Capital Calls: Zee, Embracer 13 Jun 2023 Concise views on global finance: India’s securities regulator banned the media group’s CEO from holding any key managerial positions, putting its merger with Sony’s local unit under a cloud; the $3 bln video-game group’s new strategy hits the right buttons.
Nasdaq futureproofs itself, but at 2021 prices 12 Jun 2023 Buying fintech firm Adenza for $10.5 bln adds vim to CEO Adena Friedman’s plan to reduce Nasdaq’s reliance on volatile markets. Yet the price, which includes a 15% stake for seller Thoma Bravo, is high. To justify it, Friedman needs bubbly tech valuations to make a comeback.
Gaming transatlantic gap invites M&A shoot-’em-up 9 Jun 2023 Shares in European gaming groups like Ubisoft are off by a fifth over the past year, underperforming stateside peers. Self-inflicted slip-ups are partly to blame, but players’ love for US-owned blockbusters means the valuation divide will endure. Dealmaking is a likely endgame.
Apple could overcome VR’s nerd and creepy factors 6 Jun 2023 Past attempts at virtual and augmented reality failed because the devices looked embarrassing, and the firms behind these efforts seemed untrustworthy. The headset the $2.8 trillion tech company rolled out on Monday isn’t an obvious success in its current form, but Apple has a better shot than others.
AI speed benefits now apply to EU boycott U-turns 26 May 2023 On Wednesday Sam Altman threatened to quit Europe if it “over-regulates” his booming startup OpenAI. He’s now rapidly rowed back. As with their disruptive new technology, AI mavens may have a shrewder sense than older US peers of when to stop poking the Brussels bear.
Intuit investors bet on Uncle Sam’s inept tech 24 May 2023 The US may allow consumers to file taxes online, bypassing private software. Surveys suggest a free option could threaten up to $2.9 bln in revenue from Intuit’s TurboTax arm. The $120 bln company and its shareholders are relying on the state failing to get its act together.
AI boom could expose investors’ natural stupidity 19 May 2023 Corporate leaders and money managers are jumping on the artificial intelligence bandwagon. The study of behavioural economics suggests people are easily carried away by hype. Some of the limits of human reason may also apply to supposedly smart machines, writes Felix Martin.
Why the jobs market could brush off AI threat 16 May 2023 Hiring seems to be waning in the US and Europe. Yet in this Exchange podcast, recruitment boss Sander van ’t Noordende strikes a hopeful note. The Randstad CEO explains why artificial intelligence and a possible economic slump are doing nothing to dampen demand for talent.
Big Tech’s AI victims will fall fast 12 May 2023 Online education company Chegg is suffering as students lean on artificial intelligence to help with homework. Hollywood writers are paranoid. While AI is accruing value to Big Tech, smaller companies will quickly – and once again – be annihilated by well-capitalized tech firms.
AI offers leisure, if not happiness 12 May 2023 Technology has outpaced economic growth for 50 years, while workers have long traded higher productivity for more leisure. These trends will continue as artificial intelligence automates more jobs. The salient question is how to distribute the gains – and the free time.
German software buyout battle hits investor glitch 10 May 2023 Bain Capital has launched a 2.5 bln euro knockout offer for IT group Software AG. But the target seems oddly happy to stick with a lower bid from existing backer Silver Lake. Shareholders can either take an inferior price or risk a messy stalemate.
Airbnb swerves tech rout with constant change 2 May 2023 The $77 bln travel company weathered the pandemic and is now navigating a tech valuation bloodbath. Its co-founder Nathan Blecharczyk told The Exchange podcast that lessons learned during Covid-19 about disruption and never sitting still are key to its future.
Deutsche Boerse data pivot comes at a price 27 Apr 2023 Boss Theodor Weimer is buying fund software firm SimCorp for 4 bln euros. Like peer LSEG, the German exchange is hoping a shift into the faster-growing data business will mean richer valuations. It’s a logical gamble, but such deals are expensive, and take time to pay off.
“Super Mario” augurs more media-gaming tie-ups 20 Apr 2023 Nintendo and Universal’s film adaptation of the hit video game franchise could rake in $1.5 bln. That’s a big victory for an industry whose spinoffs have more often been the butt of jokes. With gaming stocks having sold off sharply, there’s logic in more media giants plugging in.
Capital Calls: Allianz’s fintech sale 19 Apr 2023 Concise views on global finance: The $100 bln insurer may offload its 5% stake in German digital banking startup N26, a decision that would make all kinds of sense.
Cyberattack risks rise up company agendas 18 Apr 2023 Digital breaches and data theft were up 40% in 2022. As firms expand their digital network, the weaknesses criminals exploit will also grow, DXC Technology’s security expert Mark Hughes told The Exchange podcast. Defending against attacks will inevitably cost more.
Capital Calls: Bridal bankruptcy 18 Apr 2023 Concise views on global finance: David’s Bridal, which dresses one in four American brides, has filed for Chapter 11 bankruptcy for the second time in five years. Trends that push women to spend more on themselves suggest the chain would have better luck with bachelorettes.
Apple’s store push marks its big Indian wedding 18 Apr 2023 Dhol drums – a high-decibel feature of marriage celebrations – played in Mumbai as Tim Cook opened the company’s first store. A retail presence is mostly a symbolic gesture given India’s lower-middle income status. Yet selling more iPhones isn’t the only thing Cook has to gain.
Capital Calls: IMF’s grim outlook, Electric cars 11 Apr 2023 Concise views on global finance: The International Monetary Fund’s medium-term forecast for the global economy is the bleakest since 1990; lower proposed mileage ratings for electric vehicles could force automakers to sell more of them to meet regulatory standards.
Israel hits tech sector cash cow while it’s down 3 Apr 2023 Prime Minister Benjamin Netanyahu has delayed a controversial plan giving the state power to override court decisions. Foreign investors in Israel’s key tech sector, which accounts for half its exports, were already getting stingier. They’ll get even more so if the idea returns.