Technology

Backlogged M&A pipeline will burst in 2024

19 Dec 2023

Even normally chipper bankers are wary as merger activity heads for a second straight drop from its $5.7 trln peak in 2021. And yet stabilizing capital costs, bulging cash reserves and adjusting valuation mindsets should help spark enough pressure to ignite a deals resurgence.

Farfetch rescue leaves scattered luxury debris

18 Dec 2023

The struggling online merchant secured a bailout from South Korean e-commerce giant Coupang, which is injecting $500 mln. The deal gives Farfetch a fresh shot at existence, but leaves former backer Richemont wiped out, and its new investor with fresh messes to clean.

Bitcoin ETF race is a shiny distraction

15 Dec 2023

The digital token’s price has spiked as a US exchange-traded fund creeps closer to approval, bringing it back into the ranks of the world’s most valuable assets. But as with gold, economic swings, not accessibility or inherent value, will mostly determine its long-term worth.

Cyber-paperwork blizzard will soon blind markets

14 Dec 2023

New SEC rules force companies to divulge a hack within days of deeming it serious. CEOs wary of falling foul are apt to overshare. Such stock-swinging decisions, like ones from Clorox and Johnson Controls, will test investors’ analytical skills as much as corporate tech defenses.

Antitrust legendarily unpredictable despite Epic

12 Dec 2023

A jury ruled against Google in a case brought by the gaming firm while an emboldened FTC blocked Sanofi from snagging a new drug. Yet Pfizer is pushing ahead with a $43 bln deal. Rainmakers can be comforted that regulators’ front offices aren’t a totally impenetrable barrier.

General Atlantic laces IPO shoes with hook nearby

12 Dec 2023

A tech stock recovery coupled with consumer IPO successes bode well for a listing of the growth equity investor. But valuations could recoil as fast as they rose. While General Atlantic knows the value of pouncing quickly, TPG’s path to an IPO shows waiting has merit, too.

AI firms lead quest for intelligent business model

12 Dec 2023

Automating a swathe of tasks could help startups capture $140 bln in revenue. But even sector darling OpenAI is deeply unprofitable. To justify the billions invested by backers like Microsoft and Amazon, artificial intelligence will have to deliver lasting productivity gains.

Capital Calls: UK fund clampdown

12 Dec 2023

Concise views on global finance: Britain’s markets regulator has cancelled Christmas for fund operators like Hargreaves Lansdown and Abrdn.

Capital Calls: OpenAI’s Microsoft dilemma

11 Dec 2023

Concise views on global finance: When boss Sam Altman’s ouster threatened to implode the ChatGPT maker, $2.7 trln backer Microsoft helped restore order. That necessary boon, however, will draw ever-more trustbuster scrutiny about tech giants’ unshakable influence in AI.

EU payments tie-up would build wider M&A defence

11 Dec 2023

Worldline’s market value has shrunk by 60% to $5 bln in a year, making it vulnerable to a takeover by US rivals. Teaming up with Italian peer Nexi is a worthy alternative. While sorting out the ownership structure looks tricky, the reward is greater regional clout and savings.

TikTok works hard to keep Indonesia party going

11 Dec 2023

The ByteDance-owned short-form video app is merging its online shopping business in the archipelago with local rival GoTo’s Tokopedia unit. Its $1.5 bln funding and 75% stake in the new entity will allow TikTok to bypass a recent ban on e-commerce sales in the fast-growing market.

SpaceX beats Tesla in business model bakeoff

7 Dec 2023

Elon Musk’s rocket company is seeking a $175 billion valuation, just one-quarter as much as his electric-vehicle firm Tesla. Yet viewed from space, based on some old-school measures of competitiveness, it’s the smaller firm that has the more solid foundations.

Trustbusters throw more bad money at Microsoft

6 Dec 2023

Lina Khan’s FTC failed to stop the tech giant’s $69 bln takeover of video-game developer Activision. Its appeals might salvage a narrow legal victory, but fighting a done deal for possibly another year looks foolish. The agency’s limited resources are better directed elsewhere.

Capital Calls: BAT writedown

6 Dec 2023

Concise views on global finance: The $65 bln maker of Lucky Strike cigarettes unveiled a plan for a ‘smokeless’ world, but it’s in no hurry to build it.

OpenAI’s value comes full circle

5 Dec 2023

Despite recent chaos, the Microsoft-backed artificial intelligence startup is moving ahead with a share sale that could value it at roughly $86 bln. Even after the temporary ouster of boss Sam Altman that nearly spurred an employee exodus, its prospects are largely unchanged.

Capital Calls: AI funding

5 Dec 2023

Concise views on global finance: French AI model-maker Mistral is on track to notch a $2 bln valuation from investors like Andreessen Horowitz despite scant revenue.

Romanian telco upstart will be M&A party pooper

30 Nov 2023

Originally a mobile provider for Bucharest expats, Digi Communications is expanding across Europe. It is taking market share thanks to a low-cost model and as regulators force merging rivals to shed assets. A wave of consolidation in Spain and elsewhere may yield some surprises.

AI investments carry whiff of vicious circles past

29 Nov 2023

Turmoil at Microsoft-backed OpenAI lays bare governance risks for such tie-ups. A linked, and equally concerning, problem is tech titans injecting capital in exchange for revenue, inflating valuations in the process. The mutual back-scratching evokes dangers of the dot-com era.

Temu takes edge, and shine, off Shein

29 Nov 2023

The shopping app’s huge success helped parent PDD double quarterly revenue, sending its New York stock up 18%. It puts the planned US debut of its rival, valued at $60 bln, in perspective. Shein will test appetite for hot China-linked deals but it’s not a singular phenomenon.

Capital Calls: Amazon shipping

27 Nov 2023

Concise views on global finance: The online retailing giant’s push to distribute packages itself has been a costly way to attract customers, but some numbers suggest it is becoming more efficient and speed is helping boost profit.