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.
Fuddy-duddy Meta has a kid problem 5 May 2023 The FTC wants to bar the $613 bln company from monetizing young users’ data. But Zuckerberg’s audience is already among the oldest of social media apps. He not only has to figure out how to get kids and keep them. He has to do it in a way that builds trust.
Lyft steers closer to an Uber-takes-all world 4 May 2023 Already far behind its bigger US ride-share rival, Lyft’s dismal profit forecast makes the difference even starker. And with Uber so much more profitable, each dollar of market share Dara Khosrowshahi snatches could boost his firm’s value by multiples of what his rival would get.
Apple’s balance sheet is golden and delicious 4 May 2023 The iPhone maker ended the quarter with $57 bln of net cash, despite pledging five years ago to cut its hoard down to size. Investors ought to be glad it didn’t. Rising interest rates put Apple in a juicy position to reinvest its money and push deeper into financial services.
Capital Calls: Unilever, Shopify 4 May 2023 Concise views on global finance: The consumer goods company may need to backtrack on a pay package for its incoming CEO to quell a shareholder revolt; shares in Canadian e-commerce firm Shopify shot up over 20% after it said it was selling its logistics business to Flexport.
Telecom Italia is stuck in risky game of chicken 4 May 2023 The telco’s board must decide on rival bids from KKR and state investor CDP for its fixed-line grid. None comes close to the 31 bln euro price wanted by top investor Vivendi, but cash is needed to slash debt. If neither side blinks, the group could face a messy capital increase.
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.
Capital Calls: OpenAI’s backers 1 May 2023 Concise views on global finance: The ChatGPT developer has secured $300 mln from venture giants including Andreessen Horowitz, according to TechCrunch. As it rounds up scarce funding from tech’s biggest names, competitors will find it harder to break through.
The game’s on, not over, for Activision Blizzard 1 May 2023 Microsoft has vowed to fight for its $69 bln takeover despite regulatory opposition. Even if the deal collapses, however, the developer behind “Call of Duty” would be armed with $15 bln of cash, including the break fee. It’s plenty of firepower to wage a stand-alone war.
Amazon gets ever more like a regular ol’ retailer 27 Apr 2023 The $1.1 trln e-commerce giant grew sales of goods faster than expected. Yet its star, AWS, is under pressure. Boss Andy Jassy is focusing increasingly on profitability. It's a familiar cycle for big retailers – but not previously for Amazon.
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.
Meta is younger dog learning newer new tricks 26 Apr 2023 Mark Zuckerberg cut enough costs last quarter to bolster margins well past expectations, adding 12% to its $530 bln value in after-hours trading. That positions it nicely against competitors pivoting to AI. The issue is that Meta’s metaverse project doesn’t look as fresh.
TikTok ban is the least palatable of options 26 Apr 2023 Montana wants to block the Chinese-controlled short-form video service from operating in the state. The White House is mulling a similar strategy. But banning the app from 150 mln US phones is hard and legally fraught. Outside of a sale, a data privacy law is the best outcome.
Britain grabs mantle of chief Big Tech deal-slayer 26 Apr 2023 The UK competition watchdog vetoed Microsoft’s $69 bln purchase of “Call of Duty” owner Activision, rejecting the software giant’s promises. Takeovers by tech titans have fizzled under scrutiny from the EU and US. This decision makes it even harder to expand by acquisition.
Tech giants bury mediocre results under AI hype 25 Apr 2023 Microsoft and Alphabet beat low expectations, but slowing growth and penny-pinching to juice profit don’t make for the world-changing narrative tech investors usually crave. Touting the promise of artificial intelligence scratches that itch – and supports their valuations.
Coinbase will force SEC to quit ghosting crypto 25 Apr 2023 It’s been eight months since Coinbase asked securities watchdogs to clarify how digital assets will be regulated. Now the world’s second-largest crypto exchange is suing for an answer. The legal battle will decide the fate of the trillion-dollar cryptocurrency industry in the US.
EY’s split fiasco will spark slow-motion decline 25 Apr 2023 The audit giant’s bean-counters are insulated against a rapid loss of business after its failed breakup. But EY’s more profitable consulting arm, including its prize tax unit, is less so. More reticent new clients and staff may see the Big Four become the Big Three-and-a-half.
Data-hungry AI models could help Reddit valuation 21 Apr 2023 The rise of artificial intelligence models like GPT-4 has turned social media posts into valuable commodities. Twitter paywalled that data last month, and Reddit plans to follow suit – which could help boost its valuation ahead of a public market debut.
“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.
US-China chip spat hangs over TSMC’s recovery 19 Apr 2023 Quarterly earnings at the Taiwanese giant are set to fall 5%, but demand should rebound soon. Beijing's retaliatory strategy against US chip sanctions is a bigger worry. Pressure on TSMC customers like Apple to shift orders to mainland suppliers would really hurt.