And Other Notable Activity From Splunk, Softbank And Alphabet
Splunk Gets $ 1B From Silver Lake
On Tuesday, Splunk Inc said that it had received $1 billion in investment from Silver Lake, the private equity firm. This triggered an 8% jump in the shares of the data analytics software firm.
- Silver Lake will invest the sum in convertible notes and its chairman, Ken Hao, will join Splunk's board
- Splunk plans to use the proceeds to fund growth initiatives and manage its capital structure, including a share buyback program of up to $1 billion
Another SPAC For SoftBank
The SoftBank-backed healthcare startup Pear Therapeutics agreed to go public through a merger with Thimble Point Acquisition Corp. This will create a business valued at $ 1.6B and the deal will give the combined company $276 million in cash and a private investment of $125 million in public equity (PIPE) from investors including SoftBank, Temasek and 5AM Ventures.
- Pear offers app-based therapy and tracking tools for patients in the treatment of insomnia and substance abuse
- The company plans to use the cash influx to fund growth opportunities and develop new programmes
Thimble Point screened over 100 companies and did due diligence on 30 before negotiating a deal with Pear. It will trade under the PEAR ticker on the Nasdaq following the expected close of the deal in the second half of 2021.
Peloton Goes Corporate
Peloton announced the launch of a corporate wellness program on Tuesday. Businesses that sign up will be able to offer subsidized access to the Peloton digital fitness membership and its high-end cycles and treadmills for employees.
- Wafer, Sky, SAP and Samsung are among the first companies to sign up for the program. The benefit could help companies lure talent back to the office or help retain staff in a tight labor market
- During the pandemic, demand for equipment and memberships in Peloton has grown dramatically. However, shares are down nearly 29% year-to-date as investors worry that people may lose interest in working out at home
The EU Looks Into Google, Again
The EU has already sanctioned the tech giant claims over claims of anticompetitive behavior three times in three years. The new inquiry will examine the extent to which Google has favored its display advertising technology over competitors and whether it broke antitrust rules. Officials also anticipate to examine Google's plans to remove third-party advertising cookies in Google Chrome.
"Fair competition is important, […] Both for advertisers to reach consumers on publishers' sites and for publishers to sell their space to advertisers, to generate revenues and funding for content." EU's competition chief, Margrethe Vestager by Business Insider
Alphabet has repeatedly rejected the EU findings, and it met officials in court to appeal the first fine earlier this year. Around 80% of Google's sales comes from advertising on its product network such as its search engine and YouTube, which last year accounted for about $15 billion.
Please note that this article does not constitute investment advice in any form. This article is not a research report and is not intended to serve as the basis for any investment decision. All investments involve risk and the past performance of a security or financial product does not guarantee future returns. Investors have to conduct their own research before conducting any transaction. There is always the risk of losing parts or all of your money when you invest in securities or other financial products.