Big Tech’s cash kings will resist rate-hike storm 12 Oct 2021 Rising U.S. Treasury yields reduce the value of future free cash flow, hurting fast-growing technology stocks. Apple, Facebook and Alphabet are minting money in the here and now. It’s investors in cash-challenged companies like Netflix and Tesla that will feel the most pain.
Lenovo’s weaknesses pop up in Shanghai overreach 12 Oct 2021 The PC maker abruptly nixed a $1.6 bln share offering. The attempt to tap cash on a tech bourse brought unwanted attention to its feeble R&D spend and boss Yang Yuanqing's generous pay. As Beijing pushes for more innovation and less inequality, Lenovo ticks all the wrong boxes.
African phone-mast IPO priced for smooth safari 11 Oct 2021 IHS, which operates 30,000 towers across the continent, is listing in New York after an aborted attempt in 2018. Though its exposure to turbulent Nigeria is a worry, telecom kit has proved its worth in chaotic places. A market value of up to $8 bln reflects a generous discount.
Capital Calls: Green investors, ASOS, Renren 11 Oct 2021 Concise views on global finance: Al Gore’s asset manager finds listed equities can influence a larger chunk of global emissions; the online retailer parts company with its CEO; the startup investor’s $300 mln settlement with aggrieved investors is likely to be an exception.
Beijing discord drowns out Chinese tech playlist 11 Oct 2021 After dropping New York IPO plans, podcast app Ximalaya is eyeing a $1 bln float in Hong Kong. The prospectus details regulatory uncertainties ranging from censorship to whether it can list at all. It highlights the risk that crackdowns might stifle innovation.
India Insight: Silicon Valley-style success bites 11 Oct 2021 The South Asian giant is now home to herds of unicorns. Meanwhile, established beasts like Tata Consultancy and Infosys are in high demand to assist the global race online. It’s making tech talent hard to find and may even prompt the world’s outsourcing hub to outsource.
How to fill the global tax deal’s digital holes 8 Oct 2021 A landmark accord backed by 136 countries offers little scope for non-U.S. governments to raise money from giants like Facebook. One fix is to give nations with big markets a larger share of tax receipts. Sharing out levies according to where revenue is generated would be ideal.
Capital Calls: Pet retail scrap, Chubb, Czech IPO 8 Oct 2021 Concise views on global finance: Buyout firm Hellman & Friedman matches EQT’s 3.4 bln euro bid for Germany’s Zooplus, putting the onus on its rival; the U.S. insurer buys the Asian assets of Cigna for $5.8 bln; haulage-fleet manager Eurowag makes a chaotic market debut.
Sweden’s tiny tech investor is proxy bet on Klarna 8 Oct 2021 Sebastian Siemiatkowski is listing his investment firm in Stockholm, including a small stake in the $46 bln buy-now-pay-later lender he runs. Klarna will account for less than a third of the $31 mln portfolio. Still, Flat Capital offers rare exposure to the group before it lists.
Tesla’s move to Texas further mars ESG credentials 8 Oct 2021 Elon Musk is relocating the electric-vehicle champion’s home base after a Covid-19 spat with California. It will put it in a state building a weak record on green energy and women’s rights. A company already hit by bad governance is giving investors more reasons to think twice.
Telefonica can play hard to get in fibre sale 6 Oct 2021 The 23 bln euro Spanish telco may flog a chunk of its super-fast domestic broadband network. With the fibre rollout almost done and debt vaguely in check, Telefonica isn’t desperate for the cash. That means it can wait for a buyer ready to top the reported 15 bln euro valuation.
Capital Calls: Facebook, TeamViewer, Audio M&A 6 Oct 2021 Concise views on global finance: Whistleblower Frances Haugen’s polished rollout is a warning for Big Tech; the video software specialist’s 25% share price fall shows the perils of growth stocks; hearing aid group GN snaps up headset maker SteelSeries for $1.3 bln.
French cloud IPO is a bet on EU tech sovereignty 5 Oct 2021 OVHcloud is listing in Paris for up to 3.7 bln euros. Slow growth and the tight grip of founder Octave Klaba justify the IT group’s low valuation. But sales could surge if European businesses and governments push to keep data at home rather than with Amazon, Google or Microsoft.
Best tool to rein in Big Tech is a cap on users 5 Oct 2021 Facebook, Amazon and YouTube can shrug off fines because of their size; public hearings don’t much hurt either. A more effective way to change behavior would be to bar them from signing up new users – a tech-world version of what U.S. regulators did with wayward bank Wells Fargo.
India spotlights Facebook’s ubiquity problem 5 Oct 2021 The social network and its WhatsApp platform are proxies for the internet and phone in the $920 bln company’s biggest market. So their outage had users scrambling. That’s New Delhi’s cue to extend its aggressive effort to curb Facebook’s heft beyond simply policing content.
Facebook outage is dry run for worse web crashes 5 Oct 2021 The $920 bln firm’s eponymous and Instagram social networks, plus messaging platform WhatsApp, just went kaput for hours. People use them for more than cat snaps. But a similar mess at Amazon, say, would have a bigger impact. Some internet services may now be too crucial to fail.
Capital Calls: Pandora, Facebook files pack punch 4 Oct 2021 Concise views on global finance: A leak with rich people’s offshore activities and a Facebook exposé reinforce perceptions with facts; GitLab’s float shows Microsoft’s wise 2018 buy; Volvo IPO aims to supercharge EV plans; BT’s bid to rule UK broadband may face U.S. competition.
Drahi drags satellite M&A into near-earth orbit 4 Oct 2021 France’s Eutelsat rejected the telecom billionaire’s $3.2 bln bid. If a follow-up offer succeeds, Drahi could pursue a cost-saving merger with rival SES, whose TV-signal business is also succumbing to gravity. A chunky spectrum refund from the U.S. government makes a deal easier.
Rivian risks reckless run onto public markets 4 Oct 2021 The electric-vehicle maker backed by Amazon and BlackRock only just started selling its first model. It’s also burning cash fast and Jeff Bezos’s e-commerce empire has the upper hand as a big customer for delivery vans. A mooted $80 bln valuation sounds like a runaway IPO.
Data center holdout needs new class of buyer 1 Oct 2021 The nearly $10 bln CyrusOne is exploring a sale after missing out on previous consolidation. A historical discount to rivals is an opportunity for infrastructure investors keen on the expanding sector. But any suitor will have to overlook challenges that put off others.