Crack in US tech’s IPO glacier not the same as thaw 4 May 2009 Software firm SolarWinds wants to be the first venturebacked tech company to debut since last August. Its success would show that investors have regained some risk appetite, a boon for backedup venture firms and underwriters. But it s unlikely the floodgates will fly open.
Not all sellers are adjusting to the new M&A 6 Apr 2009 Dealmakers like the US lawyers and bankers gathered in New Orleans last week were hopeful that the expectations of buyers and sellers are aligning. But deals like IBMSun Micro s, now on the rocks, suggest such optimism is premature.
IBM-Sun deal would be part cheap, part fearful 18 Mar 2009 The tech conglomerate is pondering a bid for the server maker. Potential cost cuts and Sun's depressed valuation make a deal opportunistically attractive for IBM. The two also need to ready for Cisco s entrance into the crowded server market. Joining forces could help.
Microsoft gets selective with Great Depression lesson 25 Feb 2009 Boss Steve Ballmer rightly says hard times are no time to cut R&D budgets. He points out RCA s research in the 1930s led to decades of dominance in television. Curiously, he neglects to mention RCA s massive legal campaign against TV s inventor.
Was Chuck Prince a visionary? 11 Feb 2009 The deposed Citi boss didn t mean it literally when he equated the credit boom to dancing. But boy was he prescient. This week Muzak, the pioneer of elevator music, filed for Chapter 11; Sirius may follow and Clear Channel radio is in trouble. The music really has stopped.
Freescale’s swap is a smart way to buy some time 10 Feb 2009 The semiconductor company offered subnote holders the chance to swap their debt for senior loans. The catch: they have to cut principal by as much as 75%. Bondholders may be willing to take the deal and it helps equity investors too. But it could just prolong the inevitable.
Buzz over Bono’s Palm bet reflects tech’s woes 7 Jan 2009 The talk at this week s tech confab in Vegas focuses on Palm s new smartphone. Its success is crucial to Elevation Partners, the VC fund affiliated with the U2 singer. But more broadly, the tech market s buzz about a bet on a troubled company reflects its own sad state.
Sandisk pulls a Yahoo 22 Oct 2008 Its unwanted suitor, Samsung, just dropped its generous offer for the memory maker. Sandisk played hardtoget, but looks to have miscalculated. The 30% fall in the won and Sandisk s own weak earnings made the deal too rich for Samsung s liking.
Apple missed market share opportunity 15 Oct 2008 The maker of the iPhone and iPod is known for trendy offerings, not cheap ones. But by failing to deliver a bargainpriced notebook, Apple missed an opportunity to increase its share of the computer market. The cheap portables trend is real, fashion is fleeting.
Market grasps at IBM’s straws 9 Oct 2008 After Alcoa set the scene for a dreadful earnings season, IBM lightened the mood with surprisingly good results. Investors shouldn t celebrate too much the tech conglomerate s weak revenue growth suggests problems postponed, not avoided.
Private equity style-drift dangers start to show 6 Oct 2008 It isn t just TPG or JC Flowers that lost money on minority investments. KKR s investments in Sun Micro and Legg Mason and Blackstone s Deutsche Telekom deal are all performing poorly. Private equity can lose more than just their investors' money.
Google handset cuts Apple’s iPhone lead 23 Sep 2008 Apple s handset was miles ahead of the competition when it was unveiled in 2007. At least at first sight, Google and TMobile s new phone appears to come within spitting distance. Google s more open stance toward software developers could yet close the gap further.
Sandisk’s Samsung snub may be smarter than it seems 17 Sep 2008 At first glance, the flash memory maker's rebuff of the Korean giant's $5.9bn bid looks crazy. After all, it carries a hefty 93% premium. But there may be a method to this madness. A tieup would be lucrative for Samsung, and interest from Toshiba could prompt it to pay more.
Does Apple’s iPod matter any more? 3 Sep 2008 The tech company looks set to unveil a new product. Chances are, it's a new iPod. That should help boost the music player's flagging sales growth. But nowadays, the iPod is far from Apple's biggest moneyspinner. Shareholders should focus most intently on Mac computer sales.
AMD pays bill for debt-fuelled battle with Intel 25 Aug 2008 The chip maker s plucky multidecade fight against Intel has resulted in little except ruinous price wars. Its debtfuelled ambition has now unravelled, leaving it in the sad position of jettisoning bits and bobs to stay afloat.
Could iPhone software be a cash cow for Apple? 11 Aug 2008 Apple sold $30m worth of iPhone applications in their first month. But it only gets a 30% cut to cover costs. That s smart it needs to maximise iPhone sales for now. Once enough users are locked in, the software could become its next big money maker.
Market has got HP wrong on $14bn EDS purchase 13 May 2008 This is the rare deal where the numbers work: HP s returns will exceed its cost of capital. Yet the strategy of expanding into a lowergrowth business has led to a wipeout nearly equal to the purchase price. That s silly. After all, HP can always spin the thing off.
Nokia still king – but on earth 17 Apr 2008 The Finnish handset maker has come back down to earth with a bump. Nokia is still way ahead of the pack. But it has failed to beat estimates for the first time in four quarters and is warning of pressure from the gloomy macroeconomic environment.
Sony’s Blu-ray victory may not bring great profits 18 Feb 2008 Toshiba is set for unconditional surrender in the latest battle over video formats. That s a sweet victory for Sony, whose Betamax lost the first battle two decades ago. But how profitable will it be for Sony? It isn t the sole owner, and doesn t control the manufacturing.
Should Ellison’s Netsuite be part of Oracle? 5 Dec 2007 The tech billionaire isn t resting on his laurels. His new company, Netsuite, is in the sweet spot of the software market and set for a hot IPO. That should give Ellison s net worth a nice bump. Oracle investors may wonder why they don t have cause for celebration too.