In this episode of Industry Focus: Tech, Dylan Lewis and Motley Fool contributor Brian Feroldi discuss the competitive dynamics between Slack (NYSE: WORK) and Microsoft (NASDAQ: MSFT) and the enterprise software segment in general. To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. Dylan Lewis: It's Friday, May, 29th, and we are talking about the ongoing war between Microsoft and Slack.
(Bloomberg) -- When Covid-19 hit the world economy, KKR & Co.’s management jumped on calls and quickly agreed they’d seen this movie before.The plot contained a massive market dislocation, financing shutdown and uncertain future for company earnings. That was during the great financial crisis, which KKR could have played better, according to Johannes Huth, its top dealmaker in Europe.“There’s a conscious effort on our side to not repeat our shortcomings of ’08/’09 in terms of deploying capital,” he said in a interview by video call last week. KKR decided “very early on, before markets hit all-time lows,” that it needed to invest through the downturn, Huth said.It has wasted little time. KKR has been the most-active private equity house globally since the coronavirus crisis took hold of markets at the start of March, deploying $12.7 billion, according to data compiled by Bloomberg.With many in private equity taking a cautious approach to acquisitions through the downturn, KKR has spent more than three major rivals combined -- Silver Lake Management, Apollo Global Management Inc. and Blackstone Group Inc. Silver Lake has been the second-busiest acquirer, with $5.9 billion in deals during the period, the data show.Quick-Fire DealsIn mid-March, as virus lockdowns came into force, KKR’s infrastructure team acted fast to buy waste-management business Viridor Ltd. for 4.2 billion pounds ($5.2 billion) from Pennon Group Plc. It was the biggest carve-out at a publicly traded U.K. company since 2018.A similar deal was struck in May, when KKR agreed to acquire the Wella and Clairol beauty brands from U.S. cosmetics company Coty Inc. in a $4.3 billion transaction that includes a $1 billion investment in Coty.KKR is also one of three firms offering to take control of Spanish phone carrier Masmovil Ibercom SA for 3 billion euros ($3.3 billion) in what would be one of the biggest take-privates of the pandemic.“The best performing vintages in private equity tend to be those that invest during economic downturns,” said Dylan Cox, lead private equity analyst at PitchBook.By deploying capital in this way, KKR is seen to be following a strategy practiced by renowned investors such as Warren Buffett during the 2008 crash, according to people who have worked with the firm on deals. Buffett backed companies including General Electric Co. and Goldman Sachs Group Inc. with billions of dollars at the time -- bets that were rewarded when equity markets entered a historic bull-run.“We probably didn’t take enough time to take advantage of lower valuation multiples,” Huth said of KKR’s post-2008 playbook.Beyond BuyoutsThe firm founded in 1976 by Jerome Kohlberg, Henry Kravis and George Roberts is best known for leveraged buyouts -- a reputation immortalized in the 1989 book and subsequent film “Barbarians at the Gate,” which chronicled its hard-fought takeover of the U.S. tobacco and food company RJR Nabisco.KKR closed its latest European private equity fund in November 2019 -- a 5.8 billion-euro vehicle. It raised its latest, much larger, North American and Asia private equity funds in 2017, according to its website.The coronavirus crisis has stifled the world’s financing markets and this, coupled with $58 billion in uncalled commitments from investors, means KKR has been spurred into writing unusually large equity checks for its recent buying spree.“I’ve seen this movie before in 2007,” said Huth. “The dislocation of the financing markets may take one or two years. So we finance deals very conservatively, or entirely with equity, and then when markets are back we refinance.”KKR manages assets of $207 billion across a range of strategies and is tapping its varied pools of capital to help diversify away from leveraged buyouts.In April, the firm decided to reboot an unsuccessful credit fund in an effort to scoop up bonds and loans souring amid the crisis. A month later, it said it would use $1 billion from its third global infrastructure fund to build data centers in Europe.KKR has also been busy in the public markets, taking stakes in German media company ProSiebenSat.1 Media SE and food service distributor US Foods Holding Corp. Other deals include a $1.5 billion investment in Indian digital services group Jio Platforms Ltd. -- its biggest ever in Asia.