Welcome to Next, a weekly newsletter highlighting some of our unique news and research on how technology is reshaping the future of industries across global markets. As part of our expanded cross-sector tech coverage, we will curate some of our best insights and features on topics such as artificial intelligence, internet of things, cybersecurity, 5G, smart cities, autonomous vehicles, clean energy, telehealth and financial technology.
Subscribe now!
Top News
|
|
McAfee’s going-private transaction ranks among the most expensive cybersecurity deals for the year to date, though its valuation looks more measured against some of the red-hot multiples seen earlier this year. The company announced last week that an investor group led by Advent International and Permira Advisers will purchase its consumer cybersecurity business for $26 per share in an all-cash transaction. The deal is valued at $12 billion on an equity basis and $14 billion on an enterprise basis. That represents a multiple of 4.6x trailing-12-month revenue, according to 451 Research data.
On the e-commerce side, Amazon’s one-day shipping program in the U.S. could advance next year if the e-commerce company more fully builds out fulfillment capacity closer to the customer and successfully attracts high-demand workers for last-mile delivery, retail analysts say. Unexpected labor constraints and other pandemic-related disruptions slowed Amazon’s progress on ramping up one-day shipping for its Prime members, but the company hopes to shorten its standard two-day Prime shipping to one day for millions of items in 2022. One-day shipping would add to the perks that Amazon offers its Prime members, who also have access to exclusive deals, TV shows and other media.
In financial technology, large banks awash in deposits have been retreating from the high-yield savings competition as the battle for retail customers has shifted toward the ability to offer a complete suite of financial products. Just a few years ago, several large banks paid above-market rates on their savings products in an apparent battle with up-and-coming fintechs. But with a surge of liquidity amid the pandemic, some large banks have actually looked to defray deposit growth.
Chart of the Week
IT consulting, service firms top European deal-making in October
IT consulting and service company buyouts topped October IT deal-making in Europe, as existing shareholders consolidated their positions. French IT company Devoteam SA’s controlling shareholder Castillon SAS offered to acquire the 13.7% of shares in the company it does not already own. The €168.50-per-share offer represents a 28% premium over the 30-day volume-weighted average share price.
Tech, Media and Telecom
McAfee’s going-private deal ‘reasonable valuation’ in hot security M&A field
McAfee’s going-private transaction ranks among the most expensive cybersecurity deals for the year to date, though its valuation looks more measured against some of the red-hot multiples seen earlier this year.
Cybersecurity M&A values, volumes spike in 2021 amid demand growth
While cybersecurity has long been a hot sector for M&A activity, 2021 is seeing more deals at higher valuations than ever before. In the U.S., the volume of cybersecurity M&A deals hit 151 in the first three quarters of 2021, compared to 80, 88 and 94 in 2018, 2019 and 2020, respectively, according to data from 451 Research.
Outlining broadband provisions of the Build Back Better Act
With the U.S. House of Representatives passing a sweeping infrastructure package, major players in the broadband and telecom space are now eyeing the broadband provisions in another piece of legislation.
Disney expects streaming service to hit sub targets despite fiscal Q4 slowdown
With additional content and a series of market launches, company executives are confident Disney+ will hit its subscriber and profitability targets during the media conglomerate’s fiscal 2024.
Consumer
Solving labor, last-mile delivery key to Amazon’s 1-day shipping ambitions
The company must finish building out last-mile capacity closer to customers’ homes and attract workers to deliver goods within a one-day window.
Fintech
High-yield savings products fall back in fintech-bank battle for market share
Large banks have been retreating from the battlefield of high-yield savings as competition for core retail customers has shifted toward prioritizing a full suite of products.
Philippine virtual banks to ride on remittance flows, digital payments
The nation’s six newly licensed digital-only banks are set to grab a slice of the $35 billion remittance market from brick-and-mortar lenders and nonbank platforms, analysts said.
Energy
Greenland uranium ban endangers miners’ ability to feed green energy transition
The ban on uranium exploration and exploitation has stopped development of one of the world’s biggest rare earths deposits, casting further doubt on the mining industry’s ability to help the switch to green energy.
New Jersey Resources starts up 1st East Coast green hydrogen blending project
President and CEO Stephen Westhoven discussed the pilot project and how hydrogen fits into New Jersey Resources’ broader strategy to decarbonize the Garden State’s natural gas distribution system.
