Samsung opens its wallet to a wary chip market 16 Jun 2022 Boss Jay Y. Lee's European trip has sparked hope that the South Korean conglomerate will finally use its $84 bln cash pile for M&A. Beat-up valuations at mooted targets like NXP make consolidation attractive. Appeasing concerned governments, though, will be a tough sell.
South Korea Inc heaps added pressure on Samsung 28 Apr 2022 The Galaxy maker’s 51% rise in quarterly operating profit, to $11 bln, only underscores its dependence on memory chips. Despite its ambitions in autos, biotech and other areas, peers Hyundai, SK and LG are moving faster to capitalise on new markets. Idle cash is a growing risk.
Sony and Nintendo play FOMO video-game challenge 31 Jan 2022 The financially robust makers of PlayStation and Switch generally prefer only smaller deals. Upheaval is coming, however, with Microsoft’s $69 bln plan to buy Activision. As console sales peak, pressure will mount for Japan’s timid buyers to develop bolder M&A strategies.
Taiwan’s TSMC is wisely cashing in more chips 13 Jan 2022 The $620 bln top chipmaker is hiking prices in response to the global shortage, giving up some of its relative restraint versus competitors. Coupled with voracious demand from the likes of Apple, the increase will pad profits even as it ramps up spending to maintain its huge tech lead.
Capital Calls: UBS, Pfizer, Peloton 13 Dec 2021 Concise views on global finance: An appeals court has reduced a penalty for the Swiss bank by 60% for tax wrongdoings; the U.S. pharma group is buying a drugmaker to bolster its post-pandemic growth options; real risks are a bigger threat to the bike-app company than fake ones.
Capital Calls: Securitas 8 Dec 2021 Concise views on global finance: The Swedish security specialist’s acquisition of Stanley Black & Decker’s alarms unit should boost growth and margins.
LG’s $11 bln battery spinoff is fully charged 8 Dec 2021 The South Korean group is eyeing a $60 bln valuation for its crown jewel in what could be the country's biggest IPO. The hot play on electric vehicles hopes to entice investors by offering a discount to peer CATL. LG's track record of recalls, though, warrants caution.
Capital Calls: Microsoft, AT&T, American Airlines 7 Dec 2021 Concise views on global finance: Microsoft is finally being scrutinized with Europe’s probe of its $16 bln Nuance deal; U.S. lawmakers have antitrust worries about the telecom firm’s Discovery deal; American Airlines’ retiring CEO leaves shareholders short-changed.
Legal challenge affirms logic of Nvidia mega-deal 3 Dec 2021 U.S. trustbusters are suing to block the chipmaker’s controversial Arm acquisition. A growing price tag, from $40 bln to about $75 bln, undermines the financial value. At least the FTC is, in a way, buttressing the strategic rationale of buying the Switzerland of semiconductors.
Capital Calls: Risky banks, UK SPAC, AO World 23 Nov 2021 Concise views on global finance: A global watchdog reckons JPMorgan is once again the world’s most systemically important lender; investment firm Hambro Perks launches a UK blank-cheque vehicle; the British online retailer issues its second profit warning in two months.
Razer’s $4.5 bln buyout plan has a serrated edge 19 Nov 2021 The purveyor of pricey keyboards may swap a Hong Kong listing for one in New York as part of a management-led deal. A video-gaming fanbase gives it meme-stock potential while its Southeast Asian fintech unit might look hotter stateside. But any valuation gains may be subtle.
TSMC’s global expansion will chip away at its edge 12 Nov 2021 The world’s biggest semiconductor maker is building a $7 bln plant with Sony in Japan, and it has similar U.S. plans underway. Diversifying production outside Taiwan offers a useful geopolitical hedge. The trade-off is higher costs, which threaten to erode its valuation premium.
Sony seizes best of hardware and software worlds 28 Oct 2021 Sales of PlayStation consoles and other consumer electronics helped power quarterly sales to $21 bln. Games, music and movies shone too, as boss Kenichiro Yoshida doubles down on content. Even better for investors, a more cohesive strategy linking the different units is emerging.
Samsung etches fresh way to take on TSMC 8 Oct 2021 Memory chips are set to help lift the South Korean company’s quarterly operating profit 28% to $13 bln. Growth at its small semiconductor design and manufacturing arms also warrant greater attention. Customers like Tesla could make the units secret weapons against Taiwan's titan.
Capital Calls: Amazon’s wage rise 14 Sep 2021 Concise views on global finance: The e-commerce giant’s salary strategy could catch on.
Capital Calls: Oatly, Sonos/Google 16 Aug 2021 Concise views on global finance: The Swedish oat milk producer’s decent results are only good in parts; Sonos gets a boost with a preliminary trade ruling that Google infringed its patents.
Samsung boss parole sets high bar for dealmaking 10 Aug 2021 Jay Y. Lee’s early release from prison ramps up pressure on him to use the tech powerhouse’s $82 bln cash pile to make splashy investments to close a gap with rivals in chipmaking, autos and more. Samsung’s heft will force creative thinking. It’s a tricky combination to manage.
Samsung scrambles signals out of Southeast Asia 29 Jul 2021 The Galaxy maker partly blamed Vietnam’s virus resurgence for a 24% decline in mobile unit sales from the previous quarter. Low vaccination rates are thwarting the region’s recovery and raise fresh questions about just how reliable it can be for suppliers shifting out of China.
Alibaba may be Suning’s white knight in hiding 22 Jun 2021 The e-commerce giant’s 20% stake in the Chinese retailer has plunged by two-thirds in value since it bought it in 2015. The shares have further to fall as Suning faces $7 bln of debt due. Given Alibaba’s push into bricks-and-mortar commerce, a takeover could benefit both sides.
Toshiba mess will be useful national embarrassment 10 Jun 2021 An independent probe found the $20 bln Japanese conglomerate sought to subvert shareholders in conjunction with the government. The findings intensify pressure for a sale, bolster the broad case for activist investors and should kick Japan’s governance changes into higher gear.