Capital Calls: Ford’s private equity playbook 2 Mar 2022 Concise views on global finance: The Detroit automaker’s reorganization plan makes explicit the goal of squeezing its traditional car business for cash to fund its electric future.
Capital Calls: Albertsons, Target 1 Mar 2022 Concise views on global finance: Supermarket chain Albertsons considers repackaging itself – again. Meanwhile, rival U.S. retailer Target beats earnings expectations, but with a performance at odds with its cut-price valuation.
Roblox metaverse premium gets real-world downgrade 16 Feb 2022 The gaming platform attracted more users in January, but nearly flat bookings of virtual currency knocked 25% off its shares. Video games can be faddish, and kids’ obsessions even more so. Doubt about Roblox’s ability to turn attention into cash merits a more mundane valuation.
Capital Calls: Theme park M&A, Energy IPO 16 Feb 2022 Concise views on global finance: Cedar Fair rebuffed a takeover offer from rival amusement park operator SeaWorld, but other buyers may be reluctant to join the ride; The $8 bln Vaar Energi, majority owned by Italy’s Eni, sees its shares dip on their first day of trading.
India ramps up the cost of Chinese cash 16 Feb 2022 New Delhi is determined to curb Beijing’s influence in its tech sector. For local startups like Paytm and Zomato, unwinding Chinese investment is a pain. Foreigners like Singapore’s Sea may face a starker choice: cash from the People’s Republic or access to India’s growth market.
Capital Calls: EVs run over ethanol and gas 15 Feb 2022 Concise views on global finance: Farmers and oil barons are set for more fights after a recent study showed the biofuel is likely at least 24% more carbon-intensive than gasoline. They are missing the bigger threat.
Super Bowl gambling bonanza is a DraftKings bust 11 Feb 2022 The number of people who bet online on America’s football mega-match is set to surge. That ought to mean a jackpot for the wager app. But its losses are growing due to promotions that the $18 bln company is using to attract users. Justifying such costs requires defying the odds.
Capital Calls: New York Times buys Wordle 1 Feb 2022 Concise views on global finance: The news organization’s purchase of the popular word puzzle fits its subscription strategy.
Microsoft’s scale and M&A invite scrutiny 25 Jan 2022 The $2.2 trln software giant's quarterly sales jumped 20% last quarter. Boss Satya Nadella has outperformed many Big Tech peers of late. After last week's deal to buy Activision for $69 bln, Microsoft's uncanny ability to avoid regulators' crosshairs may be running out.
Capital Calls: GE’s Larry Culp learns to say “no” 25 Jan 2022 Concise views on global finance: It will be a while before the industrial conglomerate’s markets normalize, and its planned breakup takes place. In the meantime GE is trying to cut costs and be more selective. That means less revenue, at least at first.
Gary Cohn lottery deal gives investors extra plays 24 Jan 2022 The former Goldmanite's SPAC is merging with Allwyn, implying an $8 bln market cap for the European lottery operator. There's a novel twist: Bonus shares will go to owners who don't redeem their stock. It should help an already sensible-looking bet get over a common SPAC hurdle.
Netflix could be Activision’s Plan B 20 Jan 2022 Microsoft’s $69 bln bid for the “Call of Duty” maker may fall foul of trustbusters – and the same issue could deter other tech firms like Alphabet and Meta Platforms. That creates an opening for Netflix. Activision could neatly further the streaming giant’s video game ambitions.
Gaming M&A frenzy gives Europe extra powers 19 Jan 2022 U.S. giants have launched $82 bln worth of deals in a week. Creators like Ubisoft and CD Projekt may not fit Take-Two’s mobile-at-all-costs model. But Microsoft’s tilt at Activision awards bonus points to cloud gaming and original content. That plays into European gamers’ hands.
Sony brings a knife to global video-games gunfight 19 Jan 2022 Investors erased 10% of its market value after Microsoft's $69 bln swoop for Activision. The Japanese group may lose access to some content but that looks manageable for now. The bigger worry is that Sony is no match against its far-larger rival as gamers look beyond consoles.
Crown plays its cards well with Blackstone 13 Jan 2022 The embattled Aussie casino empire is ready to drop its poker face and back the buyout firm’s fourth bid, sweetened to $6.4 bln. Blackstone’s impressive turnaround track record in hospitality deals leaves it well-placed to maximise returns, even after the multiple price hikes.
Take-Two pays hefty premium for mobile experiment 10 Jan 2022 The $19 billion maker of "Grand Theft Auto" is paying a 64% premium for Zynga, which makes mobile games like "FarmVille." In theory that helps its push into the fast-growing handheld platform. But the deal hinges on big sales increases and talent that might walk out the door.
Tencent’s Sea rejig keeps most people happy 4 Jan 2022 The Chinese tech behemoth is selling part of its stake in its $120 bln Singaporean peer. Sea also plans a revamp of its supervoting shares so that founder Forrest Li retains control. Li, Tencent and even Beijing can cheer. Minority investors have the least reason to be enthused.
Flutter makes timely bet on Italian online boom 23 Dec 2021 The UK bookie is buying Milan-based rival Sisal from buyout fund CVC for 1.9 bln euros. That’s a cheap way in to a large gaming market. With its money-spinning national lottery and pandemic-driven popularity, Sisal offers prompter returns than Flutter’s long-term U.S. punts.
Embracer rolls the dice in $3 bln board-game play 16 Dec 2021 The $9 bln Swedish video-game firm is buying France’s Asmodee, maker of tabletop titles “Catan” and “Pandemic”. The price looks fair against rival Hasbro, and tie-ups between old-school and newfangled gaming have worked. But a lack of synergies makes a winning return tricky.
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.