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Showing posts with the label Acquisition

Hollywood: Reese Witherspoon's Media Co. Sold In $900M Deal

A media company founded by superstar actress Reese Witherspoon has sold for a large amount to a company still in its infancy that hasn't even been named yet. That company is Hello Sunshine , a media company that produces content distributed across various platforms; movies, TV shows, podcasts, et al. Hello Sunshine has been sold to a newly-formed media venture t hat's backed by investment capital from Blackstone , the private equity giant.  The venture is led by ex Disney honchos Kevin Mayer and Tom Staggs .  As it is, the Blackstone-funded venture is acquiring a majority stake in Hello Sunshine from a group of external investors while anchor shareholders like Witherspoon and her founding partners will roll over and retain their equity stakes in the newly-formed venture. Officially, the deal's financial terms weren't disclosed, but a report from The Wall Street Journal says it's a $900mn deal. According to the report, the Blackstone-funded venture will pay $500mn

Antitrust: UK Probes Facebook's $1B Kustomer Acquisition

The UK's antitrust agency has launched a probe into Facebook's latest acquisition, that of chatbot platform Kustomer Inc , which Facebook agreed to buy last November for a reported $1bn. The UK's Competition and Markets Authority (CMA) on Friday, the 30th of July, released a statement  indicating it had opened an inquiry into Facebook's purchase of Kustomer, regarding if it'll result in "a substantial lessening of competition" within the market Kustomer operates in. Such probes aren't out of the norm and are routine for big acquisitions. For Facebook, it speaks to the fact that antitrust agencies are watching the company's moves, especially regarding acquisitions. To note, two of Facebook Inc's biggest products outside the main Facebook platform, Instagram and WhatsApp , were acquisitions. In fact, it's primarily acquisitions that have propelled the company's growth. As with such probes, the UK will first seek comments from the public

Alert: Square Buys Australia's Afterpay For $29B

It's a big day in the fintech world. There's been a major acquisition with a major American fintech company, Square , buying Australia's foremost fintech startup, Afterpay , a 'buy now, pay later' lender. Square has reached an agreement to buy Afterpay for a whopping $29bn , marking one of Australia's biggest buyouts. It's a big deal that a startup founded barely seven years ago is selling for $29bn.  Square will pay the $29bn all with shares. It means that shares of Afterpay, which are traded on the Australian Securities Exchange, will be exchanged for Square stock traded on the New York Stock Exchange (NYSE). Afterpay is Australia's foremost 'buy now, pay later (BNPL)' lender in online retail. For the uninitiated, the 'buy now, pay later' business is a relatively young one providing alternatives to credit cards for consumers to shop online. It provides loans for consumers to shop online and then pay back in installments. Usually, credi

Deal: Iliad CEO Xavier Niel Bids To Take Firm Private

The CEO of French telecoms giant  Iliad S.A. has made a bid to take the company private by buying out the shares he doesn't own. Xavier Niel by name, he already controls the majority of the company's shares and has sought out to buy the minority he doesn't own. Niel himself owns roughly 71% of Iliad's share capital. Additionally, a few other shareholders owning roughly 4% of the company have agreed to tender their shares in Niel's offer. It means he just has to pony up the cash for the remaining 25% , and he's made an offer with a high premium. Niel has bid to  pay 182 euros per share for the rest of the shares of Iliad S.A. The bid represents a 61% premium to the company's closing share price the day before it was announced and a 53% premium to the company's average share price over the past month, it said.  Moving to take his telecoms empire private represents a major change of strategy for Niel, who started it about two decades ago and took it pub

Deal: Qualtrics Buys CX Startup Clarabridge For $1.1B

Months after getting spun out of SAP into a separate public company, Qualtrics , a major provider of online survey software, has made a major acquisition. It's agreed to buy Clarabridge , a startup that does similar work to Qualtrics in the field fondly referred to as "customer experience (CX)". Qualtrics will pay $1.1bn all with shares to buy Clarabridge. The acquisition is a major strategic play for the company, pairing Qualtrics' customer survey business with Clarabridge's similar business of measuring customer sentiment from various sources like social media posts and customer support calls. Basically, Qualtrics is in the business of weighing customer surveys directly and Clarabridge in the business of doing so indirectly . Pairing both businesses represents a major strategic play for Qualtrics. In an investor presentation, Qualtrics said that Clarabridge has $100mn in annual revenue, implying an 11x multiple that it's paying to buy the company. That&#

