How Fintech Founder Rejected Stripe Buyout Before Building $775 Million Fortune
After weeks hashing out the details and sale price with Stripe's billionaire co-founder Patrick Collison, Zhang was close to agreeing. Then doubts crept in. He called a vote with his three co-founders and over a WhatsApp call they decided to turn the offer down.
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Yahoo
37 minutes ago
- Yahoo
Analysis-Santander's bet on Britain with TSB deal shows banks' need for scale
By Jesús Aguado, Andres Gonzalez and Amy-Jo Crowley MADRID/LONDON (Reuters) -Santander's plan to buy TSB for 2.65 billion pounds ($3.61 billion) and boost its position in the UK came together just a few weeks ago, after the Spanish bank had been weighing a possible exit from Britain, three sources close to the process said. The lender, grappling with years of underperformance at its UK business and a market share that at best had flatlined, had this year been reviewing its two-decade-long presence in Britain. Instead, two developments coincided to hand Santander a chance to snap up TSB, the British unit of Spanish bank Sabadell, one of the sources close to the process said, speaking on the condition of anonymity. In early May, Santander announced it was selling its Polish bank, raising 6.8 billion euros ($8.02 billion) in the process. Then word reached it that Sabadell - which itself is the subject of a takeover offer from Santander rival BBVA - had started receiving offers for TSB, the seventh-biggest British bank by number of branches and a lender that has struggled under Sabadell's control. Advised by Centerview, Robey Warshaw and Deutsche Bank, Santander and its bankers had worked for the past three weeks to put in an offer late on Friday, the source said. Sabadell - working with Goldman Sachs and Morgan Stanley - appeared to keep everyone guessing until a Tuesday board meeting. In the end, Santander beat runner-up Barclays, with the difference between the offers tiny, two sources close to the process said. The deal highlights how rising consolidation in European banking is prompting lenders outside the top tier to realise they need to scale or sell out. Santander and Sabadell declined to comment. Centerview, Barclays, Goldman Sachs and Morgan Stanley also declined to comment. Robey Warshaw and Deutsche Bank did not respond to requests for comment. Acquiring TSB will boost Santander's ranking in UK mortgages to fourth from fifth, RBC estimates. For that, Santander is paying 1.45 times TSB's book value, which analysts said was high but reflected the depth of cost-cutting the Spanish lender believes possible by slashing duplicated back office roles and branches. "The acquisition of TSB serves to bulk up Santander's UK business significantly and presents material cost extraction opportunities," said John Cronin, banking analyst at SeaPoint Insights. Cronin said it could be "the first step in a wider play to drive consolidation within the mainstream lending space - with Santander potentially on the offensive". British lenders flush with cash from higher interest rates are looking at more deals, notably as upstart challenger banks call time on their struggles to take market share from the biggest players. It mirrors a consolidation process taking place in other European markets, including in Italy, as banks are forced to compete for size because of tighter regulations and massive technology costs. Bankers say the Santander move will also increase pressure on other British lenders wanting to expand through acquisitions, especially as the number of obvious options declines, with Virgin Money, Tesco's bank and now TSB all taken over in the past 18 months. NO EASY CUTS After reports emerged in January that Santander, a sprawling bank operating in 10 core markets, wanted out of Britain, Executive Chair Ana Botin said publicly that the bank was committed to the UK. While the TSB deal delivers on that promise, the success of the transaction is partly predicated on potentially difficult cost cutting. Santander has said it expects to take out 400 million pounds of costs, about 55% of TSB's cost base. That well exceeds feasible cost synergies of 40% in the UK based on past transactions, analysts at BofA said in a report. The bank said the deal will generate a return on invested capital of over 20% and help lift the UK business' return on equity to 16% from an industry-lagging 11%. Integrating computer systems and migrating customer accounts has proven a tough task in Britain due to a reliance by lenders on often decades-old legacy software. Two of the sources close to the process said Santander would use Gravity, its new IT system, to help with the integration. The Spanish lender's aim to cut costs by slashing branches and jobs may also trigger protests from unions and customers, as well as political scrutiny. Santander will also have to battle to win market share from Lloyds Banking Group and NatWest that dominate more profitable banking services such as mortgages and credit cards, even with the scale it has added by buying TSB. ($1 = 0.7346 pounds) ($1 = 0.8480 euros) (Additional reporting by Lawrence White and Charlie Conchie; Writing by Tommy Reggiori Wilkes; Editing by Bill Berkrot) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
an hour ago
- Bloomberg
China's DeepSeek Ramps up Hiring with Job Posts on LinkedIn
DeepSeek is ramping up its recruitment on LinkedIn, suggesting the Chinese AI startup may be looking to lure talent from outside its homeland. The Hangzhou-based company posted 10 positions on the Microsoft Corp. -owned jobs and networking platform over the last week, its first listings for several months.
