AT&T and Discovery’s tie-up has a Netflix quandary 27 Jan 2022 The telecom firm added 4.3 mln subscribers for its HBO service, soon to be part of a media joint venture with Discovery. But Netflix’s stock crash suggests streaming valuations have slumped. That takes some of the shine off “Succession” parent WarnerMedia’s upcoming union.
Facebook’s crypto demise is a missed opportunity 27 Jan 2022 The social network’s digital asset group is winding down under regulatory pressure. Though Diem Association’s links with Facebook proved toxic, ex-member firms like Visa could have made cryptocurrencies respectable. Meanwhile, watchdogs have done little to rein in riskier coins.
Capital Calls: TCI’s railroading tactics 26 Jan 2022 Concise views on global finance: The fund run by Chris Hohn has settled with Canadian National after a messy battle for the board.
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.
Pandemic darlings now need reinvention 21 Jan 2022 Netflix and Peloton stocks tanked as it became clear lockdown fortunes are changing. Investors may be overreacting to a dose of business reality. Even so, such companies' success has invited copycats, and they’ll have to change to stay ahead.
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.
Capital Calls: Siemens Gamesa, Psych SPAC 21 Jan 2022 Concise views on global finance: The 11 billion euro wind turbine manufacturer serves up its third profit warning in nine months; Hope for drugs to treat depression is tempered after rivals suffer mishaps.
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.
Capital Calls: UK bid gets hedge funds off hook 17 Jan 2022 Concise views on global finance: Private equity group Triton sweetens its offer for pharma group Clinigen to 1.3 bln pounds, raising the chances of hedge funds accepting the deal.
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.
Disney can follow WarnerMedia breakup blueprint 7 Jan 2022 Mickey Mouse’s parent company has a sprawling business that, like AT&T’s soon-to-be-former content service, isn’t getting full credit for its value. WarnerMedia’s decision to ditch one of its networks has sticking points. But Disney could benefit from doing a spinoff 2.0.
Walmart gets taste of the Lotte treatment in China 7 Jan 2022 Officials lambasted the U.S. retailer for network security problems, in what looks like blowback over allegations that Xinjiang-made products were yanked from shelves. The South Korean chain was hounded out of China by similar methods. Worst case, Walmart could share that fate.
Invesco walks very fine line on Sony-Zee deal 7 Jan 2022 The U.S. fund won key concessions in the $7 bln entertainment merger, but it’s also mixed up in a lawsuit over the Indian broadcaster blocking its call for a shareholder vote. Court defeat would set an ugly governance precedent. Victory, however, risks blowing up the transaction.
Theranos jury draws a line between hype and lies 4 Jan 2022 Elizabeth Holmes, who touted non-existent capabilities for her now-defunct blood-testing startup, has been convicted of defrauding investors. If it stands, she faces jail time. Even in Silicon Valley, there's a limit to how flagrantly founders can fake it until they make it.
Macau watchdogs will double down on digital yuan 3 Jan 2022 As casino operators prepare bids for new licenses in the $37 bln gambling hub, investors fear regulators will tighten their grip on Sands, Wynn and MGM. One clever way to start would be by forcing them to adopt China’s new virtual currency.
Review: A cautionary tale of bad climate investing 31 Dec 2021 “Don’t Look Up” has several flaws. But the satire about a giant comet heading for earth makes heroes of scientists, wallops politicians and the media and is often funny. Its warning not to put faith in flashy moonshots is also spot-on for companies grappling with global warming.
Qatar’s World Cup will pay Gulf-wide dividends 22 Dec 2021 After an awful lead-in, expectations for soccer’s showcase event in 2022 are low. Even so, the tiny emirate’s status will likely benefit. Provided Covid-19 is under control, the jamboree should also boost a regional economic recovery that has lagged other parts of the globe.
Private equity will be potent Hollywood antihero 21 Dec 2021 Blackstone’s deal with Reese Witherspoon in 2021 positioned it as a challenger to video streaming services. Buyout firms have the money and talent handling skills to make it in Tinseltown. But to make the math work, their future customers need to remain in good shape too.
Springsteen deal shows Boss has a financial touch 16 Dec 2021 The “Born in the U.S.A.” singer is selling his music rights to Sony for $500 mln. It’s well-timed: valuation multiples for songs are high, buttressed by cheap money, and growth in online streaming may slow. Buyers’ hungry hearts will lead artists to a monetary promised land.
Capital Calls: 3M is a banker’s idea of no fun 15 Dec 2021 Concise views on global finance: The industrial giant has paid investment bankers 95% less in fees than General Electric. The company may have a hard time getting Wall Street’s best advice, even though deals might not help it.