Gaming

Crown plays its cards well with Blackstone

13 Jan 2022

The embattled Aussie casino empire is ready to drop its poker face and back the buyout firm’s fourth bid, sweetened to $6.4 bln. Blackstone’s impressive turnaround track record in hospitality deals leaves it well-placed to maximise returns, even after the multiple price hikes.

Take-Two pays hefty premium for mobile experiment

10 Jan 2022

The $19 billion maker of "Grand Theft Auto" is paying a 64% premium for Zynga, which makes mobile games like "FarmVille." In theory that helps its push into the fast-growing handheld platform. But the deal hinges on big sales increases and talent that might walk out the door.

Tencent’s Sea rejig keeps most people happy

4 Jan 2022

The Chinese tech behemoth is selling part of its stake in its $120 bln Singaporean peer. Sea also plans a revamp of its supervoting shares so that founder Forrest Li retains control. Li, Tencent and even Beijing can cheer. Minority investors have the least reason to be enthused.

Flutter makes timely bet on Italian online boom

23 Dec 2021

The UK bookie is buying Milan-based rival Sisal from buyout fund CVC for 1.9 bln euros. That’s a cheap way in to a large gaming market. With its money-spinning national lottery and pandemic-driven popularity, Sisal offers prompter returns than Flutter’s long-term U.S. punts.

Embracer rolls the dice in $3 bln board-game play

16 Dec 2021

The $9 bln Swedish video-game firm is buying France’s Asmodee, maker of tabletop titles “Catan” and “Pandemic”. The price looks fair against rival Hasbro, and tie-ups between old-school and newfangled gaming have worked. But a lack of synergies makes a winning return tricky.

Activision may become vulnerable to a takeover

17 Nov 2021

A new scandal about sexual assault allegations is hurting the $50 billion gaming company’s already-battered share price. As the problems pile up, the chances are growing that an activist will pop up to agitate for a sale. A deal might make sense for Netflix.

Capital Calls: Stadium naming, Diageo, Evolution

17 Nov 2021

Concise views on global finance: Crypto.com is paying heavily to rename Staples Center; The drinks maker plans to grow its market share by 50% in the next decade; the $36 bln Swedish gambling firm lost $2 billion of its market capitalisation after accusations of illegal gambling.

Beijing gaming curbs raise Tencent overseas stakes

10 Nov 2021

The Chinese tech giant’s quarterly adjusted earnings suffered a rare fall as a regulatory crackdown weighed on domestic video game sales. It adds urgency for Tencent to find growth in new markets, including by acquisition. But even small deals face scrutiny from U.S. regulators.

Brookfield pays less than jackpot in lotto deal

28 Oct 2021

Scientific Games is selling its lottery business to the asset manager for $6 billion. The price looks good, even if a bid to list the unit in Australia may have left some dreaming of more. Yet the $9 bln parent’s stock tanked 13%. Bullish markets create demanding shareholders.

Capital Calls: Fantasy-sports group M&A flop

26 Oct 2021

Concise views on global finance: DraftKings has walked away from Entain but the UK target may still attract interest.

Capital Calls: Apollo, god of basically everything

19 Oct 2021

Concise views on global finance: The asset manager firm’s new CEO Marc Rowan wants to oversee $1 trillion in funds by 2026. The market is at least giving him credit for trying.

Capital Calls: Facebook, TeamViewer, Audio M&A

6 Oct 2021

Concise views on global finance: Whistleblower Frances Haugen’s polished rollout is a warning for Big Tech; the video software specialist’s 25% share price fall shows the perils of growth stocks; hearing aid group GN snaps up headset maker SteelSeries for $1.3 bln.

Three-way sports bet fight may end in a stalemate

23 Sep 2021

The battle for control of Entain hinges on the UK bookie’s U.S. joint venture. Current partner MGM is unlikely to pay for control of the unit, probably worth $13 bln. But suitor DraftKings may need the cash to help fund its $22 bln bid. The odds of a successful deal look long.

DraftKings UK bookie punt is risky multiplier bet

21 Sep 2021

The U.S. fantasy-football specialist may buy Entain in a $22 billion cash-and-stock deal. Together, they’d be a giant in the U.S. sports-betting market. But the price tag looks steep, and the target’s joint-venture partner, MGM, could make life difficult after any tie-up.

Big Brother’s tighter grip exposes poor Macau bets

15 Sep 2021

Authorities want more influence over casinos and their dividends. That may reduce investor rewards but is hardly a surprise: Beijing tolerates betting because it can control the enclave. A 25% hit to Wynn Macau’s and Sands China’s value suggest shareholders miscalculate the odds.

Capital Calls: Lagarde channels Thatcher

9 Sep 2021

Concise views on global finance: The ECB boss will buy fewer bonds but tells markets: “The lady isn’t tapering.” A tough decision on whether to scale back bond purchases more decisively will come later.

Betting minnow turns high roller with $3 bln wager

9 Sep 2021

London-listed 888 is paying more than its current market value for William Hill’s non-U.S. assets. It’s a quick way to gain scale but pushes debt to a hairy 5 times EBITDA. Ample savings and the chance to diversify into licensed online games and sport make it a calculated punt.

Xi’s anti-screen campaign will reshape family time

31 Aug 2021

Beijing has restricted kids to three hours of video games a week to combat addiction. The financial hit looks manageable for $575 bln Tencent and peers. But the president wants to drag children away from phones into healthier activities. Investors should brace for more measures.

Tencent’s Disney-like ambitions will enchant Xi

18 Aug 2021

Games, movies and web shows did well in the quarter, showcasing the $540 bln group’s entertainment prowess. Unlike the U.S. giant, censors dictate what Tencent can do. Yet a Chinese answer to the Magic Kingdom at least fits into Beijing’s vision of a prosperous middle class.

Capital Calls: Sea’s rising tides

18 Aug 2021

Concise views on global finance: The $162 billion Southeast Asian tech group’s revenue is soaring, but so are its costs.