Alibaba $2.5 bln buyout looks opportunistic 22 Feb 2012 The 46 pct premium founder Jack Ma has offered to take the Chinese e-commerce company private is decent, but the shares are far below former highs. Minority shareholders have few options, but Ma’s wily dealmaking may haunt him if he returns to float his crown jewel, Taobao.
Congratulations Google, you’re now a conglomerate 15 Feb 2012 U.S. and EU antitrust authorities have cleared the search firm’s $12.5 bln purchase of Motorola. Its hardware foray might open new markets - or be a vital means of defending its advertising business. But on Wall Street, diversification like this merits a valuation discount.
Alibaba and Yahoo could live unhappily ever after 15 Feb 2012 Talks on Alibaba buying back Yahoo’s stake in the Chinese tech giant may have hit an impasse. The deal’s valuation, structure and its financing are key roadblocks. This adds more strain to their relationship. They may want to rebuild trust before going back to the table.
Complexity caps allure of Yahoo’s Alibaba solution 13 Feb 2012 A mostly cash split-off promises a tax-efficient way for the troubled U.S. Internet firm to cut its stake in a Chinese rival. Yahoo also would accept a group of assets as part of the deal being discussed. But the more elaborate it gets, the more diluted the benefits may be for Yahoo.
Groupon’s growth spurt nearing the end 9 Feb 2012 The newly-public online coupon firm increased sales five-fold in 2011 and even turned slightly profitable. But its first results since the IPO also show revenue growth slowed for a fifth consecutive quarter. Groupon will have to get a move-on to justify its $15.7 bln valuation.
Expect Mark Zuckerberg to morph into Murdoch 6 Feb 2012 It could take decades or only a few years but the overwhelming control investors are ceding to the 27-year-old Facebook founder will eventually cease to be in their best interest. Or at least that’s the lesson from media empires like News Corp, Viacom or The New York Times.
Facebook’s biggest risk lies in palm of your hand 3 Feb 2012 Half of the social network’s 845 mln users now access it through a phone, and that number is surging. Yet Facebook receives virtually no display advertising revenue from small screens. The shift to mobile Internet use could be Mark Zuckerberg’s biggest threat - and he knows it.
Facebook needn’t envy life inside China firewall 3 Feb 2012 About half the world’s Internet users live in China, where soon-to-IPO Facebook is banned. But the potential is uncertain anyway. China’s social networking scene is competitive; Facebook would be a latecomer. Google and Groupon show it’s hard to succeed inside the Middle Kingdom.
Too much success is priced into Facebook’s IPO 2 Feb 2012 That’s the message from the social network’s numbers and Google’s precedent. Growth and margins need to track the search giant’s trajectory to justify a $100 bln price tag. Investors will have to decide if much more than $50 bln leaves enough room for uncertainty and upside.
Facebook IPO won’t bring major status update 1 Feb 2012 Already, it essentially has the capital, liquidity and profile of a big publicly listed company. Disclosures will be news only to non-investors. And Mark Zuckerberg will stay firmly in control. The most public private company may just become one of the more private public ones.
Google feeds regulators fresh meat to chew on 1 Feb 2012 Antitrust concerns have swirled around the Internet search giant for years. Now, changes to its data-sharing policies are causing added alarm among lawmakers. So far, Google hasn’t crossed any major legal lines. But the company, led by Larry Page, seems destined to find them.
Apple’s cash is key to unlocking suppressed value 30 Jan 2012 Though it’s the world’s most valuable company, the iPhone maker doesn’t get full credit for its near-$100 bln cash hoard or its growth. A huge special dividend could be close to a free lunch. And regularly paying out half its earnings could show why Apple may be worth $1 trln.
Facebook IPO will put public markets to shame 30 Jan 2012 Unlike Google’s 2004 stock sale, everyone who’s anyone has already made a killing on the social network, from sharp VCs to Chinese and Russian billionaires to Goldman’s top clients. Hell, even Microsoft is up big. At $100 bln, it’s hard to imagine much is left for the hoi polloi.
AOL pinned down by girly startup on a shoestring 26 Jan 2012 The fading online firm hopes to regain its shine by focusing on the female demographic - an audience often ignored in male-dominated Silicon Valley. The plan has yet to pan out. Yet startup Pinterest is using the same strategy to grow rapidly - and at a fraction of the cost.
India imitates the bad Chinese way with censorship 25 Jan 2012 Slower growth is supposed to be a price worth paying for the sake of freedom. But censoring Salman Rushdie and Jay Leno doesn’t say much for India’s tolerance levels. And efforts to filter content on the Internet suggest India may be following China down the wrong path.
Apple juggernaut regains warp speed with new pilot 24 Jan 2012 The tech giant’s recent quarter blew away the previous rare let-down: around $30 bln of market cap added after hours proves that. The latest iPhone fueled a 73 pct surge in sales from the year before. With cash rolling in, the destiny of nearly $100 bln in the iBank is looming large.
Google finds new tech expectations hard to meet 19 Jan 2012 The Internet giant’s revenue rocketed 25 pct, but its shares still plunged after hours. Google failed to match Wall Street’s hopes, whereas Microsoft and IBM’s more pedestrian results reassured. In uncertain times, the old guard’s predictability can trump edgier possibilities.
Hollywood and Silicon Valley test wikigovernment 18 Jan 2012 Film and TV studios tried to sneak heavy-handed legislation to stop piracy past many U.S. lawmakers. Wikipedia and other Internet outfits belatedly woke up to the threat to their traditional openness. The spat reveals clumsy links among old media, new media and Washington.
Yang’s goodbye finally frees Yahoo 17 Jan 2012 The Internet firm’s co-founder has quit its board and those of valuable Asian properties. That gives Scott Thompson, the new CEO, fresh flexibility. Yang once got in the way of a high-priced sale to Microsoft; disposal or dismemberment of Yahoo is now that much more likely.
Ex-American Idol boss readies own tech audition 17 Jan 2012 Robert Sillerman, the onetime concert promoter and TV talent show mogul, is back with a new idea. A little cash, a listed shell and the buzzy concept of socially networked TV is now a big stake in a $1 bln company. But the venture so far only has an X factor in clever finance.