Harvard ouster is a win for activists, not activism 5 Jan 2024 Corporate cage rattler Bill Ackman won his bid to oust President Claudine Gay from the elite US university. The process was different from activism at companies, where boards rather than CEOs are the natural target. Corporate change is laborious; investors should be glad of it.
Big College is ripe for the full Bill Ackman 8 Dec 2023 Harvard, Penn and MIT presidents were hauled before Congress over campus antisemitism, after the hedge fund boss helped bring attention to the cause. The lack of accountability displayed suggests Ivory Towers would benefit from being stormed the same way as corporate boardrooms.
NCAA gets B for paying jocks; for an A, drop the C 6 Dec 2023 The National Collegiate Athletic Association’s plan to uncap amateur earnings while attending school is a long-overdue change for good. Its blueprint has flaws, however, and keeps control in the hands of a few. A good next step would be to separate sports from higher education.
Wall Street cues a lesson in Ivory Tower finance 20 Oct 2023 Billionaires Marc Rowan and Bill Ackman are angry about Middle East positions taken by their alma maters, UPenn and Harvard. The backlash inadvertently spotlights the power big donors wield on campus. It’s a chance to revisit the business model and make college a freer market.
Byju’s restructuring leaves one big job untouched 27 Sep 2023 India’s troubled edtech star may slash 5,000 roles in its overhaul. That’s easy work compared to solving its $1.2 bln loan dispute. Co-founder Byju Raveendran remains CEO. Starting a new chapter with old hands is tough but it reflects a hard reality for the Prosus-backed group.
Capital Calls: Diversity initiatives 23 Aug 2023 Concise views on global finance: The group that got the Supreme Court to overturn affirmative action at universities is suing financial firms to end programs for diverse applicants. It will make companies rethink recent diversity initiatives.
Byju’s blowup makes its investors look bad 7 Aug 2023 The Indian edtech startup is wrestling with lenders over a $1 bln loan, and a US hedge fund is forcing changes at a prized asset. Investors Prosus and Peak, formerly part of Sequoia, quit the board, but as the situation worsens so does the mark against those who propped it up.
Capital Calls: Cathay, Telecoms kit makers, Byju’s 14 Jul 2023 Concise views on global finance: The Hong Kong carrier expects to turn a profit; a push into 5G has caught European telecoms gear makers like Nokia and Ericsson short; India’s troubled ed-tech giant appoints a top former banker to a newly formed advisory council.
Resetting student loans brings Econ 101 lessons 30 Jun 2023 Some 43 mln college grads may feel less confident financially with the Supreme Court striking down President Joe Biden’s debt forgiveness plan. Big chunks of income are no longer freed up. Payments also start anew soon after a Covid hiatus, adding another drag for many consumers.
Fail with big backers signals messy Byju’s unwind 23 Jun 2023 Auditor Deloitte is walking away from the self-claimed world’s largest education tech firm, and investors including Prosus and what was Sequoia India appear to be following. It implies talks with lenders over a $1.2 bln loan are at a dead end and ups the pressure for a breakup.
Capital Calls: Intel Outside, Amazon Prime beef 21 Jun 2023 Concise views on global finance: The chipmaker struck a deal to sell 20% of a tool-making subsidiary, which should benefit from being put on a path to independence. Meanwhile, the $1.3 trln e-commerce company’s subscription service is unlawfully hard to cancel, says the US FTC.
Byju’s fight with lenders is a lose-lose scenario 13 Jun 2023 Creditors want the Prosus-backed education tech company – once India’s most valuable startup – to repay its punchy $1.2 bln loan early. It’s a technical default at most but digging very deep to clear the debt might help founder Byju Raveendran improve his company’s mixed marks.
Big Tech’s AI victims will fall fast 12 May 2023 Online education company Chegg is suffering as students lean on artificial intelligence to help with homework. Hollywood writers are paranoid. While AI is accruing value to Big Tech, smaller companies will quickly – and once again – be annihilated by well-capitalized tech firms.
Capital Calls: AI goes back to school 17 Apr 2023 Concise views on global finance: Chegg’s sagging shares perked up on news that the education software developer is working with ChatGPT maker OpenAI to create a safer automated tutor. For companies at risk of obsolescence, working with chatbots is a better bet than beating them.
Capital Calls: Disney, Jobs, Aesop 4 Apr 2023 Concise views on global finance: Boss Bob Iger accused Florida Governor Ron DeSantis of ill will, but plans to spend plenty in the Sunshine State; US job openings data might be skewed by fake postings; Natura’s $2.5 bln Aesop sale is a blueprint for stressed M&A.
U.S. student loan plan brings limited relief 24 Aug 2022 Joe Biden unveiled a plan to forgive a fraction of the $1.6 trln in government-issued higher-education debt. Even with a $10,000 cut, many borrowers will struggle to pay off balances while new enrollees are stuck with some old-school terms. The middle-ground fix leaves gaps.
Edtech giant faces hard slog on its M&A field trip 19 Jul 2022 Byju’s, India’s most valuable startup, is eyeing U.S. higher-learning specialist 2U in the latest period of both firms’ deal frenzy. It’s betting education technology can be outsourced to its home country. If wrong, Byju’s will be an M&A version of a Dr. Frankenstein experiment.
Capital Calls: Bank stress tests, Japan inflation 24 Jun 2022 Concise views on global finance: U.S. lenders passed the latest Federal Reserve capital exams, but they’re bound to be more stressful next time; the country’s consumer prices rose 2.1% in May, intensifying a standoff between the central bank and bond investors.
Capital Calls: SoftBank Arm-twisting 22 Jun 2022 Concise views on global finance: The UK government may be eyeing desperate measures to keep SoftBank-owned chip group Arm's IPO in London.
Capital Calls: Blackstone backs perpetual students 19 Apr 2022 Concise views on global finance: The private equity firm is buying a campus housing investment vehicle for $12.8 billion. Steady cash flows and the need for more dorms make it a nice fit for Blackstone’s permanent capital vehicles.