Deal: Thoma Bravo To Buy Medallia For $6.4B

A certain private equity firm is on a spree making big deals in the tech industry. That firm is Thoma Bravo , which has reached a deal to buy Medallia , a publicly-traded tech company that makes survey software for enterprises. Thoma Bravo has agreed to pay $34 per share to take Medallia (NYSE: MDLA) off the public markets into its hands. That price sums up to $6.4bn and a 20% premium to Medallia's closing share price on the 10th of July, the day before rumor acquisitions of the company began swirling. Medallia debuted on the public markets in 2019 and is now being acquired barely two years later. Its $34-per-share acquisition price is about 60% higher than its IPO debut price of $21 two years ago. Under Thoma Bravo's ownership, Medallia will continue to function as usual with a growth strategy. The ultimate aim for private equity firms like Thoma is to grow its portfolio companies and flip them for a higher price in the future, either through a sale or an exit on the public m

Deal: PerkinElmer Buys Antibody Maker BioLegend For $5.3B

PerkinElmer , a publicly-traded medical devices and diagnostics company, had made its biggest acquisition yet. It's  agreed to buy   BioLegend , a privately-held company that makes antibodies and reagents for biomedical research. PerkinElmer will pay the sum of  $5.3bn  in cash and stock to buy BioLegend, marking the company's biggest acquisition in its existence. It's a major play that PerkinElmer is making, as it says BioLegend expects to have $380mn in sales in 2022, implying a multiple of about 14x to buy the company. BioLegend was founded in 2002 and has been based in the state of California for a long time. It has more than 700 employees, most of whom are based in the US. BioLegend shined during the Covid pandemic as the company provided antibodies and other tools used for biomedical research tackling the virus. Now, just about a year later, it's culminated in a big exit for the two-decade-old company. PerkinElmer has taken financing from Goldman Sachs to finance

Deal: Uber Freight Buys Shipping Planner Transplace For $2.3B

The trucking division of ride-hailing giant Uber has struck a deal to acquire a major company that makes software used to organize shipping and logistics operations. Uber Freight will buy Transplace from its current owner, private equity firm TPG Capital, for a price of $2.25bn. The price tag is split into $750mn of Uber stock (NYSE: UBER) and $1.5bn in cash. It's one of Uber's biggest acquisitions on record, shortly after the company's near-$2bn purchase of online grocer Cornershop . Uber Freight is a gem for Uber, one of its few remaining divisions outside ride-hailing after the company sold most of its non-ride-hailing businesses to outside owners. Uber Freight matches freight carriers with businesses looking to ship goods across destinations and as well provides software to help manage shipping and logistical operations. With Transplace, Uber Freight is buffing up its business with a long-established software company (founded in 2000) in a bid for profitability, the

Deal: Salesforce Completes $28B Slack Purchase

After entering a definitive agreement last December, CRM software giant Salesforce has completed its acquisition of Slack, the popular workplace communications tool, for which it paid $27.7bn  in a mix of cash and stock. Officially, Slack has been taken off the public markets and is now a privately-held division of Salesforce, which coughed up $15.6bn in cash and $12.1bn of common stock to buy the company. Slack is Salesforce's biggest acquisition on record. To show the seriousness of Salesforce's Slack purchase, the company paid a multiple of 31x Slack's revenue ($903mn) in its most recent fiscal year despite the company being unprofitable on a net basis. More so, Salesforce took a $10bn loan facility to finance the cash portion of the purchase, implying it really wanted the deal. Salesforce has historically expanded with acquisitions and is no stranger to big ones. Before Slack, it paid $16bn to buy Tableau Software in 2019, then its biggest acquisition on record that j

Deal: Zoom Buys Cloud Contact Center Firm Five9 For $15B

After wrapping up a year that sent its stock soaring absurdly high, videoconferencing company Zoom  is putting that stock into use as currency to make a splashy acquisition. It's agreed to buy Five9 , a provider of contact and call center software hosted on the cloud, for the sum of $14.7bn . Zoom is paying for Five9 entirely with shares. The $14.7bn price tag represents 14% of Zoom's current market cap of $107bn. As it is, Five9 is Zoom's first billion-dollar acquisition and a very big one at that. Five9 is a publicly-traded company that Zoom is taking into private hands. The company is paying a 13% premium to Five9's closing market cap on Friday, the last trading day before the deal was announced. Zoom's acquisition makes sense for a post-pandemic world where it's expecting the use of its videoconferencing software to drop down significantly. The Covid-19 pandemic drove many people and corporates globally to pick up Zoom and exploded the company's revenue