Yahoo
an hour ago
- Yahoo
Young Aussie earning $300,000 a year in job reveals reality of 'mind-boggling' salary
A young Aussie worker has shared how he went from not making a cent for six months to earning close to $300,000 a year. The real estate industry can be an extremely lucrative one, but it involves a huge amount of sacrifice and hustle before you can see the big bucks. Ethan Forbes has been working as a real estate agent on the Sunshine Coast for the past two years. The 24-year-old told Yahoo Finance he earned $300,000 last financial year, including superannuation and taxes, but it was a tough ride to get to where he is now. 'I wasn't making any money for six months and I was basically broke, had no money to my name,' he said. RELATED Aussie earning $300,000 a year in job after completing three day course Woolworths payment change hits dozens of supermarkets today Superannuation 'red alert' for millions as $1 billion in retirement savings feared lost Forbes completed a three-day course to get into the industry. While he said this initial course was "pretty easy", the work it takes to stay in the industry and move up wasn't. Forbes worked 12-hour days, seven days a week, for the first year of his real estate career. He said his job involved a lot of rejection and knocking on doors for hours to put himself out there and try and find sellers. 'I went really hard in that first year. That was the year that I was like, I've got to make this work and I was working seven days,' he said. Unlike most jobs where you receive a base salary for your work, real estate agents are paid on commission, so if you don't list or sell anything, you don't make money. 'I love it like that. Because for me, if I'm not getting a base salary, if I don't get my ass into gear and work then I'm going to starve,' he said. 'It's more risk and more reward.' Forbes ran his own lawn mowing business after he finished school and said this was what gave him the work ethic and drive he needed to become successful in the real estate industry. While Forbes said the long hours meant his family, friends, hobbies, and health had to 'take a backseat', he said his sacrifice was now starting to pay off. 'I'm only now starting to see the fruits of the labour from all the days where I was just out for 12 hours knocking on doors and no one knew who I was,' he said. Forbes recently went viral after sharing he was earning nearly $300,000 a year after only being a real estate agent for two years. For this financial year, he said he brought more than $500,000 in gross commission income, which he splits with his agency LJ Hooker. 'It's insane for me. This is the most money I have ever earned in my entire life this year. It's quite mind-boggling,' he said. Forbes' average sale price is between $800,000 and $850,000, with his most expensive sale being $1.302 million. The average number of properties he has sold per year is 28. Commissions vary and are negotiable, with Forbes noting his commissions usually sit between 1.95 to 2.7 per cent. Forbes said his income varied hugely month to month. In December last year, for example, he generated $250,000 in sales after listing 12 properties. From that, he took home $125,000. "[December] was the best month I've ever had in a long shot, probably by like three or four times," he said. "But then the first three months of 2025, I brought in $0." While Forbes said he is happy all his sacrifices have now paid off, he said he did experience burnout while trying to get ahead and the work took its toll on his mental health. 'You lose a listing here and there and you might not sell one, or it'll withdraw. A lot of that plays on your mental health and you've got to be really careful,' he said. 'Then it's the constant rejection. You're constantly talking to people who don't want to talk to you. There are a lot of negative things. You go through really high moments and really low moments as well.' Forbes said things had slowed down a little bit now and he was trying to strike a better work-life balance and do the best job he could for clients, while also being there for his family, friends and self. He is still working six days a week from Monday to Saturday and is available to clients 24/7. But he said he isn't putting in 12-hour days anymore, and instead tries to work between eight and nine hours. Forbes said he has made a conscious effort to try and be honest and transparent with people. 'My least favourite thing about being a real estate agent is that I'm a real estate agent," he said. "A lot of people don't like real estate agents, and I get it. You see the standard one, they are everywhere, the dude in the suit and tie who is a bit uppity and arrogant. 'I understand that. I'm a larrakin, I'm just a bloke, I'm 24 years old and I'm just here to help people.'Sign in to access your portfolio
