Activision’s comeback raises $69 bln question 13 Jul 2023 After defeating US trustbusters in court, Microsoft may need more time to seal the deal with UK authorities. The 45% premium struck when the “Call of Duty” maker was reeling looks less generous 18 months later. If negotiations drag, boss Bobby Kotick could push for a sweetener.
Microsoft-Activision deal not yet game on 12 Jul 2023 The $2.5 trillion tech giant has beaten down the US antitrust regulator. But the similar counterpart in the UK is digging in. Microsoft will have to either renegotiate its $69 billion deal with the gaming company or offer concessions, and then go through approval again.
Embracer cash call undermines investors’ M&A play 6 Jul 2023 The Swedish gaming group raised $180 mln from various investors at a 9% discount to its closing price. Last summer, it raised $1.1 bln from Saudi Arabia at a 15% premium. The contrast suggests a lower chance of a takeover, meaning CEO Lars Wingefors faces a single-player slog.
Macau wannabes risk being short of gamblers 29 Jun 2023 Japan and the UAE will soon have legal casinos; Thailand may follow. In theory Wynn, MGM and peers will have around $12 bln of new annual revenue to play for, more than Macau has raked in this year. But newcomers can’t rely on Chinese punters and their home markets are untested.
Capital Calls: Zee, Embracer 13 Jun 2023 Concise views on global finance: India’s securities regulator banned the media group’s CEO from holding any key managerial positions, putting its merger with Sony’s local unit under a cloud; the $3 bln video-game group’s new strategy hits the right buttons.
Gaming transatlantic gap invites M&A shoot-’em-up 9 Jun 2023 Shares in European gaming groups like Ubisoft are off by a fifth over the past year, underperforming stateside peers. Self-inflicted slip-ups are partly to blame, but players’ love for US-owned blockbusters means the valuation divide will endure. Dealmaking is a likely endgame.
Capital Calls: Embracer fail dents credibility 24 May 2023 Concise views on global finance: Shares in the $3 bln maker of shoot-’em-up video games fell nearly 45% after a mystery partnership agreement fell through at the eleventh hour.
Apollo’s Italy gambling IPO plays it suitably safe 21 Apr 2023 The US buyout fund is finalising a $3 bln listing of Italian betting firm Lottomatica. That will help slash the company’s debt and fund growth in Europe’s second-biggest gaming market. But the price discount suggests the IPO market remains a domain for the cautious and the needy.
“Super Mario” augurs more media-gaming tie-ups 20 Apr 2023 Nintendo and Universal’s film adaptation of the hit video game franchise could rake in $1.5 bln. That’s a big victory for an industry whose spinoffs have more often been the butt of jokes. With gaming stocks having sold off sharply, there’s logic in more media giants plugging in.
Macau reinvention is a big roll of the dice 14 Apr 2023 Casino operators Sands, MGM and others are juggling a recovery with spending on water parks, medical tourism and more to help the Chinese hub reduce its dependence on gambling. Investors can diversify too. They face better odds by sticking closer to the US holding companies.
Capital Calls: Saudi’s $5 bln gaming play 6 Apr 2023 Concise views on global finance: PIF-owned Savvy Games is acquiring US-based mobile gaming specialist Scopely for $4.9 bln, but it doesn’t obviously aid the kingdom’s wider gaming strategy.
Tencent puts spring back in its step 23 Mar 2023 After years of crackdowns and quarantines, the $423 bln giant sees green shoots sprouting in its video-games and ads businesses. The combination of regulatory respite, a post-lockdown consumption bounce plus cost cuts have put Tencent in a sweet spot for 2023.
Capital Calls: L&G/UK insurers 8 Mar 2023 Concise views on global finance: The $19 bln group led by Nigel Wilson is expanding rapidly overseas, which should help its depressed valuation.
Capital Calls: Schneider’s sustainable CEO 16 Feb 2023 Concise views on global finance: Jean-Pascal Tricoire’s departure as chief executive of the French industrial software group after nearly two decades at the helm defies the trend of short-lived or underperforming corporate bosses.
Capital Calls: Prices down, jobs saved? 12 Jan 2023 Concise views on global finance: New data shows U.S. prices falling 0.1% in December, marking the largest drop since early 2020. With inflation in retreat, the Fed can focus more on keeping Americans employed.
The ghost of Instagram haunts Microsoft’s future 9 Dec 2022 When Facebook bought the photo-sharing site in 2012, regulators failed to see Mark Zuckerberg’s larger vision. Now the FTC is trying to block Microsoft’s $69 bln Activision deal, partly to stop future domination. Fighting on qualitative terms seems unfair but is inevitable.
Blackstone feeds private-market valuation fears 1 Dec 2022 The buyout shop is limiting redemptions from a $125 bln real estate fund after investors flooded it with requests, echoing a broader selloff in publicly traded peers. Limiting withdrawals risks a dangerous feedback loop. And a profitable Las Vegas deal offers limited reassurance.
Tencent’s investor giveaway buys welcome respite 16 Nov 2022 The Chinese web giant is handing a $20 bln stake in food delivery firm Meituan to shareholders. The second such move in a year comes on top of increased share buybacks. The focus on boosting returns goes a long way to make up for slowing growth in Tencent’s video-game business.
Capital Calls: Adidas 21 Oct 2022 Concise views on global finance: The 19 bln euro sportswear maker slashed its 2022 revenue outlook, dragging shares down 10%.
There’s method to Saudi’s $38 bln gaming madness 11 Oct 2022 Riyadh says it will splash out to become “the ultimate global hub” for gaming by 2030. Saudi and the freewheeling sector are peculiar bedfellows. But with a petrodollar windfall and falling valuations, the kingdom has a good opportunity to make its unlikely vision happen.