Consumer Products and Services

Microsoft-Activision deal not yet game on

12 Jul 2023

The $2.5 trillion tech giant has beaten down the US antitrust regulator. But the similar counterpart in the UK is digging in. Microsoft will have to either renegotiate its $69 billion deal with the gaming company or offer concessions, and then go through approval again.

Higher rates encourage more picking at carcasses

10 Jul 2023

SVB Financial is suing regulators to recoup $1.9 bln in cash. The sum would generate $100 mln in interest, four times what it would have earned a year ago. Without that, SVB may need pricier rescue funds. Higher rates make cash worth a fight, especially at failed companies.

Meta’s Threads isn’t worth 11 Twitters

7 Jul 2023

The social media company’s market capitalization has ballooned $500 bln since Elon Musk bought its smaller competitor for $44 billion. Measures boss Mark Zuckerberg has taken are helping. But even if he puts Twitter out of business, Meta has already received the benefit.

Ocado has better options than a cheap sale

7 Jul 2023

Bid hopes have pumped up the $6 bln grocer-cum-warehouse operator’s shares. Yet retailers like Amazon would struggle to buy a company that also works for competitors. CEO Tim Steiner could instead sell the UK business, letting the market value Ocado more like rival AutoStore.

AI hype embellishes Il Makiage IPO

6 Jul 2023

It’s a good time for Oddity Tech, the fast-growing makeup brand’s owner, to highlight its machine learning algorithms for new investors. These features should help put a dewy finish on a $1.5 bln valuation from January 2022. In time, however, the techy gloss will fade away.

Meta’s Twitter experiment is a long shot

5 Jul 2023

Now is the time for Mark Zuckerberg’s $730 bln social media behemoth to steal users from Musk’s network. And Meta has successfully ripped off ideas. But gaining users won’t move the needle on Meta’s massive base. Plus even before Musk, Twitter didn’t have a viable business model.

Czech sphinx’s Casino bet trumps French insiders

5 Jul 2023

The retailer must choose between two offers to cut its 6.4 bln euro debt load. Daniel Kretinsky’s deal brings more equity, helping the grocer spruce up stores and compete. But he will need France to ditch its preference for domestic owners like rival tycoon Xavier Niel.

Capital Calls: KKR’s reluctant bidding war

30 Jun 2023

Concise views on global finance: Despite pushing arguments about antitrust and financing risks, the buyout shop ended up parrying a rival suitor for industrials company Circor by matching it on price.

Alphabet threats show up everywhere but its shares

29 Jun 2023

The Google-owner’s valuation has powered ahead as it touts its prowess in artificial intelligence, in spite of mounting menaces. A report questioning Google's video ad sales compounds ongoing antitrust threats, and even AI might not be an unalloyed good.

Capital Calls: US IPOs

29 Jun 2023

Concise views on global finance: Thrift store chain Savers Value Village is the latest consumer goods company to enjoy a successful stock market debut in New York.

Swire’s Coca-Cola sale gives investors sugar rush

29 Jun 2023

Handing its US drinks subsidiary to its parent for $3.9 bln allows the Hong Kong conglomerate to pay a tasty dividend, cut net debt and still run the division for a fee. It’s a sweet deal for investors, as long as property, airline Cathay Pacific and other holdings recover soon.

LinkedIn ages like fine wine in Microsoft’s cellar

28 Jun 2023

In contrast to souring Meta and Twitter, the drier social media app is flourishing. Although veiled by its parent’s cloud dominance, the 2016-vintage acquisition has tripled in value from its $26 bln price tag. Business-related data also will help it keep maturing in the AI era.

AI’s deflationary winds will blow away profits

27 Jun 2023

Artificial intelligence could add $8 trln a year to world GDP, McKinsey estimates, defying the gloom about robots replacing humans. Though companies should benefit from lower costs, consumers could use the technology to find better deals. It all adds up to lower prices.

Capital Calls: Eli Lilly gorges on obesity options

27 Jun 2023

Concise views on global finance: The drugmaker found patients losing an incredible 24% of their weight on one of its latest treatments. First-movers don’t always win out in pharma, however, as Pfizer proved with Lipitor. That’s why Lilly is wise to keep investing in alternatives.

Thrift-store IPO dresses up old model in new style

21 Jun 2023

Secondhand retailer Savers Value Village is seeking a market value as high as $2.7 bln. Its pile of debt is a well-worn problem. At the same time, an ESG strand and Gen Z’s zeal for recycled goods give the 69-year-old business a fresh look.

Reddit’s golden geese foul up its IPO plans

16 Jun 2023

The social network differs from peers like Facebook in its reliance on moderators – effectively unpaid employees, many of whom are on strike. Until CEO Steve Huffman can align their interests with his future investors, it’s hard to see Reddit as ready for public-company life.

Moncler can inspire Golden Goose’s next step

15 Jun 2023

Skirting a pandemic and war, the maker of Super-Star sneakers doubled sales to 500 mln euros in three years, with rich margins. That’s where Remo Ruffini’s down jackets brand stood before its 2013 IPO. It may tempt owner Permira into a $3 bln sale, or Moncler into a purchase.

Rich spending will buoy pesky inflation

13 Jun 2023

US prices rose 0.1% last month, suggesting inflation is slowing. Yet hotel and dining costs show Americans are still spending. That’s likely because high earners’ wages are moving in the right direction. They’ll keep pushing up prices, complicating the economic picture.

Capital Calls: UBS, Brookfield

9 Jun 2023

Concise views on global finance: The Swiss bank’s state loss guarantee is structured like an insurance policy against an unlikely event; the Canadian investment group teams up with UAE and Saudi investors to beat CVC’s consortium and win payments provider Network International.

Amazon wireless plan makes sense for almost no one

7 Jun 2023

The $1.3 trln e-commerce company is once again reported to be mulling a mobile service. But potential partners AT&T, Verizon and T-Mobile have plenty to lose by letting Amazon use their networks. It also would be too expensive to make sense for cost-conscious boss Andy Jassy.