Groupon discounts dual-class share structures 30 Nov 2012 CEO Andrew Mason and Chairman Eric Lefkofsky are locked in a dysfunctional drama over how to run the flailing company. Super-voting shares like the ones both men own are meant to give founders flexibility. But Groupon is a reminder of just how dangerous the arrangement can be.
Weibo has reason to “open sesame” to Alibaba 20 Nov 2012 China’s Twitter may be considering selling a stake to the country’s largest e-commerce group. It could pave the way for owner Sina to spin Weibo off, and create revenue synergies for both. Minority stakes have limits, but co-operation might ultimately make Weibo more valuable.
China web truce may strengthen Baidu’s hand 2 Nov 2012 A trade group has asked major companies to sign a code of conduct to moderate rising tensions in the search market. If this helps to slow down upstarts like Qihoo, dominant player Baidu stands to benefit most. But for users, the impact is likely to be mixed.
Letter to the Editor: IAC 26 Oct 2012 Joey Levin, CEO of IAC Search & Applications, responds to an Oct. 19 Robert Cyran column about IAC’s internet strategy.
Apple results shrink iPad mini’s relevance 25 Oct 2012 Hawking nearly 27 mln iPhones last quarter dwarfs all the hoopla around the launch of the tinier tablet, which may sell about the same amount in a year. Moreover, iPad margins don’t compare – and the mini’s will be smaller still. The phone still energizes the Apple ecosystem.
Why do investors prefer Amazon to Apple? 24 Oct 2012 Sure, the gadget maker’s market value is far larger. Yet investors are willing to pay almost nine times as much for the retailer’s estimated earnings. That’s expensive in any case. But it’s also odd, because Amazon perpetually promises more jam tomorrow, while Apple delivers it.
Facebook shows signs of answering mobile question 24 Oct 2012 The social network’s mobile ad business grew sixfold in three months and provided 14 pct of ad sales in Q3. Worries remain about durability, cost control and competition. But for the first time, the shift to mobile devices seems an opportunity for Facebook rather than a threat.
Internet parasitism powers Barry Diller’s returns 19 Oct 2012 IAC is abandoning Newsweek in print as the mogul’s web businesses flourish. An online search boom has powered the $4.6 bln firm’s stock this year. But much of the growth seems driven by customers unwittingly downloading IAC toolbars. It’s a risky way to build a lasting business.
Google’s hardware ambitions proving costly 18 Oct 2012 The search giant paid $12.5 bln for Motorola’s handset business. The division lost another $527 mln in Q3, and the mistaken early release of unexpectedly weak earnings knocked over $20 bln off Google’s market cap. A bigger concern is the risk of long-term management distraction.
Hot tech IPO a Frankenstein monster of governance 1 Oct 2012 What happens when a company takes Research In Motion’s two-headed CEO structure, bolts on Facebook’s feudal-class voting rights and injects News Corp’s nepotism worries? In the case of Workday, it creates an eye-popping $3.9 bln valuation for a software firm without any profit.
Pandora’s income stream on congressional playlist 1 Oct 2012 The online radio company is shackled by music royalties that lock up about half its revenue. Newly proposed U.S. legislation would cut those costs to as low as the 8 pct paid by rival Sirius XM. A Breakingviews calculator shows just how much value that would release for Pandora.
Real estate wave helps an IPO avoid tech wipeout 20 Sep 2012 Newly listed shares of Trulia, an online property listing service, popped by over 40 pct on their debut. That defies the dire dot-com market evidenced by the likes of Facebook and Groupon. The U.S. housing recovery is a good story but Trulia is also still hitched to the Web.
Obama may find an exceptional friend in Facebook 19 Sep 2012 The social network’s No. 2, Sheryl Sandberg, should be on the short list for a top economic job in a second Obama term. But she’d give up some $130 mln in unvested equity to leave. Current boss Mark Zuckerberg’s largess could bridge the gap. But it may cost Facebook shareholders.
Facebook’s stock slump could be self-reinforcing 12 Sep 2012 Founder Mark Zuckerberg now admits the social network’s IPO fiasco has hurt morale. No kidding. He hired nearly 60 pct of his 4,000 staff since the stock last traded as low as $18 a share on SecondMarket. That’s a lot of folks potentially poorer who thought they’d be rich by now.
Facebook crystallizes blundered IPO with buyback 5 Sep 2012 Mark Zuckerberg’s social network will essentially cut its outstanding share count by 101 mln by promising to use cash, rather than stock, to settle a tax obligation. Buying back stock four months after an IPO at half price looks cynical. In this case it’s just incompetence.
Pandora could be a Facebook friend with benefits 4 Sep 2012 The $2 bln internet radio service revealed steady strides in mobile advertising, which accounted for over half its revenue last quarter. Facebook, meanwhile, delivered fewer ads to users socializing by phone. That makes Pandora look an enticing, if pricey, companion to target.
Apple may bury hatchet with Google – just not yet 31 Aug 2012 It’s no shock their chiefs are talking. The iPhone maker’s sweeping U.S. patent win over Samsung and its Google-run devices is a blow to the search giant too. But the rivals’ clashing business models make peace difficult. Apple may first try to push its legal edge a bit further.
New NY Times boss should keep tight rein on cash 27 Aug 2012 The $300 mln sale price for About.com means Mark Thompson joins a Grey Lady which finally has net cash. But he should resist the temptation to splash out. Free cash flow is hardly stellar, the company still has a pension hole and it has yet to get a handle on its future.
Domestic challenger revives China’s search wars 27 Aug 2012 Shares in Baidu have fallen 13 percent since popular internet browser Qihoo launched its own search engine. The internet giant, which benefited from Google’s troubles in China, now has a more formidable rival. The new fight will make the country’s search industry less profitable.
News Corp’s UK tabloid exposes model weakness 24 Aug 2012 Britain’s best-selling newspaper has printed shots of Prince Harry in the buff. It also concedes that most readers will have seen the pictures on the internet, highlighting the main commercial problem facing the soon-to-be demerged News Corp newspapers. The Web.