Software

Adobe’s $20 bln deal uses ample creative license

15 Sep 2022

The design-tech titan behind Photoshop and Acrobat is paying cash and stock to buy startup Figma. It’s a defensive acquisition that just might capitalize on its rival’s popular online collaboration tools. A valuation of 50 times revenue, however, requires too much imagination.

Capital Calls: ECB rate hike

8 Sep 2022

Concise views on global finance: Europe’s central bank risks recession to combat inflation.

Capital Calls: Richemont’s activist spat

7 Sep 2022

Concise views on global finance: Shareholders at the Cartier owner rejected investor Bluebell’s attempt to install former Bulgari CEO Francesco Trapani on the board.

Capital Calls: Schneider/Aveva

24 Aug 2022

Concise views on global finance: The $73 bln French group tries to benefit from its UK unit’s falling share price to bring it in-house.

Fintech’s next big down round may have an upside

24 Aug 2022

After pay-later group Klarna raised cash at an 85% discount to its previous valuation, candidates for the next giant markdown include $25 bln Chime and $32 bln FTX. But it isn’t all bad news. By raising money when others can’t, they could grab market share or scoop up rivals.

Capital Calls: Taiwan, Meme stocks

18 Aug 2022

Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.

Tencent is running in two different directions

17 Aug 2022

The Chinese video game giant suffered a 43% plunge in operating profit from falling markets and a weak economy. Boss Pony Ma is cutting costs and promising buybacks, but he also is pushing on overseas expansion and new businesses like cloud. The message on discipline is garbled.

Darktrace buyout offers road to debug governance

16 Aug 2022

Thoma Bravo is mulling an offer for the $4 bln cyber firm. Close links to investor Mike Lynch, who faces U.S. fraud charges, may explain its discount to peers. Given that a new owner could hike the valuation by untangling those links, Darktrace owners should demand more upfront.

Gaming’s big comedown will be spread unevenly

12 Aug 2022

The sector has changed radically since 2008. It weathered Covid with ease, but it’s hard to say how cash-strapped gamers will fare in another recession. Reliable franchises like EA’s “FIFA” could end up more valuable, while the demise of buzzier upstarts may create M&A openings.

Food delivery’s next gig is software-as-a-service

10 Aug 2022

As demand for takeaways slows, $28 bln DoorDash and rivals are searching for new sources of revenue. One option is to sell their tech to food retailers. But that assumes others can make a bigger success of a business model that has struggled for profitability.

Capital Calls: UK antitrust watchdog/M&A

3 Aug 2022

Concise views on global finance: The Competition and Markets Authority’s change of heart over NortonLifeLock’s 6.2 bln pound takeover of UK group Avast was an opportunity for bold investors.

Atlassian CEOs give Elon Musk mission-creep lesson

1 Aug 2022

The $53 bln software company’s two bosses are using their own cash for dealmaking side projects. They’re avoiding getting too distracted from their day job by having experts mostly run the show. It’s a useful example of how the Tesla chief can avoid a repeat of his Twitter mess.

Capital Calls: LVMH succession, Swedish Match

22 Jul 2022

Concise views on global finance: Bernard Arnault insures the luxury group against future family feuds; the oral tobacco company’s results will embolden deal resisters.

Fintech crash is an M&A opportunity for bold banks

21 Jul 2022

Financial technology groups like $8 bln Affirm, Klarna and Robinhood have plunged in value. Heavy losses and obstinate founders make them tough takeover targets. But lenders like Goldman Sachs could in theory run them more profitably – and boost their own growth in the process.

Video game deal shows late-cycle identity crisis

13 Jul 2022

Graphics-maker Unity is buying Israeli ad-tech firm IronSource for $4.4 bln, a 94% premium. That suggests optimism. But insider Silver Lake will make a $1 bln convertible investment while Unity buys back stock, buffering dilution. Classically, smart investors protect themselves.

Capital Calls: Delta’s earnings are bad and worse

13 Jul 2022

Concise views on global finance: Shares in the company fell 7% after the company missed earnings expectations. That’s bad, but worse is that its main strength – pricing power – has limits.

Capital Calls: PC meltdown, Software short-seller

12 Jul 2022

Concise views on global finance: Shipments of personal computers suffered the biggest decline in years, yet still exceed pre-pandemic levels; SoftBank-backed communication software group Sinch has lost over a third of its value after a short-seller attacked its accounting.

Capital Calls: Klarna’s slashed valuation

11 Jul 2022

Concise views on global finance: The Swedish fintech group’s valuation is down 85% in just over a year to $6.7 bln.

Japan strains to populate its sparse unicorn farm

4 Jul 2022

As economic troubles mount, Prime Minister Fumio Kishida wants the country’s $1.5 trln pension fund to play venture capitalist to help create more startups like SmartNews and Spiber. It will take far more than government money, however, to incubate entrepreneurial spirits.

Robinhood’s reversal, Russian oil cap

30 Jun 2022

The digital brokerage is worth less than a quarter of its $32 bln IPO value. In this Viewsroom podcast, Breakingviews columnists argue that its $7 bln cash pile and ample user base make it an attractive target. Also, Western leaders’ plan to restrict funds to Moscow may backfire.