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AI deals give investment banks a glimmer of hope
  + stars: | 2023-09-26 | by ( Nicole Goodkind | ) edition.cnn.com   time to read: +6 min
About a third of all M&A deals in the first half of 2023 were technology deals, and a lot of that was related to AI, said Berlin. The success of these deals mean more M&A is likely on the horizon, said Dan Ives, a tech analyst at Wedbush. Costco members now have access to $29 online health care visitsCostco is known for its giant tubs of mac and cheese, cheap hotdogs and more-for-less warehouse deals. The retailer is offering the new service in partnership with Sesame, a direct-to-consumer health care marketplace that connects medical providers nationwide with consumers. Costco is among several retailers, including Amazon, CVS and Walgreens, who are directly providing health care to customers as the demand booms for urgent care access outside of a traditional hospital setting.
Persons: CNN —, Goldman Sachs, Goldman, ” Goldman, David Solomon, Instacart’s, , Mitch Berlin, “ You’re, Dan Ives, ” Ives, Taavon Naja, Ramishah Maruf, Parija Kavilanz, Sesame Organizations: CNN Business, Bell, CNN, Wall, Companies, Renaissance, Nasdaq, Cisco, Wedbush, of Foreign, Control, Costco, Costco Pharmacy’s, Amazon, CVS, Walgreens Locations: Americas, Berlin, Iran, Switzerland, United States, PFAS, New York
Jefferies analysts wrote in a note the Federal Reserve putting the brakes on interest rate hikes has given acquirers more certainty around their funding costs, helping dealmaking. Cisco's deal valued Splunk at 7 times projected 12-month revenue, according to Jefferies. "We note that the typical security company with 20% growth trades at about 7 times (sales)," BTIG analysts wrote in a note last week. Private software companies may also be more receptive to takeovers. "A tidal wave of software M&A (is) on the horizon," Wedbush analysts wrote in a note last week.
Persons: Chuck Robbins, David Chen, Morgan Stanley, Chen, Jefferies, Keith Skirbe, Houlihan Lokey's, Milana Vinn, Anirban Sen, Anna Driver Organizations: Cisco Systems, Cisco, Crowdstrike Holdings, Microsoft, Adobe, Oracle, Francisco Partners, TPG Inc, Federal Reserve, IBM, Reuters Graphics Reuters, Jefferies, Thomson Locations: New York
Michael Baum's cybersecurity software company, Splunk, just sold to Cisco for $28 billion. As soon as I saw MacPaint and MacDraw, I knew I had to figure out how this worked," Baum told U.K.-based The Gentleman Magazine in 2022. Baum went on to establish himself as a serial entrepreneur, building and selling multiple software businesses before 2000. When Splunk went public in 2012, it was valued at roughly $1.6 billion. The "inquisitive nature" that drove him to learn more about Jobs' Macintosh computers "continues to drive me today," Baum told The Gentleman Magazine.
Persons: Michael Baum's, Steve Jobs, Baum, Jobs, Drexel, — Rob Das, Erik Swan —, Splunk, refashioned, he's Organizations: Cisco, Drexel University, Gentleman Magazine, BBC, Reuters, Wharton School, University of Pennsylvania, Walt Disney, Yahoo, Jobs, CNBC Locations: Philadelphia, San Francisco, France's Burgundy
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/cisco-splunk-ceos-say-future-of-cybersecurity-turns-on-ai-ab2bc0bd
Persons: Dow Jones Organizations: cisco, splunk
Morning Bid: Edgy market calm after worst day of 2023
  + stars: | 2023-09-22 | by ( ) www.reuters.com   time to read: +5 min
The exterior of the Marriner S. Eccles Federal Reserve Board Building is seen in Washington, D.C., U.S., June 14, 2022. World stocks captured by MSCI's all-country index (.MIWD0000PUS) recorded their worst day of the year so far - dropping 1.69%. The yen fell back again but the dollar/yen rate remained below Thursday's 2023 high of 148.45. The pound hit its lowest level since March and 10-year British gilt yields fell to their lowest level since July. Elsewhere, oil prices nudged higher again on Friday as concerns that a Russian ban on fuel exports could tighten global.
