Robert's Feed
Mar 12, 2014
via Breakingviews

Candy Crush maker picks $7.6 bln IPO from thin air

Photo

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

The maker of the popular game “Candy Crush Saga” has picked $7.6 billion out of the thin air for its initial public offering. King Digital Entertainment uses creative metrics to justify its whopping valuation. But there’s no way to calculate what an enterprise is worth when its profit can skyrocket 70-fold one year and could collapse the next. Rival Zynga’s IPO flub serves as an apposite warning.

Mar 7, 2014
via Breakingviews

Wal-Mart puts collar on Cerberus price for Safeway

Photo

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

Could Cerberus pay more for Safeway? Based on the 2007 A&P-Pathmark merger, synergies could be worth more than half the $9.4 billion that the private equity firm’s Albertsons supermarket is paying for its U.S. rival. In theory that leaves room for a higher offer. But competition from the likes of Wal-Mart means cost savings may need to go to shoppers, not investors.

Mar 7, 2014
via Breakingviews

Wal-Mart puts collar on Cerberus price for Safeway

Photo

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

Could Cerberus pay more for Safeway? Based on the 2007 A&P-Pathmark merger, synergies could be worth more than half the $9.4 billion that the private equity firm’s Albertsons supermarket is paying for its U.S. rival. In theory that leaves room for a higher offer. But competition from the likes of Wal-Mart means cost savings may need to go to shoppers, not investors.

Feb 27, 2014
via Breakingviews

PayPal has outgrown eBay’s warm embrace

Photo

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

PayPal has outgrown the warm embrace of its parent eBay. The online merchant’s ownership provided rich soil for the payments system to thrive. But PayPal is now mature enough to grow faster on its own. Activist Carl Icahn has a point when he says splitting eBay in two – as first suggested by Breakingviews in 2008 – would make investors some 15 percent richer.

Feb 27, 2014
via Breakingviews

PayPal has outgrown eBay’s warm embrace

Photo

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

PayPal has outgrown the warm embrace of its parent eBay. The online merchant’s ownership provided rich soil for the payments system to thrive. But PayPal is now mature enough to grow faster on its own. Activist Carl Icahn has a point when he says splitting eBay in two – as first suggested by Breakingviews in 2008 – would make investors some 15 percent richer.

Feb 26, 2014
via Breakingviews

Bursting U.S. gun bubble begins to take victims

Photo

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

Fear of gun legislation following the Sandy Hook School shooting drove U.S. demand for guns to absurd heights. It’s increasingly clear that laws won’t be tightened. Gunsmith Sturm Ruger is the first to admit the emotion that fired up the bottom line has run its course. The reckoning will be painful.

Feb 20, 2014
via Breakingviews

No algorithm makes Facebook-WhatsApp deal compute

Photo

By Robert Cyran

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

No algorithm based on terrestrial mathematics can make Facebook’s WhatsApp deal compute. Mark Zuckerberg’s social network is committing to spend $19 billion for the 55-employee, 450 million-user, ad-free messaging service. Facebook says growth is the point, not making money. That’s the kind of magical thinking shareholders signed up for when they surrendered control to the founder.

Feb 20, 2014
via Breakingviews

No algorithm makes Facebook-WhatsApp deal compute

Photo

By Robert Cyran

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

No algorithm based on terrestrial mathematics can make Facebook’s WhatsApp deal compute. Mark Zuckerberg’s social network is committing to spend $19 billion for the 55-employee, 450 million-user, ad-free messaging service. Facebook says growth is the point, not making money. That’s the kind of magical thinking shareholders signed up for when they surrendered control to the founder.

Feb 18, 2014
via Breakingviews

Actavis makes pharma deals look generic

Photo

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

 

Actavis makes pharmaceutical deals look generic. Its $25 billion acquisition of Forest Laboratories follows a familiar formula in the sector. Uppity investor? Check. Low-tax jurisdiction? Check. Buyer’s stock rises? Check. And over $8 billion of value created means financiers will keep busy with their own prescriptions for M&A success.

Feb 18, 2014
via Breakingviews

Actavis makes pharma deals look generic

Photo

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

 

Actavis makes pharmaceutical deals look generic. Its $25 billion acquisition of Forest Laboratories follows a familiar formula in the sector. Uppity investor? Check. Low-tax jurisdiction? Check. Buyer’s stock rises? Check. And over $8 billion of value created means financiers will keep busy with their own prescriptions for M&A success.