TikTok works hard to keep Indonesia party going 11 Dec 2023 The ByteDance-owned short-form video app is merging its online shopping business in the archipelago with local rival GoTo’s Tokopedia unit. Its $1.5 bln funding and 75% stake in the new entity will allow TikTok to bypass a recent ban on e-commerce sales in the fast-growing market.
SpaceX beats Tesla in business model bakeoff 7 Dec 2023 Elon Musk’s rocket company is seeking a $175 billion valuation, just one-quarter as much as his electric-vehicle firm Tesla. Yet viewed from space, based on some old-school measures of competitiveness, it’s the smaller firm that has the more solid foundations.
Trustbusters throw more bad money at Microsoft 6 Dec 2023 Lina Khan’s FTC failed to stop the tech giant’s $69 bln takeover of video-game developer Activision. Its appeals might salvage a narrow legal victory, but fighting a done deal for possibly another year looks foolish. The agency’s limited resources are better directed elsewhere.
Capital Calls: BAT writedown 6 Dec 2023 Concise views on global finance: The $65 bln maker of Lucky Strike cigarettes unveiled a plan for a ‘smokeless’ world, but it’s in no hurry to build it.
OpenAI’s value comes full circle 5 Dec 2023 Despite recent chaos, the Microsoft-backed artificial intelligence startup is moving ahead with a share sale that could value it at roughly $86 bln. Even after the temporary ouster of boss Sam Altman that nearly spurred an employee exodus, its prospects are largely unchanged.
Capital Calls: AI funding 5 Dec 2023 Concise views on global finance: French AI model-maker Mistral is on track to notch a $2 bln valuation from investors like Andreessen Horowitz despite scant revenue.
Romanian telco upstart will be M&A party pooper 30 Nov 2023 Originally a mobile provider for Bucharest expats, Digi Communications is expanding across Europe. It is taking market share thanks to a low-cost model and as regulators force merging rivals to shed assets. A wave of consolidation in Spain and elsewhere may yield some surprises.
AI investments carry whiff of vicious circles past 29 Nov 2023 Turmoil at Microsoft-backed OpenAI lays bare governance risks for such tie-ups. A linked, and equally concerning, problem is tech titans injecting capital in exchange for revenue, inflating valuations in the process. The mutual back-scratching evokes dangers of the dot-com era.
Temu takes edge, and shine, off Shein 29 Nov 2023 The shopping app’s huge success helped parent PDD double quarterly revenue, sending its New York stock up 18%. It puts the planned US debut of its rival, valued at $60 bln, in perspective. Shein will test appetite for hot China-linked deals but it’s not a singular phenomenon.
Capital Calls: Amazon shipping 27 Nov 2023 Concise views on global finance: The online retailing giant’s push to distribute packages itself has been a costly way to attract customers, but some numbers suggest it is becoming more efficient and speed is helping boost profit.
OpenAI’s boardroom drama is far from over 23 Nov 2023 Sam Altman will return to the helm of the artificial intelligence firm after a torrid week of resignations. In this Viewsroom podcast, Breakingviews columnists explain how the saga has raised concerns about governance, the future of AI and an alarming cult of the CEO.
OpenAI calls time on alt-governance experiment 22 Nov 2023 Sam Altman’s return as CEO cements the failure of the ChatGPT owner’s attempt at shareholder-second capitalism. The board’s mandate to protect humanity was no match for the will of its biggest backer Microsoft. OpenAI is now more like a regular company – for better or worse.
Nvidia’s AI boom outpaces China limits 21 Nov 2023 The $1 trln semiconductor company tripled revenue, despite a crackdown on exports to the giant market. Unlike Apple, which also faces risks in China, there’s no substitute for Nvidia’s chips for fueling AI. Right now, the only limit on growth is how quickly it can meet demand.
Ransomware targets will pay one way or another 17 Nov 2023 Just saying no to extortionists – as the White House wants US firms to do – might stamp out ransom attacks. But the hack of Chinese bank ICBC shows why it’s not always realistic. Companies who won’t pay up need ever-better defenses. Either way, it’s an extra cost to be borne.
Payments sector comedown creates opening for M&A 17 Nov 2023 The once-hot industry has slumped amid rising competition and a possible regulatory clampdown. For online specialists like $34 bln Adyen, the solution is to boost their customer offerings by buying startups. Older players like Nexi and Worldline, meanwhile, are ripe for mergers.
Tata Technologies sets smartly low bar for IPO 17 Nov 2023 The EV-servicing firm is the Indian conglomerate’s first listing in nearly two decades. The $2.4 bln valuation at 28 times earnings is well below peers. But most of its business comes from just five clients and Mumbai stocks are expensive. A cheap price may ensure a smooth start.
Google antitrust trial crystallizes Apple’s risk 15 Nov 2023 Court testimony revealed that Alphabet’s search giant gives the iPhone maker 36% of ad revenue generated through its devices. The cost allows Google to argue it’s in a pay-to-play market. It also suggests that Apple and its shareholders have more to lose from the deal unwinding.
Capital Calls: Goodyear, Target 15 Nov 2023 Concise views on global finance: By offloading assets, the 125-year-old tire maker is succumbing to a similar overhaul as many other iconic US industrial centenarians; the $60 bln retailer has finally taken aim at what it can control – keeping watch over inventory and costs.
Payments-app war drags banks into discomfort zone 14 Nov 2023 The US lenders behind Venmo rival Zelle, including JPMorgan and Bank of America, are now compensating victims of some online scams. They’d rather not, and technically shouldn’t have to. In the cutthroat fintech market, however, customers can be right even when they’re wrong.
China’s Singles Day shows buyers’ commitment issue 13 Nov 2023 The country’s biggest shopping event recorded meagre growth of around 2% in total volumes despite steep discounts. E-commerce giant Alibaba didn’t provide figures again, a sign of slow sales. Beijing needs consumers to power growth but shoppers look fatigued.