Persons: Sarah Silbiger, Mike Dolan Punch, Rupert Murdoch, Lisa Cook, Susan Collins, Neel Kashkari, Mary Daly Organizations: Eccles Federal Reserve, Washington , D.C, REUTERS, Bank of Japan, Fed, European Central Bank and Bank of England, Treasury, Sterling, of, Activision Blizzard, Markets Authority, Ubisoft, Cisco Systems, Cisco, Fox Corp, News Corp, JPMorgan, Federal Reserve, Boston, Minneapolis Fed, San Francisco Fed, Reuters Graphics Reuters, Reuters, Thomson Locations: Washington ,, U.S, Australia, Britain, United States, India
Jeff Marks: The upcoming earnings report should be good considering how strong the beer business is doing. Jim Cramer: Estee Lauder CEO Fabrizio Freda was adamant that this quarter wouldn't be any good so everyone is selling it. (Ronald) Jim Cramer: There is no pressure that could pull oil down with the Saudi Arabia oil cuts and Russia export cuts. Jeff Marks: These oil stocks have become great hedges to inflation again, much like they were last year. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Persons: Jim Cramer's, Jeff Marks, Jim Cramer, Johnson, Arbitrageurs, Greg, There's, We're, Elliott Management's, I'd, Elliott, Morgan Stanley, Carey, we've, James Gorman, Jim, Estee Lauder, Fabrizio Freda, there's, Dave Cote, Darius Adamczyk, Vimal Kapur, Darius, hasn't, , Ronald, Rick, We've Organizations: Investing Club, Broadcom, VMWare, AAA, Constellation Brands, Modelo, Elliott Management, Cisco, Palo Alto Networks, Honeywell, Morgan, Morgan Stanley Laguna, GE Healthcare, Natural Resources, Devon Energy, Halliburton, HAL, Costco, Walmart, Kirkland, CNBC Locations: Canada, Johnson, Mel , Pennsylvania, Manville, New Jersey, U.S, Carey , Virginia, Asia, Kyle , Wisconsin, PANW, Omar , Colorado, Saudi Arabia, buybacks, GEHC
The Q3 survey of corporate finance chiefs finds a sharp rise in CFOs pointing to government regulation as the biggest risk factor for their business. From Q1 to Q3 2023, the percentage of CFOs saying government regulation is their biggest risk jumped from roughly 6% to 40%. This quarter, only 10% of CFOs cited inflation, while the 40% who pointed to regulation represented a more than doubling quarter over quarter. watch nowFor the business community's biggest advocacy group, getting back to normal also means confronting a new normal. "The emergence of government policy as risk relative to other risks has been growing substantially over the past decade."
Persons: Mark Wilson, Trump, Sanjay Patnaik, Neil Bradley, Patnaik, Obama, Biden, Bradley, it's, Dan Clifton, we've, It's, UnitedHealth —, Cisco's, Clifton, Lina Khan, She's Organizations: U.S, Capitol, Getty, CNBC, CNBC Global, Federal Trade Commission, Google, Microsoft, Amazon, U.S . Chamber of Commerce, Brookings Institute, Corporate, industrials, Corporations, ., Apple, market's, Union, EU, Horizon Therapeutics, Activision Locations: WASHINGTON, DC, Washington ,, Covid, Russia, Ukraine, China, U.S
CNBC Daily Open: Dispelling the AI hallucination
  + stars: | 2023-09-22 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +2 min
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. The pan-European Stoxx 600 slumped 1.3% amid a flurry of central bank decisions. Sweden hiked rates by 25 basis points to 4%; Norway raised its rate from 4% to 4.25%; Switzerland kept rates unchanged. SuccessionRupert Murdoch is stepping down as chairman of the board of Fox Corp and News Corp in November.
Persons: Rupert Murdoch, Lachlan Murdoch, Steve Eisman, that's Organizations: CNBC, of England, Cisco, Fox Corp, News Corp, Fox News, Systems, Valley Bank Locations: Sweden, Norway, Switzerland, Turkey
CNBC Daily Open: Banishing the AI hallucination
  + stars: | 2023-09-22 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +2 min
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Meanwhile, Japan's Nikkei 225 lost 0.42% after the country's central bank maintained its negative interest rates. Growth-focused technology stocks, in particular, are struggling in an environment of higher-for-longer interest rates. But that means the time's ripe to look at European value stocks.
