Rogers board fight puts public shareholders last 27 Oct 2021 A squabble over who is running Canada’s largest wireless carrier is the latest intrigue in an industry defined by dynastic politicking. While it makes for good drama, Canada’s family-controlled telecom giants have helped create a market that is among the world’s most expensive.
Swiss bank-tech buyout would hit returns glitch 27 Oct 2021 Private equity firm EQT may bid for $10 bln software group Temenos. The Geneva-based outfit should gain from banks outsourcing more IT to specialists. Yet a deal would need a large chunk of equity, and making the numbers work in an increasingly competitive sector could be tricky.
Capital Calls: McDonald’s, GM, Worldline 27 Oct 2021 Concise views on global finance: The $177 bln fast-food chain boosted sales by making it easier to get burgers and nuggets; supply shortages are exacerbating the carmaker’s heavy investment bill; shares in the French payments group tumbled despite ambitious growth targets.
Google antitrust boogeyman is lurking in the wings 26 Oct 2021 Parent Alphabet’s quarterly revenue rose 41% and its stock has outperformed rivals. U.S. political anger is fixated on Facebook, but the search engine is more exposed in regulatory probes. A lawsuit revealing evidence of anti-competitive behavior is a reminder of the threat.
Microsoft revs up for return to office 26 Oct 2021 The $2.3 trln software giant benefited from work from home in the past quarter as cloud and PC software sales boomed. Spending on IT is shifting focus, but not letting up. Microsoft’s scale, the fact it’s not Amazon, and rising security awareness set it up for continued growth.
Mark Zuckerberg’s dive into metaverse misses mark 26 Oct 2021 Alongside quarterly results, Facebook said it would start reporting more financial details on its virtual reality initiatives and beyond. Any extra clarity is welcome, but the structural changes sidestep all-important Instagram. It’s a bad time to be hiding behind the headset.
Facebook black box is overdue for cracking open 25 Oct 2021 Waning ad growth and slowing adoption by young users suggest investors deserve more clarity, starting with disclosure of Instagram’s numbers. Revelations about how Facebook polices content demand transparency too. Mark Zuckerberg’s $915 bln empire could help itself by opening up.
Frankenstein’s watchdog can tame Big Tech monster 25 Oct 2021 Combining FCC-style oversight of U.S. broadcast stations with the OCC’s supervision of banks and FDA’s drug vetting could bring needed policing to firms like Facebook. Being regulated by an uber monitor is a nuisance. But it isn’t unprecedented and may even diffuse some vitriol.
Gerson Lehrman IPO “edge” is it doesn’t have one 22 Oct 2021 Linking investors eager for insight with industry insiders is lucrative. Gross margins over 70% look ripe for rival expert networks to eat. GLG's emphasis on compliance after an insider-trading scandal, however, makes it look like a safe source of validation for clients.
Snap is better off without the rose-tinted filters 22 Oct 2021 Losing $25 bln of market value in a day is a blow for the disappearing-message app, which has blamed Apple for making it harder to squeeze profit from users. But Evan Spiegel’s firm is still growing its audience, and by some measures looks cheap relative to its rivals.
Intel moves one nanometer forward, two back 21 Oct 2021 The U.S. chip champion has dialed down ambitions to spend $20 billion this year to regain its manufacturing leadership, though stopped the bleeding at one of its core businesses. There is a long way to go, and Intel needs to regain credibility on delivering its promises.
Viewsroom: Oz goes green-ish; “Squid Game” 21 Oct 2021 Australian climate policy is a work in progress, and Antony Currie fears the country’s net-zero plans may yet prove to be a damp squib. On the other hand, the South Korean drama is anything but: Jennifer Saba explains why the show is a major victory for Netflix and its investors.
Capital Calls: WeWork listing, Polish games maker 21 Oct 2021 Concise views on global finance: The battle-scarred office-sharing outfit finally started trading on the NYSE after its deal with a blank-check company closed; CD Projekt delays chunky updates to its flagship “Cyberpunk” video game, avoiding a repeat of last winter.
Elon Musk’s promises are getting more realistic 20 Oct 2021 Tesla’s boss reckons production will jump 50% a year and that the Model Y will soon be the world’s best-selling vehicle. He has a history of missing his targets. But recent performance, not least during a chip shortage, means his predictions deserve to be taken more seriously.
PayPal-Pinterest deal plays wallet long game 20 Oct 2021 Reports that the $320 bln payments firm may bid some $45 bln for the social network sent the former’s shares down 7%. Its spinout from eBay is a reason for skepticism. But payments companies and banks are racing to own online consumer gateways, and Pinterest has valuable land.
Facebook’s new name: grandiose, banal or honest? 20 Oct 2021 Rebadging the social network could be a chance for Mark Zuckerberg to style Facebook as a powerful empire. Or he may simply plump for something hard to hate. A more straightforward move would be to name the whole after its most valuable part, which is now Instagram, not Facebook.
J&J’s Texas two-step may not soothe talc risk 20 Oct 2021 The healthcare giant took a $1.4 bln third-quarter charge for litigation. It has tried to limit claims to a unit that just declared bankruptcy. That would mean a cap on its liabilities and quicker payouts. But J&J, and others that try the legal tactic, aren't assured of success.
Facebook name-change alone would miss the point 20 Oct 2021 The $959 bln social network may rename itself. The eponymous brand is both sullied and slow-growing. But it's about substance, not what it's called. Instilling greater transparency would be a more meaningful step, starting with following Alphabet’s breakout of division finances.
Capital Calls: Apollo, god of basically everything 19 Oct 2021 Concise views on global finance: The asset manager firm’s new CEO Marc Rowan wants to oversee $1 trillion in funds by 2026. The market is at least giving him credit for trying.
Rapid grocery delivery will keep investors waiting 19 Oct 2021 Loss-making startups from Getir to Deliveroo are ferrying booze and nibbles to homes in under half an hour. Economies of scale will eventually help, although most operators will at best break even. Until delivery robots come along, shareholders will be subsidising lazy living.