One number in Fox bid battle just gets smaller 12 Jul 2018 It’s the return on investment Comcast or Disney stands to make from buying parts of Rupert Murdoch’s empire. The price to beat is $71.3 billion, but the deal no longer looks as rational as when Disney made its first offer. As things heat up, the likely winner is whoever loses.
SoftBank gets some help tinkering with valuation 12 Jul 2018 Masayoshi Son’s sprawling operation attracted an investment of over $1 bln from hedge fund Tiger Global. That should help SoftBank narrow its conglomerate discount, as might spinning off the Japanese mobile unit. The massive Vision Fund, though, is a murky hodgepodge unto itself.
Comcast can save itself from M&A madness 11 Jul 2018 The U.S. media group upped its bid for Britain’s Sky to $34 bln, a level that defies financial logic. That could be bearable if it drops out of a bigger, parallel auction for Sky’s main shareholder, Fox – leaving rival Disney to overpay. Doubling down would be downright reckless.
Broadcom’s new M&A strategy has a bug 11 Jul 2018 The $105 bln chipmaker’s prolific dealmaking has supercharged growth. But its size, and the torpedoing of its Qualcomm bid, left it bereft of natural targets. Expanding into software by buying CA brings new opportunities - and substantially increases the risks of pitfalls.
Fox’s toppy Sky bid is just a new price floor 11 Jul 2018 Rupert Murdoch’s group is bidding 14 pounds a share for the UK group’s equity it doesn’t own, valuing Sky at 24.5 bln pounds. Yet a ruling by Britain’s Takeover Panel may push that even higher, while rival bidder Comcast can hit back. Sky investors may be far from peak altitude.
John Malone could still snag iHeartMedia 10 Jul 2018 Even though lenders to the bankrupt U.S. radio operator snubbed his last offer, the media tycoon has a chance thanks to the potential for a merger with his own Sirius XM. As iHeartMedia edges toward a $20 bln debt restructuring, there should be room for a harmonious deal.
Smucker sells inconvenient Doughboy 10 Jul 2018 The jam maker is shedding Pillsbury and other baking brands for $375 million because of soft sales. It sees a brighter future in snacks, coffee and pet food. But as PepsiCo’s Frito-Lay unit shows, consumers aren’t shunning unhealthy foods, just those that require a little effort.
New Fox bid would take Sky into crazy territory 10 Jul 2018 Rupert Murdoch’s group may launch a 25 bln pound offer for the UK pay-TV group this week, the FT reports. The mooted price is close to the level Britain’s Takeover Panel may require, but is too high for a buyer to make a decent return. That’s mostly a problem for Fox suitor Disney.
SoftBank gets a shrewd deal as Altaba’s middleman 10 Jul 2018 The Japanese conglomerate is acting as go-between for Yahoo Japan in a $2 bln stock buyback from the U.S. investment firm. SoftBank's domestic telecoms arm gets a stake at a cheap price, and closer ties with Yahoo Japan. That will help it gear up to go public.
Trump’s court pick a deregulatory gift to business 9 Jul 2018 Brett Kavanaugh, the president's Supreme Court nominee, has ruled against the consumer protection agency and net neutrality. His staunch conservatism ensures Democratic resistance. But if Republican numbers prevail, he can tilt the judicial balance to the right for a generation.
Spurned $3 bln satellite group still in M&A orbit 9 Jul 2018 Inmarsat seems a plausible target despite U.S. peer EchoStar dropping its offer. The shares are down a third in a year, and on some estimates fail to reflect the value of the spectrum it controls. The former Permira buyout may appeal to private equity, or to satellite rivals.
Rules of the road crystallizing for Chinese M&A 9 Jul 2018 Trade tensions and nationalism have tripped up transactions involving chipmakers Broadcom, Qualcomm and NXP, among others. Even as Beijing and Washington spar, though, dealmakers are adapting by scanning different regions or accepting smaller stakes and tougher conditions.
China’s Fosun gets into bed with its boss 6 Jul 2018 The $16 bln conglomerate is adding matchmaking to its "happiness ecosystem", buying a dating service from Chairman Guo Guangchang for $600 mln. Baihe Jiayuan is a big brand, but sector growth is slowing and the price looks steep. This insider deal is unlikely to charm investors.
Boeing’s $3.8 bln deal looks sleek, may not fly 5 Jul 2018 The aerospace giant is paying a fair price for 80 pct of Brazilian rival Embraer’s commercial-jet unit. Boeing can use the new joint venture to extend its dogfight with Airbus across the full range of aircraft. But Brasilia hasn’t signed off yet, and an election looms in October.
UK’s M&A referee owes Sky investors a late winner 5 Jul 2018 Disney’s sweetened offer for Fox does not extend to the UK pay-TV group’s other shareholders. Britain’s Takeover Panel could fix that by requiring the Magic Kingdom to pay up if its takeover of Rupert Murdoch’s empire succeeds. Unusual circumstances justify the intervention.
Singapore makes Uber unlikely techlash test case 5 Jul 2018 City-state regulators say the ride-app’s merger with $6 bln Grab curbs competition. They want drivers freed up and prices held steady, but also threaten to undo the deal unless consumers are happy with the fixes. The hard line may be a small sign of what’s to come for Big Tech.
Agarwal’s Anglo American carve-up looks a stretch 4 Jul 2018 The Indian billionaire is mulling a merger of his Vedanta empire with the global miner’s South African arm, Mint reports. The valuation case for a breakup is less compelling than it was. If Agarwal acts, it looks more logical to target the miner’s non-South African assets.
Hutchison’s $3 bln Italian buyout is a good call 3 Jul 2018 The Hong Kong conglomerate is buying Russian-backed partner Veon out of their Italian mobile JV, Wind Tre. That is a bold step amid political instability and intensifying competition. But the deal looks cheap, and could prove shrewd for new CK Hutchison boss Victor Li.
Chinese mega-fund is the last thing tech needs 3 Jul 2018 A state-owned enterprise is working with one of SoftBank’s partners on a $15 bln answer to the Vision Fund. Deploying huge sums wisely is hard, even if you have SoftBank’s track record. This could further inflate valuations, and stoke fresh subsidy battles among startups.
Aging fashion labels battle in bargain basement 2 Jul 2018 The founder behind Perry Ellis wants to take the clothing company private. An interloper that licenses brands for accessories is offering investors a premium – all of 50 cents a share. When the target is a grab bag of department-store merchandise, upping the ante is cheap.