The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Facebook adds a $3 bln Bridge loan for Stock plan taxes | Deal Insight

There’s not much left for Facebook to invest from IPO proceeds as it further increased the no. of creditors on account selling a position on its underwriting list to banks. The new $3 bln Bridge loan will hardly cost it a bit more than IBM’s long term loans at 75 bp over LIBOR, costing the Facebook office only 100 bp over LIBOR for the first six months and 125 bp thereafter, a good deal as any to cover its tax bill on behalf of Mark Zuckerberg and other employees making profits on share sale. The planned IPO even after its change for a $10 bln bang will thus end up as a branding vehicle with Stock plan expnses for employees resulting in large tax burden the Menlo Park, CA based company heads for its employees.

Facebook’s new details show 229 mln active users in Europe getting it $306 mln in revenue from advertising while 179 mln active users in North America helped bring in $462 mln in revenues and Asia less than $100 mln  IBM ratings are themselves barely above that of Italy at A+ (S&P) / Aa3 (Moodys’)

Beaverton OK based NIKE to take over from Reebok

In not so related developments, Reebok would be handing over the Jerseys to the Swoosh company

Financial terms of the league’s five-year apparel contract with Beaverton, Oregon-based Nike, the largest sporting-goods maker, weren’t disclosed when it was announced in 2010.Advertising Age, citing executives close to the NFL, said the agreement is worth about $35 million a year. Nike’s revenue through November was $22.7 billion(Bloomberg)

IBM’s Watson to compute $1bln worth of Analytics in the Derivatives market

The Big Blue Autobot that has been used in Jeopardy wins before will operate in the cloud and contribute a chunk of the targeted $16 bln revenues from Analytics for IBM from Healthcare insurance , Medicine (Hospitals) and other businesses. Citi coopted the Big Blue brains for its new nick Leeson program in the US derivatives market

IBM has laid out a commercial roadmap for its supercomputing software Watson after inking an “exploratory agreement” with US financial services giant Citigroup this week.

Under the agreement, Citi will use Watson’s analytics and evidence-based learning capabilities to extract information about customers and risk from its unstructured data.

Citi planned to incorporate Watson in a “first-of-a-kind customer interaction solution” that could suggest products or services based on customers’ individual circumstances.


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This entry was posted on March 8, 2012 by in Dealbook, Mergers etc, US and tagged , , , , , , , .


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