UK M&A machine meets a fitting end in $6 bln deal 26 Aug 2022 Software group Micro Focus International is selling itself to Canada’s OpenText. The cost-slashing logic follows the British firm’s playbook, which delivered mixed results. In spite of a hefty premium, the reasonable purchase price gives the buyer a good chance of making money.
Capital Calls: Electronic Arts’ M&A game 26 Aug 2022 Concise views on global finance: The publisher of the popular FIFA franchise is an attractive target but few buyers may be on the board.
Capital Calls: Amazon’s green coupons, Peloton 25 Aug 2022 Concise views on global finance: The internet giant’s promise to try green hydrogen technology is valuable to firms like Plug Power, so Amazon demands a taste. Investors in the exercise-bike maker suffer a rapid descent after dismal fourth-quarter earnings.
Capital Calls: Schneider/Aveva 24 Aug 2022 Concise views on global finance: The $73 bln French group tries to benefit from its UK unit’s falling share price to bring it in-house.
Fintech’s next big down round may have an upside 24 Aug 2022 After pay-later group Klarna raised cash at an 85% discount to its previous valuation, candidates for the next giant markdown include $25 bln Chime and $32 bln FTX. But it isn’t all bad news. By raising money when others can’t, they could grab market share or scoop up rivals.
Instacart’s fast growth isn’t fast enough 23 Aug 2022 The grocery delivery service is expanding into advertising and offering services to rivals, as boss Fidji Simo preps to potentially go public. Yet even with double digital revenue growth it only looks to be worth around $11 bln, far less than a private valuation a few months ago.
Intel makes chips look almost like infrastructure 23 Aug 2022 Brookfield is putting up half the cost of two $30 bln Arizona plants, at a rate somewhere between what Intel pays for equity and debt. Yet chips are riskier than traditional infrastructure, suggesting Intel is giving up more than its partner to make the deal work financially.
Musk’s Twitter subpoena storm gets everyone wet 19 Aug 2022 The Tesla boss is dragging Salesforce and others into his $44 bln M&A fight against the social network. It could reveal embarrassing communications. Twitter too has legal requests to Musk co-investors like Larry Ellison. That’s more incentive to settle and part the clouds.
Capital Calls: Cineworld needed AMC’s apes 19 Aug 2022 Concise views on global finance: The U.K.-based cinema chain is preparing for bankruptcy, according to the Wall Street Journal, while similarly debt-beleaguered AMC is still standing – an object lesson in the power of becoming a favorite of retail traders.
D.C. turf war opens crypto regulatory arbitrage 18 Aug 2022 The Fed issued the latest salvo in a regulatory tussle, requiring banks to alert the agency when they offer services for bitcoin and its ilk. The SEC and CFTC are also fighting to oversee the $1 trln market. It’s an opportunity for digital currency outfits but hurts token owners.
Capital Calls: Taiwan, Meme stocks 18 Aug 2022 Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.
Tencent is running in two different directions 17 Aug 2022 The Chinese video game giant suffered a 43% plunge in operating profit from falling markets and a weak economy. Boss Pony Ma is cutting costs and promising buybacks, but he also is pushing on overseas expansion and new businesses like cloud. The message on discipline is garbled.
Taiwan digs trenches in battle for chip talent 17 Aug 2022 Officials may force Foxconn to unwind an $800 mln deal with a Chinese chipmaker. This follows a crackdown on mainland companies poaching engineers, as Taipei tries to keep its tech expertise to itself. It could make a surprisingly powerful defence against hostile Beijing.
Capital Calls: Walmart whiplash 16 Aug 2022 Concise views on global finance: The U.S. mega-retailer revised its profit forecast yet again, just weeks after sounding the alarm.
Electric perfection is enemy of hybrid-car good 16 Aug 2022 Activists are attacking Toyota and others for sticking with designs that recharge using combustion. Yet pure electric models are only as green as their power grids and require heavy infrastructure investment. Puritanism is premature, and could prompt consumer backlash.
Capital Calls: Adam Neumann’s new venture 15 Aug 2022 Concise views on global finance: Venture capital firm Andreessen Horowitz funnels $350 mln into the WeWork founder’s real estate startup.
Gaming’s big comedown will be spread unevenly 12 Aug 2022 The sector has changed radically since 2008. It weathered Covid with ease, but it’s hard to say how cash-strapped gamers will fare in another recession. Reliable franchises like EA’s “FIFA” could end up more valuable, while the demise of buzzier upstarts may create M&A openings.
Capital Calls: Entain’s big M&A bet 11 Aug 2022 Concise views on global finance: The Ladbrokes owner is bulking up, making life harder for perennial U.S. suitor MGM Resorts International.
SoftBank’s Alibaba sale could end breakup taboo 10 Aug 2022 Masayoshi Son’s group will cut its stake in the Chinese e-commerce giant to 15% from 24%. It’s a sensible, albeit belated, move. The holding contributes to a 55% conglomerate discount, which would be narrowed further by spinning off Arm and selling more of its Japanese telco.
Food delivery’s next gig is software-as-a-service 10 Aug 2022 As demand for takeaways slows, $28 bln DoorDash and rivals are searching for new sources of revenue. One option is to sell their tech to food retailers. But that assumes others can make a bigger success of a business model that has struggled for profitability.