Meg Whitman’s good management of bad business ends 21 Nov 2017 She took over Hewlett-Packard when Silicon Valley's original success story was in unprecedented turmoil with three predecessors fired, a dysfunctional board and a welter of failed deals. By breaking it up, she brought stability. It's a track record that might work in politics.
Half-a-trillion-dollar Tencent is market headache 21 Nov 2017 The Chinese tech giant’s market value briefly hit $535 bln, making it bigger than Facebook. While Tencent has helped push Hong Kong’s Hang Seng index to near-record highs, the gains flatter a weaker wider market. Any correction would hit a multitude of investors.
Buffett-backed BYD could use a battery ram 21 Nov 2017 The carmaker’s stock almost doubled this year on China’s plans to rev up the electric-vehicle market. Founder Wang Chuanfu is targeting 1 trln yuan in sales by 2025. Yet earnings are flagging. To outpace nimble upstarts and powerful rivals such as CATL, BYD must scale up fast.
Uber-Volvo deal scrapes self-driving surface 20 Nov 2017 Providing 24,000 vehicles for the ride-hailing service’s autonomous fleet could pump $1 bln into the Swedish carmaker’s tank. While a decent chunk, the car industry of the future ought to generate multiples of that from running robo-taxis and selling a plethora of other services.
Marvell suits up well for growing chipmaker wars 20 Nov 2017 The value of cost cuts easily covers the premium in its $6 bln offer to buy rival Cavium. The deal also welds together two sets of mostly complementary business, strengthening the combined company’s portfolio. That should set it up well for further M&A in a consolidating market.
Toshiba’s fresh funds provide for hard reboot 20 Nov 2017 The ailing Japanese group is raising $5.3 bln, or nearly half its market value again, by selling new stock. That ensures it avoids delisting. Buyers must see value in Toshiba’s residual interest in memory chips, plus the potential for turnaround elsewhere.
Alibaba deal guides grocers to checkout 20 Nov 2017 The e-commerce goliath is buying over a third of Chinese supermarket owner Sun Art for $2.9 bln. It underscores how food marks a pivotal retail battleground. And for Alibaba to secure the stake at a 24 pct discount suggests its brick-and-mortar rivals see the writing on the wall.
Tesla takes crowdfunding to 250 mph 17 Nov 2017 Elon Musk’s money-losing $53 bln electric-car maker unveiled a surprise new Roadster model while showing off a battery-powered truck. Pre-orders for the first-edition supercar, available in 2020, may raise $250 mln up front. It’s a reminder of Tesla’s constant thirst for capital.
Cox: Amazon to become biggest impact investor ever 16 Nov 2017 Jeff Bezos' $550 billion creation has become a Shiva-like force, threatening whole swaths of the retail industry and its jobs, while paying a relative pittance in taxes. By choosing a second HQ in 2018 where it's needed most the company can forestall a social and state backlash.
Emerson ratchets up heat on Rockwell – and itself 16 Nov 2017 The U.S. industrial group raised its bid for the automation specialist to $29 bln. A near-30 pct premium puts pressure on Rockwell’s long-serving leadership to come to the table. In pursuing a long-term logical tie-up, though, Rockwell looks to be punishing its own shareholders.
Indian stock chats have a hot tip about Facebook 16 Nov 2017 As the $520 bln social network tries to contain Russian propaganda fallout, a Reuters report says users on WhatsApp are sharing prophetic financial figures. It could attract the eye of securities regulators, and adds to Facebook's woes in its biggest messaging market and beyond.
Asian private-equity forum taken over by tech 16 Nov 2017 Dealmakers gathered at the Four Seasons in Hong Kong have been chattering mostly about one industry. Some buyouts are threatened by the likes of Airbnb while other firms make bank on startups such as China Literature. Given valuations, the obsession is a tell-tale sign of risk.
The Exchange: Mike Novogratz 15 Nov 2017 From Goldman Sachs partner to Fortress founder and now bitcoin trader, the chief executive of Galaxy Investment Partners has something of a Midas touch. He swings by Times Square to talk about how he's making a killing with a new hedge fund betting on crypto-currencies.
Tencent’s overseas strategy is name of the game 15 Nov 2017 Big hits like "Honour of Kings" helped power quarterly sales up 61 pct, to $10 bln. The pace of Chinese gaming growth is likely to slow, however, and quickly. Tencent's investments abroad have been a mess so far. It'll take sharper plans to justify trading at 40 times earnings.
Apple’s iPhone factory placed briefly on hold 15 Nov 2017 Foxconn, maker of the 10th anniversary X model, reported a 39 pct slide in quarterly profit and lower margins amid production snags. The setbacks should be temporary. As iPhone orders roll in and production picks up, the Taiwanese manufacturer's fortunes will turn around quickly.
Uber and Geely perform flying-car stunts 15 Nov 2017 Both the U.S. ride-sharing company and the Chinese automaker have bet on Jetsons-like transport. The deals may generate some helpful buzz, but driverless vehicles are a more immediate prize. And as drone makers also have found, regulation is a bigger problem than innovation.
Qualcomm jockeying is all about 5G chip race 14 Nov 2017 It’s no coincidence Broadcom made its $105 bln bid as operators start testing next-generation phone technology. Qualcomm’s heavy investment gives it an edge, and stands to reap rich rewards in a few years. That should stiffen its defense - and raise the odds of a higher offer.
Private equity deserves U.S. tax hit, not startups 14 Nov 2017 Tech firms are understandably upset over a Senate plan to tax stock options when vested. It would raise $13 bln over 10 years. Ending a loophole on investment profit for buyout barons would bring in more. It’s a better target for Republicans already accused of favoring the rich.
Vodafone is doing just fine without Liberty 14 Nov 2017 The mobile operator upped its forecast for organic EBITDA growth to 10 pct this financial year. Vodafone is cutting costs, raising prices and adding customers. Fibre-broadband growth plans in Germany and Britain, meanwhile, make a deal with John Malone or anyone else less urgent.
Amazon surrenders cheapest bit of Chinese cloud 14 Nov 2017 A local partner will buy the hardware associated with the U.S. web giant’s cloud-services business. Onerous new security rules – or, for critics, Beijing’s protectionist tendencies – are behind the sale. Amazon and other Western tech firms may yet have to give up more.