Murdoch’s Sky bid promises lack credibility 29 Jun 2017 Regulators say a bid by 21st Century Fox for control of pay-TV firm Sky may give the mogul’s family too much power over UK news. The government could approve the deal if it accepts remedies such as a separate editorial board. Murdoch’s history of meddling makes this unconvincing.
Visma goes viral for private equity owners 29 Jun 2017 KKR is bowing out of the Norwegian software group, with a 22 pct annual return. The buyer, HgCapital, was the seller when KKR bought in 2010. All have done well, because the company’s value has increased ninefold to $5.3 bln. The hard part will be securing an exit at that price.
Ransomware reveals tech challenges past and future 28 Jun 2017 The Petya cyber attack spread from Ukraine to 65 countries, infecting software that could have been patched. Human error enables hacking of today's IT setups, making prank emails that deceived bank bosses alarming, too. The cloud reduces that danger – but introduces others.
Google’s EU fine more about principle than money 27 Jun 2017 While a 2.4 billion euro penalty is the biggest Europe has ever applied for antitrust violations, Google is rich enough to absorb the hit. More damaging, if it sticks, is the new idea that the search giant ought not to use its market dominance to privilege its own products.
Italy’s broadband farce risks state overreach 23 Jun 2017 Ministers are threatening to punish Telecom Italia for building broadband in poor areas. The snag is that it is competing with government-linked rival Enel. Telecom Italia’s French ownership also adds complexity. Whatever the motive, attacking private investment is a risky move.
Weibo walks blurry line between censors, investors 23 Jun 2017 Beijing has cracked down on politically-sensitive videos on the microblog, wiping $1 bln off its market value in a day. Other Chinese internet outfits are exposed to similar risks. But Weibo's business model will keep putting it at odds with the country’s unpredictable censors.
China web giants stuck with telco reform bill 22 Jun 2017 Alibaba and Tencent will join a group investing $10 bln in struggling China Unicom, Reuters reported. It’s part of Beijing's plan to increase private investment in state-owned firms. Unicom is the clear beneficiary of the boost. How the internet giants will profit is unclear.
Tech selloff lumps apples with oranges 12 Jun 2017 Shares in technology giants including Apple, Facebook and Amazon have suddenly tumbled. Given their rapid ascent this year, a correction always seemed likely. Still, such sector-wide moves obscure huge differences in different companies’ earning power and cash reserves.
Pinterest valuation logic is yet to be discovered 7 Jun 2017 A funding round at a $12.3 bln all-in worth puts "the world's catalog of ideas" on a 25 times revenue multiple, close to Snap's, and in the same market-cap ballpark as Twitter, which has double the users and nearly five times the sales. It's a DIY figure in search of support.
Facebook investors shouldn’t discount fake news 7 Jun 2017 Investors spurned a proposal that the social network report on the business risks of bogus news on its site. It’s a complacent stance on a topic Mark Zuckerberg has started taking seriously. At least opposition to multiple voting rights suggests governance isn’t a dead issue.
KKR bid tests investor faith in Aussie telco 7 Jun 2017 The U.S. buyout firm offered $1.7 bln for the struggling Vocus, a mild premium for a battered target. Shares in the Australian group are down over 60 pct since last June on downgrades and management problems. Given weak prospects, KKR is betting investors have lost confidence.
UK cyberspace crackdown faces reality checks 5 Jun 2017 Prime Minister Theresa May pledged new curbs on extremist propaganda and communications via YouTube, WhatsApp and the like following attacks in London and Manchester. Such promises can be good politics, but to actually happen they must make technological and economic sense.
Review: Tragedy makes Facebook a better place 2 Jun 2017 COO Sheryl Sandberg’s "Option B," a moving exploration of grief, emerged from the death of her husband. Top executives rarely reveal so much. She has also changed Facebook's policies. More so than "Lean in," Sandberg's new book sets her up as the $450 bln firm's best ambassador.
Mark Zuckerberg listening tour could start at home 31 May 2017 Activists want the Facebook CEO to give up his role as chairman. The quixotic proposal doesn’t stand a chance as Zuckerberg controls the vote. Yet the idea holds merit. The $440 bln firm would benefit from an independent board boss and a patina of good corporate governance.
Holding: Courts may save startups from redemptions 25 May 2017 Cashing out venture capitalists on demand can leave other investors in a lurch. A case involving onetime dot-com darling Oversee.net and Oak Hill suggests judges have growing concerns. It’s an overdue warning about how such conflicts can hurt fledgling firms and their owners.
Alibaba’s $6bln buyback disrupts financial reality 18 May 2017 Repurchasing shares will offset dilution from paying staff in equity, the Chinese e-commerce giant says. Only, buybacks don’t do that as they leave companies with less cash. Alibaba is replacing one pretence – that investors should ignore stock-based compensation – with another.
Snap lays an egg worthy of Twitter nest 10 May 2017 The messaging app reported its first quarterly results showing a slowdown in user growth. That’s a worrisome trend since its lofty $27 bln value hinges on attracting more people. Meanwhile, rivals are co-opting features. The sheen of being the next new thing is fading fast.
Even yellow flags can’t dent Facebook’s growth 3 May 2017 The social network largely defied its own executives’ slowdown warnings with a 51 pct jump in ad sales, helped by Instagram’s success. Boss Mark Zuckerberg is adding 3,000 staff to police content after a spate of violent videos. He may need more to contain reputational risk.
All-in gaming mergers will echo banking tie-ups 25 Apr 2017 The UK gambling industry faces a new wave of regulatory costs that favour bulking up, like in banking after 2008. A few big betting firms will probably emerge, with a long tail of me-too mass-market players. Online savvy should keep smallish peers Sky Bet and 888 in the hunt.
India’s tech poolside is running out of sunbeds 10 Apr 2017 Tencent, eBay, and Microsoft are piling into Indian e-commerce with a $1.4 bln investment in Flipkart. Japan’s SoftBank already backs local rival Snapdeal. Attractive as India is, having so many global tech groups rubbing shoulders ensures not everyone will get what they want.