“What’s currently happening in public markets isn’t reflecting current value for some companies that we know well, and so we take the strategy of investing in toeholds in a number of companies,” said Huth.Risk OnThe public markets weren’t kind to KKR during the last crisis, disrupting a planned initial public offering in 2007. Adding to the sting at the time was the fact that rival Blackstone successfully went public prior to the meltdown. KKR eventually listed three years later.Its share price has fallen 3% in virus-hit markets the year, giving the firm a market value of $24 billion. In the first quarter, its private equity portfolio fell 12% as companies became squeezed by the pandemic. One KKR asset that has been struggling is vending machine operator Selecta.KKR Co-President Scott Nuttall said in May: “We find ourselves in the fortunate position of being ready as a firm this time to not only play defense but also playing more offense and we’ve been doing a lot of both.”The firm has multiple calls throughout the week with Covid-19 point people at the companies in which it invests and has separate teams to keep track of available government support and potential debt repayment issues, according to Huth. Having these measures in place has given KKR the confidence to pursue bold dealmaking, he said.“We are going to continue to invest in this environment,” said Huth. “You have to take that risk but that’s also what our investors give us money for.”(Updates with analyst quote in fourth paragraph under ‘Quick-Fire Deals’ subhead)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Gabelli Funds, in conjunction with G.research, will host its 12th Annual Entertainment & Broadcasting Conference on June 4. The conference will be held virtually. This research meeting will feature presentations by senior management of leading broadcasting and entertainment companies, with an emphasis on industry dynamics, new technologies and company fundamentals. It will also include a Sports Valuation Panel. Investors should contact their salesperson for more information or to register.
The "Protein Ingredients - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.
Canada’s production community is working towards a bespoke insurance solution as the country looks to jumpstart production after it ground to a halt in March amid the coronavirus outbreak. Variety can reveal that producers' trade body, the Canadian Media Producers Association (CMPA), is developing a proposal for a “market-based solution” that asks the federal government […]
The "Polymeric Foams - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.
"A mad player is a bad player." That's what sports commentators say when an athlete's emotions go haywire mid-game and negatively affect performance. The same thing can happen to investors of any experience level.
Dow Jones futures were up early Tuesday. Tech giants Apple, Netflix and Tesla were in new buy zones, while Domino's Pizza broke out.
Baozun earnings beat first-quarter views early Tuesday, though the Chinese e-commerce services firm fell short on revenue. Baozun stock jumped.
The "Chronic Pancreatitis (CP) - Epidemiology Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.
The "Eco-friendly Food Packaging Market by Material (Paper & Paperboard, Plastic, Metal, Glass), Application (Food, Beverages), Type (Recycled Content Packaging, Degradable Packaging, Reusable Packaging), Technique, and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
Gold futures on Tuesday were edging higher on the back of a weaker U.S. dollar, with gains capped by the precious metal by a global rise in assets perceived as risky like stocks.
White and Haines Advanced Dentistry announces that it has fully reopened to new and existing patients. Emergency dentistry, annual dental cleanings, and gum disease treatment are all among the high-quality services this team offers patients. In order to preserve their community's health during the COVID-19 pandemic, White and Haines Advanced Dentistry has implemented additional safety protocols and sanitary guidelines.
Dentists and staff at Belle Meade Family Dentistry welcome existing and new patients for comprehensive care, including emergency dentistry and routine dental care, at their state-of-the-art practice in Nashville, TN. With the health of their patients and their community in mind, they have implemented additional safety guidelines and increased their sanitation regiment amid the COVID-19 pandemic.
