Robert Cyran
ReutersBreakingviews
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Past articles by Robert:
Tech unicorns become zombies – Breakingviews
Companies like Peloton, Carvana and DraftKings hit up investors for cheap capital to bolster balance sheets over the past years. But they haven’t used the cash to sort out business models – and they continue to burn through it. They have varying cushion but may already be dead. → Read More
Pfizer plucks Biohaven out of biotech bears’ lair – Breakingviews
Like tech firms, speculative drugmakers flooded the market in recent years, and valuations rose to unsustainable highs. Now stocks like migraine-specialist Biohaven have crashed back to earth. Pfizer’s cleverly structured $12 bln swoop suggests that’s an opportunity for some. → Read More
Uber’s CEO has right idea, wrong valuation – Breakingviews
Boss Dara Khosrowshahi said he’s focused on cutting costs to up free cash flow. That sounds like a great idea. The trouble is Uber’s $50 billion valuation is too high even assuming better margins. And it’s harder to square if top line growth slows when expenses are slashed. → Read More
Big Oil snubs commodity shortages – Breakingviews
Neither Exxon nor Chevron posted big increases to production last quarter despite surges to commodity prices caused by the conflict in Ukraine. Their decision is rational based on future prices and investor pressure. But it won’t make them friends in the court of public opinion. → Read More
Musk has at least three Twitter problems to fix – Breakingviews
In the first quarter, the $37 bln network’s expenses rose twice as fast as revenue. Users were up 16%, but Twitter admitted it had mistakenly puffed those up in the past. Plus, still it hasn’t proven it can be regularly profitable. That all takes attention Musk may not have. → Read More
Twitter’s board hastily grabs $44 bln bird in hand – Breakingviews
Only 10 days after the social media firm bought time to seek other options with a poison pill, its directors have accepted Tesla billionaire Elon Musk's offer at its original value. That suggests board weakness, financial vulnerability, a lack of other bidders, or all three. → Read More
Musk wealth pours in as fast as Twitter can use it – Breakingviews
The Tesla CEO may need to find $33 bln more cash if he buys the social media company. That could require him to sell most of his shares in the electric-car maker that aren’t pledged against loans. But with more vast stock awards coming his way, it’s less risky than it looks. → Read More
Musk Twitter bid becomes less virtual, more risky – Breakingviews
The Tesla CEO says he’ll put up almost half the $46.5 bln needed to buy the social network and borrow $13 bln against his stock in the carmaker. Banks will lend $13 bln. If all goes well, he makes a private equity-style return. Twitter’s poor cash flow means lots could go wrong. → Read More
Oil-field services miss brief chance to make hay – Breakingviews
Baker Hughes’ first-quarter earnings disappointed due to cost pressures and a fading Russian business. Growing demand for liquefied natural gas might benefit the company and its peers. But the reasons that business will thrive are the same ones that are reducing the appeal of fossil fuels. → Read More
Twitter’s habitat lacks natural predators – Breakingviews
Elon Musk’s $41 bln bid has put the social network in play, but closing a deal is harder. The Tesla boss may struggle to recruit partners, while meager earnings make it a stretch for private equity. Tech giants face antitrust concerns and toxic content will put off media suitors. → Read More
Flighty Musk exposes Twitter’s flaky governance – Breakingviews
The world’s richest man bailed on joining the social media firm’s board, days after agreeing to become a director. His run-ins with regulators and inflammatory tweets were well known. Appointing Musk the day he unveiled a 9% stake reflects how poorly the $37 bln company is run. → Read More
Musk fully cashes in on Twitter hype – Breakingviews
Tesla’s CEO has joined the $41 bln social media firm’s board after buying a 9% stake. He has a solid tech track record, and with 80 mln followers, it’s an insurance policy he won’t start his own platform. But Twitter’s value is up $10 bln. His presence doesn’t validate that jump. → Read More
Hypebeast finds SPAC shortcut to dual listing – Breakingviews
The Hong Kong-listed lifestyle, advertising and e-commerce firm is selling a stake to a blank-check vehicle, thereby collecting a U.S. listing as well. The implied valuation, despite being at a premium, is sober by SPAC standards. The novelty is involving two stock exchanges. → Read More
U.S. states bestow inopportune tax cuts – Breakingviews
U.S. states' coffers did surprisingly well during the pandemic and federal aid helped them build big fiscal buffers. Now many, like California, plan tax cuts. That may fuel even more inflation and prove unsustainable as more than $900 billion of support from Washington winds down. → Read More
UnitedHealth plays long game with M&A strategy – Breakingviews
A month after watchdogs sued to block a deal by the insurer, it agreed to buy home healthcare firm LHC for $5.4 bln. Both deals may mean UnitedHealth is bogged down in a delayed deal process. But adding LHC to UnitedHealth’s doctors, clinics and other units is worth the hassle. → Read More
EU’s faster, harder stick will whack U.S. big tech – Breakingviews
Existing antitrust law is too slow to prevent digital monopolies and too weak to create competition. New European rules, with a focus on prevention, will remedy that. The market is big enough and potential penalties so damaging that Apple and others need to take notice. → Read More
Credit firms spare Americans one false symptom – Breakingviews
Consumers have an estimated $88 bln of medical debt. Three big agencies will remove most such bills from their records. Smallish items that go unpaid for a while are often more about a messed-up health system than people’s ability to pay. It’s a small victory for common sense. → Read More
U.S. services have better China lockdown defenses – Breakingviews
Chinese lockdowns spell new supply disruptions for firms like Apple and higher prices. Surging inflation is already hurting consumers. But services, like restaurants and travel, will be more resilient than during the pandemic, thanks to $2.6 trln of excess household savings. → Read More
U.S. Russian oil ban ineffective without partners – Breakingviews
Russia produces about 10% of global oil. Given most of its exports go to Europe and Asia, an American import ban is relatively economically easy, especially if other unpalatable foreign policies are considered. But hitting Russian pockets needed much greater coordination. → Read More
Chevron’s green fuel deal is cheap and cheerful – Breakingviews
The $276 bln oil giant is buying sustainable diesel firm Renewable Energy for around $3 bln. A solid investment return makes it financially sensible. It's also a bet on the transition away from fossil fuels. For now, though, it's a tiny one compared to Chevron's European peers. → Read More