Gaming

Activision may become vulnerable to a takeover

17 Nov 2021

A new scandal about sexual assault allegations is hurting the $50 billion gaming company’s already-battered share price. As the problems pile up, the chances are growing that an activist will pop up to agitate for a sale. A deal might make sense for Netflix.

Capital Calls: Stadium naming, Diageo, Evolution

17 Nov 2021

Concise views on global finance: Crypto.com is paying heavily to rename Staples Center; The drinks maker plans to grow its market share by 50% in the next decade; the $36 bln Swedish gambling firm lost $2 billion of its market capitalisation after accusations of illegal gambling.

Beijing gaming curbs raise Tencent overseas stakes

10 Nov 2021

The Chinese tech giant’s quarterly adjusted earnings suffered a rare fall as a regulatory crackdown weighed on domestic video game sales. It adds urgency for Tencent to find growth in new markets, including by acquisition. But even small deals face scrutiny from U.S. regulators.

Brookfield pays less than jackpot in lotto deal

28 Oct 2021

Scientific Games is selling its lottery business to the asset manager for $6 billion. The price looks good, even if a bid to list the unit in Australia may have left some dreaming of more. Yet the $9 bln parent’s stock tanked 13%. Bullish markets create demanding shareholders.

Capital Calls: Fantasy-sports group M&A flop

26 Oct 2021

Concise views on global finance: DraftKings has walked away from Entain but the UK target may still attract interest.

Capital Calls: Apollo, god of basically everything

19 Oct 2021

Concise views on global finance: The asset manager firm’s new CEO Marc Rowan wants to oversee $1 trillion in funds by 2026. The market is at least giving him credit for trying.

Capital Calls: Facebook, TeamViewer, Audio M&A

6 Oct 2021

Concise views on global finance: Whistleblower Frances Haugen’s polished rollout is a warning for Big Tech; the video software specialist’s 25% share price fall shows the perils of growth stocks; hearing aid group GN snaps up headset maker SteelSeries for $1.3 bln.

Three-way sports bet fight may end in a stalemate

23 Sep 2021

The battle for control of Entain hinges on the UK bookie’s U.S. joint venture. Current partner MGM is unlikely to pay for control of the unit, probably worth $13 bln. But suitor DraftKings may need the cash to help fund its $22 bln bid. The odds of a successful deal look long.

DraftKings UK bookie punt is risky multiplier bet

21 Sep 2021

The U.S. fantasy-football specialist may buy Entain in a $22 billion cash-and-stock deal. Together, they’d be a giant in the U.S. sports-betting market. But the price tag looks steep, and the target’s joint-venture partner, MGM, could make life difficult after any tie-up.

Big Brother’s tighter grip exposes poor Macau bets

15 Sep 2021

Authorities want more influence over casinos and their dividends. That may reduce investor rewards but is hardly a surprise: Beijing tolerates betting because it can control the enclave. A 25% hit to Wynn Macau’s and Sands China’s value suggest shareholders miscalculate the odds.

Capital Calls: Lagarde channels Thatcher

9 Sep 2021

Concise views on global finance: The ECB boss will buy fewer bonds but tells markets: “The lady isn’t tapering.” A tough decision on whether to scale back bond purchases more decisively will come later.

Betting minnow turns high roller with $3 bln wager

9 Sep 2021

London-listed 888 is paying more than its current market value for William Hill’s non-U.S. assets. It’s a quick way to gain scale but pushes debt to a hairy 5 times EBITDA. Ample savings and the chance to diversify into licensed online games and sport make it a calculated punt.

Xi’s anti-screen campaign will reshape family time

31 Aug 2021

Beijing has restricted kids to three hours of video games a week to combat addiction. The financial hit looks manageable for $575 bln Tencent and peers. But the president wants to drag children away from phones into healthier activities. Investors should brace for more measures.

Tencent’s Disney-like ambitions will enchant Xi

18 Aug 2021

Games, movies and web shows did well in the quarter, showcasing the $540 bln group’s entertainment prowess. Unlike the U.S. giant, censors dictate what Tencent can do. Yet a Chinese answer to the Magic Kingdom at least fits into Beijing’s vision of a prosperous middle class.

Capital Calls: Sea’s rising tides

18 Aug 2021

Concise views on global finance: The $162 billion Southeast Asian tech group’s revenue is soaring, but so are its costs.

Capital Calls: Olympics on TV, Abrdn

10 Aug 2021

Concise views on global finance: NBC Universal's prime-time viewers for the Tokyo games were only half as many as for London 2012, boding ill for traditional U.S. TV; the British asset manager formerly known as Standard Life Aberdeen may be turning the corner.

Capital Calls: U.S. jobs, BBQ IPOs, Wm Morrison

6 Aug 2021

Concise views on global finance: The Delta variant puts a leisure job boom at risk; two grill makers’ floats show the IPO market isn’t frozen; Fortress strikes in the bidding war for a UK supermarket.

Capital Calls: GM, Hugo Boss, NYT, Frontier tech

4 Aug 2021

Concise views on global finance: The U.S. automaker finds inflation cuts both ways; the German-listed fashion brand hopes to double sales by 2025; advertising is a bright spot for the New York Times; Zymergen vaporized 75% of its value under four months after a $3 bln IPO.

Capital Calls: Grab, Gaming, SocGen, Stellantis

3 Aug 2021

Concise views on global finance: The Southeast Asian super-app delivers some of the goods; Tencent shares tank after Chinese state-media criticism; the French lender’s investment bank overhauls goals; the carmaker hikes operating margin targets to a chunky 10%.

Las Vegas Sands’ new boss lays down his cards

22 Jul 2021

The first set of quarterly results under Sheldon Adelson’s successor show Covid is sapping growth in Asia. But Robert Goldstein is touting bold plans to take the $38 bln casino empire online. The fresh strategy looks promising and might reward investors who play a long game.