Direct listings will move nearer IPOs – and Europe 27 Dec 2019 After Spotify and Slack’s non-standard floats in 2018 and 2019, respectively, expect more direct listings in the United States in the year ahead. The method could start borrowing more features from traditional IPOs, and the whole notion may jump across the Atlantic too.
Team Trump will steal Warren’s tech thunder 26 Dec 2019 The Democratic presidential candidate has made breaking up Silicon Valley giants like Facebook and Amazon a key part of her campaign. But the White House could use a recent antitrust probe to make the case first, and effectively mute much of Warren’s roar.
SoftBank’s softly, softly approach will spur M&A 24 Dec 2019 Masayoshi Son will take a more cautious approach to backing multibillion-dollar startups next year. Those with a long path to profitability can only last so long without funds. Asia’s food delivery, ride-hailing and e-commerce stars could be first to cut their losses and merge.
Jack Dorsey adds third job as anti-Facebook hero 20 Dec 2019 The awkward Twitter boss banned political ads and did more than Mark Zuckerberg’s social network to prevent the silencing of Hong Kong protesters. Dorsey, also CEO of Square, fared surprisingly well in D.C. hearings, too. His style will put heat on rivals as U.S. elections loom.
UK $7 bln food fight’s final course: indigestion 20 Dec 2019 Takeaway.com’s Jitse Groen upped his all-share bid for Just Eat, almost certainly seeing off rival cash bidder Prosus. Yet the likely return on his splurge looks low. And investors accepting his offer are betting that the new group will trade on an overcooked valuation multiple.
Payments M&A is timely bet on Italy’s cash purge 20 Dec 2019 Months after listing, Italian leader Nexi has spent 1 bln euros on Intesa’s merchant acquiring business. Buying state-backed peer SIA to forge a 13 bln euro European champion could be next. Bulking up while Rome is pushing measures to curb the use of banknotes makes sense.
Margrethe Vestager will open tech’s walled garden 20 Dec 2019 The European antitrust chief’s multibillion-dollar fines had little impact on the 12-digit market values of Google, Facebook and others. She will weaken their grip on the internet more effectively in 2020 by imposing common standards that allow seamless use of rival platforms.
Tencent is next in Western cross-hairs 20 Dec 2019 The WeChat app, indispensable to life and business in the People's Republic, is due unwanted foreign attention. Beijing uses the Tencent tool to influence and monitor users at home and abroad. Debate over restraining it will test democracies’ commitment to free information flow.
Divorce will test Seoul chaebol’s reform stripes 20 Dec 2019 Chey Tae-won’s wife wants nearly half his $3 bln stake in SK Holdings. That would leave him more reliant on outside support for a mooted corporate rejig to get a tighter grip on a $58 bln chip unit. It’s a potential check on how fast Korea Inc is mending its own awkward past.
Africa’s Alibaba looks more lemon than unicorn 19 Dec 2019 Jumia’s post-IPO limp could be life-threatening. The continent’s first billion-dollar tech firm has just enough cash to make it to 2021. But with losses widening due to high delivery costs and short-sellers questioning online transaction numbers, raising more money will be tough.
Italy and Germany will unite on EU tech taxes 19 Dec 2019 New European Commission chief Ursula von der Leyen will struggle to persuade Rome and Berlin to compromise over much-needed euro zone banking reforms. Her best bet is to pick another battle. A levy on technology giants’ revenue may help the EU rivals find some common ground.
App stores are tech’s next Battle Royale 17 Dec 2019 Google and Apple collect enormous fees through their dominant online app stores. Those are coming under attack – Fortnite owner Epic Games is the latest to lob a grenade. If regulators seek new ways to challenge Silicon Valley, these distribution channels are an easy target.
Nasty pieces of WeWork 17 Dec 2019 The shared-office outfit’s absurd $47 bln valuation wasn’t all that got exposed during a shambolic IPO attempt that led to SoftBank’s bailout. With any luck, founder worship, supervoting shares, weak governance, wacky missions and more will be knocked down a peg – or several.
Haier’s Hong Kong rejig could help clean house 17 Dec 2019 The world’s top appliances maker wants to take an $8 bln subsidiary private via share swap. The deal would streamline the group’s structure and free up $2.4 bln in cash for the indebted parent to play with. For all these neat benefits, shareholders could demand a premium price.
Trump and Xi go back to square minus-one 13 Dec 2019 The U.S. president will gradually roll back tariffs while his Chinese counterpart has agreed to buy more U.S. crops. Tit-for-tat taxes are halted, not shelved, and thorny issues like forced tech transfers linger. It’s stability, but companies are worse off than when they started.
Delivery Hero’s $4 bln order corners kimchi market 13 Dec 2019 The German company is buying South Korean food delivery rival Woowa. The price is a big increase from a $2.6 billion valuation a year ago, but the target enjoys hearty growth and healthy profitability. Joining forces in the country makes sense – provided regulators allow it.
Uber and labor groups could share retirement ride 12 Dec 2019 Usually at odds, the car-hailing app and workers' rights advocates might both get behind legislation that helps provide a safety net for gig-economy workers. Making pension plans easier to provide and to access would chip away at the quarter of U.S. adults who lack such savings.
Air seeps quickly out of SoftBank bubbles 12 Dec 2019 Ping An’s bank-software vendor OneConnect slashed its IPO valuation to half the $7.5 bln imputed when Masayoshi Son’s Vision Fund backed it last year. SoftBank also just took a loss on dog-walking outfit Wag. Dozens of startups from Didi to Oyo may soon be feeling deflated, too.
Wanted: bold activist to take on Masayoshi Son 10 Dec 2019 The Japanese tycoon’s $82 bln SoftBank might be worth twice that if broken up. Son, who owns 22% of the tech conglomerate, won’t do that without a pushy investor at his back. For an activist with plenty of cash and the stomach for a fight, it could be the trade of a lifetime.
Xerox overplays a weak hand with HP 9 Dec 2019 The photocopier maker has laid out its detailed case for buying HP for $33 bln, but ambitious cost-saving goals are of little use if its much larger rival isn’t interested. A genuinely hostile bid would be illogical even if it were possible. Xerox risks looking desperate.