Gaming

Sea’s $55 bln valuation can rise with the tide

3 Jul 2020

The Tencent-backed tech outfit’s market cap has risen eight-fold in the three years since its New York debut. A virus-related boom in games and e-commerce in Southeast Asia has helped justify a rapid rise, and expansion plans are on. Its payments unit may provide an extra buoy.

Tencent’s hot sauce fraud exposes expired tech

3 Jul 2020

The Chinese video-games titan appears to have been taken by crooks pretending to work for Lao Gan Ma, a popular spicy condiment, using a forged company seal to ink an advertising deal. Such old-fashioned methods have embroiled others including SoftBank. Digitisation is overdue.

Casino deal epitomizes the house edge

30 Jun 2020

Houston billionaire Tilman Fertitta is using his blank-check company to buy his online-gaming business from his restaurants-to-river cruises outfit. The deal’s cheap compared to virus-inflated rival DraftKings’ valuation. But Fertitta’s inside knowledge gives him a winning hand.

Corona Capital: A tax on martinis

24 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Uncle Sam has bad news for those enjoying the libation during lockdown as it’s putting up import duties on gin, vodka and olives.

Corona Capital: J.C. Penney, Hockey

17 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Executives at bankrupt clothing chain J.C. Penney sell their shares for, well, pennies; and ice hockey gear supplier Bauer adapts for the Covid-19 era.

AT&T game division sale is M&A in newb mode

15 Jun 2020

The telecom giant is mulling an auction of the unit behind Mortal Kombat. The timing is right – video game makers are ascendant – and a mooted $4 bln comes in handy to pay down debt. The harder move is figuring out what to do with other, bigger assets like DirecTV.

NetEase’s Hong Kong reception beckons to China Inc

11 Jun 2020

Local mom-and-pop investors ordered 360 times as many shares of the $58 bln video-game maker as were on offer. Easy money is distorting markets everywhere and NetEase has virus-resistance appeal. Exuberant retail buyers only make the case for other secondary tech listings easier.

NetEase fortifies itself against global disarray

2 Jun 2020

The $51 bln video-game producer is ready to raise $2.6 bln in Hong Kong. Quarantined customers have helped it defy a U.S. backlash against Chinese stocks. A secondary listing closer to home, following a tougher trail blazed by Alibaba, should add a useful layer of protection.

Zynga puts overvalued shares to risky use

1 Jun 2020

The $9 bln video-game company is buying the Turkish maker of Toon Blast and Toy Blast for $1.8 bln, its biggest deal ever. Zynga is partly financing it with stock puffed up by the pandemic. But the high price and its mixed acquisition record should give investors pause.

Corona Capital: GE cash burn, Macy’s lifeline

28 May 2020

Concise views on the pandemic’s corporate and financial fallout: General Electric’s cash flow will be more negative than expected as Covid-19 damages its aviation and power businesses; and U.S. department-store chain Macy’s borrows more, buying time but not much else.

Tencent’s post-pandemic vision looks too normal

13 May 2020

Mobile games sales surged 64% to $5 bln in the first quarter. That one-off gain will fade as Chinese people return to offices and schools. Yet where rivals Alibaba and ByteDance are betting on new opportunities, Tencent seems overly focused on returning to business as usual.

Corona Capital: Payments M&A brawl, Endeavor

7 May 2020

Concise views on the pandemic’s corporate and financial fallout: Payments firm Wex’s attempt to ditch a double deal for two UK rivals will face legal pushback and perhaps Elliott Management’s ire. Talent agency Endeavor’s 2018 Epic Games investment is starting to come in handy.

Corona Capital: Extended Stay, Victoria’s Secret

22 Apr 2020

Concise views on the pandemic’s corporate and financial fallout: Blackstone checks back into one of its favorite old haunts, hotel chain Extended Stay; while another private-equity shop, Sycamore, tries to dump its proposed investment in lingerie seller Victoria’s Secret.

ValueAct nudges Nintendo to ditch the joystick

22 Apr 2020

The U.S. investor disclosed a $1 bln stake in the maker of Super Mario. Unlike the typical activist target, Nintendo is well run and outperforms rivals. But its focus on consoles looks short-sighted. As it did with Microsoft, ValueAct can push Nintendo in the right direction.

Tencent puts e-sports endgame into position

16 Apr 2020

The Chinese web giant has tightened its grip on rival video-game streaming sites Huya and DouYu. That paves the way for a merger that would create a $3.4 bln enterprise. The benefits of uniting are appealing. And with Covid-19 weighing on shares, the timing is better than ever.

To set Macau’s virus odds, consider 2015 over 2003

5 Mar 2020

A recovery may take as long as six months, warns resort operator Melco. The slump looks more serious than during SARS and is better compared to a corruption crackdown that lopped a third off gaming revenue. This time, though, casinos are losing tourists as well as high rollers.

Virus could give dealmakers a new big MAC attack

2 Mar 2020

Morgan Stanley’s acquisition of E*Trade carves out Covid-19 from any “material adverse” change. Other buyers and sellers were too late, making the clauses ripe for review. They’re hard to trigger, but Chinese targets are vulnerable. More than $80 bln of M&A hangs in the balance.

China’s virus lockdown premieres iQiyi’s next act

28 Feb 2020

Quarantine measures and contagion fears have kept millions at home, giving the country’s $18 bln answer to Netflix a boost. Luring paying subscribers with new movie releases and more looks smart. It’s a test of how the coronavirus might accelerate a shift in consumer habits.

Penn National can cover its $1.3 bln spread

19 Feb 2020

That’s how much the casino company’s market value jumped after it said it was buying a $163 mln stake in online sports and media firm Barstool Sports. Young gamblers are a hot commodity, but they are difficult for traditional casino operators to reach. Fliers are worth a try.

For Macau investors, all bets are off

4 Feb 2020

The territory is closing casinos for two weeks to contain the virus. Visits to Sands and rivals may be postponed, not lost, but only a real gambler would double down on Macau now. Home entertainment from the likes of iQiyi, China Literature or Perfect World offer better odds.