Metals and Mining
Infrastructure bill challenged by dearth of US upstream mining, refining
The massive infrastructure bill passed by the U.S. House of Representatives on Nov. 5 could stimulate demand for domestically sourced materials through expanded “Buy America” requirements, but the country will not be able to supply all of the metal it needs to build the projects funded in the $1.2 trillion bill.
China’s energy shortage fuels inflationary pressure on battery supply chain
Sustained power cuts in the country could place more pressure on prices for the rapidly expanding battery industry, which disproportionately relies on China for critical battery components and raw materials, according to companies and analysts.
Healthcare
First in Human: Cancer-beating virus; potential stem cell ‘game changer’
In our latest column on clinical research in the early stages of development, Australia’s Imugene tests its oncolytic virus on breast cancer, while Dutch company Neuroplast sees potential in a treatment for spinal cord injuries.
License to Pill: AstraZeneca gains cancer antibodies, sells inhaler therapies
The British pharmaceutical company licensed a selection of cancer-targeting antibody therapeutics from Integral Molecular, as well as selling two respiratory drugs to Covis Pharma. The two deals were among those announced between Oct. 23 and Nov. 5.
Top Research
From Kagan, a media research group within S&P Global Market Intelligence:
Global video game content revenue on course to cross $200B in 2022
Video game content revenue had a significant bull run from 2016 through 2020, growing at a 17.0% CAGR, but a shaky handoff between hardware generations leaves the console segment susceptible to contraction over the next five years while the mobile market approaches saturation.
From Panjiva, a business line within S&P Global Market Intelligence:
Xbox still outplays rivals in October
Video game makers are feeling the impact of the global semiconductor shortage and supply chain congestion. Xbox is still ahead of rivals PlayStation and Nintendo in October import growth.
Ford, General Motors see impact of chip shortage
Automakers reporting results for the three-month period ended Sept. 30 have had a common thread: the impact of the ongoing chip shortage. Ford Motor CFO John Lawler noted the challenges facing the industry during the company’s Oct. 27 earnings call, saying they saw “lower-than-anticipated improvement in chip availability in the second half of the year.”
From 451 Research, an offering of S&P Global Market Intelligence:
Overcoming IoT pilot project purgatory: Vendor partners play a pivotal role
Pilot purgatory has achieved almost mythic status in the internet of things market, and 451 Research continues to research and report on it. The problem is used by a variety of different vendors to suggest that they have the (usually) technical answer to the challenge. Is pilot purgatory being overplayed, or does it continue to plague market development? And more pertinently, what can vendors and buyers do to overcome the issue? The inability to progress IoT projects to production can be frustrating for enterprises and needs to be addressed by supply-side partners.
Request a demo
451 Research Datacenter Knowledgebase
Using the 451 Research Datacenter KnowledgeBase dataset, now available via Xpressfeed™ and Snowflake, you can assess market and region energy current and future demand from data centers.
Learn more on the S&P Global Marketplace
Upcoming Event
Beyond ESG with Profiles in Entrepreneurial Leadership
Nov. 17, 2021, 11:00 a.m. ET
Join S&P Global Sustainable1 for the next episode in our “Beyond ESG” series as we sit down with the authors of the report, “Entrepreneurial Leadership Must Help Meet America’s 21st Century Challenges in a Post-Pandemic World” to examine the challenges facing America and the role state and federal — as well as private industry — leadership must play to meet them.
Register Now
Want to hear more?
 |
Click here to listen to the latest episode of “MediaTalk,” an S&P Global Market Intelligence podcast. In this episode, Alexandra Reeve Givens, head of the Center for Democracy and Technology, and Sheryl Kingstone, head of customer experience and commerce at 451 Research, provide insights on privacy legislation in the U.S., how online companies are storing our data and growing concerns among consumers about privacy in the wake of the pandemic.
 |
Click here to listen to the latest episode of “Next in Tech,” a weekly podcast featuring 451 Research and other areas of S&P Global Market Intelligence. While Tesla may grab the headlines, commercial transportation has a considerable impact on markets, and their supply chains and IoT technologies could improve their performance. Research analyst Mark Fontecchio joins host Eric Hanselman to look at what’s underway now and where it’s headed. The technology is ready, but the hard part is getting it integrated into myriad providers across the transportation industry. No electric trucks soon, but IoT deployments are getting in gear.
Credit: Source link