Persons: Hong, Fraser Institute's, Matthew Mitchell Organizations: CNBC, Nikkei, Bank of Japan, U.S, Cisco, Fraser Institute, Hong, Citi Locations: Asia, Pacific, Singapore, Canada, Hong Kong
Asian shares were mixed on Friday after another slump on Wall Street driven by expectations that U.S. interest rates will stay high well into next year. Political Cartoons View All 1173 ImagesTokyo's Nikkei 225 fell 0.2% to 32,501.59. Why chance their big swings when Treasurys are paying higher interest. That in turn could give the Fed more reason to keep rates higher for longer. Manufacturing and the housing industry have felt the sting of higher interest rates in particular and have struggled more than the broad job market.
Persons: Hang Seng, Sensex, Australia's, Telsa, Splunk Organizations: Bank of Japan, Federal Reserve, Fed, Dow Jones, Nasdaq, Big Tech, Nvidia, Cisco Systems, Cisco, Wall Street, FedEx, Treasury, Manufacturing, New York Mercantile Exchange, Brent, U.S Locations: Hong Kong, Shanghai, Tokyo, Seoul, Sydney, Hong, Wall, U.S
Based in Palo Alto, California, Tidal was started by technology bankers David Handler and David Neequaye. Their firm, which employs just two dozen people according to its website, was the sole financial adviser to Cisco, while larger investment banking peers Qatalyst Partners and Morgan Stanley (MS.N) advised Splunk. Tidal's win comes as more technology bankers decide to launch their own firm amid an overall slowdown in dealmaking in the sector. Three former Qatalyst Partners bankers launched a new technology-focused investment banking boutique called AXOM Partners earlier this week, Reuters reported. The group went on to advise other major technology companies including Cisco, Qualcomm Inc (QCOM.O) and Twilio Inc (TWLO.N).
Persons: Centerview Partners dealmakers, David Handler, David Neequaye, Qatalyst, Morgan Stanley, MS.N, Splunk, David, Handler, we've, Chuck Robbins, Tidal's, Neequaye, Centerview, Milana Vinn, Anirban Sen Organizations: Centerview Partners, Cisco Systems Inc, Splunk Inc, Cisco, Qatalyst Partners, AXOM Partners, Reuters, Qualcomm Inc, Twilio Inc, UBS Group AG, Thomson Locations: Palo Alto , California, New York
Cisco Systems to Buy Splunk in $28 Billion Deal
  + stars: | 2023-09-21 | by ( Colin Kellaher | ) www.wsj.com   time to read: 1 min
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/business/telecom/cisco-systems-to-buy-splunk-in-28-billion-deal-bb9350a5
Persons: Dow Jones Organizations: cisco
Cisco beefs up cybersecurity play with $28 bln Splunk deal
  + stars: | 2023-09-21 | by ( ) www.reuters.com   time to read: +1 min
The logo of networking gear maker Cisco Systems Inc is seen during GSMA's 2022 Mobile World Congress (MWC) in Barcelona, Spain February 28, 2022. REUTERS/Nacho Doce Acquire Licensing RightsSept 21 (Reuters) - Cisco Systems (CSCO.O) on Thursday agreed to acquire cybersecurity company Splunk (SPLK.O) for about $28 billion, in its biggest acquisition ever that would bolster its network security business. "Combined, Cisco and Splunk will become one of the world's largest software companies and will accelerate Cisco's business transformation to more recurring revenue," the companies said in a joint statement. Cisco shares were down nearly 5% in premarket, while trading in Splunk stock was halted. The deal, which was unanimously approved by the boards of both Cisco and Splunk, is expected to close by the end of the third quarter of 2024 subject to regulatory approvals.
Persons: Simpson Thacher, Moore, Morgan Stanley, Flom, Splunk, Yuvraj Malik, Anil D'Silva Organizations: Cisco Systems Inc, Congress, REUTERS, Cisco Systems, Splunk's, Cisco, Splunk, Tidal Partners, Bartlett, Qatalyst Partners, Thomson Locations: Barcelona, Spain, premarket, Cravath, Slate, Bengaluru
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/business/telecom/cisco-systems-to-buy-splunk-in-28-billion-deal-bb9350a5
Persons: Dow Jones Organizations: cisco
Cisco Systems , Splunk — Shares of Cisco fell 3.9% Thursday after the company said it is acquiring cybersecurity software company Splunk for $157 per share in a cash deal worth about $28 billion. KB Home posted its fiscal third-quarter report Wednesday evening, reporting earnings of $1.80 per share on revenue of $1.59 billion. Analysts polled by LSEG, formerly known as Refinitiv, called for earnings of $1.43 per share and revenue of $1.48 billion. Broadcom — Shares of Broadcom moved lower by almost 2.7%. Klaviyo — The marketing automation company stock closed Thursday roughly 2.9% higher.
