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Tech

SoftBank could live with a cut-price Arm IPO

30 Aug 2023

The Japanese conglomerate wants a $60-70 bln price tag for the UK chip designer, according to reports. But it has reasons to push on even at a lower value, in part because a float would boost the parent group’s creditworthiness. That gives investors an incentive to play hardball.

Arm’s changing business model is wildcard for IPO

24 Aug 2023

As well as jumping on the AI bandwagon, SoftBank’s soon-to-float chip designer has altered the way it charges big customers to boost growth and smooth out revenue. If it works, a valuation north of $60 bln looks slightly less implausible. But investors lack evidence so far.

Capital Calls: Shein/Forever 21

24 Aug 2023

Concise views on global finance: The Chinese retailer is partnering with Sparc, the operator behind Forever 21. That helps validate Shein before a public listing without the messiness of a merger. Forever 21 gets a new omnichannel and potentially a way to an IPO.

Arm’s IPO risks shine brighter than its potential

22 Aug 2023

SoftBank’s chip group is leaning on the artificial-intelligence boom to justify a hoped-for float valuation north of $60 bln. There’s no evidence to support that in the numbers, which show lumpy, shrinking sales. China risks and lack of investor control also call for a discount.

Arm float may deepen cracks in IPO market

17 Aug 2023

The chip designer is preparing a stock market listing in the US. Orders are already being lined up from customers like Amazon.com but in this Viewroom podcast Breakingviews columnists explain why it may not get a lofty valuation and how that could put off possible followers.

Capital Calls: Selling Salesforce

15 Aug 2023

Concise views on global finance: After successfully agitating for change at the $200 bln software developer, Jeff Smith’s Starboard and Dan Loeb’s Third Point are offloading their stakes. It’s probably a good time to pocket gains considering the challenges ahead for Big Tech.

Capital Calls: Exor/Philips

14 Aug 2023

Concise views on global finance: The Agnelli family is making a well-timed bet on the troubled 18 bln euro conglomerate that makes everything from toothbrushes to defibrillators.

Big Tech is mostly leaping a low bar

10 Aug 2023

The stock market’s mood increasingly hinges on the vagaries of tech giants like Meta, Amazon and Apple. In this Viewsroom podcast, Breakingviews columnists discuss how most of their recent earnings held up – even if only compared to muted expectations for their core businesses.

Superconductivity is wild card for stock market

2 Aug 2023

The possible discovery of material that efficiently carries electricity is a fresh disruption for investors grappling with artificial intelligence. They must decide if it’s real, if it’s viable; how it affects existing markets; if it creates new ones; and when change will happen.

France wins more than Kretinsky in Atos breakup

1 Aug 2023

Billionaire Daniel Kretinsky will buy the IT group’s older assets for 2 bln euros including debt. Paris will be pleased that the other, sexier cybersecurity division stays French. Meanwhile the Czech tycoon gets the ailing unit with little relevance to his other recent purchases.

Capital Calls: Biotech alarm, Spotify’s tightrope

25 Jul 2023

Concise views on global finance: Pharma supplier Danaher’s reduced forecast contrasts biotech doldrums against broader market exuberance, in a warning sign for investors; the Swedish music streamer is caught between margin-hungry investors and music labels.

Capital Calls: European steel

21 Jul 2023

Concise views on global finance: Sweden’s $6 bln group SSAB misses profit forecasts as Europe’s demand tanks and steel prices shrink.

Amazon-EU web content spat is all about grey areas

20 Jul 2023

The $1.4 trln e-commerce giant is fighting Brussels’ decision to class it as a large online platform and hence face extra scrutiny. Given its size, Amazon’s challenge at first looks like a long shot. Yet the legislation’s vague language creates scope for disputes.

Sony’s Microsoft truce marks new gaming reality

17 Jul 2023

After opposing its US rival's $69 bln Activision buy, the Japanese group signed a deal over the latter's "Call of Duty" title. It will help Microsoft appease regulatory holdouts, but Sony benefits too. Boss Kenichiro Yoshida can now focus on how to outplay the sector's behemoth.

Capital Calls: Cathay, Telecoms kit makers, Byju’s

14 Jul 2023

Concise views on global finance: The Hong Kong carrier expects to turn a profit; a push into 5G has caught European telecoms gear makers like Nokia and Ericsson short; India’s troubled ed-tech giant appoints a top former banker to a newly formed advisory council.

Bain’s Chindata buyout saga verges on absurd

13 Jul 2023

The US investment firm last month offered $2.9 bln for the Chinese data centre operator it already controls after potential rival bids yielded nothing. Now a state-backed group has bested Bain’s offer by 15%, yet is being ignored. It’s an odd way to get the best deal all round.

Drone IPO gives wings to India’s defence industry

11 Jul 2023

IdeaForge’s shares have nearly doubled since their debut, giving the government supplier a $586 mln valuation – or 151 times trailing earnings. It’s a bet that New Delhi will upgrade its military amid tensions with neighbours. India’s defence stocks look primed for takeoff.

Hobbled Ant faces treacherous march ahead

10 Jul 2023

China's erstwhile fintech star is buying back shares at a quarter of its $300 bln price tag in 2020. Even with Beijing signalling an end to a years-long crackdown on the sector, the restructured firm’s new valuation looks generous as an economic slowdown could shrink it further.

Samsung sees glimmer of light at end of tunnel

7 Jul 2023

The $365 bln South Korean tech titan warned that its quarterly operating profit has probably cratered 96%, thanks to a global memory-chip glut. But there are signs that prices are bottoming out. A recent artificial intelligence frenzy may also bolster demand in the year ahead.