What we’re reading (11/29)
“What The Heck Happened To Salesforce?” (CNN Business). “Shares of Salesforce (CRM) have plunged about 40% so far in 2022. That makes it the second-worst performer in the Dow, trailing only chip leader Intel (INTC). Salesforce (CRM) has lagged the performance of top cloud software rivals such as Microsoft (MSFT), Germany’s SAP (SAP) and Oracle (ORCL). Salesforce isn’t really doing all that badly. In fact, the company reported sales growth of 22% from a year ago back in August, but it also cut its revenue and profit forecasts at the time.”
“Elon Musk Takes On A Goliath” (DealBook). “Mr. Musk complained that Apple had paused most of its advertising on Twitter, continuing his berating of companies that have done so. But it’s his allegation that Apple ‘threatened to withhold Twitter from its App Store but won’t tell us why’ that could prove more important. Apple is a major source of ad dollars for Twitter. It was the biggest advertiser on the platform in the year’s first quarter, spending $48 million, according to The Washington Post.”
“The Data Show Twitter Is Far From Dying” (RealClearWire). “As #RIPTwitter trends and the media is awash with coverage lamenting the site’s apparently imminent demise, a look at the actual data on Twitter’s usage suggests that the platform is far from dead. While Twitter is losing both employees and advertisers, and a few high-profile celebrities have departed, the platform’s core user base appears to be as engaged as ever – a point Elon Musk himself made recently.”
“Activist House Flippers Take On Wall Street To Keep Homes From Investors” (Wall Street Journal). “Activist flippers say they are leveling the playing field. Many home sellers prefer cash buyers because they are viewed as the fastest and most reliable purchaser. Nonprofits want to offer an alternative all-cash option. ‘We’re going to make you a competitive offer,’ Mr. Gosman said.”
“With Penguin Random House Out Of The Picture, What Happens To Simon & Schuster Now?” (Vanity Fair). “In a nutshell, it’s back to the old drawing board for Paramount Global, which remains firm in its determination that S&S is a ‘non-core asset’ and ‘therefore does not fit strategically within Paramount’s broader portfolio’ of video-based assets—CBS, Showtime, the former Viacom networks, the Paramount+ streaming service, etc. Even before Pan’s decision came down, Bakish had privately reiterated that Paramount wasn’t having second thoughts about selling S&S, which I’m told will remain a ‘discontinued operation’ in Paramount Global’s quarterly earnings calculations. With the holidays upon us, it will take a bit of time for the M&A process to really get going again. But the company does expect interest, as one source put it, from ‘a mix of strategic and financial buyers.’”
