Expect buybacks but not M&A from China’s Sina 29 Sep 2017 An activist wants the $8 bln web group to consider a sale or a merger with subsidiary Weibo. The former would never get past boss Charles Chao, and the latter is a bad idea. But Chao could compromise by expanding the board, stepping up buybacks and handing out more Weibo shares.
Amazon European shopping talk is wishful thinking 28 Sep 2017 Supermarkets Carrefour and Sainsbury have been floated as potential targets following the e-commerce giant’s $13.7 bln purchase of Whole Foods. But CEO Jeff Bezos already owns the one grocer he really needs. Bid speculation only obscures the broader competitive pressures.
Hugh Hefner’s stamina outlasted the Playboy model 28 Sep 2017 The sexual revolution's great salesman has put down his smouldering pipe at 91. He built his pioneering magazine's blend of nudity and smarts into an empire with a logo recognised worldwide. But the internet, cultural change and competition saw his business age less gracefully.
Rocket Internet rejig exposes valuation mismatch 28 Sep 2017 The German tech investor is jettisoning half its stake in Delivery Hero for 660 mln euros. That’s welcome, but investors still don’t trust boss Oliver Samwer with the cash. Unless he pledges to return more of it to shareholders, Rocket’s stratospheric discount will persist.
Google clears deck for huge antitrust fight 27 Sep 2017 The company is separating its European shopping unit and allowing rivals to bid for ads. That solves one problem it has with watchdogs while minimizing losses and continuing an appeal. It also frees up Google to battle the EU over claims it uses Android to dominate online search.
Marc Andreessen’s software prophecy reverses 26 Sep 2017 It's now the world doing the eating. Technology takeovers, led by acquirers from far beyond the sector, are outpacing the overall M&A market, a BCG study finds. Many of these deals waste capital, however, and they provide a shaky underpinning for lofty industry valuations.
Market to Rocket Internet: initiate breakup mode 26 Sep 2017 The $4 billion German tech investor trades at a whopping discount to the sum of its parts. To unlock that value, Oliver Samwer’s company needs urgent repair. Returning spare cash to shareholders and spinning off its stake in Delivery Hero would be a good start.
Scandinavian payments buyout faces long payback 25 Sep 2017 Hellman & Friedman is buying Danish group Nets for $6.6 bln including debt. It’s the latest private equity firm to ride the switch to online payments. Nets has been through the buyout machine before, and faces threats. There are few easy wins in the current hot market.
Uber may be low on fuel for London fight 22 Sep 2017 The UK capital has decided not to renew the ride-hailing app’s licence, citing an irresponsible approach to safety and security issues. Boardroom upheaval makes it harder for Uber to address the concerns credibly, while a dented image could undermine Londoners’ enthusiasm to help.
Chinese online retailer sits in lap of IPO luxury 21 Sep 2017 Secoo has carved out a nice niche, selling upscale brands such as Tod's and Versace. Its customer base is small, though, and the firm is burning cash. Even so, impressive order sizes and a clean image make it a tempting target for counterfeit-fighting Alibaba and mass-market JD.
Activist has fighting chance with China’s Sina 19 Sep 2017 U.S. hedge fund Aristeia is going after the $8 bln Chinese web company. Sina looks like a good target: it is clearly undervalued and its boss is not protected by super-voting shares. A big stake in microblogging affiliate Weibo offers some straightforward ways to create value.
“Angry Birds” may struggle to float on thin air 15 Sep 2017 Rovio, known for the popular mobile game, plans to list with a value up to 900 mln euros. Though the price is more sensible than initial reports, it’s still flighty for a one-game franchise. Another warning sign is that many existing investors are using the offering to fly off.
Hong Kong is better off without dual-class shares 14 Sep 2017 Hong Kong’s securities watchdog has conceded in a battle for control over listing approvals, says the SCMP. Regulators can still reject proposals for unequal voting rights, which might lure tech IPOs at the expense of governance. But they'll need to get used to being unpopular.
Chinese web grocer’s IPO requires a strong stomach 14 Sep 2017 Food giant COFCO wants to raise up to $600 mln floating an online supermarket. Sales are growing as web shoppers splurge on fresh produce. But the group is investing heavily in logistics. Throw in a costly price war with Alibaba and others, and investor appetite may be lacking.
Facebook’s fuzzy math blurs its TV picture 6 Sep 2017 A claim to reach 100 mln younger people in America doesn't square with U.S. census figures, an analyst found. Despite a growing list of number blunders, advertisers have limited sway over the $500 bln titan. As Facebook pushes into streaming, though, it'll find tougher pushback.
Soft tech dominance brings on hard fight 31 Aug 2017 The exit of internet-monopoly researchers from a Google-funded think tank signals a larger battle. Tech firms have reaped fortunes controlling search, data and advertising. The companies and regulators are slowly taking the concentration of influence more seriously.
Carrefour’s ills demand Tesco-like revamp and more 31 Aug 2017 The French supermarket said full-year operating profit could fall 12 percent, partly due to stiff competition at home. The grocer’s new CEO faces even more challenges than Tesco’s Dave Lewis did three years ago. Domestic market share is shrinking and its online offering is weak.
Telecom Italia breakup is a three-way tug of war 24 Aug 2017 Government ministers are talking about separating Telecom Italia from its network. A breakup could be beneficial for the Italian government, and TI’s biggest shareholder Vivendi. Other shareholders would be harder to satisfy.
WPP underestimates pinch from corporate austerity 23 Aug 2017 The ad group cut its 2017 net sales guidance, blaming lower spending by consumer-goods giants which make up about a third of revenue. Boss Martin Sorrell reckons this will reverse. The danger is that zero-based budgeting and shareholder activism make frugality the new normal.
Snap won’t easily pull a Facebook-Google-Alibaba 22 Aug 2017 The messaging app's stock is 20 pct below the IPO price. That's territory its big internet predecessors encountered before roaring back - and beyond. Evan Spiegel's creation could snap back, but it's on weaker footing and losing money.