CEO Larry Fink aims to disrupt the giant money manager’s business before others do. Yet he has struggled to raise a new long-term fund, and its first deal, a $625 mln stake in Sports Illustrated-to-shoes owner Authentic Brands, is a tad dull. His ambitions demand a bigger splash.

Viewsroom: Vicious trade cycle traps U.S., China

8 August 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.

Mastercard charges headlong into e-pay play

6 August 2019

Bulking up its real-time corporate business makes sense for the $263 bln payments processor. But at $3.2 bln it’s paying European rival Nets at least 21 times EBITDA for slow-growth assets. To justify it, Mastercard boss Ajay Banga needs to slash costs or find new business fast.

Blackstone shows BC who’s the junior partner

6 August 2019

The buyout firm run by Stephen Schwarzman is taking a stake in BC Partners. That will fuel the London-based outfit’s expansion into real estate and private credit, and avoid the need for a public listing. Blackstone already has all that. This deal will help keep it a step ahead.

KKR gets a biscuit LBO do-over Down Under

2 August 2019

The private equity fund that invented the cookie buyout is acquiring Campbell's Australian snacks unit for $2.2 bln. It’s less audacious than the $25 bln RJR Nabisco deal 30 years ago. But if KKR can scrape out decent growth and profitability, this one may prove tastier.

JPMorgan shows fintech lender who’s boss

29 July 2019

Shares in online upstart On Deck plummeted more than 25% after Jamie Dimon’s $377 bln bank decided it no longer needed help sourcing small-business loans. That may be an overreaction. But it’s a reality check: Supposed financial disruptors need banks more than banks need them.

Pfizer’s old-drug disposal merits a warning

29 July 2019

The $240 bln pharma outfit is spinning its off-patent arm and merging it with Mylan. Combining brands like Lipitor and Viagra with EpiPen creates scale but generic price pressure makes for a poor financial prognosis. Pfizer at least gets $12 bln to spend on innovative new drugs.

Vodafone adds salve after ripping off plaster

26 July 2019

The UK telco is looking to put its European masts into a separate company. The higher multiples awarded to infrastructure assets should help unlock value, and listing the towers could help Vodafone cut debt. That ought to soothe investors reeling from an earlier dividend cut.

Tencent may be Nintendo’s best console accessory

26 July 2019

The video-games giants are partnering to launch the Japanese group's devices in China. The benefits of deeper ties appear irresistible. Nintendo can tap Tencent’s mobile expertise and user base, while coveted characters like Super Mario can boost Tencent's reach outside China.

Jollibee risks indigestion with U.S. coffee deal

25 July 2019

The $5 bln Philippine fast-food chain is buying Los Angeles-based retailer The Coffee Bean & Tea Leaf. It gives Jollibee 1,189 stores, over 400 of them in fast-growing Southeast Asia. But the company is losing money in the battle with Starbucks. A quick turnaround looks unlikely.

Apple seeks new front in Qualcomm war via Intel

23 July 2019

The iPhone maker hopes to combat maturing sales by making more components in house. Buying Intel’s modem arm could give it a technological edge while avoiding costly royalty payments to Qualcomm. But the unit has struggled, and success isn’t guaranteed for Tim Cook’s company.

Gilead finds shrewd $5.1 bln salve to biotech risk

15 July 2019

The $86 bln U.S. outfit hopes to harvest multiple therapies by injecting cash into rival Galapagos. Gilead almost doubles its stake, limiting its downside exposure, and pledges to keep the Belgian firm independent. History suggests it’s a smart way to create drugs and wealth.

Driverless Argonauts are all on valuation quests

12 July 2019

Ford and VW value their new autonomous-car joint venture at more than $7 bln. SoftBank and others peg GM’s similar division at $19 bln. Yet estimates on revenue and timing are all over the map. And Google’s Waymo is leading on several metrics. Their real worth could be anywhere.

Crypto blank-check deal has at least one virtue

10 July 2019

The idea of a blockchain company backing into a listed special-purpose buyout vehicle sounds like risk on steroids. Hong Kong-based Diginex has big ambitions but a skimpy track record. Yet the transparency of a Nasdaq listing can help sort cryptocurrency reality from hype.

Offloading Univision

9 July 2019

The Spanish-language broadcaster is up for sale. Will the buyers in the stretched 2007 leveraged buyout even recoup their original $4 bln investment?

Univision owners may be in for a downer ending

9 July 2019

Backers TPG, Saban Capital and others are looking to sell the Spanish-language broadcaster. The $14 bln buyout may have seemed sound 12 years ago. But after a failed IPO, questionable digital moves and a brutal TV environment, the investors could get back less than they put in.

American M&A makes excess great again

28 June 2019

U.S. deals jumped 19% in the first half even as activity ebbed in Europe and Asia. Topping the list are pricey purchases by AbbVie, Bristol-Myers and Occidental, plus Raytheon’s questionable merger with United Technologies. Most buyers’ owners will regret their CEOs’ ambitions.