SoftBank checks in early for post-Covid hotel boom 21 Jul 2021 The Japanese group’s Vision Fund 2 is investing $1.7 bln in South Korean unicorn Yanolja. As travel returns, it’s a bet on the upstart’s AI-powered software and contactless services for guests. Business is booming, suggesting the sector is eager to master new tech.
India’s Paytm is smaller, sturdier version of Ant 20 Jul 2021 The fintech posterchild with 333 mln customers is delivering decent growth as it slashes marketing costs. Unlike its Chinese backer, Paytm is well set to expand rapidly in financial services without a rude regulatory shock. Still, a mooted $25 bln IPO price tag looks rich.
Zoom kicks off expensive call centre M&A contest 19 Jul 2021 The videoconferencing star will pay $14.7 bln for software group Five9. Diversifying makes sense as economies reopen, but a thin 13% premium may invite counterbids, or prod rivals like Microsoft to partner up too. Rich prices and fuzzy synergies promise an uncertain payoff.
Capital Calls: Chinese hacking, Tencent 19 Jul 2021 Concise views on global finance: When the only response to China hacks is harsh words, companies will pay the price; the $680 billion technology giant places a heavyweight bet on UK gaming group Sumo.
China’s IPO crackdown exposes U.S. weaknesses 19 Jul 2021 Several companies have spiked plans to list abroad after Beijing ramped up oversight. But the move by regulators also highlights the frailties of an American financial system that is heavily reliant on disclosure. Chinese firms have long shown that’s easy to take advantage of.
Branson space caper may have airline economics 16 Jul 2021 The British tycoon has lined up punters paying $250,000 each for his sub-orbital joyride. To hit profit targets, though, his Virgin Galactic needs to hike prices as rivals lift off. If it can’t, the $8 bln firm’s financial trajectory may resemble loss-making Virgin Atlantic.
Aurora could be biggest fish in a faraway pond 16 Jul 2021 The self-driving firm is going public in a $13 bln blank-check deal, and at a premium to rivals Embark and TuSimple. Aurora may deserve one based on its technology pedigree and partnerships with the likes of Toyota. But all may be underestimating when the market arrives.
Chancellor: Robinhood is more sheriff than rebel 15 Jul 2021 Like its many antecedents during previous bubbles, the app-based stockbroker claims a mission to “democratise finance for all”. But the $40 bln startup is more a creature of Wall Street and Silicon Valley than its clients may understand. The long-term risk is a people’s revolt.
Capital Calls: Online fashion retail 15 Jul 2021 Concise views on global finance: The return of old customer habits and muted demand as the pandemic lingers could reverse the recent stellar run of the likes of ASOS.
Norton UK cyber deal has many vulnerabilities 15 Jul 2021 The U.S. antivirus software group is in talks about a cash and stock offer for $7.2 bln London-listed rival Avast. But probable returns look low, and British investors may not want a large slug of American equity. If a private equity buyer gets involved, it will be even harder.
Taiwan’s top diplomat is a $567 bln chipmaker 15 Jul 2021 Tensions between Beijing and the self-ruled island are spiking amid vaccine squabbles and fighter jet sorties. Enter TSMC, whose economic and geopolitical clout has risen amid the semiconductor shortage. It could be Taipei’s best political advantage against a hostile neighbour.
Permira $2 bln deal advertises buyout desperation 14 Jul 2021 The UK firm is buying 10% of listed classifieds group Adevinta from eBay. It gets a stake at a discount and might make a good return. But investors could make the same bet themselves without ponying up fees. It highlights the challenges private equity groups face deploying funds.
Zara’s Chinese rival threatens from the shadows 14 Jul 2021 Online fashion site Shein cranks out ultra-cheap designs at lightning speed. It discloses next to nothing about its operations and tried to scrub its Chinese origins off the internet. Its opacity is strategic, but competitors had best study its model.
Swedish tech investor benefits by slimming down 12 Jul 2021 Most listed investment firms trade at a discount to the net value of their assets. Kinnevik’s recent decision to hand its stake in e-tailer Zalando to shareholders has made it an exception. Shedding future winners from its $9 bln portfolio will be vital to preserving its status.
Rapid delivery needed in $7 bln online-postage bet 9 Jul 2021 Private equity firm Thoma Bravo is paying a stonking 67% premium for Stamps.com. That equates to a return on investment of less than 5% in the near term. A value so much higher than the market’s calls for exploiting e-commerce growth more aggressively and at priority-mail speed.
Capital Calls: China’s bank reserves 9 Jul 2021 Concise views on global finance: Beijing released more cash into its financial system as growth slows.
South Korea’s Krafton plays hit-or-miss China game 9 Jul 2021 The maker of blockbuster video-game franchise "PUBG" wants to go public at a $21 bln valuation. Geopolitical tension between Seoul and Beijing hampers access to its biggest market by sales. Krafton and top backer Tencent devised a workaround, but too much depends on it.
UK credibility on China inward M&A gets wafer-thin 8 Jul 2021 Britain’s government initially declined to review Chinese-owned Nexperia’s $87 mln deal to buy the country’s largest semiconductor plant. It has now U-turned, which makes sense given the world chip shortage. But the mixed messages hardly inspire confidence in the process.
Europe’s Zoom finds home-working boom has downside 8 Jul 2021 TeamViewer lost $1 bln of market value after it said customers who panic-bought last year are now paying less. The remote-software group’s shares have retraced to pre-Covid levels. The whole episode distracted from its real goal: connecting machines, rather than people.
Capital Calls: Gates split, Chinese IPOs, Telenor 8 Jul 2021 Concise views on global finance: Bill and Melinda Gates agree a post-divorce plan for their joint charitable organisation; medical data firm LinkDoc is among the first to pull its U.S. listing; the Norwegian telco gets just $105 mln for unit hobbled by Myanmar junta.