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.
Yahoo’s gain is eBay holders’ pain 4 Jan 2012 The Internet company has nabbed the head of eBay’s PayPal as its new CEO. That’s good for Yahoo, but less so for eBay’s shareholders. The auctioneer’s payments business is a gem that could grow faster on its own. Thompson’s walk suggests such a split isn’t coming any time soon.
Jack Ma could pay high price to be rid of Yahoo 23 Dec 2011 The Alibaba founder wants to buy back most of Yahoo’s stake in his e-commerce giant. An earlier spat over their payment unit Alipay showed Ma has nuisance value and may deter other bidders. But financing it won’t be easy. After selling at the bottom, he risks paying a peak price.
Alwaleed pushes the limits with edgy Twitter stake 19 Dec 2011 Even though Prince Alwaleed bin Talal is known as a bold investor, his $300 mln stake in the regime-usurping social network is decisively edgy. The Saudi royal family member increases his cool factor, but supporting unregulated speech might not sit well in the kingdom.
Gray market trading sucking life from IPOs 16 Dec 2011 Facebook’s float will grab headlines next year. But as Zynga’s tepid debut shows, multiple private investment rounds and the ability to trade shares before going public mean there are slim pickings when public market investors finally get their chance to participate.
Weibo set to get duller but more valuable 16 Dec 2011 China’s Twitter has proved a thorn in the side of the Party. Now comes the clampdown, including new plans to force microbloggers to use their real names. Being brought to heel will make Sina Weibo less controversial and less interesting. But it needn’t hurt its commercial value.
Delay takes shine off Zynga’s IPO 2 Dec 2011 Revenue at the maker of FarmVille and other Internet games is still rising fast. But on more telling measures, growth has slowed. Zynga’s hoped-for $9 bln valuation isn’t too far-fetched. But the price tag might have been even higher had it harvested IPO investors’ cash earlier.
Gloomy outlook doesn’t thwart Netflix optimism 22 Nov 2011 The company is selling shares for a third of the price at which it recently bought them. Claims that it has enough capital despite shrinking cashflow, an expected loss next year and $3 bln of content costs due by 2014 add to the misguided cheer. Netflix prospects aren’t so rosy.
China’s Tencent slows as new Internet models bloom 9 Nov 2011 China’s second-biggest dot-com by market value saw its slowest quarterly earnings growth in four years. Gaming customers are defecting to new Internet models. Higher costs in micro-blogging and video are hurting margins. Tencent needs a strategy beyond simply getting bigger.
Amazon keeps digging costly moat around business 25 Oct 2011 The Internet retailer shocked Wall Street with low profitability due to heavy investment. This expenditure may eventually pay off - that’s why the stock trades at 100 times estimated earnings. But it’s a timely warning that even Amazon must keep girding the barriers to entry.
Netflix’s melting core spells value disaster 25 Oct 2011 Up till now, the company has been cagey about the respective profitability of the two units it was planning to separate. New figures show Netflix makes about 10 times more from a DVD customer than an online streaming subscriber. Trouble is, the wrong arm is shrinking - and fast.
Cisco stops descent, stuck in purgatory for now 20 Oct 2011 After years of chasing growth - and seeing its stock crumble - the company is now focusing on profit. This should buy CEO John Chambers enough time from investors to retire gracefully. But outsized gains for shareholders look elusive, if rival big tech valuations are any guide.
Apple’s rare letdown looks more form than function 18 Oct 2011 The firm known for perfectly marrying technology with design usually manages the same élan with its finances. Under Steve Jobs, Apple blew by forecasts. The latest results, without him, missed. But there’s still plenty of value substance beyond issues of Wall Street style.
Shanda’s opportunistic MBO may start a trend 18 Oct 2011 Its founder looks to be exploiting the plunging share prices of China’s U.S.-listed dotcoms. Shanda’s cash pile will cut the amount he has to put in. Delisting from the United States paves the way for a relisting in China. Others frustrated by rising U.S. scrutiny may follow suit.
Google investors "like" mobile and social results 14 Oct 2011 The Internet giant’s dazzling earnings report, showing adjusted sales up 37 pct, brought an after-hours share price jump. In mobile search, Google is making inroads the numbers don’t yet show, and its social network is gathering steam. But grappling with Facebook will be tough.
Yahoo could find closure by way of Chinese bid 3 Oct 2011 Talk that Alibaba founder Jack Ma might buy Yahoo outright sounds like overkill: what he really wants is the 40 pct of his company Yahoo owns. But if U.S. regulators can stomach it, a Ma-led buyout and break-up of the search engine would be a neat solution to Yahoo’s woes.
Latest tech valuation evokes bad dot-com memories 27 Sep 2011 Tumblr’s funding round values the popular blogging site at $800 mln. The service is growing fast, but there’s precious little revenue. While that makes profitless dot-coms relying on sales multiples look good by comparison, valuing eyeballs again is bad for tech.