The experienced dentists at Nash Family Dentistry, Drs. Kenneth and Jonathan Nash, now welcome existing and new patients to receive state-of-the-art laser dentistry in Vicksburg, MS. Laser dentistry can be used to treat a variety of dental concerns, both functional and aesthetic, with minimal discomfort and less time in the dental office. The practice features BIOLASE® WaterLase iPlus® and Epic dental lasers for modern treatments.
Global stocks rose towards their highest levels in three months, even as the prospect grows of President Donald Trump deploying troops to quell unrest on America’s streets. The US S&P 500 is expected to gain 0.5 per cent when trading begins on Wall Street later on Tuesday, futures markets suggest. The US stock benchmark is less than 10 per cent from its all-time high, as investors pin their hopes on a quick economic recovery from the pandemic.
Liberty Advisor Group (Liberty), a premier management consulting firm that helps clients tackle their toughest challenges and realize their ambitions, has been honored by Great Place to Work® as one of the 2020 Best Workplaces in Chicago™. The ranking considered over 27,000 responses from Chicago area employees. Great Place to Work evaluated more than 60 elements of team members' experience on the job. These included the extent to which employees trust leaders, the respect with which people are treated, the fairness of workplace decisions, and how much camaraderie there is among the team. Rankings are based on employees' feedback and reward companies who best include all employees, no matter who they are or what they do for the organization.
Diamond trading is starting to regain traction in Hong Kong with some demand from China. Hong Kong is mostly open for business, but concerns are mounting about renewed protests following new Chinese security laws. New York’s 47th Street remains closed as other parts of the US slowly begin to open. US riots over police brutality are also creating concern. India is partially active again, while bourses in Belgium and Israel are operating under health and safety guidelines.
Osceola Capital, a lower middle-market private equity firm focused on services businesses, announced today that it has partnered with management to recapitalize Central Medical Group ("CMG" or the "Company").
(Bloomberg) -- The threat of a no-deal Brexit is back -- and with it the risk that the U.K. economy’s shaky recovery from the coronavirus pandemic will be hobbled.As British and European Union negotiators head into the last round of talks scheduled before a key summit this month, chances are growing that the U.K. will end the post-Brexit transition period on Dec. 31 without a free trade agreement in place -- spelling turmoil for businesses.Instead of postponing its final parting with the bloc because of the coronavirus, the U.K. government has so far ruled out any delay. That may be, critics say, because Brexiters calculate the cost of leaving without a deal will be obscured by the far more extensive damage wreaked by the virus.To Sanjay Raja, an economist at Deutsche Bank AG, a no-deal Brexit would halve the pace of growth next year to 1.5%. The U.K. in a Changing Europe, a research group, estimates gross domestic product could be crimped by 8% over 10 years as trade barriers and a reduction in productivity hit output.“It may be less politically costly for the U.K. to do no deal in the midst of a pandemic, but economically I’m not sure about that at all,” said Jonathan Springford, deputy director of the Centre for European Reform. “It might be that they’re able to get away with it -- but I don’t think it changes the view that no deal would impose quite sizable economic costs.”Intergroup Inc. says the size of the shock could even force the Bank of England to take the controversial move of cutting interest rates below zero because fiscal policy and other tools may not be enough.No-Deal Brexit Could Lead to Negative BOE Rates, Citigroup SaysCompanies now have to think of how to prepare for Brexit while dealing with the fallout from coronavirus. Many are shuttered, indebted and struggling to pull through the lockdown.The additional debt firms are carrying will make adjusting to Brexit more difficult, according to Alan Winters, director of the U.K. Trade Policy Observatory at the University of Sussex.The re-introduction of trade barriers with the EU and changes to trading relationships with other countries will require a major re-orientation of exports, he wrote late in May. Heavily indebted firms are less likely to invest in developing new export markets.