Deal: Thoma Bravo To Take Stamps.com Private For $6B

Thoma Bravo, one of the foremost private equity firms in the tech industry, has opened its coffers for yet another big acquisition over the past year. It's reached a deal to buy Stamps.com , an online postage company that's a notable survivor of the 2000s dot-com era. Thoma Bravo is paying $330 per share to buy the publicly-traded Stamps.com. That price represents a high 67% premium of the company's closing share price the day before the deal was announced. At $330 per share, Thoma Bravo will pay around $6bn in cash to take over Stamps.com. It'll also assume $600mn of the company's debt making the deal a total of $6.6bn . The agreement between Thoma Bravo and Stamps.com includes a 40-day “go-shop” period where the latter can seek a higher acquisition offer than Thoma Bravo's. But with the premium Thoma agreed to pay, getting a higher offer seems tough. Stamps.com began in 1996 as an online postage company and has remained in that business since that time. A su

Deal: SoftBank Pays $1.6B For Yahoo Trademark In Japan

You may know Yahoo as one of the old, fading incumbents of the early dot-com days, but here's the thing, that name is actually still quite popular. It's even more popular in Japan, where the  Yahoo Japan name is still a big one with popular internet services in the country. Yahoo Japan is a joint venture of Yahoo the company and SoftBank, the biggest tech conglomerate in Japan. The venture began in 1996 with SoftBank coughing out big money to license the Yahoo name in Japan. If you've been following the news recently, you probably know that Yahoo is getting sold to a major private equity firm  named Apollo. The company's owner, Verizon Communications, is selling Yahoo together with AOL, another old dot-com tale, for $5bn after buying both companies for $9bn. Now, it appears that Verizon is not done sucking value from Yahoo with its sale to Apollo. Z Holdings, a division of SoftBank, has struck a deal to pay a one-time sum equivalent to $1.6bn to buy the trademark to t

Deal: Indian Gaming Startup PlaySimple Sold For $360M

One of India's low-key makers of casual mobile games has sold for a huge sum, spurring surprise in the industry. It's PlaySimple , which has been sold to  Modern Times Group (MTG) , a publicly-traded Swedish game company.  MTG is buying PlaySimple for an upfront amount of SEK 3.1 billion ($362mn) and then conditional earn-out payments worth  SEK 1.3 billion ($151mn). Making an aggregate of $513mn, it's one of the largest exits ever for a gaming startup in India. MTG's payment for PlaySimple is a mix of cash and stock. The $362mn upfront price tag is a very big one for a startup that raised barely $5mn in venture funding, with its last round in 2016. It happens that PlaySimple built a sustainable and solid business for itself that brought in $83mn in sales last year. PlaySimple has a portfolio of nine casual games, including popular ones like Word Trip , Word Jam , and Word Wars . It's one of the few cases of an Indian startup developing successful mobile games for

Deal: EU Clears AMD's $35B Takeover Of Xilinx

Chip giant AMD has secured unconditional approval from the European Union for its proposed $35bn takeover of chip rival Xilinx, clearing the way for the deal to go through. The EU's antitrust union gave the approval stating that it had not found any issues with the deal after a preliminary review. The conditions of AMD's fast EU approval are in contrast to that of its main rival Nvidia which has faced close regulatory scrutiny trying to complete its proposed $40bn takeover of chip designer Arm. Separate probes into that deal have been opened by the EU and the UK, where Arm is based. "The proposed transaction would raise no competition concerns in the European Economic Area given the absence of horizontal overlaps and vertical relationships between the activities of the companies," the EU's antitrust agency said about the AMD-Xilinx deal. AMD is buying Xilinx, a publicly-traded company, in an all-stock deal valued at $35bn. The acquisition will make AMD a tough

Deal: Visa Buys Swedish Banking Startup Tink For $2.1B

A fintech startup from Sweden has made a big landmark for the country's startup scene, with an exit by way of acquisition. That startup is Tink , which is getting acquired by payments company Visa for a big sum.  Visa has agreed to buy Tink for a sum of 1.8 billion Euros ($2.1bn). It's buying the open banking platform after US regulators prevented its $5.3bn acquisition of Plaid , a company offering a similar service to Tink but in the American markets. Tink provides APIs that enable customers to link to different online banking services. It's a crucial tool serving the industry of digital banking. Currently, Tink is integrated with over 3,400 banks and financial institutions. Tink was founded in 2012. It has raised $308mn in venture funding and was valued at more than $800mn  from its last financing round. At that, a $2.1bn acquisition is a very big win for the company and its investors, as it's nearly 3x its last valuation. Tink's pricey sale to Visa strengthens

