Technology

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.

Instacart’s mixed bag has valuation opportunities

28 Aug 2023

The food delivery firm is worth far less than its high point in 2021. The cost to get new customers is rising, too. But a push to sell ads, a sensible business, could help bring its valuation close to $17 bln. As long as Instacart is reasonable, it can get its listing, finally.

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.

AI frenzy’s feedback loop stuffs Nvidia

23 Aug 2023

The $1.2 trln semiconductor designer’s second-quarter revenue doubled. Tech giants’ valuations are soaring on AI hype, so naturally companies are pouring money into it, including by buying Nvidia's chips. As long as investors quack for more, Jensen Huang's firm gets fed.

Leaving the office for dead may haunt investors

23 Aug 2023

Landlords’ valuations are half pre-pandemic levels due to the boom in hybrid work. Yet looser labour markets are giving bosses more power and companies like Google want staff to spend more time in their buildings. Fund managers betting on a trend reversal may be on to a winner.

TikTok challenger backpedals into public arena

21 Aug 2023

After nixing a $5 bln reverse merger last year, Triller plans to sell shares in a direct listing. Music videos and live-streamed brawls hosted by stars such as Snoop Dogg have attracted brands. A pivot to social media tools and questionable growth, however, make it a lightweight.

SoftBank Arm deal is expensive gift to Vision Fund

21 Aug 2023

Masayoshi Son’s group bought 25% of the chip designer from its Saudi-backed investment vehicle. It puffs up the fund’s poor returns, but betrays a lack of confidence in an upcoming float. A pricey $64 bln valuation means Son’s fellow SoftBank shareholders will probably lose out.

Samsung’s ASML sale highlights vexing cash bind

18 Aug 2023

South Korea’s $330 bln chipmaker more than halved its stake in the Dutch group to raise an estimated $2 bln for its expansion plans. Yet the company already has $66 bln in the bank. Trouble is, much of that is probably trapped abroad, necessitating some creative funding choices.

China does Intel a small favor

16 Aug 2023

The chipmaker aborted its $5 bln acquisition of Tower Semiconductor after failing to secure approval from Beijing. The questionable deal was made worse by the target’s struggles. And given the cross-border tech tension, a $350 mln break fee at this stage is a small price to pay.

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.

PayPal would slot well in a different wallet

15 Aug 2023

As the $70 bln fintech company’s next CEO, Intuit veteran Alex Chriss brings small-business bona fides, but also dealmaking nous. It could be an opportunity for Citi, Meta or Stripe to advance their respective strategies. Fiserv, however, would make the most sensible partner.

CFOs are stepping into a rapidly revolving door

14 Aug 2023

From Alphabet to Tesla to Walgreens, finance chiefs are moving on at a faster rate than usual. One-tenth of the 1,000 largest US companies lost their CFO in the first half. Economic whiplash and expanded job duties are both factors. Higher turnover looks here to stay.

Arm IPO depends on more than Big Tech support

14 Aug 2023

The UK chip designer may sell shares to Apple or Amazon as part of its $10 bln stock offering. Backing from large clients could help prop up its valuation. But antitrust concerns mean the stakes will be small. To succeed, owner SoftBank needs to win over big institutional funds.

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.

America’s new China curbs eschew scale for smarts

10 Aug 2023

The Biden administration’s plan for screening US investments in the People’s Republic is not the wide-ranging proscription many expected. It targets only a handful of deals, would ban even fewer and isn’t retroactive. That’s a relief for most investors – and for diplomacy, too.

Capital Calls: Italian bank levy flip-flop

9 Aug 2023

Concise views on global finance: Rome has only partially soothed investors panicking over its windfall tax on lenders.

Byju’s blowup makes its investors look bad

7 Aug 2023

The Indian edtech startup is wrestling with lenders over a $1 bln loan, and a US hedge fund is forcing changes at a prized asset. Investors Prosus and Peak, formerly part of Sequoia, quit the board, but as the situation worsens so does the mark against those who propped it up.

Adland consumer-goods boon has limited shelf-life

4 Aug 2023

Food and beverage giants like PepsiCo are ramping up marketing amid soaring sales. That’s a fillip for WPP and peers, which have seen revenue from tech clients stumble. The risk is that, with inflation falling, consumer goods’ momentum slows before Big Tech gets back on its feet.