“It’s a tense conversation at the moment,” said Allie Renison, head of Europe and trade policy at the Institute of Directors. “Companies are struggling with their survival, and there’s not a narrative yet from government saying to prepare, but they are saying the transition is ending.”While both the U.K. and the EU insist a deal is still their preferred outcome, the deadlocked talks and the limited time left available mean risk no agreement will be reached is rising: analysts at Eurasia Group now put the odds of that outcome at 55%. EU Trade Commissioner Phil Hogan told RTE last month that the U.K. “can effectively blame Covid for everything.”If the sides can’t strike a deal by the year-end, the U.K. will default to trading with the bloc on terms set by the World Trade Organization. That means British manufacturers of goods such as cars, pharmaceuticals, plastics, and precision tools could face new costs and significant disruptions to their just-in-time supply chains in Europe.“It looks like June is going to be a turbulent month for Brexit, and markets are beginning to brace themselves for no extension to the transition period, as well as the possibility that neither side can agree on a trade deal this year,” ING Groep NV analysts wrote in a note.While investors now don’t seem as rattled by Brexit developments, there could some depreciation in sterling to come, they said.For Patrick Minford, chair of the pro-Brexit group Economists for Free Trade, leaving on anything but WTO terms would mean Britain would “lose the gains of free trade with the rest of the world.” It’s also better that the U.K. stays out of the EU’s expensive coronavirus recovery plan, he said. “When you add them both up, it’s pretty serious, really, and we’re much better off leaving.”The fracturing of supply chains due to the coronavirus is one wake-up call to the upheaval that could be on the way. More than 80% of small and medium-sized manufacturers say the pandemic has affected their supply chains, and while some say contingency plans for Brexit have proved useful in preparing for the situation, others are facing shortages.The pandemic has also led to discussion of bringing supply chains closer to home, particularly as the U.K. struggled to fly in emergency supplies while factories were closed and most workers stayed away.U.K. Cabinet Office minister Michael Gove last week touted the “phenomenon of re-shoring” and said “we’re seeing how countries can increase resilience.”But moves to shorten supply chains further could likely lead to goods becoming more expensive, according to Springford of Centre for European Reform. What is more, the U.K.’s geographical proximity to the EU means it’s likely to stay an important trade partner.Philip Hammond, a former U.K. finance minister who campaigned to stay in the bloc, said last week that the government should at least seek a temporary trade deal to protect jobs.Since the U.K. is such an open economy, “we will be more exposed than most developed economies to any headwinds in international trade during the recovery,” he said. “We really can’t afford to layer on top of that, during a very difficult recovery period, a sort of self-inflicted shock.”(Updates with comments from ING in 13th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The "Global Post-Operative Pain Clinical Trial Pipeline Highlights - 2020" report has been added to ResearchAndMarkets.com's offering.
BOULDER, Colo. , June 2, 2020 /PRNewswire/ -- The Fast Talk podcast, the leading source for endurance sports training science, nutrition, and physiology, has ventured out on its own after a long relationship with the cycling magazine VeloNews. The podcast, listened the world over, will continue to provide the same level of detailed scientific information, now on a new RSS feed. The show is the cornerstone of a new endurance sports company, Fast Labs, co-created by podcast hosts Trevor Connor and Chris Case .
Shares of Bristol-Myers Squibb Inc. gained 1.2% in premarket trading on Tuesday after the drugmaker said Zeposia met both primary goals in a late-stage clinical trial for colitis. The drugmaker had also announced Monday that it is finally launching Zeposia in the U.S.; the oral drug had received Food and Drug Administration approval in March as a treatment for relapsing forms of multiple sclerosis (RMS) but Bristol had delayed the launch due to the COVID-19 pandemic at that time. Tina Deignan, the company's U.S. head of immunology, said in a statement that because the drug doesn't require clinical observation after the first dose, it "may minimize the number of interactions RMS patients need to have with health care practitioners prior to initiating therapy during this unprecedented time of social distancing." Bristol's latest study is evaluating whether Zeposia can be used as a maintenance therapy in adults with moderate to severe ulcerative colitis, and it is also testing Zeposia in patients with moderately to severely active Crohn's disease. Shares of Bristol have declined 6.1% year-to-date, while the S&P 500 is down 5.4%.