Gaming

UK bookie bidding war may have two winners

25 September 2020

William Hill shares rose 38% after it said Caesars Entertainment and Apollo made rival approaches. Neither will make a decent return at its current market value of $4 bln. Better to opt for a carve-up, with the casino operator taking the U.S. unit and the buyout group the rest.

Microsoft launches $7.5 bln gaming war of addition

21 September 2020

That’s what CEO Satya Nadella is paying for ZeniMax, owner of games like “Fallout.” The aim is to persuade more users to enlist in Microsoft’s subscription service and force providers like Apple to stream content on its terms. Success would make Microsoft look unstoppable.

Corona Capital: Bumble IPO, SPACs

2 September 2020

Concise views on the pandemic’s corporate and financial fallout: The Blackstone-backed dating site may be eyeing an $8 bln valuation if it goes public next year, more than twice its pre-virus price tag. Ex-MGM exec Harry Sloan adds online gaming to his blank-check company empire.

Corona Capital: KFC ditches finger lickin’

25 August 2020

Concise views on the pandemic’s corporate and financial fallout: The Yum Brands’ fast-food chain made eating fried chicken synonymous with cleaning your digits with your mouth. KFC has at last realized that’s a no-no in a pandemic.

“Fortnite” battle is the new TV blackout

14 August 2020

Owner Epic is suing Apple and Alphabet after the tech firms kicked the popular game out of stores. Like U.S. cable and network fights, the problem is a lock on distribution. There, battles are often public but end with small wins for content. Epic could expect the same.

Tencent encapsulates new challenge for China tech

12 August 2020

The $635 bln giant derives most of its value from video games, ads and payments units that don’t rely much on foreign partners. But any restrictions on working with U.S. firms might have an outsize effect on its growth. Boss Pony Ma will have to sweat his company harder.

Barry Diller takes virtual bet on casino gambling

11 August 2020

The mastermind behind internet conglomerate IAC has taken a 12% stake in MGM, calling it a “once in a decade” chance. That’s true if he can bring online expertise to the e-roulette tables. With a minority stake, though, that’s no sure thing. The price gives him good odds.

Investors make $17 bln bet on “Fortnite” longevity

11 August 2020

That’s the price tag implied by Epic Games’ $1.8 bln fundraising. The maker of the cult shoot-‘em-up game is now valued in line with bigger rivals Activision and Electronic Arts. Software and a nascent online store may diversify revenue, but survival depends on finding new fans.

Corona Capital: Aviva’s restructuring

6 August 2020

Concise views on the pandemic’s corporate and financial fallout: New CEO Amanda Blanc is reinstating the UK insurer’s dividend and is even open to selling its Asian and European businesses. That’s music to investors’ ears.

Corona Capital: Disney movie magic, “Call of Duty”

5 August 2020

Concise views on the pandemic’s corporate and financial fallout: The Magic Kingdom’s decision to send “Mulan” straight to streaming impressed investors, but is bad news for cinema chains; Activision Blizzard’s shoot-‘em-up game brings a profit surge.

Corona Capital: Lockdown diets, Beating the Fed

14 July 2020

Concise views on the pandemic’s corporate and financial fallout: Covid-19 is prompting diets for both animal and human; and the Fed takes a hit on a garbage deal.

Ubisoft’s #MeToo blindness leaves it in M&A bind

13 July 2020

Shares in the $10 bln French video game developer tumbled after senior managers left amid allegations of harassment. In 2017, other shareholders helped CEO Yves Guillemot ward off suitor Vivendi. Recent underperformance means the “Assassin's Creed” maker has fewer lives left.

Sea’s $55 bln valuation can rise with the tide

3 July 2020

The Tencent-backed tech outfit’s market cap has risen eight-fold in the three years since its New York debut. A virus-related boom in games and e-commerce in Southeast Asia has helped justify a rapid rise, and expansion plans are on. Its payments unit may provide an extra buoy.

Tencent’s hot sauce fraud exposes expired tech

3 July 2020

The Chinese video-games titan appears to have been taken by crooks pretending to work for Lao Gan Ma, a popular spicy condiment, using a forged company seal to ink an advertising deal. Such old-fashioned methods have embroiled others including SoftBank. Digitisation is overdue.

Casino deal epitomizes the house edge

30 June 2020

Houston billionaire Tilman Fertitta is using his blank-check company to buy his online-gaming business from his restaurants-to-river cruises outfit. The deal’s cheap compared to virus-inflated rival DraftKings’ valuation. But Fertitta’s inside knowledge gives him a winning hand.

Corona Capital: A tax on martinis

24 June 2020

Concise views on the pandemic’s corporate and financial fallout: Uncle Sam has bad news for those enjoying the libation during lockdown as it’s putting up import duties on gin, vodka and olives.

Corona Capital: J.C. Penney, Hockey

17 June 2020

Concise views on the pandemic’s corporate and financial fallout: Executives at bankrupt clothing chain J.C. Penney sell their shares for, well, pennies; and ice hockey gear supplier Bauer adapts for the Covid-19 era.

AT&T game division sale is M&A in newb mode

15 June 2020

The telecom giant is mulling an auction of the unit behind Mortal Kombat. The timing is right – video game makers are ascendant – and a mooted $4 bln comes in handy to pay down debt. The harder move is figuring out what to do with other, bigger assets like DirecTV.

NetEase’s Hong Kong reception beckons to China Inc

11 June 2020

Local mom-and-pop investors ordered 360 times as many shares of the $58 bln video-game maker as were on offer. Easy money is distorting markets everywhere and NetEase has virus-resistance appeal. Exuberant retail buyers only make the case for other secondary tech listings easier.

NetEase fortifies itself against global disarray

2 June 2020

The $51 bln video-game producer is ready to raise $2.6 bln in Hong Kong. Quarantined customers have helped it defy a U.S. backlash against Chinese stocks. A secondary listing closer to home, following a tougher trail blazed by Alibaba, should add a useful layer of protection.