Software

Qualtrics’ German parent will SAP its IPO value

6 Jan 2021

The survey maker’s float coincides with sky-high multiples for software peers. Its high revenue growth rate could in theory merit a price tag of $20 billion or more. Yet a potentially meddlesome controlling shareholder in European behemoth SAP argues for a hefty discount.

Picture this: Netflix and Amazon buy cinema chains

22 Dec 2020

The tech giants’ streaming services have become more powerful with people cooped up at home. But competition has intensified, and theatres remain an important marketing channel. To extend their leads, bundling box office access with a subscription serves as a key differentiator.

Big Tech’s gaming gamble will call for M&A

22 Dec 2020

Google and Amazon want to do to video games what Netflix has done to television. Their cloud-based gaming services face technical challenges, but the bigger test is luring gamers from established platforms like Microsoft’s Xbox. Acquisitions are the fastest way to the next level.

Corona Capital: Holiday Zoom

18 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: The video call company is removing the 40-minute time limit on free calls for the holidays – a gift it can easily afford, and one that may not be appreciated.

Philips’ cardiac deal carries heart-stopping price

18 Dec 2020

CEO Frans van Houten agreed to buy U.S. group BioTelemetry for $2.8 bln including debt. It’s wise to push further into “telehealth”, where doctors treat and monitor patients remotely rather than in hospital. But the valuation he’s paying will make it hard to earn a good return.

EU’s Google-Fitbit approval sets risky precedent

17 Dec 2020

Antitrust tsar Margrethe Vestager approved the $2.1 bln deal with conditions. The buyer’s pledges, like giving rival fitness trackers equal access to the Android operating system, are great in theory but hard to monitor. Vestager may only spot the loopholes once the harm is done.

Sensitive U.S. hack is one more problem for Biden

14 Dec 2020

Network software used by America’s armed forces and big companies was compromised for months, possibly by Russia. The maker, Texas-based SolarWinds, has egg on its face. For users in D.C. and elsewhere, it’s a reminder that cybersecurity can’t be ignored, even in a pandemic.

U.S. gaming giants find extra gear in UK developer

14 Dec 2020

Electronic Arts offered $1.3 bln in cash for London-listed Codemasters, overtaking rival Take-Two Interactive. The $40 bln group clearly sees scope to squeeze more value out of its target’s “F1” driving game. Shareholders can sit back and watch the race unfold.

Corona Capital: Supercars, Cooking, Home working

10 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Debt-laden carmaker McLaren tries to hitch a ride on the SPAC bandwagon; meal-kit deliverer HelloFresh’s virus feast only goes so far; and America’s working-from-home boom survives the crisis.

Corona Capital: Movie releases, Ads, Running

4 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: HBO Max uses its muscle on movie releases; advertising wins some and loses some; Brooks’ beast year.

Payments is a wrinkly bow on Walmart’s India deal

3 Dec 2020

PhonePe was an afterthought when the U.S. retailer bought it with Flipkart in 2018. Now the star money-transfer app is being partially spun out of the e-tailer at a $5.5 bln price tag. It’s a deliberately conservative valuation for a business with enormous potential.

Salesforce skins Slack deal with revenue synergies

2 Dec 2020

Mergers are often about cost cuts, but the impetus behind Marc Benioff’s $28 bln bid for Slack is so Salesforce can boost tech offerings. Microsoft is using messaging services to grow. This deal makes sense if Salesforce can increase revenue 13% – or prevent it from evaporating.

SoftBank derivatives U-turn fuels governance hopes

2 Dec 2020

CEO Masayoshi Son will ditch an unpopular options strategy, Bloomberg reported, only months after launching it. That’ll please investors who want the Japanese group to focus on asset sales and share buybacks. Their next target should be his $17 bln portfolio of technology stocks.

France picks wrong tax fight with United States

30 Nov 2020

Finance Minister Bruno Le Maire wants President-elect Joe Biden’s administration to help overhaul rules on how digital services are taxed. A global minimum levy on all firms is more likely to win U.S. support, and will raise more cash. Europe’s tech-bashing is counterproductive.

UK mimics Big Tech in quest to reduce its clout

27 Nov 2020

Prime Minister Boris Johnson is setting up a special unit to police dominant firms like Facebook. A sweeping mandate, and the ability to act with tech-like speed, raises the risk of overreach. It’s still an upgrade on the ponderous, court-based approaches of the U.S. and Europe.

Corona Capital: U.S. airlines

20 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: The CDC issued a warning to Americans not to travel over the upcoming Thanksgiving holiday as Covid-19 cases surge. Airlines, once again, are going hat-in-hand to Washington.

Corona Capital: Lyft, Vaccine minefield, Peru

11 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: The U.S. ride-hailing company is tempted by food delivery; Pfizer could face high demand for its coronavirus vaccine; and Peru gets another leadership shuffle just as Covid-19 cases soar.

Double deal keeps payments M&A bandwagon rolling

2 Nov 2020

Weeks after agreeing a merger with domestic peer Sia, Italian group Nexi is seeking to buy Nordic operator Nets for around 7 bln euros. A quick deal brings cost savings and geographical diversification when rivals are tied up. But swallowing another large target adds complexity.

Microsoft can flip the antitrust script

27 Oct 2020

The software giant and the rest of Big Tech have benefited from pandemic conditions. It saw a 12% jump in revenue. But having been through the anticompetitive ringer, it’s largely escaped the current D.C. scrutiny of its rivals. That gives it an edge in focusing more on growth.

SAP’s shifting goalposts puncture Covid-19 hopes

26 Oct 2020

CEO Christian Klein scrapped his 2023 financial targets, wiping 20% off the $174 bln giant’s market worth. New 2025 goals imply a large pandemic-induced boost to cloud computing, which may merit a higher multiple. Investors smarting from Monday’s selloff are apt to wait and see.