Persons: Rupert Murdoch, Eli Lilly —, Klaviyo, Horton —, PulteGroup, Horton, Zillow, CNBC's David Faber, , Alex Harring, Tanaya Macheel, Samantha Subin Organizations: Broadcom, Cisco Systems, Cisco, KB, LSEG, Fox Corporation, News, News Corp, Broadcom —, Google, CNBC, Klaviyo, New York Stock Exchange, Zillow, FedEx —, FedEx, Paramount, Netflix, Disney, Writers Guild of America, Wednesday Locations: San Jose , California
Cisco places $28 billion bid to acquire Splunk
  + stars: | 2023-09-21 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCisco places $28 billion bid to acquire SplunkCNBC's Deirdre Bosa joins 'The Exchange' to discuss Cisco's bid to buy Splunk, M&A among enterprise software technology, and Cisco's effort to move into software, AI and cyber security.
Persons: Splunk, Deirdre Bosa Organizations: Cisco
(Photo by Jakub Porzycki/NurPhoto via Getty Images)Cisco is acquiring cybersecurity software company Splunk for $157 a share in a cash deal worth about $28 billion, the company said Thursday. The acquisition is one of Cisco's largest, and continues an acquisition streak which has built out the company's cybersecurity offerings. Splunk is a cybersecurity company that helps enterprises monitor and analyze their data to minimize the risk of hacks and resolve technical issues faster. If Cisco backs out of the deal or is forced to do so because of regulatory intervention, it will pay Splunk a termination fee of $1.48 billion, according to a regulatory filing. If Splunk backs out of the deal for any reason, it will pay a $1 billion breakup fee to Cisco.
Persons: Jakub Porzycki, Chuck Robbins, Robbins, Simpson Thacher, Moore, Morgan Stanley, Flom, Splunk Organizations: Getty Images, Cisco, Tidal Partners, Qatalyst Partners Locations: Krakow, Poland, Slate
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Cisco CEO Chuck Robbins and Splunk CEO Gary SteeleCisco chairman and CEO Chuck Robbins and Splunk CEO Gary Steele join 'Squawk on the Street' to discuss Cisco's acquisition of cybersecurity software company Splunk for $157 a share in a cash deal worth $28 billion, why Splunk decided to sell the company, the growth opportunity ahead, and more.
Persons: Chuck Robbins, Gary Steele Cisco, Gary Steele, Splunk Organizations: Cisco
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCisco CEO Chuck Robbins on Splunk acquisition: Deal will add $4 billion in annual recurring revenueCisco chairman and CEO Chuck Robbins and Splunk CEO Gary Steele join 'Squawk on the Street' to discuss Cisco's acquisition of cybersecurity software company Splunk for $157 a share in a cash deal worth $28 billion, why Splunk decided to sell the company, the growth opportunity ahead, and more.
Persons: Chuck Robbins, Gary Steele, Splunk Organizations: Cisco
Stocks finished lower and Treasury yields rose Thursday, concluding a second day of weak market action triggered by the Federal Reserve. “In this environment, with higher rates for longer, it’s more difficult to achieve a soft landing. U.S. stocks retreated. All three major indexes fell; the Nasdaq Composite was down 1.8%, while the Dow industrials dropped more than 350 points. The benchmark 10-year Treasury yield climbed tp 4.479% to its highest level since October 2007.
Persons: Stocks, , Karim Chedid, Dow industrials, Shorter Organizations: Federal Reserve, BlackRock, Cisco, Nasdaq, Dow, Treasury, Nikkei, Swiss Locations: U.S, Europe
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCisco acquires Splunk for $28 billion. Here's what the pros say to do nextJim Cramer, Jim Lebenthal of Cerity Partners and Jenny Harrington of Gilman Hill Asset Management discussed Cisco after the company announced its largest acquisition ever by acquiring cybersecurity software company Splunk for $28 billion.
