Toshiba gives shareholder management masterclass 9 Jun 2023 The Japanese company is recommending a $14 bln buyout two-and-a-half months after first supporting it. The deft way its board eventually handled the process provides a template for Japan Inc to engage pushy owners. Point one: don’t automatically treat shareholders as the enemy.
‘Reverse CFIUS’ threat will be deterrent enough 8 Jun 2023 Team Biden is nearly ready to unveil a plan to restrict some $15 bln of US investment in Chinese tech. The process probably will be even messier than one used to review inbound capital aimed at sensitive domestic sectors. Extra red tape alone, however, should serve its purpose.
Amazon wireless plan makes sense for almost no one 7 Jun 2023 The $1.3 trln e-commerce company is once again reported to be mulling a mobile service. But potential partners AT&T, Verizon and T-Mobile have plenty to lose by letting Amazon use their networks. It also would be too expensive to make sense for cost-conscious boss Andy Jassy.
Sequoia breakup will expose go-local consequences 6 Jun 2023 The venture capital firm, which manages more than $100 bln, is splitting into three. The rebranded China and India arms will operate independently from the US and Europe. It speaks to geopolitical tensions, but runs contrary to natural evolution. And untangling comes with risks.
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.
Binance charges are a last gasp for crypto 5 Jun 2023 The SEC sued the world’s largest cryptocurrency exchange saying it misled investors and evaded securities law. Even if Changpeng Zhao’s firm works through regulatory investigations, dabblers will become even more shy, and diehards will pivot further to decentralized exchanges.
Mediterranean chain Cava caters to starved market 5 Jun 2023 The falafel and hummus eatery is aiming for an IPO valuation of up to $2.2 bln, 70% higher than a private assessment in 2021. The company’s fast growth will be tantalizing despite a lack of profit. After a long dry spell for new equity issuance, though, it’s easy to overindulge.
Nvidia crashes $1 trln party, perhaps not for long 30 May 2023 While tech firms like Apple and Amazon slogged their way to the stratosphere, the chipmaker’s ascent to mega-stock status has been fast and choppy. It has been propelled by two surges – a supply shortage and an AI boom. That may give it a more tenuous grip in the 13-figure club.
Shrinking VC clique will hurt returns 30 May 2023 Investors in venture capital funds and startups are doubling down on familiar faces and shutting the door on newcomers amid tightening economic conditions. Their reticence could change which companies receive funding and hurt returns.
Pinduoduo’s “global” brand masks identity crisis 29 May 2023 The $95 bln group is trying to disassociate itself from China as overseas suspicion of Beijing’s influence over apps rises. As with TikTok, relocating corporate structures is unconvincing. True separation means costly overhauls to supply chains, data practices and more.
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.
Nvidia investors price in seven years of AI glory 25 May 2023 The semiconductor firm’s worth surged to $940 bln on hopes it will win from artificial intelligence. CEO Jensen Huang has an astonishing record, with earnings growing 20% annually for two decades. But Nvidia will have to maintain this pace until 2030 to justify its valuation.
SoftBank pulls rabbits out of Fortress’s hat 23 May 2023 Boss Masoyoshi Son appears to be selling the money-losing Japanese conglomerate’s US alternative asset manager for at least double the valuation initially touted. There should be enough tricks left over for new majority owner Mubadala. But Fortress staff get the best of the deal.
Meta becomes cross-border tech mascot 22 May 2023 The EU smacked the $630 bln social media giant with a record $1.3 bln fine over data transfers to the US. Meta will fight it, but a fix requires a cross-border agreement and differing philosophies on data access make that hard. Without it, Meta’s fine is a bigger tech problem.
China’s Micron hit sets up repeat strikes 22 May 2023 The $72 bln US memory-chip maker says Chinese restrictions will probably reduce revenue less than 10%. Perhaps, but similar measures taken against database firms like Oracle and IBM a decade ago had a bigger long-term effect, helping domestic manufacturers to catch up.
Revolut-SoftBank fight exposes VC share artifice 22 May 2023 The fintech group may only win a UK banking licence if it gets rid of preference stock held by the Japanese investor. Similar structures are common in startup land, and help justify puffed-up valuations like Revolut’s $33 bln price tag. The fracas shows they also have a downside.
Capital Calls: US gifts Big Tech 19 May 2023 Concise views on global finance: The US’s high court left internet firms’ liability protections untouched in two Thursday rulings. For Twitter, Meta and Google, business as usual is the ideal outcome.
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.
How do you solve a problem like AI? Tax it 18 May 2023 Generative artificial intelligence could put a rocket up company profits, and potentially leave millions jobless. The economic and social disruptions could be profound. But fiscal distortions make it hard to tide over the losers. Closing obvious loopholes is growing more urgent.
Capital Calls: BT, Mediobanca 18 May 2023 Concise views on global finance: The 14 bln pound UK telco’s vague guidance is a concern for its two big shareholders seeking to recoup losses; the 8.5 bln euro Italian bank buys its biggest boutique yet.