Tech giants dare antitrust deal watchdogs 1 Jun 2020 Facebook, Microsoft and Apple have been on a buying spree of small companies. U.S. regulators are examining such deals but their work has been hindered by Covid-19. Big Tech can argue some firms would fail otherwise. But the effect on consumers is a mixed bag.
Buyout firms make first move in EU telco shake-out 1 Jun 2020 KKR, Cinven and Providence are offering $3.3 bln for low-cost Spanish operator MasMovil. Stricter financial discipline may mean less of the cut-throat pricing that hurt rivals. After an EU court ruling on a nixed UK merger, it may also be the start of a new round of mergers.
Corona Capital: Tech diversity, CNN’s middle age 1 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: As big U.S. technology companies’ CEOs speak out about racial inequality, working from home trends could give them a chance to make a real difference; and 24/7 news network CNN feasts on Covid-19 as it turns 40.
India Insight: Mukesh Ambani sets high bar for Jio 1 Jun 2020 At $68 bln, the tycoon’s telecom operator is being valued like a tech startup. It’s backed by A-list investors from KKR to Facebook, and more are queuing up. Growth has been impressive. But the wannabe super-app could encounter serious competition in the country’s digital race.
SpaceX mans up in private planetary race 31 May 2020 Elon Musk’s reusable rockets have slashed the price of sending cargo into orbit, but his private $36 bln firm has yet to show that lower costs unleash untapped demand. Successfully launching humans delivers additional cash and political capital to chase bigger dreams.
German carmakers step on Chinese electric pedal 29 May 2020 VW is taking big stakes in two Chinese EV firms, while Daimler may invest in battery-maker Farasis Energy’s $480 mln IPO. Demand remains tepid, oil is too cheap, and the targets look richly priced. But these deals lock in supply, and position both to compete with Tesla in China.
Chinese online tutor gets lesson in multiplication 29 May 2020 GSX Techedu deflected one sloppy short-seller attack and a second sensational one. A third from Muddy Waters calling the $7 bln company a fraud hit as Luckin buckled and Congress moved on U.S.-listed Chinese stocks. Growing scepticism will require targets to have strong defences.
Amazon steers towards self-driving leverage 28 May 2020 Jeff Bezos’s $1.2 trln behemoth is one of the obvious big buyers of autonomous vehicles. Acquiring startup Zoox would give it an even bigger say in how the technology gets rolled out. That would also help deepen its customers’ dependence on Amazon’s fast and cheap shipping.
Twitter can’t please everyone but still has to try 28 May 2020 Fact-checking a President Trump tweet has put founder Jack Dorsey in a political spotlight he had previously avoided. A spring clean of tweets is good for business in the long term. But unlike peers, Dorsey needs to please shorter-term investors too, like activist fund Elliott.
TikTok’s best move is a clean break from ByteDance 28 May 2020 The video app’s Chinese parent is shifting power away from the People’s Republic. That’s unlikely to win over American lawmakers suspicious TikTok will collect consumer data and send it back to Beijing. ByteDance’s most realistic political option is to sell its rising star.
Big Tech faces a post-virus global tax onslaught 28 May 2020 The OECD’s efforts to fashion a fairer global tax system are at risk of stalling. France and Britain already levy charges on the revenue of Facebook, Amazon and others. With public debt soaring and the pandemic boosting Big Tech’s sales, a messy patchwork of levies could ensue.
Meituan Dianping cooks up some tasty scraps 25 May 2020 Covid-19 hit China’s $83 bln takeaway-to-taxis company, whose quarterly sales fell 13%. The outlook is shaky, but more restaurants have signed up and new initiatives like contactless delivery should provide value longer-term. Merging Western peers are in comparative disarray.
Financial myopia could be healed by virus 21 May 2020 Apple, Airbus and Asahi are among many companies withdrawing forecasts during the pandemic. It’s a good time to reconsider campaigns by JPMorgan boss Jamie Dimon and others to end quarterly profit guidance. Covid-19 should help refocus attention on the longer-term.
New data will track reopening in real time 21 May 2020 Plenty of financial-market information is available instantaneously, but economic metrics can be months out of date. In the ongoing pandemic, that has proved too slow. Novel sources like Klaviyo's online spending tracker and TomTom's traffic flows may have staying power.
Telemedicine may be U.S. healthcare’s new normal 21 May 2020 Online doctor visits are surging. It’s a safe and convenient alternative to going in person, insurers incentivize it, and restrictive rules are easing. While virtual visits are usually cheaper, though, increased uptake could push up total healthcare spending.
Xiaomi making the most of the crisis 21 May 2020 Rolling out a 5G model during China's lockdown paid off for the online-savvy handset maker. First-quarter sales increased 14% from a year earlier, to $7 bln. Serious setbacks for rival Huawei and virus-powered interest in home gadgets should help sustain the impressive growth.
Corona Capital: China on Wall Street, Wind power 20 May 2020 Concise views on the pandemic’s corporate and financial fallout: U.S. senators want Chinese firms to share their audited accounts – or face being kicked off American stock exchanges. Plus: why wind energy is the key to an economic and social, as well as environmental, resurgence.
Spotify’s $2.5 bln Joe Rogan bump has sound logic 20 May 2020 The Swedish music-streaming service’s shares surged after it signed an exclusive deal with the controversial podcast host. Rogan’s audience, probably about 10 mln strong, makes a mooted $100 mln licence fee seem reasonable, and even helps justify the huge rise in Spotify’s value.
Index makeover sets fresh benchmark for Hong Kong 20 May 2020 The main Hang Seng tracker is welcoming companies with secondary listings and dual-class shares, opening the door to Alibaba, Xiaomi and more. That will help diversify baskets overstuffed with banks and such. It also underscores the local bourse’s plight to attract tech startups.
Sony embraces its inner conglomerate 20 May 2020 The Japanese giant is buying the rest of its financial arm for $3.7 bln as part of a broader shakeup. A new holding company structure clumsily tries to reposition Sony beyond its electronics roots. At least it’s managing the sprawl while thumbing its nose at activist Dan Loeb.