From Silicon Valley, with news
Happy Friday! This has been an incredibly busy and rewarding week for me in the Silicon Valley, meeting some old and new people familiar. Even though I find myself most productive working from home, I can't argue that having a real face-to-face interaction makes the world of difference. The best technology on the market can't beat a quick coffee meeting for establishing a human connection. Plus, making connections with some of the smartest people out there is why I love what I do. During my free time, I treated myself to delicious seafood and must-try Mexican restaurants, as well as toyed with autonomous ride-hailing service Waymo. Riding in a driverless car was scary at first, but also mind-blowing in its advancement.
The major theme of my discussions with top dealmakers seemed to always come back to the upcoming shakeup in the semiconductor industry. The troubles of Intel will create M&A and other investment opportunities for players in the semiconductor space, whether that's Intel's rivals in design or manufacturing, people familiar told me. Incredibly thematic discussions in the birthplace of the silicon chip.
Top dealmakers also pointed to the uncertainty of the current macro environment, including the upcoming elections and geopolitics, which, they say, will not let CEOs pull a trigger on any massive deals before the year end. One person familiar called 2024 a "bridge year", which will serve as a transition between two shallow M&A years and what he anticipates to be a fruitful deal environment of 2025 and 2026. What can I say besides I can't wait to cross that bridge!
In tech...
Blackstone and Vista Equity Partners have reached the deal to acquire workplace collaboration software maker Smartsheet for $8.4 billion, the companies said on Tuesday, in the latest sign that buyout deals were picking up steam after a dull 2023.
Reuters previously reported the buyout firms were nearing Smartsheet's acquisition in a deal that valued it close to $8 billion.
Smartsheet investors will get $56.50 per share in cash, an 8.5% premium over Monday's closing price.
The deal is expected to close in the fourth quarter and includes a 45-day "go-shop" period that will expire on Nov. 8, during which the company can weigh rival proposals.
In fintech...
I reported that Lightspeed Commerce , a Canadian payments software maker with a market value of C$3.2 billion ($2.37 billion), is working with a financial adviser to explore options including a potential sale, according to people familiar with the matter.
The sale talks come months after the Montreal-based company replaced its CEO Jean Paul Chauvet and brought back founder Dax Dasilva at the helm, as investors raised concerns over the company's plan to prioritize growth over profitability following disappointing quarterly results in February.
Lightspeed has tapped investment bankers at JPMorgan Chase to evaluate its options and solicit interest from potential buyers, which could include private equity firms, the sources said, requesting anonymity as the discussions are confidential.
The talks are at an early stage and a deal is not guaranteed, the sources said. Lightspeed's U.S.-listed shares jumped as much as 17% on Wednesday after Reuters reported on the sale talks.
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Lightspeed said in a statement that it has initiated a strategic review of its operations and engaged in discussions on "potential strategic alternatives".
The software maker said it is exploring various options, "including partnerships, acquisitions, or transactions, to enhance growth and shareholder value."
In telecom...
Earlier this week, Bloomberg and WSJ reported that DIRECTV is in advanced talks to acquire its satellite-TV rival DISH Network , citing people familiar with the matter, in a deal that could create one of the country’s largest pay-TV distributors after decades of aborted attempts to combine.
A deal could be finalized as soon as Monday, assuming talks don’t fall apart, the people said.?
Both companies have been shedding customers as viewers balk at the rising cost of traditional television channels against cheaper and easier-to-cancel streaming services.
Other news & commentary:
What else is going on? For any anonymous deal tips you can find me on Signal (@MilanaVinn.01) and Telegram (@milanavinn). I am also available by email [email protected] and via cell.
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Have a great weekend!
Milana
Milana: “Even though I find myself most productive working from home, I can't argue that having a real face-to-face interaction makes the world of difference. “The best technology on the market can't beat a quick coffee meeting for establishing a human connection.” ????? #quoteoftheday #canrelate