Technology

SoftBank’s Arm IPO set for double stroke of luck

13 Jun 2023

The chip designer may score Intel as an anchor investor in its planned US float. Meanwhile, customers like $975 bln Nvidia have soared amid an artificial-intelligence frenzy. It makes the company’s puffy valuation hopes slightly less implausible – but not necessarily sustainable.

Capital Calls: Zee, Embracer

13 Jun 2023

Concise views on global finance: India’s securities regulator banned the media group’s CEO from holding any key managerial positions, putting its merger with Sony’s local unit under a cloud; the $3 bln video-game group’s new strategy hits the right buttons.

Nasdaq futureproofs itself, but at 2021 prices

12 Jun 2023

Buying fintech firm Adenza for $10.5 bln adds vim to CEO Adena Friedman’s plan to reduce Nasdaq’s reliance on volatile markets. Yet the price, which includes a 15% stake for seller Thoma Bravo, is high. To justify it, Friedman needs bubbly tech valuations to make a comeback.

Gaming transatlantic gap invites M&A shoot-’em-up

9 Jun 2023

Shares in European gaming groups like Ubisoft are off by a fifth over the past year, underperforming stateside peers. Self-inflicted slip-ups are partly to blame, but players’ love for US-owned blockbusters means the valuation divide will endure. Dealmaking is a likely endgame.

GoTo’s new CEO has one key job: bring stability

9 Jun 2023

Patrick Walujo is replacing Andre Soelistyo atop the $10 bln Indonesian superapp. The private equity boss may want to more closely knit together GoTo’s disparate businesses. But after several high-level changes, cost cuts and stake sales, providing a steady hand comes first.

Toshiba gives shareholder management masterclass

9 Jun 2023

The Japanese company is recommending a $14 bln buyout two-and-a-half months after first supporting it. The deft way its board eventually handled the process provides a template for Japan Inc to engage pushy owners. Point one: don’t automatically treat shareholders as the enemy.

‘Reverse CFIUS’ threat will be deterrent enough

8 Jun 2023

Team Biden is nearly ready to unveil a plan to restrict some $15 bln of US investment in Chinese tech. The process probably will be even messier than one used to review inbound capital aimed at sensitive domestic sectors. Extra red tape alone, however, should serve its purpose.

Amazon wireless plan makes sense for almost no one

7 Jun 2023

The $1.3 trln e-commerce company is once again reported to be mulling a mobile service. But potential partners AT&T, Verizon and T-Mobile have plenty to lose by letting Amazon use their networks. It also would be too expensive to make sense for cost-conscious boss Andy Jassy.

Sequoia breakup will expose go-local consequences

6 Jun 2023

The venture capital firm, which manages more than $100 bln, is splitting into three. The rebranded China and India arms will operate independently from the US and Europe. It speaks to geopolitical tensions, but runs contrary to natural evolution. And untangling comes with risks.

Apple could overcome VR’s nerd and creepy factors

6 Jun 2023

Past attempts at virtual and augmented reality failed because the devices looked embarrassing, and the firms behind these efforts seemed untrustworthy. The headset the $2.8 trillion tech company rolled out on Monday isn’t an obvious success in its current form, but Apple has a better shot than others.

Binance charges are a last gasp for crypto

5 Jun 2023

The SEC sued the world’s largest cryptocurrency exchange saying it misled investors and evaded securities law. Even if Changpeng Zhao’s firm works through regulatory investigations, dabblers will become even more shy, and diehards will pivot further to decentralized exchanges.

Mediterranean chain Cava caters to starved market

5 Jun 2023

The falafel and hummus eatery is aiming for an IPO valuation of up to $2.2 bln, 70% higher than a private assessment in 2021. The company’s fast growth will be tantalizing despite a lack of profit. After a long dry spell for new equity issuance, though, it’s easy to overindulge.

Nvidia crashes $1 trln party, perhaps not for long

30 May 2023

While tech firms like Apple and Amazon slogged their way to the stratosphere, the chipmaker’s ascent to mega-stock status has been fast and choppy. It has been propelled by two surges – a supply shortage and an AI boom. That may give it a more tenuous grip in the 13-figure club.

Shrinking VC clique will hurt returns

30 May 2023

Investors in venture capital funds and startups are doubling down on familiar faces and shutting the door on newcomers amid tightening economic conditions. Their reticence could change which companies receive funding and hurt returns.

Pinduoduo’s “global” brand masks identity crisis

29 May 2023

The $95 bln group is trying to disassociate itself from China as overseas suspicion of Beijing’s influence over apps rises. As with TikTok, relocating corporate structures is unconvincing. True separation means costly overhauls to supply chains, data practices and more.

AI speed benefits now apply to EU boycott U-turns

26 May 2023

On Wednesday Sam Altman threatened to quit Europe if it “over-regulates” his booming startup OpenAI. He’s now rapidly rowed back. As with their disruptive new technology, AI mavens may have a shrewder sense than older US peers of when to stop poking the Brussels bear.

Nvidia investors price in seven years of AI glory

25 May 2023

The semiconductor firm’s worth surged to $940 bln on hopes it will win from artificial intelligence. CEO Jensen Huang has an astonishing record, with earnings growing 20% annually for two decades. But Nvidia will have to maintain this pace until 2030 to justify its valuation.

SoftBank pulls rabbits out of Fortress’s hat

23 May 2023

Boss Masoyoshi Son appears to be selling the money-losing Japanese conglomerate’s US alternative asset manager for at least double the valuation initially touted. There should be enough tricks left over for new majority owner Mubadala. But Fortress staff get the best of the deal.

Meta becomes cross-border tech mascot

22 May 2023

The EU smacked the $630 bln social media giant with a record $1.3 bln fine over data transfers to the US. Meta will fight it, but a fix requires a cross-border agreement and differing philosophies on data access make that hard. Without it, Meta’s fine is a bigger tech problem.

China’s Micron hit sets up repeat strikes

22 May 2023

The $72 bln US memory-chip maker says Chinese restrictions will probably reduce revenue less than 10%. Perhaps, but similar measures taken against database firms like Oracle and IBM a decade ago had a bigger long-term effect, helping domestic manufacturers to catch up.