Internet

Nextdoor may struggle to keep up with Joneses

6 Jul 2021

The neighborhood social network is merging with a SPAC in a $4.3 bln deal. Sure, it’s useful to communities posting about yard sales and missing pets. But it’s not profitable and its model is easily replicable - by Facebook. Nextdoor may be living beyond its means.

Big Tech trustbusters need to disrupt themselves

30 Jun 2021

A U.S. judge tossed out a government suit against Facebook mainly because the FTC didn’t show how to measure the social network’s market share of a service people don't pay for – despite saying it was 60%-plus – or name competitors. Regulators need to rethink their toolbox.

Facebook ruling shows limit to Biden’s deal crunch

28 Jun 2021

The social network won a dismissal of an antitrust lawsuit by the U.S. Federal Trade Commission, temporarily sending its market value above $1 trln. That’s a blow to an administration that signaled tougher M&A reviews. Deals may take longer, but in court, companies can prevail.

Drahi’s mystery pounce gives BT plenty to ponder

28 Jun 2021

The Franco-Israeli tycoon may have used derivatives to collar 12% of the British telco. Such deals typically cap an investor’s economic exposure. Buying the underlying shares would align his interests with those of other holders and let him benefit from a BT broadband shakeup.

Indian cricket bowls toward financial big leagues

25 Jun 2021

RedBird Capital, backer of baseball’s Red Sox, is buying into the Rajasthan Royals, valuing the team at up to $300 mln. That puts it within reach of the top 30 European soccer clubs. The deal spotlights the Indian Premier League’s lucrative American-style commercial potential.

Five reasons BuzzFeed’s $1.5 bln SPAC deal is LOL

24 Jun 2021

The once-hot digital publisher is merging with a blank-check firm and simultaneously buying a streetwear brand. The deal comes with a listicle of risks, from aggressive growth forecasts to a fickle audience and an ambitious valuation. Worried emoji face goes here.

Capital Calls: Infrastructure, Doximity, Deliveroo

24 Jun 2021

Concise views on global finance: President Biden’s $1 trln bipartisan plan for U.S. infrastructure is a feat of political engineering. Meanwhile, medical-themed social network Doximity finds riches in niches, and UK delivery outfit Deliveroo serves up a favorable court ruling.

Barry Diller’s IAC leads the spinoff sweepstakes

21 Jun 2021

The group created 11 public companies, including Vimeo and Match, worth some $100 bln for investors since the media mogul took over 25 years ago. Yet the conglomerate trades at a near-25% discount to its parts. Given the performance, investors should give IAC a bit more credit.

Capital Calls: HSBC, MRNA scramble, Cable project

18 Jun 2021

Concise views on global finance: The UK bank’s France sale disappoints; Danaher snaps up Moderna supplier for $9.6 bln; geopolitics sinks internet cable.

The Exchange: IAC Chairman Barry Diller

15 Jun 2021

The media mogul has backed businesses ranging from travel to gambling to dating and more. Plus, he’s behind Little Island, a new park in New York. Diller shares his thoughts on the reopening of the world, IAC’s unique model and why Netflix has already won the streaming war.

Chancellor: Bears will survive meme-stock assault

15 Jun 2021

Short sellers now live in dread that one of their bets, from AMC to GameStop to Wendy’s, will be talked up on WallStreetBets and pounced on by Robinhood day-traders. Many have gone into hiding. But history validates the need to maintain a healthy balance between bulls and bears.

Fastly outage is a reminder to take life slower

8 Jun 2021

A glitch at the $6 bln digital content distributor took Reddit, Amazon and others offline. The internet is like a banking system without the government oversight, seemingly simple but really a complex patchwork. Users need to know instant online gratification is not guaranteed.

Meituan delivers strong dish with weak sides

31 May 2021

The $207 bln company’s main food delivery business more than doubled quarterly sales. But new bets including e-groceries and community group buying helped serve up a $1 bln operating loss. An antitrust probe and rules on insuring drivers threaten to spoil the whole package.

Capital Calls: Klarna, Dan Loeb, Fashion IPO

28 May 2021

Concise views on global finance: The Swedish “buy now, pay later” group’s possible $50 bln price tag may leapfrog rivals Afterpay and Affirm; the corporate agitator deserves a taste of his own medicine; About You’s mooted 3 bln euro valuation implies a discount to rivals.

Pinduoduo’s new boss has long list to check off

27 May 2021

The $155 bln e-commerce group tripled quarterly sales to $3 bln and narrowed losses – a good start for CEO Chen Lei. Under his predecessor, Pinduoduo delivered annualised returns of over 90%. Pressure from Beijing, slowing growth and fierce competition will make that hard to top.

Capital Calls: Uber union

26 May 2021

Concise views on global finance: UK union’s success in representing drivers may hit potholes in the United States.

Viewsroom: AT&T’s second breakup, Asian super-apps

20 May 2021

The telephone company’s deal with Discovery, the reversal of a failed strategy to become a media juggernaut, opens a window into streaming warfare; and the creation of Southeast Asia do-everything internet group GoTo is a prelude of more to come. Plus, no Davos in Singapore.

Capital Calls: JPMorgan, FirstGroup, Break fees

18 May 2021

Concise insights on global finance: Jamie Dimon is shuffling his deputies; the UK bus-to-rail group’s sale of its U.S. businesses to EQT has hit an investor revolt; deals involving AT&T and Canadian National Railway highlight the fees due for walking away.

Indonesian super-app merger grabs at Grab

17 May 2021

Combining Gojek and Tokopedia creates a delivery, mobility, shopping and payments powerhouse barely a month after their Singapore rival’s $40 bln SPAC deal. The first transaction offers clues to the value of the second but ahead of an IPO GoTo must demonstrate bigger is better.

Alibaba tightropes to please investors, Beijing

13 May 2021

A $2.8 bln antitrust fine resulted in a quarterly net loss, but the Chinese e-commerce giant expects annual sales to jump 30% to $144 bln. That should soothe jittery shareholders. Regulators, though, are increasingly at odds with Alibaba’s competitive edge – its vast data trove.