Internet

IPO gives pet store chain’s creditors sloppy kiss

3 June 2019

Chewy is seeking to go public at a $7.2 bln valuation, more than double what private-equity owned PetSmart paid for the online business in 2017. That deal ended up making the overleveraged PetSmart’s lenders howl. The listing price, if it sticks, should help them settle down.

U.S. watchdog should throw down Facebook gauntlet

29 May 2019

The FTC is working with the social network on a settlement for failing to protect user data, including a mooted fine of up to $5 bln. A lawsuit against Mark Zuckerberg’s firm might be a better option. It’s risky, but it could grab Facebook’s attention and change its behavior.

Hadas: “Zero privacy” is both blessing and curse

22 May 2019

Back in 1999 a computer executive told people worried about disclosing personal data to “get over it”. They mostly have. Shared information is now too useful for regulation to restore lost innocence. For oppressive governments, meanwhile, individualised media is also valuable.

Big Tech deserves Wall Street-like global cop

21 May 2019

The G20 helped rein in systemically risky banks after the financial crisis by creating the Financial Stability Board to develop new rules. Adapting that approach to set up an Internet Accountability Board would be a smart way to police the likes of Facebook, YouTube and Twitter.

Baidu is stuck in a downward tech spiral

17 May 2019

China's $50 bln search engine has posted its first loss since going public. A slow economy is not helping. But there are other problems: upstarts like ByteDance are threatening its core business, while new ventures in AI have yet to deliver. Boss Robin Li is running out of time.

Facebook eyes new path around China’s great wall

15 May 2019

Blocked from operating there directly, the social network is considering alternatives including minority stakes in local tech firms. Politicians in Beijing and DC may not like it. Still, Yahoo’s investment in e-commerce giant Alibaba sets a highly profitable template.

Facebook investors could benefit from a breakup

10 May 2019

The $532 bln group’s co-founder wants U.S. regulators to undo its WhatsApp and Instagram deals. Those units are hard to value and spinning them off would be costly. Yet valuations of peers like Snap and Twitter imply that Facebook could be worth 20% more once carved into three.

Viewsroom: Apple versus Alphabet

2 May 2019

Both Silicon Valley giants are looking for the next big thing after a slowdown in their main product – iPhone sales at Apple and online ads at Alphabet. Lower expectations mean Tim Cook’s outfit has more time to act. Plus: Activist Dan Loeb puts Sony back under the microscope.

Google’s autonomous growth engine shifts lower

29 April 2019

The Alphabet unit’s dominance of internet search and advertising continues, but revenue growth slowed to 17 pct in the first quarter. Moreover, it reined in investment, which may indicate further downshifting. It’s rare for the Google juggernaut to sputter, even slightly.

Twitter is the less lovable of Jack Dorsey’s twins

23 April 2019

While the social-media site is growing its user base and tripled its earnings in the first quarter, the other company its CEO runs has surged ahead. Square is in a sweet spot thanks to new products like a money-transfer app. Of the two, Square deserves more of his time.

Chinese surveillance giant offers up a fig leaf

16 April 2019

SenseTime has exited a venture in Xinjiang, where efforts to crush Muslim extremism have involved mass detentions. The deal may attenuate bad PR before an offshore IPO, but the $6 bln startup still sells facial recognition tech to China's police. Foreign backers get only thin cover.

UK web rules will speed internet’s balkanisation

8 April 2019

The government may fine groups like Facebook – and senior managers – who fail to police harmful content. This adds teeth to lame social-media regulation, but also creates a UK-specific standard. As other states beef up local regulations, web groups’ margins will feel the squeeze.

Big Tech could use some schooling on ethics

5 April 2019

Google has scrapped an advisory council on artificial intelligence after protests about a few members. Yet it deserves credit for training staff on the dangers of unintended bias in algorithms. More outside input, particularly from academia, can help Silicon Valley reduce risk.

America can define down China’s harsh cyber rules

2 April 2019

Beijing may be willing to bargain over rules for how and where companies doing business in the country store data. It would be a surprise softening of its position. With more allies on the issue than usual, including in China, Washington has a better shot at winning concessions.

Zuckerberg’s plea for regulation is a siren call

1 April 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.

Grindr stokes bad blood in U.S.-China relationship

27 March 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.

Pinterest’s future relies on pegging global sales

25 March 2019

The scrapbooking app has a healthier balance sheet than other startups going public. Ad growth has outpaced expenses, shrinking its net loss by 65 pct over two years to $63 mln. But most new users are overseas, and still far less lucrative than U.S. crafting counterparts.

Tencent needs new obsession to replace video games

21 March 2019

The web giant’s fourth-quarter earnings slumped by nearly a third to $2 bln as Chinese curbs on mobile games took effect. Bets on payments and cloud computing have yet to pay off, and Tencent’s M&A record is patchy. Investors deserve a clearer idea of where it’s headed next.

Google fines make case for tougher antitrust curbs

20 March 2019

Europe has hit the Alphabet unit with its third penalty in less than two years, taking the toll to over $9 bln. That sum pales against the $600 bln the firm has added to its market cap since the investigations began in 2010. Both sides are being pushed to a bigger showdown.

Facebook’s presidential foes are also customers

14 March 2019

Silicon Valley has become a political punching bag for Elizabeth Warren and other 2020 contenders. But their campaigns are big users of Facebook and other online platforms. It reflects the power of tech giants, and suggests that bashing them may not persuade voters.