Circus deal risks becoming lunge at falling knife 21 Apr 2015 TPG and others are buying Montreal-based Cirque du Soleil at a $1.5 bln valuation. That’s over $1 bln less than the price secured by founder Guy Laliberté in an ill-fated 2008 sale to Dubai. Recent shows have struggled, though, and hoped-for Chinese growth could easily stumble.
Sharing benefits may be lost on real economy 27 Mar 2015 The likes of Uber and Airbnb are rising fast. A new report projects, for example, the new breed of lodging services alone will grow nearly 20-fold over the next decade, to over $100 bln of bookings. Sharing is also cutting prices. The effects could elude official GDP figures.
Accor CEO wins elbow room with investor selldown 25 Mar 2015 Backers Colony Capital and Eurazeo have sold 1.1 bln euros of shares in the French hotel group, halving their combined stake to 11.2 pct. That helps boss Sebastien Bazin, a former Colony employee, prove he is his own man – and makes Accor an easier sell to outside investors.
Activism an ace in hole for Steve Wynn’s ex-wife 6 Mar 2015 Elaine Wynn launched a proxy fight to save her board seat at the casino she and the gambling mogul started. Insiders rarely win such battles, as a Hewlett-Packard heir can attest. Yet a 10 pct stake and knowledge of the company make her a better bet than just any pushy investor.
Expedia indicates first-class M&A tickets remain 12 Feb 2015 The online travel company’s shares jumped after it agreed to buy smaller rival Orbitz for $1.6 bln. Advertised synergies worth $525 mln today amount to twice the premium being paid. Despite evidence of fewer easy pickings, Expedia shows why the deal boom still has some runway.
Uncle Sam stoked to hash out marijuana in 2015 24 Dec 2014 Now that four U.S. states and D.C. have legalized recreational cannabis, commerce and safety warrant better regulation. But federal rules prohibiting the drug create obstacles. For the fledgling industry to mellow, Washington needs to tweak laws to consent to states’ will.
Apollo, TPG dabble in Caesars sleight-of-hand 20 Nov 2014 The casino’s private equity owners are haggling with creditors. One idea is to split a key unit into operating and property arms, as rivals have. Such financial engineering would fit well with Apollo and TPG’s earlier moves to turn this top-of-the-market LBO into a decent bet.
Club Med organisers can welcome latest arrival 22 Jul 2014 Andrea Bonomi’s Investindustrial is offering 790 mln euros for the all-inclusive holiday group. This may not be a five-star price but it blows a rival Franco-Chinese bid out of the water. And investors have spent years in the wilderness. This is an offer the board can recommend.
Priceline’s OpenTable buy is costly appetizer 13 Jun 2014 The $64 bln online travel outfit is paying a 46 pct premium – $2.6 bln in cash – to snag the restaurant reservation site. Each helps small businesses and customers find each other. But the tariff only makes sense if Priceline can plug many more of both into OpenTable worldwide.
PokerStars goes all-in with $4.9 bln U.S. gamble 13 Jun 2014 The leading poker site is being staked by Canada’s Amaya and Blackstone in an aggressive deal that lifts debt to 6.6 times EBITDA. Cashing out the backers of PokerStars should increase the odds of cracking the United States. If Amaya plays its cards right, the bet could pay off.
IHG is a one-star candidate for M&A activism 3 Jun 2014 Bill Ackman protégé Mick McGuire is targeting the $10 bln hotels group. He wants IHG to sell to a bigger rival. Consolidation makes sense. But IHG is expensive, suitors like Starwood aren’t keen, and the group has fewer weaknesses than the typical activist target.
Saga flotation has a few wrinkles 21 May 2014 A retail-heavy flotation targets a market cap of at least 2 bln stg. That looks pricey for what, despite sidelines in cruises and healthcare, is still basically an insurance broker. The risk is a soggy share price - and a backlash among Saga’s loyal base of older Britons.
Silicon Valley exceptionalism only travels so far 28 Apr 2014 Airbnb has been sassing its way around New York, whose attorney general suspects the residence-sharing site’s users are breaking the law. A better lodging mousetrap and $10 bln valuation may resonate in the Valley, but it doesn’t mean nearly as much beyond the tech echo chamber.
Candy Crush maker picks $7.6 bln IPO from thin air 12 Mar 2014 King Digital uses creative metrics like MGABPPU to justify its whopping valuation. But there’s no way to calculate what an enterprise is worth when its profit can skyrocket 70-fold one year and could collapse the next. Rival Zynga’s IPO flub serves as an apposite warning.
Apollo and TPG try to stack the deck at Caesars 19 Feb 2014 The private equity duo gambled poorly with a 2008 buyout of the casino empire, which has hired Lazard to help it restructure. A $24 bln debt marker led the firms to stash some Caesars aces elsewhere. Junior bondholders are learning that even with a bad hand the house has an edge.
Travel tech IPO charts familiar round trip 28 Jan 2014 Seven years after taking airline reservations operator Sabre private for $5 bln, TPG and Silver Lake are making the return journey to public markets. It’s one of many big buyouts that should land safely despite a badly timed takeoff. The tardiness will cost investors, though.
Blackstone stock tells similar tale to Hilton’s 4 Dec 2013 The buyout firm’s traded units are at last nearing their $31 debut price of 2007. The recovery coincides with a profitable float of the hotelier, a $27 bln deal Blackstone struck the same year. While the results diverge for investors, both speak to private equity’s timing nous.
Macau results show not all casinos can be winners 1 Nov 2013 Gambling in the former colony has boomed this year as high rollers defy China’s slowing growth and corruption crackdown. Most gaming stocks have doubled in the past twelve months. But disappointing results from MGM point to growing competitive pressures.
Netflix could turn troublesome euphoria into useful cash 22 Oct 2013 The online video company’s stock has quadrupled since January. CEO Reed Hastings warns that momentum investors are too euphoric. Diluting the punchbowl is a better way to calm this rowdy party - and answer doubts about its balance sheet.
Fantasy sports re-engineered as fantasy investment 17 Oct 2013 Wall Street and Silicon Valley have spawned a love child called Fantex, a market for investing in the actual earnings of pro athletes. The proposal sounds like a sports junkie’s dream. In reality, it’s fraught with risks. Fans should lace up their sneakers and run away.