Fixing Intel ends with taking it apart 29 Sep 2023 The chip giant faces the existential challenge of regaining its lost lead in manufacturing. Doing so could double its $145 bln market value, but maintaining an edge requires ever more spending, fed by serving outside customers. The best way to do that: split Intel in two.
AI is making Meta virtually cool again 28 Sep 2023 Mark Zuckerberg talked up his $780 bln social media company’s artificial intelligence products at a developer conference. If they added as much value as Instagram, Meta could be worth $140 bln more. But Zuckerberg has to show he can monetize something he’s building from scratch.
Visa takes charge of one risk as another grows 28 Sep 2023 The payments network devised a way for banks such as JPMorgan to gradually offload their collective 20% stake, worth about $96 bln. It would help avoid a mad dash to the exit. With credit card usage, and possibly fees, rising, however, fresh legal and regulatory concerns abound.
Apple may be poisoned by Google antitrust fallout 27 Sep 2023 Founder Steve Jobs once threatened “thermonuclear war” against his rival for copying the iPhone. Now, more than 15% of Apple's operating profit might be coming from fees paid by the search giant. The big risk is that an unfavorable verdict will taint its rich valuation multiple.
Microsoft’s gaming M&A takes it to the next level 27 Sep 2023 The $2.4 trln group’s Activision deal has been picked at by regulators, and it’s exposed to consoles that may be upended by cloud gaming. Still, the $69 bln play diversifies Microsoft into mobile. And it leaves the group better placed to fight the industry’s content wars.
Byju’s restructuring leaves one big job untouched 27 Sep 2023 India’s troubled edtech star may slash 5,000 roles in its overhaul. That’s easy work compared to solving its $1.2 bln loan dispute. Co-founder Byju Raveendran remains CEO. Starting a new chapter with old hands is tough but it reflects a hard reality for the Prosus-backed group.
Capital Calls: Net neutrality is back, again 26 Sep 2023 Concise views on global finance: US regulators want to reopen a decade-old fight over the internet’s rules of the road. But just like merger cops who have struggled to gain traction, they are trying to use yesterday’s tools to predict tomorrow’s problems.
EU regulators have tech giants in their sights 26 Sep 2023 Brussels is taking on the likes of Amazon and Apple with a slew of new rules aimed at curbing market dominance and taking back control over data. Former EU Commission economist Bertin Martens explains to The Exchange podcast how the industry giants could be forced to open up.
Capital Calls: US budget 21 Sep 2023 Concise views on global finance: US House Speaker Kevin McCarthy is siding with hardline conservatives to fund the government. Empowering the further-right flank narrows the already slim odds of new Ukraine aid, cannabis reform and crypto clarity.
Cisco’s $28 bln spelunking yields dicey deal 21 Sep 2023 Buying data and security outfit Splunk could increase recurring revenue at the $215 bln networking giant. Cisco is also paying a low multiple. But the two don’t have much overlap, and Splunk’s cloud-based business needs work. Cisco bears execution risk, which hinges on growth.
Listing duo offers followers a cautious playbook 21 Sep 2023 Chip designer Arm and grocery delivery company Instacart have secured relatively successful stock launches, offering hope of a wider reopening of the IPO market. In this Viewsroom podcast, Breakingviews columnists explain how cornerstone investors and lowly valuations helped.
Grab can feast on Delivery Hero’s Asia leftovers 21 Sep 2023 The Singapore giant is an obvious buyer for its rival’s Southeast Asian food business, a potential $1 bln purchase. It has extended its lead before by gobbling up operations of retreating Western firms. Investors are tepid on the tech recovery but Grab has the muscle for a deal.
Capital Calls: Disney, Cazoo 20 Sep 2023 Concise views on global finance: Boss Bob Iger’s $60 bln splash on theme parks and cruises invites further scrutiny of the Magic Kingdom’s wild cash flow ride; the UK-based online car retailer, valued at $7 bln in a SPAC deal two years ago, is handing the keys to bondholders.
China’s next chip battle is for the bottom line 19 Sep 2023 Huawei’s new smartphone proves the country can make cutting-edge hardware despite US restrictions. But it’s unclear if semiconductor provider SMIC can scale supply. Huawei’s flashy phones have hogged the limelight: SMIC’s shrinking margins deserve the same scrutiny.
IPO candidates are trying to flip the FOMO script 18 Sep 2023 Arm’s IPO investors got a 25% return on the first day. Instacart began its roadshow with a low number, only to bump it up. Klaviyo just lifted its price range. Companies and their bankers are finally getting an open window. Creating envy over big debuts will help it stay open.
Capital Calls: Planet Fitness 18 Sep 2023 Concise views on global finance: The gym chain’s share price hit a three-year low on news of its longtime boss’s exit. Rising interest rates have made it costlier to open new locations. Boosting prices could help, as it has at rival Life Time.
Prosus CEO exit leaves Tencent elephant in room 18 Sep 2023 Bob van Dijk has quit as boss of the $380 bln Chinese giant’s top investor. Interim CEO Ervin Tu can call for more asset sales to boost Prosus’ returns. But without a plan to move on from a status quo where Tencent makes up three-quarters of the portfolio, its valuation will lag.
Capital Calls: Deliveroo 14 Sep 2023 Concise views on global finance: The UK food delivery company’s shares rose 5% amid hopes of a potential deal, but a rich takeout looks unlikely.
Arm’s $52 bln IPO value sets stage for a fall 13 Sep 2023 CEO Rene Haas convinced investors to pay the top of the range for the chip designer’s float. To justify the valuation, he’ll have to turbocharge growth while keeping a lid on costs. Anything but laser-perfect results for the next two years will cause a rapid share price tumble.
Oracle’s cloud boom is unfortunately relative 12 Sep 2023 The $300 bln database giant is jostling to join Amazon and Google in providing networked computing for the artificial intelligence frenzy. But slowing growth means it’s harder to close the gap with market leaders. That makes its recent record-high valuation look precarious.