Deal: EA Buys Warner Bros. Games' Playdemic For $1.4B

Gaming powerhouse Electronic Arts (EA) has added another digit to its string of weighty acquisitions over the past year. It's agreed to buy Playdemic , a mobile gaming unit of Warner Bros. Games' that's best known for the game Golf Clash . EA will pay $1.4bn in cash to buy Playdemic. The deal comes just months after the company paid $2.1bn for Glu Mobile , another mobile game developer. Apparently, EA is going the way of acquisitions to build up a strong mobile gaming business, outside its major expertise of console gaming. This marks the third time that Playdemic is getting acquired in a decade. It was first sold in 2011 to RockYou  and then bought back by its founders that same year, who then sold the company to Warner Bros. Games in 2017. 2017 was the year when Playdemic released Golf Clash , the game it's best known for. It's a multiplayer golf game with over 80 million downloads globally.  Playdemic is getting sold just as the parent firm of its owner, WarnerM

PE Firm Blackstone Makes $6B Bet On US Family Homes

Blackstone, a mega private equity firm that's one of the biggest real estate owners in the US, has moved to strengthen its power in the US real estate market with a big bet on family homes. It's agreed to buy a major owner of single-family rental homes in the country for a big price. Blackstone will pay $6bn to buy  Home Partners of America (HPA) , a real estate company with 17,000 single-family rental homes in its portfolio. HPA operates on a "rent-to-own" model whereby renters pay periodically to buy equity in their homes just like it is with mortgages. Blackstone's $6bn bet marks a major return for the firm into the world of single-family homes. Its first foray into that segment was with Invitation Homes , a real estate landlord it invested in earlier on but totally cashed out of in 2019. Invitation is the largest single-family rental housing owner of all time, with over 80k properties in its portfolio. Usually, Blackstone's large real estate business cent

Deal: Uber Pays $1.4B To Buy Out Online Grocer Cornershop

In a bid to shore up its online grocery business, Uber has said it'll buy full control of Cornershop , a grocery app in which it acquired a majority stake in 2019. The company is buying the remaining 47% stake it doesn't own in the grocery app, for a very big price. Uber is paying $1.4bn in shares to buy the remaining Cornershop stake from its shareholders. This is after it paid $484mn in cash and stock to buy a 53% stake last year. As it sums up, Uber will spend around $1.9bn to buy Cornershop in total. The price is a far cry from when mega-retailer Walmart sealed a deal to buy Cornershop for $225mn in 2018 but got rebuffed by regulators. Cornershop is a grocery app serving the Latin American markets and is headquartered in Mexico. It was the country's competition agency that prevented Walmart from buying the app, citing unfair competition as Walmart is already a major brick-and-mortar grocery retailer. As the Covid pandemic cratered Uber's ride-hailing business, th

Deal: JPMorgan Buys UK Robo-Advisor Nutmeg

US-based banking giant JPMorgan has ventured into Europe to make a new major fintech acquisition. It's bought Nutmeg , an online wealth manager that's one of the biggest in the UK. Though JPMorgan didn't announce the price of its acquisition, a report from The Wall Street Journal   puts it at about $1bn. At that, it's a major exit in the UK's fintech startup scene. Nutmeg is a Robo-advisor managing investments digitally for many clients. It has 140,000 clients with a collective £3.5bn ($4.8bn) of assets under management. With Nutmeg, JPMorgan is making a play to shore up its retail banking business in the UK. Its acquisition precedes the bank's plans to launch a standalone digital bank brand in the UK later this year. Nutmeg is a testament to JPMorgan CEO Jamie Dimon saying last year that the bank would be “much more aggressive” in searching for acquisitions to add capabilities. At the reported $1bn price tag, Nutmeg's acquisition would be JPMorgan's bi

Antitrust: US DOJ Sues To Block Major Insurance Merger

The US Justice Department under President Biden has taken up its first major corporate antitrust case, in the insurance industry. It's sued to block the proposed merger of  Aon and  Willis Towers Watson , two of the "big three" insurance brokers. Aon and Willis Towers agreed to a deal to combine in March 2020. The merger value was $30bn at the time the deal was announced but would be worth $34bn today.  Both companies are two of the world's three largest insurance brokerages by revenue and their combination would obviously reduce competition in the global market. Aon is based in the US and Willis in London.  The US DOJ is not having it with the planned merger and has sued to block the deal. It charges that it'll "reduce that vital competition and leave American customers with fewer choices, higher prices, and lower quality services." The DOJ is challenging the merger despite certain divestitures that Aon and Willis Towers have agreed to in connection

