Internet

Viewsroom: 1MDB rears head in Malaysian election

16 May 2018

The $5 bln sovereign-wealth fund’s scandal played a role in voters replacing Prime Minister Najib Razak with nonagenarian Mahathir Mohamad. Its resurgence could mean bad news for Goldman Sachs and Najib himself. Plus: Walmart nabs Flipkart in a big bet on e-commerce in India.

Europe’s payments crown does not come cheap

15 May 2018

Worldline is paying 2.3 bln euros for the credit card processing arm of Switzerland’s SIX. That will strengthen its position as Europe’s largest electronic payments group. But the French company had to pay a hefty multiple - and accept a humdrum return - to secure its dominance.

The Exchange: Indonesia’s startup boom

11 May 2018

Southeast Asia's largest economy has seen a flurry of homegrown tech successes, led by $5 billion ride-hailing firm Go-Jek. Willson Cuaca of East Ventures and Donald Wihardja of Convergence Ventures explain why, and how, Jakarta can keep the hits coming.

Zoopla lures new twist on classic UK property punt

11 May 2018

Silver Lake has offered $3 bln for ZPG, owner of housing search firm Zoopla. The U.S. buyout group’s punt mirrors that of the property speculators that use the website. Leverage makes it look a better deal, but increases the risk if the market tanks.

BT has smelt the coffee – and it stinks

10 May 2018

In recent months the telecom group has been sorting out its flawed strategy. It’s now cutting a bloated workforce, investing in superfast broadband and shunning expensive TV sports rights. Yet neither revenue nor dividends are likely to grow in the near future.

T-Mobile and Sprint’s 5G plea is believable

3 May 2018

John Legere says if regulators let his telecom group merge with Sprint, it will help America lead in wireless technology. Watchdogs thwarted a past attempt to merge on fears consumers would be hurt. The rationale this time is compelling, provided Legere sticks to his word.

Flipkart bid would be rare defensive one by Amazon

3 May 2018

It'd be a coup if the e-commerce titan took control of its larger rival in India. Chasing the business started by former Amazon employees would suggest boss Jeff Bezos is worried by the idea of Flipkart uniting with Walmart. The battle underscores the significance of the market.

TPG’s Baidu deal plays with Chinese fintech fire

30 April 2018

The U.S. buyout shop is leading a $1 bln investment in the search giant's payments, lending and wealth management business. It frees up resources for Baidu and helps it focus. For TPG's group, it's a big gamble on a laggard in a cutthroat industry facing tougher oversight.

Baidu’s revival adds speed to China’s AI race

26 April 2018

Quarterly earnings at China’s search giant topped $1 bln, trouncing expectations. Sales at its listed video arm, iQiyi, also jumped. Baidu may have been eclipsed by rivals like Alibaba, yet progress in autonomous driving is giving it an early lead in tech's next battlefield.

Verizon better staid than reckless

24 April 2018

The $200 bln telecom firm's earnings met expectations, but rivals are otherwise engaged bidding for media companies. Verizon hasn't yet left its comfort zone, beside a half-hearted attempt for parts of Rupert Murdoch’s empire. When others are paying high prices, that's reassuring.

Google’s owner starts to look like Alphabet soup

23 April 2018

The tech group’s $9.4 bln of earnings came with new noise. It adjusted the way it accounts for investments like Uber, moved some smart-home appliances into Google and now stresses “impressions” over clicks. Investors wanting concrete measurements are getting squishy ones instead.

Europe tests limits of net neutrality benefits

23 April 2018

Countries like Britain and the Netherlands are taking a strict approach to rules on treating internet traffic equally whereas the United States may roll them back. If opponents of net neutrality are right, Europeans will end up with less investment in networks and worse services.

Amazon’s $10 bln subsidy is Prime for growth

19 April 2018

Boss Jeff Bezos says the free-shipping club has 100 mln subscribers. The annual fee would have to double for Amazon to break even on deliveries, Breakingviews calculates. But at under 6 pct of sales, the shortfall is a cheap way to retain customers and avoid price wars.

Netflix’s advantage is Facebook’s weakness

16 April 2018

The video-streaming service is outperforming its FAANG associate. Subscriptions give the business an edge – and an incentive for boss Reed Hastings to keep customers’ data close by. Cash burn is always a risk but for now Netflix is better situated than Facebook.

Viewsroom: The biggest loser, China or the U.S.?

10 April 2018

A volley of words threatens a trade war between PRC leader Xi Jinping and U.S. President Donald Trump. Developing China has much at risk in fighting with the world’s largest economy. But American businesses are vulnerable too. Plus: Meituan goes all-in with local services.

Facebook not Zuckerberg is under fire in D.C.

9 April 2018

It will be tempting for U.S. lawmakers grilling Mark Zuckerberg to focus on his all-too-apparent flaws. That would miss the bigger question: whether Facebook is too complex to manage, whoever runs it. That is key to knowing whether the company ought to be regulated.

Netflix’s mooted retro deal is life imitating art

6 April 2018

The video-streaming giant is bidding $300 mln for an L.A. signage firm. Like the lead in Oscar-winning "Three Billboards," grabbing people’s attention may be CEO Reed Hastings’ goal. Just making a show about the current scrappy, litigious owners would make more sense.

Rocket-fueled stocks finally feel the burn

28 March 2018

Amazon lost as much as $50 bln in value, perhaps partly because Donald Trump isn’t a fan. Tesla’s stock fell another 8 pct-plus. Facebook has shed nearly $100 bln of market cap. Investors once whistled past concerns that haven’t changed much. Maybe they are opening their ears.

Facebook crisis could bust digital-ad duopoly

23 March 2018

Advertisers may pull money from the social network, which together with Google sucked up 84 pct of digital ad spending in 2017. That cash is likely to stay with data-rich platforms rather than older media. Amazon could benefit if CEO Jeff Bezos can avoid raising antitrust fears.

Naspers selldown prolongs Tencent dependence

22 March 2018

The South African group is offloading shares worth up to $11 bln in the Chinese giant. But it’s keeping the remaining 31 pct for at least three years, and will invest the proceeds. Shareholders have little reason to give it any more credit for its highly profitable Tencent bet.