Category: M&A

We Expect Less M&A Activity Given the Recent Market Pullback

We Expect Less M&A Activity Given the Recent Market Pullback

We expect less Technology M&A activity over the near-to-intermediate term given the recent pullback in the NASDAQ Composite (down 14% over the past two weeks). This is especially true for Public-Private M&A transactions. Private companies as a general rule lag public companies in terms of resetting internal valuation expectations. Should private technology companies be willing … Continue reading We Expect Less M&A Activity Given the Recent Market Pullback

Advertisements
Disney’s Sudden CEO Change – What Does It Foreshadow?

Disney’s Sudden CEO Change – What Does It Foreshadow?

Disney CEO Bob Iger stepped down from his CEO post effective immediately and will remain Executive Chairman through December 2021. Bob Chapek has been named Chief Executive Officer. Our expectation was that Kevin Mayer - Chairman Direct-to-Consumer & International - would be named Mr. Iger's successor. Does this abrupt CEO change foreshadow a larger transaction? … Continue reading Disney’s Sudden CEO Change – What Does It Foreshadow?

Intuit Reported to Acquire Credit Karma – Building A PFM Powerhouse

Intuit Reported to Acquire Credit Karma – Building A PFM Powerhouse

The Wall Street Journal reports that Intuit (ticker: INTU), plans to acquire Credit Karma for approximately $7 billion. A Credit Karma acquisition would compliment Intuit's 2009 $170 million acquisition of Personal Financial Management ("PFM") fintech company Mint.com. The Credit Karma deal would mark Intuit's first large acquisition under Sasan Goodarzi who became Intuit CEO in … Continue reading Intuit Reported to Acquire Credit Karma – Building A PFM Powerhouse

Square Makes More Sense for Morgan Stanley

Square Makes More Sense for Morgan Stanley

It is difficult to get excited about Morgan Stanley's recently announced acquisition of ETrade. The latter is essentially a no growth business (P&L below), competing in a cut-throat market. On the other hand, Square - albeit a larger company that would command a larger price - is a FinTech leader in growing consumer markets. If … Continue reading Square Makes More Sense for Morgan Stanley

Will Cryptocurrencies Turbocharge Online Marketplaces?

Will Cryptocurrencies Turbocharge Online Marketplaces?

We believe the answer is "YES". We believe that cryptocurrencies will turbocharge online marketplaces during the next 10 years. For this reason we believe companies that have planted a cryptocurrency flag will look to acquire online marketplaces which can be "crypto-enabled." Thus, we peg the probability of an EBAY sale in 2020 at 80%. Intercontinental … Continue reading Will Cryptocurrencies Turbocharge Online Marketplaces?

CVS Health, Aetna Post-Deal Integration Hiccups

CVS Health, Aetna Post-Deal Integration Hiccups

It ought to be an interesting earnings call next week for CVS Health (ticker: CVS). Former Aetna CEO Mark Bertolini resigned from CVS Health's Board of Directors last night. Bertolini told the Wall Street Journal that the CVS Health / Aetna post-deal integration is far from over - a statement that contradicts CVS Health CEO … Continue reading CVS Health, Aetna Post-Deal Integration Hiccups

AT&T Should Sell WarnerMedia

AT&T Should Sell WarnerMedia

AT&T's acquisition of Time Warner seemed like a good idea at the time. That is no longer true. Tickers mentioned: AAPL, AMZN, CMCSA, DIS, GOOG, NFLX, T, VZ AT&T's $85 billion acquisition of Time Warner seemed like a good idea when it was first kicked around a few years ago. AT&T would differentiate its fiber … Continue reading AT&T Should Sell WarnerMedia

IBM Names A New CEO

IBM Names A New CEO

Tickers mentioned: AMZN, FDS, GOOG, IBM, INFO, MSCI, MSFT, ORCL, SSNC, VRSK Late to the Cloud and Little Appetite for Acquisitions IBM named Arvind Krishna to replace Ginni Rometty as CEO effective April 6th, 2020. Some 7-8 years ago IBM accelerated its transition to the cloud. This transition was accompanies by a change to pro … Continue reading IBM Names A New CEO

Here’s How Roper Technologies (tkr: ROP) Can Raise Its Game

Here’s How Roper Technologies (tkr: ROP) Can Raise Its Game

Roper Technologies has generally executed well over the past number of years. We offer three recommendations to Roper for driving superior operational performance and shareholder returns. 1.) Focus the Enterprise Software M&A strategy: This is Priority One. To date Roper has taken a buckshot approach to M&A with acquisitions scattered across the Software landscape. This … Continue reading Here’s How Roper Technologies (tkr: ROP) Can Raise Its Game