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Privacy is the Person of Last Year

15 Dec 2010

Mark Zuckerberg has been crowned Person of the Year by Time. Julian Assange topped a reader poll. A certain arrogance and superior coding abilities aren't the only parallels between the Facebook and WikiLeaks bosses. Both are also leading the technological assault on privacy.

Google’s innovation engine sputtering big time

1 Dec 2010

The search giant's willingness to spend $6 bln on a startup in a business with almost no barriers to entry is the most damning evidence yet. In the past, Google would've tried to create a Groupon of its own. But these initiatives rarely panned out. It now has to buy innovation.

EU antitrust pile-on overshadows Google’s Groupon

30 Nov 2010

The European Commission is examining whether Google is using its dominance in search to unfairly extend its reach into related areas the way Microsoft once did. The probe is auspiciously timed: Google is contemplating a near$6 bln bid to enter the ecoupon business.

Google earnings show cost of ambition

15 Jul 2010

The Internet search group's revenue continued to grow at a good clip in the second quarter. But the firm eased its formerly tight control on costs at an even faster rate. Some investment is appropriate. The worry is Google's cash hoard will encourage overindulgence.

Twitter takes small step to becoming a business

13 Apr 2010

The microblogging site for the attention deficit disordered is carefully rolling out advertising. Ads will be limited and those that don't generate favorable response pulled. It's a sensible first step in Twitter's need to generate revenue without annoying users. More are needed.

Wall Street could teach Google a thing or two

16 Feb 2010

Tapping user information promises lots of ad dollars. But going too far, as Google's Buzz did, can trigger privacy concerns and send customers fleeing. Establishing banklike conflict committees to kibosh plans that appear lucrative, but put the company at risk, might work.

Still too early to call McClatchy’s recovery

1 Feb 2010

The Miami Herald publisher is marketing $875 mln of bonds. The group has boosted online revenue and slashed costs. But its performance will be hard to maintain without stemming the decline in metro newspaper print advertising. Investors should demand to be paid for this risk.

Conditions finally ripe for mobile ad bonanza

6 Jan 2010

That's what recent deals by trendsetters Apple and Google appear to suggest. Thanks to the rising popularity of smart phones, mobile advertising could reach $13 billion in revenues by 2013. But it's less clear who the financial beneficiaries of this longanticipated boom will be.

Informa deal machine goes into overdrive

24 Nov 2009

The UK publisher has another big deal in its sights: the German Springer. The mooted E2.5bln price sounds cheap in some ways. But even with synergies, Informa would need a massive rights issue to pay for Springer. Its acquisitive history will help it get away with such moxie.

WPP should be prepared to defend its credit rating

14 Aug 2009

The UK ad group is at risk of a rating downgrade. Investors fear it may follow indebted publisher Reed and raise equity. Nonfinancial firms shouldn t be ruled by ratings. But WPP may be an exception. At least CEO Martin Sorrell can pull other levers apart from a share issue.

Pru takes capital out, Aegon puts it in

13 Aug 2009

The UK s largest insurer has raised the dividend while peers are cutting payouts to conserve capital. Holland s Aegon is raising E1bn in a share issue. Prudential is an outlier in taking capital out of the sector, but that may be the best way to serve its shareholders.

In death, Jackson finds his financial way

6 Jul 2009

At the end of his life, the King of Pop was struggling to make his legend pay. But posterity is proving kinder. Jackson is set to join Elvis and the Beatles as a cashspewing cultural icon. Stars, unlike businessmen, can be more valuable when they leave the stage.

The LBO club doesn’t look so chummy anymore

4 Jun 2009

Not long ago, the government was probing private equity firms for acting too clubby. As the brewing battle over Clear Channel s proposed debt exchange suggests, however, it could soon be more like open warfare in the land of the leveraged.

Advertising gloom points to economic misery

7 Nov 2008

Few media groups have dared look into the future, but News Corp s forecast of a sharp profit decline next year confirms bleak times ahead. The speed and severity of the slowdown across all mediums continues to shock. Ad agency valuations suggest the economy is in real trouble.

Why isn’t TNS biting off WPP’s hand?

3 Jul 2008

With media valuations tumbling, a conditional offer worth 260p a share looks superficially attractive. TNS's own nilpremium merger with GfK isn't worth nearly as much. Maybe brinkmanship can force WPP's Sorrell to pay extra. But if not, TNS could look silly.

Google’s online video ad scheme threatens broadcasters

21 Feb 2008

Americans watched over 300m videos on Google s YouTube site in December. The division s sales remain negligible. But if Google can start squeezing ad revenues from this market, broadcasters could find themselves in a bind similar to newspaper publishers.

Watch Super Bowl commercials, not the game

31 Jan 2008

Super Bowl Sunday is the most important day of the year for American football fans and for advertisers. This year's matchup between the Patriots and Giants may draw a record audience. But investors should pay more attention to the commercials.

Bike success doesn’t change JCDecaux’s model

13 Sep 2007

The French outdoor advertising agency is sailing strong by selling ads in cities and airports. Its Velib system in Paris is a hit. But offering bicycles to major cities is a way of booking contracts and mostly a marketing expense. Not a profit booster. The French outdoor advertising agency has caused a global sensation with the success of its Velib urban bike rental system in Paris. But this doesn't mean it's about to tear up its business model. Offering bikes to big cities is a lossleader that helps win ad contracts.

Bollore’s record at Havas won’t tempt Aegis

29 Aug 2007

The chairman of the French ad group Havas has vowed to continue his fight for board seats at its UK rival. He s upped his stake to 29.86%. Besides the obvious conflicts of interest, Bollore s claims are undermined by the underperformance of Havas shares since he took over.

Google stiffs Microsoft with DoubleClick deal

16 Apr 2007

The internet giant's willingness to fork out $3.1bn for the ad firm shows it will pay dearly to keep Microsoft from getting traction online. In greasing these deals it helps that the targets want to be part of Google and fear being devoured by Microsoft.