Persons: Jim Cramer, Jim Lebenthal, Jenny Harrington Organizations: Cisco, Cerity Partners, Management
High-profile investors Jeff Smith and Alex Sacerdote hit home runs after Cisco 's buyout of cybersecurity software company Splunk sent shares surging. The move marked a big win for the two hedge fund investors with big stakes in Splunk. Splunk was Smith's Starboard Value's third-biggest holding at the end of June, with a bet worth more than $430 million. The stock, Whale Rock's fifth-biggest stock bet as of the end of June, has soared more than 66% this year. Sacerdote also had a big bet on another cybersecurity company like Splunk, Fortinet .
Persons: Jeff Smith, Alex Sacerdote, Splunk, Smith, Sacerdote, Fortinet Organizations: Cisco, Rock Capital Management, Acacia Research, Big Tech, Microsoft, Meta, Nvidia, Netflix, Guggenheim Locations: Splunk, Wix.com
A new mergers and acquisitions advisory firm launched last year by former Centerview Partners dealmakers has scored a big win by advising Cisco Systems on its $28 billion acquisition of cybersecurity firm Splunk. Based in Palo Alto, California, Tidal Partners was started by technology bankers David Handler and David Neequaye. “We’ve known David (Handler) and his partner David (Neequaye) for a very long time. Handler and Neequaye helped launch Centerview’s technology advisory group in 2008. The group went on to advise other major technology companies, including Cisco, Qualcomm Inc and Twilio.
Persons: Centerview Partners dealmakers, David Handler, David Neequaye, Qatalyst, Morgan Stanley, Splunk, Handler, , David, we’ve, Chuck Robbins, Tidal’s, Neequaye, Bloom, Centerview Organizations: Centerview Partners, Cisco Systems, Tidal Partners, Cisco, Qatalyst Partners, NDS Group, AXOM Partners, Reuters, Qualcomm Inc, G2K, UBS Group Locations: Palo Alto , California, Centerview
Ryan Petersen, chief executive officer of Flexport, participates in a panel discussion during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Wednesday, May 4, 2022. In a post on X, formerly known as Twitter, Petersen wrote that the company "can't just give out cash." In reclaiming the top position at Flexport, Petersen is displacing his handpicked successor, former Amazon executive Dave Clark, a little more than a year into his tenure. It's messed up," Petersen wrote. "We were on it," Petersen wrote in response to a post.
Persons: Ryan Petersen, Petersen, Dave Clark, It's, that's, Andreessen Horowitz, Peter Thiel's, Clark, Teresa Carlson, Clark's, Carlson, Flexport didn't Organizations: Milken Institute Global Conference, Twitter, Amazon, Fund, Microsoft, Flexport Locations: Beverly Hills , California, U.S, Flexport, Bay, CNBC's, Seattle, Dallas, San Francisco , Los Angeles, New York
Morgan Stanley downgrades Farfetch to equal weight from overweight Morgan Stanley said it sees limited catalysts ahead for the stock. UBS upgrades Oracle to buy from neutral UBS said Oracle has upside potential. Wells Fargo upgrades Rockwell Automation to equal weight from underweight Wells Fargo upgraded the stock mainly on valuation. UBS reiterates Microsoft as buy UBS said supply chain constraints are manageable for Microsoft. Morgan Stanley reiterates Nvidia as overweight Morgan Stanley said Nvidia's blowout earnings report last week is positive for the AI supply chain. "
Persons: Fargo, Goldman Sachs, Wells Fargo, Goldman, DA Davidson, Davidson, Morgan Stanley downgrades Farfetch, Morgan Stanley, Wells, Bernstein, Airbnb, Palantir, Splunk, Jefferies, Raymond James Organizations: Federal Trade Commission, Amazon, UBS, Oracle, Nvidia, Citi, Verizon, AT, VZ, JPMorgan, Pace, Business, Rockwell Automation, Disney, Microsoft, Bank of America, Jefferies, Holdings, underperform Bank of America, China, NVIDIA, Energy Partners, NextEra Energy Partners Locations: China and Hong Kong, HK, Asia
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