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Feb 27, 2014
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PayPal has outgrown eBay’s warm embrace

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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
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Bursting U.S. gun bubble begins to take victims

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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
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No algorithm makes Facebook-WhatsApp deal compute

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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
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No algorithm makes Facebook-WhatsApp deal compute

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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
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Actavis makes pharma deals look generic

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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
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Actavis makes pharma deals look generic

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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 14, 2014
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Jos. A. Bank’s daft deal knits owners in a bind

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

Jos. A. Bank’s daft deal is knitting its shareholders in a bind. To avoid being acquired, or perhaps to fetch a higher price from rival Men’s Wearhouse, the suits retailer is issuing stock to buy Eddie Bauer at $56 a share, only to buy more back at $65. If the $875 million transaction isn’t unraveled, investors will find themselves painfully stitched up.

Feb 14, 2014
via Breakingviews

Jos. A. Bank’s daft deal knits owners in a bind

Photo

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

Jos. A. Bank’s daft deal is knitting its shareholders in a bind. To avoid being acquired, or perhaps to fetch a higher price from rival Men’s Wearhouse, the suits retailer is issuing stock to buy Eddie Bauer at $56 a share, only to buy more back at $65. If the $875 million transaction isn’t unraveled, investors will find themselves painfully stitched up.

Feb 12, 2014
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Cross-border arbitrage is expansive Bimbo’s yeast

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

Cross-border arbitrage is the yeast for Grupo Bimbo’s aggressive expansion. In its latest deal north of the border, the acquisitive Mexican breadmaker is shelling out $1.8 billion to buy Canada Bread. Paying 20 times earnings to move into a mature market may seem questionable. But Bimbo’s earnings fetch an even higher multiple at home – and the deal should lower its weighted average cost of capital.

Feb 6, 2014
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Twitter a victim of its own measure for success

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By Robert Cyran

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

Twitter may be a victim of its own measure for success. The social network is growing and mining lots of user dollars, but not enough to justify a whopping value of 30 times sales. The lofty figure rests on a rise in the company’s highly touted home brew of “timeline views.” That number’s falling, suggesting tweeters are losing interest.