Archive

Reuters blog archive

from Breakingviews:

Larry Ellison cedes driver seat with hand on wheel

By Robert Cyran

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

Larry Ellison is ceding the driver’s seat at Oracle while keeping one hand on wheel. The software giant’s founder is stepping down as chief executive officer, but his 25 percent stake in the company – and dual role as chairman and chief technology officer – ensure he’s far from relinquishing control. Splitting his former job between two executives could, however, lead to a bumpy transition.

Oracle and Ellison are difficult to untangle. The larger-than-life founder has imbued his creation with his own combative personality. Rivals are disparaged, or simply bought: The company spent more than $40 billion on acquisitions over the past decade.

Sometimes the ties between the two have seemed too close. Shareholders rejected Ellison’s outsized pay package two years in a row in non-binding votes. And companies he controls have leased airplanes and sold software and advertising to Oracle. Investors can’t really complain, though, since Oracle’s stock has quadrupled over the past decade.

from Breakingviews:

NFL only understands hits where they really hurt

By Jeffrey Goldfarb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

The National Football League has thrown its weight around to grow into a $10 billion entertainment colossus, and already has its sights firmly set on doubling. It is swiftly becoming apparent just how many victims of the sport’s violence routinely get trampled by this gladiatorial march toward greater lucre. Only the moral compasses of sponsors and television partners have a commanding enough offense to reform this uniquely American athletic institution.

from Breakingviews:

VC bigwigs reveal Valley’s contradictions

By Richard Beales

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

A venture capitalist who can co-opt the opening lines of “Anna Karenina” to make a business point deserves attention. In Peter Thiel’s case, he also started PayPal and Palantir Technologies and invested early on in Facebook. His new book, “Zero to One,” describes possible features of the next peerless, world-changing startup – another Google, say.

from MacroScope:

Not really that close

Scotland's First Minister Alex Salmond speaks at the "Yes" Campaign headquarters in Edinburgh, Scotland

So what was all the fuss about?

A first rough draft of history would suggest the one opinion poll that gave the independents a lead nearly two weeks ago scared the Bejesus not only out of the British establishment but a significant chunk of Scottish voters too.

Prime Minister David Cameron has addressed the nation, promising to deliver new powers to Edinburgh to a very tight timetable, drafting laws in January in order to have it done after the 2015 general election.

from MacroScope:

The final lap

A "Yes" campaign poster is displayed on the Isle of Lewis in the Outer Hebrides

Three opinion polls last night all put Scotland’s anti-independence vote at 52 percent, the secession campaign on 48. If accurate, the “Yes” camp will have to move heaven and earth in the next 24 hours to turn the tables despite having dramatically narrowed the gap.

The towering caveat is that no one knows if the polls are accurate and if not, in which direction they have got it wrong. The latest trio showed between 8 and 14 percent of Scotland's 4.3 million voters at least say they are still undecided.

from Breakingviews:

Henry Kravis spins a different kind of club deal

By Jeffrey Goldfarb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

Henry Kravis is spinning a different sort of club deal. The old kind, in which several private equity shops would make an acquisition together, led the buyout baron’s KKR to join the recent hefty settlement of a lawsuit that alleged collusion with other firms. In the new iteration, KKR buys Pioneer’s DJ audio equipment business for $550 million. Kravis is laying down a smooth groove in a funky M&A market.

from Breakingviews:

Applying corporate finance to nations

By Rob Cox

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

It is generally accepted on Wall Street that breaking up bloated and unwieldy companies is a good thing. Division makes them easier to manage, more accountable and allows them to deliver greater value to their many constituents. On the eve of Scotland’s historic vote on independence, it’s worth considering whether the same logic might also be applied to nations.

from Breakingviews:

Why buybacks should be banned

By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

“Charlie and I favor repurchases when… its stock is selling at a material discount to the company’s intrinsic business value.” It takes courage to contradict Warren Buffett on matters related to investing, but the Berkshire Hathaway boss is leading investors up the wrong path with share buybacks.

from Breakingviews:

Alibaba’s small IPO hike leaves room for believers

By Peter Thal Larsen

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

Pricing initial public offerings is an inexact science. Predicting how investors will value a large, fast-growing Chinese e-commerce group involves even more guesswork. That makes Alibaba’s decision to lift the maximum price for its upcoming stock market debut by just $2 a share to $68 puzzling.

from Breakingviews:

Hedge-fund-free – the latest Californian fad?

By Richard Beales

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Call it the Sacramento Model. In contrast to the famed Yale Model for endowments, Calpers, the $300 billion Californian pension manager, is exiting its $4 billion of hedge fund investments. For retirement funds, Calpers’ hedge-fund free regime could be more than the latest fad from the Golden State.

  •