O2 – and Britain – are losers in 5G spectrum fight 21 Aug 2017 Telecom operators BT and CK Hutchison’s Three are threatening legal action over planned auctions of mobile spectrum. The rules are sturdy enough to promote competition and a court fight could delay the rollout of superfast 5G internet. Rival O2 and Britons have the most to lose.
Founders’ coup leaves a void at Infosys 18 Aug 2017 Vishal Sikka delivered three years of outsize returns. Now the Indian outsourcer's first professional CEO has resigned, against the board's wishes, after criticism from founder shareholders. Finding a solid outsider who can put up with the backseat driving will be challenging.
Advertisers rise to VIP status for Alibaba 17 Aug 2017 The Chinese e-commerce group raked in over $7 bln of sales in the recent quarter, thanks to a surge in ad dollars. Marketing revenue already accounts for half of the total, and Alibaba is pushing hard to attract more top brands. These early efforts look promising.
Like much else, Amazon can sell debt in a flash 16 Aug 2017 The e-commerce giant’s blowout $16 bln bond deal suggests further potential for it to pursue M&A. Yet in nearly tripling debt to buy brick-and-mortar Whole Foods, Jeff Bezos’ outfit is starting to look like a traditional retailer. The risk is that its stock will do the same.
Tencent is biggest target in China cyber crackdown 16 Aug 2017 As Beijing's campaign to control content gathers pace, gaming giant Tencent, which delivered another set of strong quarterly results, is an easy target for censors. Its soaring market value, however, suggests investors have yet to factor in the risk to earnings.
Rocket buyback hints at change of trajectory 14 Aug 2017 A 100 mln euro share buyback is an attempt to show the German tech investor has completed its wobbly booster phase. As it now has 1.7 bln euros of net cash, that’s partly true. But ongoing losses, and doubt over the IPO of HelloFresh, could constrain its upward potential.
Tech and telecom overdue to converge in Washington 11 Aug 2017 A bipartisan plan aims to level the regulatory landscape for broadband providers such as Comcast and influential web outfits like Facebook. Different online-data standards now apply. It's time for one set of rules and a single enforcer to police how privacy is handled.
UK shows consumers the value of their data 11 Aug 2017 A new law will hand citizens greater powers over the use of their online information. For companies, compliance standards will get steeper – as will fines for breaches. Showing people what happens to their digital data also makes it more likely they will seek compensation for it.
SoftBank’s Indian shopping spree gets even spicier 10 Aug 2017 The Japanese conglomerate’s Vision Fund is pumping $2.5 bln into online retailer Flipkart, rendering its parent’s near-$1 billion punt on rival Snapdeal largely worthless. It’s the group’s latest big-ticket fail on an Indian startup. This is venture capital on an epic scale.
Worldpay wrings ample concessions from Vantiv sale 9 Aug 2017 The British payments group finalised a 7.9 bln pound ($10 bln) takeover by its U.S. rival after twice extending a bid deadline. Worldpay investors were unhappy at the price and offer of mostly U.S. shares. A UK listing and the option to take more in cash should appease them.
Online giants can learn a lesson from Wall Street 1 Aug 2017 Some U.S. lawmakers want to make Facebook, Google and other internet firms liable for things users publish on their networks. There are also calls for more oversight. Big banks drew similar scrutiny after the crisis. Their experience shows Silicon Valley how to avoid a crackdown.
Viewsroom: Citi lays out path to mediocrity 27 Jul 2017 CEO Mike Corbat pledged a huge earnings boost at the bank’s first investor confab in nine years. But Citi’s enduring crisis hangover will still leave it trailing most rivals. In China, HNA’s shadowy ownership may be a big problem for U.S. M&A. Plus: Google keeps clicking.
Facebook quest beyond ads should top itinerary 26 Jul 2017 The social network beat profit estimates as more brands sought to reach its 2 bln users. Yet revenue growth is easing and mobile’s dominant share of advertising has limited upside. For a company near the top of its game, it’s a good time to explore alternatives to Madison Avenue.
New York Times could risk all-digital bet 26 Jul 2017 Online subs surged with Trump’s rise. But print-ad revenue is down a quarter in two years, adding to job-cut angst. Ending printing would be radical but not absurd. Breakingviews estimates the company would need 1.4 mln, or 50 pct, more paying digital users to end up even.
Alphabet opacity hinders Google’s antitrust fight 24 Jul 2017 Despite huge efforts outside online search the $685 bln juggernaut still looks like a one-trick pony dependent on ad sales. Shedding more light on its autonomous vehicle, YouTube, biotech and other ventures might comfort investors about the looming risks of antitrust regulation.
WebMD gets second opinion on rollup strategy 24 Jul 2017 Back in 1999, the online health-information publisher united with another fledgling rival in a deal backed by Microsoft and Intel. KKR is now buying WebMD for $2.8 bln, far less than the earlier stock-swap valuation. This fresh merger with other websites may work out better.
Buyout firms bet $3.7 bln on fintech’s dicier side 21 Jul 2017 Blackstone and CVC’s bid for Paysafe fits with an M&A rush for financial technology. The UK-based payment processor has a penchant for the racy world of online gambling. Those risks may be better handled in private ownership. In exchange, the buyers stand to make a decent return.
Netflix triggers shareholders’ Pavlovian response 17 Jul 2017 The video-streaming service added more subscribers than expected in the quarter and grew operating income, up 83 pct, faster than revenue. That sent shares soaring, even though expected profitability falls a long way short of being able to justify the stock’s fairy-tale multiple.
Britain’s 5G auction puts customers before coffers 14 Jul 2017 Regulators capped incumbent BT’s participation in upcoming mobile-spectrum auctions. That may lead to less fevered bidding, and smaller takings with which to pay down the national debt. It’s a reasonable trade-off in order to ensure a competitive four-player telecoms market.
Protest to keep internet weird is worthy fight 12 Jul 2017 Amazon, Netflix and 100,000 others are urging resistance to a U.S. watchdog's plan to scrap rules on so-called net neutrality. Broadband provider AT&T is among them, with its own arguments. The common thread is that companies shouldn't be able to choose which content gets online.