Gaming

Corona Capital: GE cash burn, Macy’s lifeline

28 May 2020

Concise views on the pandemic’s corporate and financial fallout: General Electric’s cash flow will be more negative than expected as Covid-19 damages its aviation and power businesses; and U.S. department-store chain Macy’s borrows more, buying time but not much else.

Tencent’s post-pandemic vision looks too normal

13 May 2020

Mobile games sales surged 64% to $5 bln in the first quarter. That one-off gain will fade as Chinese people return to offices and schools. Yet where rivals Alibaba and ByteDance are betting on new opportunities, Tencent seems overly focused on returning to business as usual.

Corona Capital: Payments M&A brawl, Endeavor

7 May 2020

Concise views on the pandemic’s corporate and financial fallout: Payments firm Wex’s attempt to ditch a double deal for two UK rivals will face legal pushback and perhaps Elliott Management’s ire. Talent agency Endeavor’s 2018 Epic Games investment is starting to come in handy.

Corona Capital: Extended Stay, Victoria’s Secret

22 April 2020

Concise views on the pandemic’s corporate and financial fallout: Blackstone checks back into one of its favorite old haunts, hotel chain Extended Stay; while another private-equity shop, Sycamore, tries to dump its proposed investment in lingerie seller Victoria’s Secret.

ValueAct nudges Nintendo to ditch the joystick

22 April 2020

The U.S. investor disclosed a $1 bln stake in the maker of Super Mario. Unlike the typical activist target, Nintendo is well run and outperforms rivals. But its focus on consoles looks short-sighted. As it did with Microsoft, ValueAct can push Nintendo in the right direction.

Tencent puts e-sports endgame into position

16 April 2020

The Chinese web giant has tightened its grip on rival video-game streaming sites Huya and DouYu. That paves the way for a merger that would create a $3.4 bln enterprise. The benefits of uniting are appealing. And with Covid-19 weighing on shares, the timing is better than ever.

To set Macau’s virus odds, consider 2015 over 2003

5 March 2020

A recovery may take as long as six months, warns resort operator Melco. The slump looks more serious than during SARS and is better compared to a corruption crackdown that lopped a third off gaming revenue. This time, though, casinos are losing tourists as well as high rollers.

Virus could give dealmakers a new big MAC attack

2 March 2020

Morgan Stanley’s acquisition of E*Trade carves out Covid-19 from any “material adverse” change. Other buyers and sellers were too late, making the clauses ripe for review. They’re hard to trigger, but Chinese targets are vulnerable. More than $80 bln of M&A hangs in the balance.

China’s virus lockdown premieres iQiyi’s next act

28 February 2020

Quarantine measures and contagion fears have kept millions at home, giving the country’s $18 bln answer to Netflix a boost. Luring paying subscribers with new movie releases and more looks smart. It’s a test of how the coronavirus might accelerate a shift in consumer habits.

Penn National can cover its $1.3 bln spread

19 February 2020

That’s how much the casino company’s market value jumped after it said it was buying a $163 mln stake in online sports and media firm Barstool Sports. Young gamblers are a hot commodity, but they are difficult for traditional casino operators to reach. Fliers are worth a try.

For Macau investors, all bets are off

4 February 2020

The territory is closing casinos for two weeks to contain the virus. Visits to Sands and rivals may be postponed, not lost, but only a real gambler would double down on Macau now. Home entertainment from the likes of iQiyi, China Literature or Perfect World offer better odds.

Underdog will take home Japan’s casino jackpot

3 January 2020

Malaysia’s Genting is not the bookies' favourite as it competes for a coveted licence in the new market, worth $10 bln or more. But while it lacks Galaxy’s glitz or the scale of Las Vegas Sands, the betting group’s success in super strict Singapore will give it a winning edge.

E-betting boss opens all his presents in one go

23 December 2019

DraftKings CEO Jason Robins is raising cash, buying a company and going public by merging with a SPAC. It could be a smart bet on U.S. online gambling growth. But investors’ willingness to hand him supervoting rights shows they’ve learned little from the WeWork and Uber debacles.

Gaming’s strongest opponent will be regulation

23 December 2019

New Microsoft and Sony consoles come out in 2020. Apple and Google want to be the Netflix of online play, and game makers like Activision Blizzard, Epic and EA hold a strong hand. But tighter scrutiny of gambling-style digital prizes will temper the $130 bln industry’s growth.

Anime hero toys with Japan’s robotic governance

22 November 2019

Bandai Namco, the $14 bln creator of Pac-Man, wants to buy the rest of Sotsu, the company behind the iconic Gundam empire. A Chicago-based investor has flown in to fight a flawed deal unfair to minority shareholders. It may, however, take regulators to save the day.

China’s Tencent shows early signs of aging

13 November 2019

Quarterly sales rose 21% to $14 bln, a third of the pace two years ago. A crackdown on video games is to blame but that core business is maturing too. Shareholder returns have lagged Alibaba and peers. That will pressure boss Pony Ma to deliver on payments and other bets.

Super Mario turbo-charges case for Sony breakup

29 October 2019

Shares of $45 bln Nintendo have gained 30% this year, partly thanks to a mobile hit featuring its iconic plumber. A richer valuation should also be an inspiration to sprawling rival Sony. Separating its video-games and entertainment business could be one way to narrow the gap.

Hong Kong’s meeker neighbour faces its own perils

17 October 2019

Macau, run under similar rules to the former British colony, has been untroubled by anti-government protests across the water. History and size explain its model behaviour. The result, though, is less ideal: a $55 bln casino monoculture that relies on China’s tourists and favour.

Alibaba finds a new ally against an old foe

6 September 2019

The Chinese titan is buying part of video-games group NetEase's e-commerce business for $2 bln. More significantly, the two are forging closer ties in music-streaming, where rival Tencent’s dominance is under antitrust scrutiny. That combination paves the way for further deals.

Crown’s China troubles upset Melco’s grand gamble

6 August 2019

Fresh allegations around the Aussie casino giant's dealings with Chinese high-rollers have drawn scrutiny Down Under. That leaves new shareholder Melco in an uncomfortable spot. It hoped to use its Crown stake to push overseas; instead, the bet is adding to investor worries.