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Technology

Loudmouth investors tone it down for new era

20 Sep 2022

Jeff Smith’s Starboard has ideas for $5 bln Wix but isn’t asking for a board seat. Bill Ackman and Dan Loeb also are playing nicer. Updated proxy voting rules make shareholder campaigns easier. Getting access to directors makes a bigger difference and demands tactical changes.

Net zero woes go beyond lack of global cooperation

20 Sep 2022

The International Energy Agency frets that poor collaboration between states will keep emissions high. But the struggles of green groups like ITM Power suggest countries aren’t doing enough to help domestic markets either. Energy policy needs to do more than fight today’s crisis.

Capital Calls: SPAC unwind, U.S. trustbusters

20 Sep 2022

Concise views on global finance: Chamath Palihapitiya, who personified the excess of the blank check market, is returning cash in two of his vehicles. Investors in companies that went public via SPACs are the main losers. And American antitrust enforcers suffer a second court loss in a month.

Capital Calls: Ralph Lauren

19 Sep 2022

Concise views on global finance: The $6 bln retailer known for its iconic Polo shirts is cheaply valued compared to European counterparts.

Adobe’s $20 bln deal uses ample creative license

15 Sep 2022

The design-tech titan behind Photoshop and Acrobat is paying cash and stock to buy startup Figma. It’s a defensive acquisition that just might capitalize on its rival’s popular online collaboration tools. A valuation of 50 times revenue, however, requires too much imagination.

Mutual funds’ private bets could use more daylight

14 Sep 2022

The tech stock rout has done little to dent money managers like Fidelity or T. Rowe Price’s zeal for unlisted companies. In some cases, such holdings have performed better than public shares. Yet illiquid stocks bring fresh risks, and disclosure on how they are valued is patchy.

Capital Calls: SoftBank

14 Sep 2022

Concise views on global finance: The $62 bln conglomerate may be considering a third instantiation of its Vision Fund.

Capital Calls: Richemont’s activist spat

7 Sep 2022

Concise views on global finance: Shareholders at the Cartier owner rejected investor Bluebell’s attempt to install former Bulgari CEO Francesco Trapani on the board.

Big American dreams mark peak China e-commerce

30 Aug 2022

Shares of Alibaba challenger Pinduoduo jumped 15% after smashing earnings expectations. It is doing well chasing down its rival but the company’s march to U.S. shores, inspired by the success of mysterious fast-fashion retailer Shein, is a telling sign of a limited runway at home.

IT spending slowdown will program Indian shakeout

29 Aug 2022

Global corporate giants will start investing selectively on tech services as the economy slows. But providers across the industry from Infosys and Wipro are struggling to retain staff and to increase charges for more advanced work. Pandemic-induced valuations are ripe to topple.

UK M&A machine meets a fitting end in $6 bln deal

26 Aug 2022

Software group Micro Focus International is selling itself to Canada’s OpenText. The cost-slashing logic follows the British firm’s playbook, which delivered mixed results. In spite of a hefty premium, the reasonable purchase price gives the buyer a good chance of making money.

Capital Calls: Electronic Arts’ M&A game

26 Aug 2022

Concise views on global finance: The publisher of the popular FIFA franchise is an attractive target but few buyers may be on the board.

Capital Calls: Amazon’s green coupons, Peloton

25 Aug 2022

Concise views on global finance: The internet giant’s promise to try green hydrogen technology is valuable to firms like Plug Power, so Amazon demands a taste. Investors in the exercise-bike maker suffer a rapid descent after dismal fourth-quarter earnings.

Capital Calls: Schneider/Aveva

24 Aug 2022

Concise views on global finance: The $73 bln French group tries to benefit from its UK unit’s falling share price to bring it in-house.

Fintech’s next big down round may have an upside

24 Aug 2022

After pay-later group Klarna raised cash at an 85% discount to its previous valuation, candidates for the next giant markdown include $25 bln Chime and $32 bln FTX. But it isn’t all bad news. By raising money when others can’t, they could grab market share or scoop up rivals.

Instacart’s fast growth isn’t fast enough

23 Aug 2022

The grocery delivery service is expanding into advertising and offering services to rivals, as boss Fidji Simo preps to potentially go public. Yet even with double digital revenue growth it only looks to be worth around $11 bln, far less than a private valuation a few months ago.

Intel makes chips look almost like infrastructure

23 Aug 2022

Brookfield is putting up half the cost of two $30 bln Arizona plants, at a rate somewhere between what Intel pays for equity and debt. Yet chips are riskier than traditional infrastructure, suggesting Intel is giving up more than its partner to make the deal work financially.

Musk’s Twitter subpoena storm gets everyone wet

19 Aug 2022

The Tesla boss is dragging Salesforce and others into his $44 bln M&A fight against the social network. It could reveal embarrassing communications. Twitter too has legal requests to Musk co-investors like Larry Ellison. That’s more incentive to settle and part the clouds.

Capital Calls: Cineworld needed AMC’s apes

19 Aug 2022

Concise views on global finance: The U.K.-based cinema chain is preparing for bankruptcy, according to the Wall Street Journal, while similarly debt-beleaguered AMC is still standing – an object lesson in the power of becoming a favorite of retail traders.