UK’s Facebook slap-down raises bar for US watchdog 1 Dec 2021 Britain’s antitrust body told the social media giant now named Meta to sell GIF maker Giphy. Its ruling hinges on a view of how the online ad market will evolve, not what it’s like now. CEO Mark Zuckerberg can appeal but the order still sets a punchy precedent for Big Tech deals.
Super-app Grab rides high into New York debut 1 Dec 2021 The Southeast Asian giant held firm in a difficult year. It’s on track to hit targets set from its record $31 bln SPAC merger, supporting a rich 13 times sales valuation multiple. Margins in its ride-hailing business show the promise of its food-delivery-to-fintech ambitions.
Capital Calls: Volkswagen, Turkey 1 Dec 2021 Concise views on global finance: The German carmaker may take mining stakes to secure electric-vehicle raw materials, echoing Henry Ford, the U.S. production-line pioneer; the Turkish central bank is resorting to old tricks to prop up the lira but it’s an unsustainable strategy.
The Exchange: Making nukes greener and friendlier 29 Nov 2021 The fight to reduce CO2 emissions is forcing a rethink about the role of nuclear power, says Rafael Grossi, head of the International Atomic Energy Agency. But convincing holdouts like Greta Thunberg will take more than turning Homer Simpson into a paragon of nuclear safety.
Capital Calls: Wise, Swedish oil 30 Nov 2021 Concise views on global finance: The 8 bln pound money-changer raised its revenue targets; $10 bln Swedish oil company Lundin Energy may be considering M&A options.
Jack Dorsey leaves one company, helps out two 29 Nov 2021 Twitter is better off without its co-founder, who was also busy being CEO of fintech firm Square. The $38 bln social network hasn’t set a clear strategic direction, unlike rival Facebook. Square, meanwhile, could use the extra attention as it faces a growing crowd of rivals.
Capital Calls: Moderna’s $40 bln shot gain 29 Nov 2021 Concise views on global finance: News of a spreading Covid-19 variant added $40 bln to the biotech’s market value. Investors are pricing in about 3 billion extra jabs. That’s rosy given competition and uncertainty.
Capital Calls: Software AG logs onto buyout boom 26 Nov 2021 Concise views on global finance: A subdued valuation and eager bidders increase the 3 billion euro German company’s chances of a possible sale.
SenseTime IPO could help HSBC gain recognition 26 Nov 2021 It’s the only Western lead adviser on the AI dragon’s mooted $2 bln Hong Kong market debut. The issuer’s spot on a U.S. blacklist adds a degree of difficulty to the large Chinese stock sale. That makes it an especially bold way to showcase renewed investment banking ambitions.
Pinduoduo’s strategy sows further seeds of doubt 25 Nov 2021 The Chinese e-commerce company rocketed to relevance by single-mindedly challenging Alibaba. Following policy crackdowns and rising costs, it’s expected to swing back to a quarterly operating loss. New boss Chen Lei would benefit from looking beyond farming for additional growth.
Paytm battering targets raw valuation underbelly 24 Nov 2021 India’s fintech giant is worth $13 bln after a 31% post-IPO drop. That remains exuberant at 26 times sales. The company is still growing, but revenue pressure is a concern, and costs are high. Success requires official help on fees and lending. That’s far from guaranteed.
Capital Calls: China’s data centre sale 24 Nov 2021 Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.
The Exchange: Fintech evolves 23 Nov 2021 Companies from JPMorgan to Goldman Sachs are upgrading their banking businesses. Al Goldstein, one of the pioneers of peer-to-peer lending and online funding, tells Lauren Silva Laughlin how he reshaped those areas and why he is moving into private equity and venture capital.
German $2 bln buyout flags bank investor myopia 23 Nov 2021 Advent and Centerbridge agreed to buy Aareal Bank, a real-estate lender that also owns an IT business. They could churn out a good return with a breakup or just by investing in the business rather than paying dividends. Payout-hungry shareholders in other banks should take note.
Telenor dials up another promising Asian deal 23 Nov 2021 Following its jumbo Malaysian merger, the Norwegian telecom operator plans to combine its Thai unit with a rival owned by conglomerate CP. There’s a 25% premium on offer to sell, but $2 bln of intended synergies from the first transaction suggest sticking around is a better call.
Ericsson makes puzzling $6.2 bln ascent into cloud 22 Nov 2021 That’s how much the Swedish telecom kit maker is paying for web-based communications firm Vonage. With few cost savings on offer CEO Börje Ekholm will take years to generate a decent return. Moving into a fast-growing but ultra-competitive sector highlights his need to diversify.
Disney’s empty chair is a succession stumble 19 Nov 2021 There’s still no official replacement for Bob Iger, who’s expected to exit at the end of the year. Other companies, from Mastercard to AT&T, named a new chairperson faster and more transparently. With a new CEO in charge, a switched-on board is all the more important.
Bezos could be $90 bln richer with Amazon breakup 19 Nov 2021 The $1.8 trln giant manages its AWS cloud group separately from e-commerce. On its own, the former may be worth as much as the entire company is now. J&J, GE and Toshiba are heading to splitsville. The world's richest man could become even wealthier by adding Amazon to the list.
JD looks sturdier than Alibaba in Beijing’s storm 18 Nov 2021 Quarterly earnings at the Chinese e-commerce giants fell as regulatory and other woes take their toll. But the smaller e-retailer is gaining market share while revenue at Alibaba’s core online shopping unit barely grew. The diverging fortunes will bolster JD’s valuation premium.
Paytm IPO misery leaves Indian tech looking West 18 Nov 2021 The Alibaba and SoftBank-backed fintech company plunged a bruising 24% on its debut, in contrast to huge first-day pops for Nykaa and Zomato. The market is mispricing tech IPOs. It revives the debate about listing in a New York market more accustomed to money-losing firms.