Alibaba drafts breakup blueprint for China tech 28 Mar 2023 The $228 bln e-commerce group is splitting into six units spanning logistics to games, which may be listed. That should unlock value for weary shareholders, and please regulators keen to control strategic businesses. If done right, pressure for Tencent to follow may rise.
GoTo is back to facing less existential problems 21 Mar 2023 The $8 bln Indonesian superapp may not need to raise capital in a hurry. It expects to reduce its cash burn by up to 65% this year. Cost cuts are paying off but hard questions on future growth and competition with its financially stronger Singaporean rival Grab remain.
Capital Calls: SVB found old concentration risk 10 Mar 2023 Concise views on global finance: The busted bank counted half of all U.S. venture capital-backed startups as clients. As with financiers to oil barons in the 1980s, monomaniacal focus on a booming industry is a way to court disaster.
There’s hope beyond moaning for European telcos 3 Mar 2023 Orange and Deutsche Telekom asked for US Big Tech to pay for a “fair share” of network investment at the sector’s annual Barcelona bunfight. Even if it helps, it won’t be a quick fix. At least there’s hope the EU will allow more mergers, and new technology could help cut costs.
Salesforce sufficiently acquiesces to angry mob 2 Mar 2023 The $170 bln software developer improved its operating margin, doubled its stock buyback plan and disbanded its M&A committee. It’s effectively everything multiple dissidents wanted. Unless pushy investor Elliott has superstar board nominees, it would be overkill to ask for more.
EU’s Big Tech shakedown heads down new blind alley 1 Mar 2023 The European Commission’s effort to squeeze money out of the likes of Alphabet and Apple now aims at telecommunications, with a bid to make Silicon Valley pay for the bloc’s broadband infrastructure. Regulators have pooh-poohed the idea since 2012. It hasn’t improved with age.
Robinhood’s stock awards tell a cautionary fable 22 Feb 2023 The stock-trading app’s founders just gave back an $806 million bonus linked to certain share-price targets. An accounting quirk means the company must pay for it anyway. It’s one reason such outlays are a bad way to reward executives, as GE and others have learned.
Hermès’ “MetaBirkin” win misses the big picture 17 Feb 2023 A court ruled an artist’s digital version of the $198 bln group’s iconic Birkin bag violated trademark rights. The verdict gives luxury firms more clout to commercially exploit the metaverse. Yet the jury is still out on whether such forays will be anything more than marketing.
Telecom Italia breakup can please all its masters 15 Feb 2023 The sickly telco needs to cut its 25.4 bln euro debt pile. Selling its fixed-line grid to KKR offers a fix, provided the government gets a stake in the strategic asset. For major investor Vivendi, the upside would be a chance to sell Telecom Italia’s revamped service business.
Malone’s Vodafone bet may take years to pay off 14 Feb 2023 Liberty Global bought 4.9% of the telco conglomerate, joining industry rivals Abu Dhabi’s e& and Xavier Niel. Chairman John Malone knows the $31 bln company well and may hope to influence any breakup. A 2015 investment in UK broadcaster ITV shows he’s willing to sit and wait.
Capital Calls: Cryptocurrency, Chelsea FC 1 Feb 2023 Concise views on global finance: Britain delivers a blow to digital assets by aiming to regulate them the same way as traditional ones, while the UK soccer team’s new owner Todd Boehly splashes the cash.
Capital Calls: AstraZeneca 9 Jan 2023 Concise views on global finance: The drug giant is to pay up to $1.8 bln for U.S. group CinCor Pharma to beef up its kidney and heart businesses.
Yandex split marks end of Russian tech hopes 1 Dec 2022 The group once known as the “Russian Google” may split its international and Russian businesses. Ex-finance minister Alexei Kudrin will head the shrunken local arm. The company’s founders can start anew, but investors in the former Nasdaq darling will likely remain bereft.
Naspers swaps one Tencent headache for another 17 Nov 2022 The South African investor’s valuation discount to its $100 bln stake in the Chinese tech giant has narrowed since it started selling the shares to fund buybacks. But Tencent's plunging value is another factor. Though Naspers' prized asset has become a drag, exiting is tough.
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: American shoppers 16 Nov 2022 Concise views on global finance: Target blamed its ugly quarterly results on consumers pulling back on discretionary items even as fresh government data shows they keep buying loads of stuff.
Vodafone’s misery strengthens Xavier Niel’s hand 15 Nov 2022 The 26 bln pound group’s shares sank 8% after it cut its profit forecast. CEO Nick Read’s efforts to streamline the sprawling telco are getting bogged down by rising costs and weak growth. His new shareholder, the Iliad founder, may push for faster disposals and deeper cost cuts.
Kakao has plenty more data fires to put out 20 Oct 2022 The $16 bln South Korean superapp owner's co-CEO has stepped down following a massive outage. Given how dependent the country is on the company's online services, that's unlikely to quell a rising public backlash. The costs of added rules and regulatory scrutiny will add up.
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.
Vodafone’s UK merger plan has cost-of-living catch 3 Oct 2022 The $32 bln telecoms group and Hong Kong’s CK Hutchison are in talks to merge their British operations. A deal could unlock cost savings, but shareholders so far seem unenthused. It may be harder for watchdogs to accept lower competition while customers reel from higher prices.