Comcast and Netflix put growth ahead of gripes 6 Jul 2016 The video-streaming service helped scupper the cable provider's bid for Time Warner Cable. Now Comcast is putting its nemesis on its set-top box - with access to 22 mln potential subscribers - as it tries to build a one-stop video shop. Those are good reasons to bury the hatchet.
Facebook’s indie owners send upside-down message 22 Jun 2016 Shareholders not named Mark Zuckerberg gave more likes than frowny faces to just three members of the board. Puzzlingly that included Gawker-hunter Peter Thiel and not key executives like COO Sheryl Sandberg. It’s a head-scratcher probably explained by investors ticking boxes.
India’s unicorns limp along without foreign funds 2 Jun 2016 As capital dries up, signs of stress are emerging among the country’s few $1 bln-plus startups. Delayed hires have prompted a business school spat, while a founder ranted about valuations on his blog. At least unprofitable habits are vanishing along with unreal expectations.
Debenhams plucks new CEO from arms of its nemesis 26 May 2016 Amazon is the worst thing that could happen to stodgy old department stores. Yet that’s where Britain’s Debenhams found new boss Sergio Bucher. That makes it one of a handful of UK high-street names headed up by a digital ace. The hire sounds odd, but could be inspired.
U.S. probe forces Alibaba in the right direction 26 May 2016 The Chinese e-commerce giant’s accounting is under investigation. Depending on the outcome, Alibaba may have to consolidate its loss-making logistics business. If the scrutiny helps shed light on some of the group’s many blind spots, investors will be better off.
Supercell sale would mark reboot for SoftBank 24 May 2016 Chinese giants are reportedly circling the SoftBank-owned developer of mobile gaming hits like Clash of Clans. A $5 bln-plus sale would seal a good return. It would also suggest President Nikesh Arora is making SoftBank more disciplined about selling, as well as buying, assets.
Tencent can shield itself from ad slowdown 19 May 2016 The Chinese gaming giant warned a slowing economy may clip its fast-growing advertising business. But soaring revenue from mobile games, which topped $1.3 bln in the first quarter, cushions the blow. Besides, unlike rivals Alibaba and Baidu, Tencent relies less on ad dollars.
Apple’s $1 billion plucks a strange fruit in China 13 May 2016 The tech giant says investing in car-hailing app Didi – whose Chinese name is “little orange” – will help it in the People’s Republic. Apple can afford to join a costly battle with rival Uber. But it’s less obvious how that will revive iPhone sales or clear regulatory hurdles.
China listing doubts leave Qihoo investors on edge 11 May 2016 The U.S.-listed web group’s shareholders have accepted a $9 bln buyout offer. Yet a regulatory crackdown may scupper plans to float in China. Even after a rebound the shares trade at an 8 pct discount. That’s scant compensation for the risk that the buyout group may walk away.
Nokia could spend a year on hold 10 May 2016 The Finnish telecoms group saw a 9 percent year-on-year drop in Q1 sales, in the first combined set of numbers since its 15.6 billion euro Alcatel-Lucent tie-up. Gross margin improved and synergies have been revised up. But slow mobile equipment sales remain a standout.
Baidu selloff understates long-term health risks 10 May 2016 Regulators have ordered China’s top search engine to rein in healthcare advertising after a scandal. That could knock as much as a fifth off earnings. Investors who have marked the shares down by 13 pct so far may be underestimating the broader impact on Baidu’s business model.
Alibaba’s strong core comes with shaky periphery 5 May 2016 The Chinese e-commerce group’s revenue soared 39 pct year on year, faster than volumes of stuff sold on its sites. Alibaba also disclosed losses on its fintech, services and logistics affiliates. Those trends can co-exist, so long as online shopping growth stays sturdy.
Baidu shows health is a huge flashpoint in China 3 May 2016 A dying student accused the search giant of promoting false medical information. The ensuing probe has cut $5 bln from Baidu’s market value: a big move but not an overreaction. Health scandals are highly sensitive and authorities pay close attention to outbursts of online anger.
Baidu stops short of full download on local bets 29 Apr 2016 Sales are soaring yet earnings fell 19 pct last quarter at China’s top search engine. Baidu is finally outlining how a costly push into food, movies and maps fits with its main search business. But investors still have little insight into how and when this will start paying off.
Zuckerberg tightens grip as Facebook cash flows 27 Apr 2016 Amid a tripling of profit and 50 pct rise in sales, the social network is creating a third class of non-voting stock. It cements control for CEO Mark Zuckerberg in the event of big M&A or staff rewards. At least the weak corporate governance also may help philanthropic deeds.
Yahoo’s bow to Starboard signals inevitable sale 27 Apr 2016 The troubled internet firm has agreed to appoint four of the activist investor’s nominees to its board. Starboard founder Jeff Smith’s addition to the committee exploring a deal is the most notable development. A slow and desultory process just received a long-overdue kick.
Jack Ma’s jewel is a $20 bln mystery for Alibaba 27 Apr 2016 The e-commerce group’s financial affiliate is now valued at $60 bln. Alibaba has an option to take a 33 pct stake, or extend a profit-sharing agreement between the two. Yet their future relationship is clouded by regulatory uncertainty. Alibaba’s shareholders are in the dark.
Apple can juice peaking iPhone sales with services 26 Apr 2016 The tech giant peddled fewer smartphones last quarter, causing a 13 pct drop in revenue. One way of reversing the unprecedented development would be to persuade users they need pricier models sooner. That’s difficult, though. A simpler solution lies with features like Apple Pay.
Twitter squandering users’ value to advertisers 26 Apr 2016 The $12 bln micro-blogging network missed quarterly-revenue estimates as ad spending lagged expectations. Boss Jack Dorsey’s plans for streaming video and targeting celebrities might pique Madison Avenue interest. But the advantage of an influential audience is slipping away.
Confucius say: Don’t confuse Ant with unicorn 26 Apr 2016 The $60 bln implied value of Chinese fintech group Ant Financial suggests PayPal-style innovation on steroids. It’s not so simple, though. The Alibaba affiliate’s fortunes may be tied more closely to the vagaries of PRC state capitalism than to private-sector disruption.