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Alert: Nikola Founder Trevor Milton Indicted On Fraud Charges

The founder of embattled electric car startup Nikola Corp. has been formally indicted on fraud charges by the US Justice Department months after resigning from the company. Trevor Milton by name, he's been accused of securities and wire fraud in connection with a scheme to defraud and mislead investors. Milton is accused of misleading investors by making false statements regarding Nikola's products and capabilities. Notably, most of the investors allegedly misled were on the retail side. The DOJ alleges that Milton made false claims regarding "nearly all aspects" of Nikola's business. Milton founded Nikola in 2014 and led it through a public listing via a merger with a special-purpose acquisition company (SPAC) last year. The DOJ threw an apparent jab at SPACs in his indictment, asserting that he made 'many' of his false and misleading claims  during a period where he would not have been allowed to do so under rules that govern traditional IPOs were he

Earnings: AMD Doubles Revenue, Triples Profit

In this earnings season, companies all over are dropping their latest quarterly results and we're here equally reporting on them. We've touched on social media companies Snap Inc and Twitter , electric carmaker Tesla , and iPhone maker Apple . Now, the next is chipmaker AMD Inc . AMD has dropped its earnings for the second quarter of 2021, showing strong prospects as revenue doubled year-over-year and net income more than tripled.   Details AMD posted $3.9bn in revenue in Q2, up 99% year-over-year and 12% from the preceding quarter. For the same period, the company's net income was $710mn , up 352% year-over-year and 28% from the preceding quarter. Doubling its revenue and nearly quadrupling net income indicates AMD has a strong yet fast-growing business. It's bound to grow even more as the company is set to complete its acquisition of rival chipmaker Xilinx . AMD makes money selling high-performance chipsets used in computers, consoles, data centers, and the likes

Antitrust: Amazon Fined $900M By EU For Privacy Violations

Tech behemoth Amazon is for the nth time in the crosshairs of the European Union (EU). The latest saga in that arena is that Amazon has been fined a record-breaking amount for alleged privacy violations, according to an SEC filing from the company. Amazon has been fined the sum of €746 million ($888mn) by the Luxembourg National Commission for Data Protection (CNPD) for not complying with data privacy laws. It's the largest fine imposed under Europe's data protection law.  The fine originates from the CNPD accusing Amazon of processing customers' personal data in violation of the EU's famous-cum-infamous General Data Protection Regulation (GDPR) laws.  In June, it was reported ( WSJ )  that the Luxembourg data protection agency had sanctioned Amazon's privacy practices and proposed a fine topping $425mn to the EU's other two-dozen or so national data protection authorities. Now, it appears that the final fine is much larger than that.  Before now, the bigges

Deal: Qualtrics Buys CX Startup Clarabridge For $1.1B

Months after getting spun out of SAP into a separate public company, Qualtrics , a major provider of online survey software, has made a major acquisition. It's agreed to buy Clarabridge , a startup that does similar work to Qualtrics in the field fondly referred to as "customer experience (CX)". Qualtrics will pay $1.1bn all with shares to buy Clarabridge. The acquisition is a major strategic play for the company, pairing Qualtrics' customer survey business with Clarabridge's similar business of measuring customer sentiment from various sources like social media posts and customer support calls. Basically, Qualtrics is in the business of weighing customer surveys directly and Clarabridge in the business of doing so indirectly . Pairing both businesses represents a major strategic play for Qualtrics. In an investor presentation, Qualtrics said that Clarabridge has $100mn in annual revenue, implying an 11x multiple that it's paying to buy the company. That&#

Deal: Amgen Buys Biotech Startup Teneobio In $2.5B Deal

It appears that this Covid era has led to a boom for companies that work on  antibodies , which are protective proteins produced by the human immune system to tackle foreign substances, usually viruses. Antibodies are very useful in the research and treatment of viruses such as Covid. There are companies that specialize in antibodies and one of them, BioLegend , was recently bought for a whopping $5.3bn . Now, another such company, Teneobio , is getting bought for a big amount. Teneobio has agreed to be acquired by Amgen , an American biotech giant. Amgen is paying $900mn upfront for the company, then an additional $1.6bn in cash contingent on the company hitting certain milestones. It sums up to a $2.5bn deal . Teneobio is a clinical-stage biotech startup working on antibodies aimed at treating cancer, autoimmunity, and other infectious diseases. As it's still in the clinical trial stage with no viable product yet, it appears that Amgen is betting big on Teneobio's trials b

