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China’s video-game bulls are running out of lives

3 December 2018

Developer iDreamSky will list in Hong Kong at a price tag of roughly $1 bln, less than 10 times expected earnings. Its backer and larger peer Tencent trades at 30 times. The discount signals a mainland online crackdown is taking its toll: valuations have further to fall.

Chip industry’s new paradigm looks like old one

16 November 2018

As cutting-edge semiconductors got harder to make and demand boomed from new fields like bitcoin mining, top manufacturers seemed invulnerable. Shrinking sales forecasts from Nvidia and Applied Materials show companies are as prone as ever to economic cycles and excess inventory.

Casino M&A regulatory pushback worth the gamble

8 November 2018

More trouble at Wynn could make it a takeover target. MGM may place its chips on Caesars. Watchdogs take a hard line on casino deals. But with legalized sports betting and a drop in table gambling challenging the Las Vegas Strip, bulking up may be the safest way to beat the odds.

Democratic donors claim tarnished returns crown

7 November 2018

Casino magnate Sheldon Adelson has little to show for the $113 mln he gave the GOP in the midterms. Financier Tom Steyer donated less than half as much to Democrats and saw them win the House. But with fundraising hitting a record $5.2 bln, divided government is a meager result.

Henry Kravis joins gaming value “emote routine”

29 October 2018

The billionaire’s private-equity firm is investing in the company behind the Fortnite craze at a $15 bln valuation. Epic has shown free games can be lucrative. But the deal clocks in at what seems an over-enthusiastic price. It’s a bet Epic can stay ahead of teenage fads.

Record lottery threatens Silicon Valley self-worth

23 October 2018

A few months unclaimed has left the top U.S. prize at $1.6 bln. A successful punter or several will become at least as well off as founders of a hefty tech unicorn. Rubbing shoulders on rich lists might rankle with startup billionaires – but their wealth owes plenty to luck, too.

Movie-themed casino IPO sticks to messy script

19 October 2018

Macau-based Studio City, part of Lawrence Ho’s $9 bln gambling empire, made a stellar New York debut with a 24 pct pop. The listing provides some needed capital and could help existing minority investors eventually stage an exit. It also features Melco’s costly complex structure.

Macau is handy chip in China’s standoff with Trump

15 October 2018

The gambling hub’s 20 year licenses for Sands China, Wynn Macau and others are nearing their expiry. It gives Beijing leverage over founders Sheldon Adelson and Steve Wynn, both friends of the U.S. president. Squeezing them could be one way to get Trump’s attention over trade.

Tencent’s big battle goes from fantasy to reality

31 August 2018

The “Honour of Kings” maker lost another $20 bln in market value on a fresh videogames crackdown. This time, Chinese officials say they’re worried about myopic kids. It leaves investors exposed to nearly unpriceable risks and Tencent’s failure to build new businesses fast enough.

More AWOL China bosses flag unique key-man risks

24 August 2018

Casino operator Landing has lost half its market value amid news that its chairman is unreachable. It’s the second such case in three days. Overdependence on top executives continues to plague many Chinese companies, and they’re exposed to hazards uncommon in other markets.

China crackdown exposes Tencent’s gaming addiction

15 August 2018

Disappointing second-quarter revenue adds to fears of a slowdown at the Chinese web giant, which has shed $170 bln in market value in 2018. Now Beijing is restricting new video games. Despite heavy investment in new businesses, Tencent’s bottom line still depends on gamers.

Macau moguls’ rivalry threatens cost discipline

10 August 2018

High rollers pumped up revenue at Galaxy and Sands last quarter, while Wynn Macau fell behind. As casinos fight for their share of China’s $38 bln gambling hub, earnings are becoming more volatile. Investors will suffer if aggressive marketing and new attractions squeeze margins.

Hot streak at Macau’s SJM may be short-lived

1 August 2018

The $7 bln gambling group’s shares have soared since announcing its founder’s retirement. Yet the launch of a new casino on the Cotai Strip faces delays and the company now has a “hydra-like” leadership structure. New boss Daisy Ho needs a better hand to justify a rich valuation.

Macau casinos could lose VIPs to junket upstart

25 July 2018

Suncity boss Alvin Chau helps bankroll half of the gaming hub’s big-spenders. He also aspires to running his own casinos and could coax clients to try new markets like Vietnam. That may mean fewer high rollers at Wynn Macau, Galaxy and others when China’s slowdown bites.

Macau will struggle to kick its gambling addiction

28 May 2018

The Chinese region wants to be more like Las Vegas, and focus on varied nightlife and family fare. One official says resorts could generate 40 pct of revenue beyond the casinos. It's a worthwhile target for Galaxy and peers, but Macau's infrastructure is one of many hurdles.

Paddy Power turns M&A into a fantasy sport

23 May 2018

The Dublin-based group is merging its U.S. assets with fantasy-sports business FanDuel. If a recent Supreme Court ruling leads to nationwide legal sports betting, loss-making FanDuel’s users could become valuable punters. The catch is that payback could be a while in coming.

Viral game can unlock Tencent’s treasure chest

16 May 2018

The online giant has shed $95 bln of market value this year amid worries about falling margins. A 48 pct jump in first-quarter revenue helps ease those concerns. The Chinese launch of Fortnite, the game that has gripped teens across the world, also plays to Tencent’s strengths.

Time for Elaine Wynn to take break from the table

15 May 2018

The director targeted by the casino’s co-founder is leaving, as is another. With a refreshed board and new CEO, Wynn Resorts is well placed to move on from recent scandals. Unless she has suddenly hit on a new grand plan, Elaine Wynn would do well to leave them to it.

Get ready to gamble – on U.S. sports betting

15 May 2018

The Supreme Court ruled that the feds can’t stop states legalizing wagers on basketball and other games. It will push a $150 bln black market into the light and gives firms like DraftKings and Paddy Power, sports leagues and media outlets like ESPN a grab at the revenue pot.