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Technology

Tencent puts spring back in its step

23 Mar 2023

After years of crackdowns and quarantines, the $423 bln giant sees green shoots sprouting in its video-games and ads businesses. The combination of regulatory respite, a post-lockdown consumption bounce plus cost cuts have put Tencent in a sweet spot for 2023.

Benefits of US political accord accrue to TikTok

21 Mar 2023

The short-form video platform’s CEO will appear in front of Congress this week. Backlash towards its Chinese parent ByteDance is one place politicians can agree. American media steals eyeballs when its citizens argue. TikTok, then, has an interest in keeping events copasetic.

GoTo is back to facing less existential problems

21 Mar 2023

The $8 bln Indonesian superapp may not need to raise capital in a hurry. It expects to reduce its cash burn by up to 65% this year. Cost cuts are paying off but hard questions on future growth and competition with its financially stronger Singaporean rival Grab remain.

Capital Calls: Credit Suisse bump trade

20 Mar 2023

Concise views on global finance: The bank’s shares closed above the implied value of UBS’s $3.2 bln government-backed offer. Investors expecting more may be disappointed.

Salesforce is stuck with its pricey acquisitions

20 Mar 2023

Pushy investors persuaded the business software developer to cut back on M&A, but undoing past deals would be tougher. Offloading $28 bln Slack, $16 bln Tableau or $7 bln MuleSoft looks to be more trouble than it’s worth. Integrating them is a better, albeit slower, approach.

Capital Calls: Gas station M&A

16 Mar 2023

Concise views on global finance: Canada’s $44 bln Alimentation Couche-Tard pays 3.1 bln euros for TotalEnergies’ European gas station cast-offs.

Capital Calls: BlackRock and ESG, UK pensions

15 Mar 2023

Concise views on global finance: Bank ructions and inflation give Larry Fink, boss of the $8 trln asset manager, cover to talk about something other than climate change in his annual letter; Britain’s abolition of a retirement tax threshold is an expensive way to help the rich.

Capital Calls: Uber’s risky gig, Meta’s NFTs

14 Mar 2023

Concise views on global finance: A California court ruled in favor of classifying drivers as independent contractors, but investors may be overlooking other risks; after less than a year, Mark Zuckerberg’s $465 bln social media company is getting rid of its NFT capabilities.

Icahn reacts audaciously to Illumina’s audacity

14 Mar 2023

The mouthy billionaire wants three board seats at the $36 bln biotech company and for it to spin off Grail. Boss Francis deSouza overpaid to buy back the cancer detection business and took on too much regulatory risk. Some oversight is warranted, but a 1% stake only buys so much.

Hollywood faces a content reckoning

14 Mar 2023

Netflix and other streaming giants are refocusing on profitability over subscriber growth. In this episode of The Exchange, Vania Schlogel, an investor in Brad Pitt’s production firm, explains what challenges lie ahead for those selling TV shows, movies and music rights.

Starbucks’ union brouhaha risks Schultz’s legacy

14 Mar 2023

Employees have organized and U.S. courts found that the $115 bln latte maker broke labor laws. But operating costs may go up by just $23 mln, or 0.2%, as a result of the current unions. What’s more at risk is Howard Schultz’s legacy and the company’s worker-friendly reputation.

Startup CEOs learn a lesson in counterparty risk

13 Mar 2023

The venture-backed firms that used Silicon Valley Bank tended to keep large, uninsured piles of cash there. That helped them access credit and other services but concentration was risky. The bank’s failure will bring change – with diversification in banks and in investments.

Bank rescue buys stability at a high price

12 Mar 2023

Authorities have swooped in to back depositors of the failed Silicon Valley Bank – even those not guaranteed their money back – and open the spigots for other lenders short of cash. That stops the immediate risk of bank runs. But the underlying regulatory failure is clear.

Capital Calls: SVB found old concentration risk

10 Mar 2023

Concise views on global finance: The busted bank counted half of all U.S. venture capital-backed startups as clients. As with financiers to oil barons in the 1980s, monomaniacal focus on a booming industry is a way to court disaster.

Swiss red carpet for China stocks rolls downhill

9 Mar 2023

Easier rules have made Switzerland a popular destination for mainland firms selling shares abroad. With battery giant CATL mulling a $5 bln Zurich offering, other European bourses will be eager to join in. Yet the long-term benefits of luring secondary Chinese listings are hazy.

Capital Calls: L&G/UK insurers

8 Mar 2023

Concise views on global finance: The $19 bln group led by Nigel Wilson is expanding rapidly overseas, which should help its depressed valuation.

China targets disruption-free tech disruption

8 Mar 2023

Beijing wants to foster innovation amid US sanctions by centralising how data, patents and more are governed. The shake-up will, among other fixes, help avoid agency turf wars and resource misallocation. Achieving tech self-sufficiency via regulation, though, looks a stretch.

Make-in-India dials up a tycoon premium

6 Mar 2023

Foxconn is leading a charge by foreigners to team up with local giants including Tata and Vedanta. Such partners can help cut red tape and tap subsidies, freeing up incoming manufacturers to focus on boosting production quality. For now, it is a win-win for those scaling up fast.

Venture capitalists swap Paris Hilton for Al Gore

3 Mar 2023

Rising rates and falling valuations have forced startup investors to move beyond reality stars and cryptocurrencies. Chatter at a Los Angeles confab suggests more useful ideas like green energy and healthcare are getting more attention. Tight funding demands sober analysis.