There’s a $1 Billion-Plus Technology Deal Announced Every Two Days – Bloomberg

Welcome to the Bloomberg Deals newsletter. Today were continuing to digest the possible PayPal/Pinterest tie-up, looking at Trumps return to social media via a SPAC, and highlighting all-women dealteams.

Today's top stories

PayPals potential $45 billiontakeover ofPinterest and entry into the super-appleague could deliver tech dealmakers their first-ever $1 trillion year.Ben Scent and Fareed Sahloul

Not bad for a sector where huge transactions are supposedly under threat from eagle-eyed regulators in Washington, led byLina Khan.

TheU.S. Federal Trade Commissions new chairhasvowedto restore the agencyspowerto take on dominant companies thwarting competition.

Shes specifically called out tech, and her aggressive stance hasalready spooked some in the market who are nowwary about whether major deals will completed.

So far though, its all systems go for tech.Companies in the sector have announced $971 billion of mergers and acquisitions this year, double the tally for the same period in 2020, Bloomberg data show.

In fact, theres been a new billion-dollar or moretech deal announced roughly every two days this year, the data show.

The potential PayPal/Pinterest deal, first reported byEd Hammond and Liana Baker,is certainly not without its obstacles.

Analysts are already questioning the strategic fit orsuggesting that an offer of around $70 a share for Pinterest would be too low. Other analysts say PayPal is likely to face bidding competitionfrom the likes of Shopifyand Microsoft.

In a note to clients on Thursday, United First Partners said the current regulatory environment would pose a disadvantage to tech giants like Facebook and othersin that ballpark tempted to make a move for Pinterest.

PayPal is lucky to have avoided the scrutiny from lawmakers that other tech titans are facing, and it wouldn't set off competition alarm bells since it's not a direct rivalto Pinterest, according to UFP.

Pinterests size alone, however, could be enough to draw the gaze of Khan and company, UFPwarned.

Investors are as puzzled by the potential PayPal/Pinterest pairing as theyare by the $45 billionvaluation,asking: Why is a social-media app worth so much to PayPal? And what is Pinterest anyway?Tara Lachapelle navigates the millennial-mom scrapbooking partyto look for the answers.

WeWork has finallybegun trading as a public companyafter its merger with blank-check firm BowX Acquisition Corp., meaningits founder Adam Neumann isworth about $2.3 billion. A lot has changed since WeWork first tried to go public: a new leader, feweremployees, a global pandemic. One thing that remains the same: It still loses money.

Former PresidentDonald Trump hasannounced a deal that would enable him to regain a social media presence after he was kicked offTwitter and Facebook. Right on trend, Trump plans to do so with a SPAC Tracy Alloway explains how its all going to work.

Equinox, whose gyms are frequented by Wall Street staffers among others, is in discussions to go public through a merger with Ares Acquisition Corp. after talks with one of Chamath Palihapitiyas blank-check companies collapsed, writes Gillian Tan.

Partners Group is in advanced talks to acquire a 25% stake in high-end watchmakerBreitlingfromCVC Capital Partners, writeAaron Kirchfeld, Jan-Henrik Frster and Ruth David.A deal could be announced in the coming weeks andvalue Breitling at about 3 billion Swiss francs.

Photographer: Stefan Wermuth/Bloomberg

Intels talks with chip designerSiFive have ended without a deal and the startup will seek outside investment instead, writeMark Gurman and Ed Ludlow.

Bristol-Myers Squibb is planning to tender its shares inAcceleron Pharma afterMerckagreed to buy the biotechnology company for $11.5 billion, writesMichelle F. Davis. Selling the 11.5%stake will bring the Merck deal closer to completion.

Tata Chemicals is considering selling its U.S. soda ash business, joining a string of rivals looking at similar options. Its seeking $1 billion or more for the assetMyriam Balezou,Kiel PorterandBaiju Kalesh report.

When it rains, it pours. Activist investorElliott Investment Managementhas built a sizable position in Canadian National Railway, writesScott Deveau. Remember that CNR is already in the midst of a proxy contest with billionaire Chris HohnsTCI Fund Management.

The JPMorgan team thatthis week advised Blackstoneon its investment in shapewear brand SPANXcomprised exclusivelywomen, including five managing directors, writes Ed Hammond.

While all-women deals teams aren't super common, they've been turning up on more transactionslately. JPM bankers on the SPANX deal included Anu Aiyengar, Liz Myers, Haidee Lee, Jenny Lee, Vasudha Saxena and Brittany Collier. Blackstonesaid its transaction team was all-women too.

Got a tip or want to send in questions? Email dealsnews@bloomberg.net, or tweet/DM @bloombergdeals or any of our reporters.

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There's a $1 Billion-Plus Technology Deal Announced Every Two Days - Bloomberg