Antitrust: UK Probes Facebook's $1B Kustomer Acquisition

The UK's antitrust agency has launched a probe into Facebook's latest acquisition, that of chatbot platform Kustomer Inc , which Facebook agreed to buy last November for a reported $1bn. The UK's Competition and Markets Authority (CMA) on Friday, the 30th of July, released a statement  indicating it had opened an inquiry into Facebook's purchase of Kustomer, regarding if it'll result in "a substantial lessening of competition" within the market Kustomer operates in. Such probes aren't out of the norm and are routine for big acquisitions. For Facebook, it speaks to the fact that antitrust agencies are watching the company's moves, especially regarding acquisitions. To note, two of Facebook Inc's biggest products outside the main Facebook platform, Instagram and WhatsApp , were acquisitions. In fact, it's primarily acquisitions that have propelled the company's growth. As with such probes, the UK will first seek comments from the public

Hollywood: Reese Witherspoon's Media Co. Sold In $900M Deal

A media company founded by superstar actress Reese Witherspoon has sold for a large amount to a company still in its infancy that hasn't even been named yet. That company is Hello Sunshine , a media company that produces content distributed across various platforms; movies, TV shows, podcasts, et al. Hello Sunshine has been sold to a newly-formed media venture t hat's backed by investment capital from Blackstone , the private equity giant.  The venture is led by ex Disney honchos Kevin Mayer and Tom Staggs .  As it is, the Blackstone-funded venture is acquiring a majority stake in Hello Sunshine from a group of external investors while anchor shareholders like Witherspoon and her founding partners will roll over and retain their equity stakes in the newly-formed venture. Officially, the deal's financial terms weren't disclosed, but a report from The Wall Street Journal says it's a $900mn deal. According to the report, the Blackstone-funded venture will pay $500mn

Earnings: Shopify Beats Estimates, Reaches Major Milestone

In this season of earnings results and we at The Techee  reporting on them, we're here with a beat on Shopify , which has released its earnings statement for the second quarter (April-June) of this year. In Q2, Shopify beat revenue expectations from analysts and as well achieved a major financial milestone by crossing $1bn in quarterly revenue for the first time. Shopify had $1.1bn in revenue in the quarter, up 57% year-over-year. Net income for the same period was $897mn , most of which was due to a $778mn gain in equity investments, likely from Shopify's stake in Affirm , a major 'buy now, pay later' lender. As usual, most of Shopify's sales ( $785mn ) came from "Merchant Solutions", which groups additional services the company offers atop recurring subscriptions charged to online retailers. Sales from subscriptions came at $334mn in the quarter. Gross Merchandise Volume (GMV), representing the total worth of transactions made on the Shopify platform,

Alert: Square Buys Australia's Afterpay For $29B

It's a big day in the fintech world. There's been a major acquisition with a major American fintech company, Square , buying Australia's foremost fintech startup, Afterpay , a 'buy now, pay later' lender. Square has reached an agreement to buy Afterpay for a whopping $29bn , marking one of Australia's biggest buyouts. It's a big deal that a startup founded barely seven years ago is selling for $29bn.  Square will pay the $29bn all with shares. It means that shares of Afterpay, which are traded on the Australian Securities Exchange, will be exchanged for Square stock traded on the New York Stock Exchange (NYSE). Afterpay is Australia's foremost 'buy now, pay later (BNPL)' lender in online retail. For the uninitiated, the 'buy now, pay later' business is a relatively young one providing alternatives to credit cards for consumers to shop online. It provides loans for consumers to shop online and then pay back in installments. Usually, credi

Markets: US SEC Takes Aim At Chinese IPOs

The US Securities and Exchange Commission (SEC) has taken a swipe at Chinese initial public offerings (IPOs) after regulatory hiccups in China have affected many Chinese stocks listed on US markets and American stockholders holding them. The SEC has issued new guidance on Chinese companies seeking to list shares in the US, requiring them to make certain disclosures to investors or otherwise refrain from listing in the US markets. First of all, usually, Chinese companies listing in the US don't actually sell shares of the operating companies but that of shell companies with contractual relationships with the operating companies. These shell shares, known as American Depositary Receipts (ADRs) , are used to circumvent restrictions on foreign ownership of Chinese shares imposed by the country's government. Now, the SEC in a statement has made it clear that Chinese companies seeking to list in the US must provide clear descriptions of the shell operations involved in such listing