Review: Blaming big data is political diversion 19 Jul 2019 The documentary “The Great Hack” shows how Cambridge Analytica targeted voters in the 2016 U.S. election and Brexit referendum, partly using Facebook. It’s chilling but ignores how economic forces swayed those polls. Focusing on tech’s threat to democracy oversimplifies politics.
Amazon’s data deal invites D.C. scrutiny 16 Jul 2019 As its executives appeared at an antitrust hearing in Congress, the e-commerce giant offered customers $10 to track their web browsing. It’s a smart way to grab business from rivals, and the price low-balls the value of user data. It’s also a demonstration of how dominance works.
Cisco’s latest deal is an optical illusion 9 Jul 2019 The networking giant is paying $2.8 bln for Acacia, one of its suppliers. Booming bandwidth use is driving demand for its high-speed optical components, but a lofty 46% premium virtually guarantees subpar returns. It’s an odd choice when software is driving Cisco’s margin growth.
WPP disposal offers cautionary tale for Publicis 2 Jul 2019 The UK ad group is selling the debris from a debt-driven acquisition spree under former boss Martin Sorrell. Its $12.3 bln French rival is borrowing to splurge on a data business. Publicis’ lowly valuation shows investors fear that CEO Arthur Sadoun may repeat Sorrell’s mistakes.
Creepy data practices go beyond Silicon Valley 26 Jun 2019 A U.S. Senate plan requires big tech firms like Facebook to disclose the value of user information. Large merchants such as Walmart are included; financial firms like JPMorgan aren’t. Yet they all monetize data in ways not clear to consumers. There’s a case for widening the net.
CrowdStrike shows IPO window is open for buzzwords 12 Jun 2019 The cloud-based data-security outfit saw its stock nearly double in its market debut, giving it a $12 bln market cap. The money-losing firm is growing fast. But valued at 40 times revenue it’s a case study in investors’ willingness to suspend disbelief for appealing stories.
Experian has as much credit as it deserves 15 May 2019 The data goliath’s revenue benefited from a cyberattack on rival Equifax, healthy U.S. growth, and its Brazilian push. An economic downturn would reverse the tide and lower profit margins may be the price of boosting sales. Its valuation premium over peers is big enough already.
Mergermarket’s fourth owner faces the toughest job 13 May 2019 BC Partners is selling the M&A-news service to Ion Group for $1.8 bln. The Irish software and data group is paying by far the highest multiple yet, and buying from private equity brings added risk. It’s putting a lot of faith in sticky clients and cross-selling products.
Facebook will join Wall St in fine-and-forget club 25 Apr 2019 The social network’s market value surged as much as $40 bln after first-quarter earnings despite a likely U.S. data-privacy fine of up to $5 bln. Mark Zuckerberg’s giant can easily absorb multiple hits that size and, just like banks after the financial crisis, move on.
Publicis’ biggest buy distracts from deeper issues 15 Apr 2019 Chief Executive Arthur Sadoun is spending $4.4 bln on Alliance Data Systems’ Epsilon digital marketing unit. It’s a bold bet on more targeted advertising, but does little to help the French group hit next year’s 4 pct organic revenue growth target, or lure back lost clients.
Zuckerberg’s plea for regulation is a siren call 1 Apr 2019 The Facebook founder wants governments to develop more standardized rules for the internet to combat problems from harmful content to data security. The idea has merit. But it also smacks of a way for tech firms to keep profits private while socializing responsibility and costs.
Publicis’ $5 bln deal would push data fad to limit 1 Apr 2019 The French group may buy Alliance Data’s digital-marketing unit. The mooted price tag is manageable given Publicis’ pristine balance sheet. But the low returns on offer suggest that CEO Arthur Sadoun is worried about keeping up with data-rich ad rivals and tech giants.
Equifax and FICO give hackers a bigger target 27 Mar 2019 The U.S. credit-scoring firms are teaming up to offer banks new ways to judge borrowers’ soundness. Fresh metrics could help some get credit more easily. But a wider trove of data collected without its subjects’ consent, and Equifax’s record of breaches, suggest plenty of risk.
Grindr stokes bad blood in U.S.-China relationship 27 Mar 2019 The dating app’s Chinese ownership has been flagged as a U.S. security risk, Reuters reports. That ought not be a surprise given the potential to use hook-up data for Kompromat. But amid a trade war, this jilting move is likely to make U.S.-China relations even rockier.
WPP would win most from $5 bln data-business sale 19 Mar 2019 Buyout groups Advent and Blackstone are circling the ad group’s market-research unit Kantar, Reuters reported. Private-equity buyers could hike margins and combine it with a rival. WPP’s wad of cash and retained access to its consumers’ data sounds more enticing, though.
Review: The case for regulating Facebook 1 Feb 2019 Mark Zuckerberg’s social-media outfit has been caught pushing the data-privacy envelope again – by Apple. In his new book, “Zucked: Waking Up to the Facebook Catastrophe,” early adviser Roger McNamee lays out what went wrong – and how to tackle the dangers such companies present.
Strong U.S. jobs are weak tonic for markets 4 Jan 2019 Payrolls expanded at a surprisingly robust pace in December and wages ticked higher. The data shows an American economy ending the year on a high note. But employment is a lagging indicator. Slowing earnings and trade-war risks are likely to be more powerful market motivators.
Facebook headed for Big Tobacco-style backlash 20 Dec 2018 A number of U.S. states may follow the District of Columbia in suing the $380 bln social network for misusing customer data. It’d be reminiscent of the 1990s fight against cigarette makers. A similar outcome would leave Facebook paying huge fines and bound by tighter rules.
Silicon Valley mud fight leaves all splattered 4 Dec 2018 Apple boss Tim Cook is taking aim at social networks' privacy issues. Meanwhile Facebook CEO Mark Zuckerberg has been keen to point out the iPhone’s dominance. Where other industries stick together in the face of regulatory challenges, tech is making politicians' work easier.
Marriott breach invites data cops to check in 30 Nov 2018 Another 500 mln people now have to worry about identity theft. Hanging onto personal data, protecting it ineffectively and disclosing breaches only slowly are habits in corporate America. It’s not only Google, Facebook and their ilk that merit privacy rules more like Europe’s.