Google probe may resemble Microsoft’s in end alone 30 Jun 2011 The antitrust investigations of the two tech giants invite easy comparison but are actually quite different. The U.S. case against Microsoft was simpler and still took over a decade to resolve with the company promising to restrain itself. Google's outcome could be similar.
Rid of MySpace, Murdoch should focus on his space 29 Jun 2011 Mercifully for shareholders, the octogenarian media mogul's failed experiment in social media has ended. The costly episode is a reminder of his many poor uses of capital of late, including buying Dow Jones. Big TV is what News Corp does best and where most resources belong.
History suggests Big Tech discount could linger 24 Jun 2011 Growth at Apple, Microsoft and Google isn't reflected in their market values. The phenomenon isn't a new one. In the last 40 years, investors have twice shunned the sector for long stretches, worrying obsolescence would preempt expansion. The cycle could be repeating itself.
China’s next accounting worry could be the VIE 22 Jun 2011 Companies from Baidu to Renren rely on a legally untested ruse to get around restrictions on foreign investment. But these variable interest entities (VIEs) can go wrong. They may be behind Yahoo's spat with partner Alibaba. As so often in China, investors seem too trusting.
Setting Hulu free will give it best chance to fly 22 Jun 2011 Media titans NBC, Disney and News Corp have given the online TV service a running start. But their ownership creates conflicts that will retard Hulu's growth. An analogy can be found in banking, where Visa and MasterCard have flourished since being granted independence.
Palm reading could tell BlackBerry maker’s fate 17 Jun 2011 Research In Motion is melting down as consumers switch to rival devices made by Apple or powered by Google. Yet the top brass remains optimistic. Palm's trajectory provides a more sobering possibility. When its cult gadget lost its technological edge, the firm never recovered.
Amid global cybercrime, accidental hacks risk jail 16 Jun 2011 A U.S. antihacking law is so broad it can make any breach of an employer's computer policy a crime. Cyberattacks on Citigroup and others are costly and understandably feed demand for stiff penalties. But prosecutors should avoid overkill with fatfingered users of PCs and Macs.
Imagine if Groupon’s wacky accounting caught on 13 Jun 2011 The Internet coupon startup seeking a $30 bln value wants investors in its IPO to ignore silly things like marketing expenses, acquisitionrelated costs and stock compensation. If these financial standards were applied to other companies, the world would be a far richer place.
Apple throws music industry another life vest 6 Jun 2011 Its new iTunes Match service lets users listen to music on any device for $25 a year. Significantly, it also works as an amnesty of sorts for customers with illgotten songs in their hard drives. It looks a concession to piracy but it at least offers a way to more revenue.
Pandora’s huge price tag misses old-school model 3 Jun 2011 The online radio group's IPO seizes on the Internet hype with a potential $1.4 bln valuation. But as cool as the service may be, its reliance on radio ads isn't too novel. Investors also should appreciate the lack of operating leverage and avoid getting swept up in the frenzy.
Apple readies latest version of the halo effect 3 Jun 2011 The tech dynamo cleverly uses each introduction of a new device, like the iPad, to trigger virtuous circles where purchasers tend to buy other Apple products. Expanding its cloud offerings, where data and programs are stored remotely, could set off more favorable feedback loops.
Google’s China hacking spat may make others wary 2 Jun 2011 The search giant's claim of Chinese Gmail hacking suggests it may not be able to escape Beijing's tentacles despite quitting the mainland. The story may fizzle if Google can't back up the disputed claims. But it still may make the likes of Facebook reluctant to enter China.
Groupon IPO another bet on profit-free sales 2 Jun 2011 The Internet coupon company's revenue trajectory looks like a moon shot started in late 2008, the firm racked up $645 mln in revenue in Q1, 15 times what it brought in a year earlier. But profit looks like a submarine voyage so far. It's another test of dotcom optimism.
Virtual Bitcoins are appealing but probably doomed 27 May 2011 An online currency is no less real than a printed one. The preordained supply and decentralized nature of Bitcoins have intrigued geeks and paranoid inflationistas alike, and their value in dollars has rocketed. But this abstract gold may not survive such a bubble.
Microsoft’s Ballmer hardly the worst veteran CEO 27 May 2011 It's true the software giant has missed many opportunities under his watch, as hedge fund boss David Einhorn said this week. But it doesn't obviously mean he will go. On a total shareholder return basis, other longterm bosses including GE's Jeff Immelt have fared worse.
Yandex shows Russian venture capital potential 25 May 2011 The search engine's $1.3 billion IPO is a hit, but the big winners are the private investors who financed Yandex's earlier growth. Their success shows there is big money to be made from backing entrepreneurial Russian companies in fastexpanding sectors such as IT.
Uncle Sam scrambles signals on smartphone privacy 24 May 2011 BlackBerries and iPhones record our daily lives. But the law shielding the data is up for grabs. An Oregon court is mulling whether cops need warrants to search a phone and it's an issue that has split U.S. judges. People and businesses can only wait for the law to catch up.
Internet bubble brings back dubious metrics 23 May 2011 LinkedIn's 109 percent pop on its opening day shows investors are hungry for techstyle growth. That's good news for firms hoping to go public, ranging from Russian search engine Yandex to Groupon. But pegging firms by their revenue potential is risky. Profits matter in the end.
Even LinkedIn’s bankers underestimate the hype 19 May 2011 Based on the near doubling in the stock on its debut, they left almost as much money on the table as they raised for the online U.S. business network group. But if the hype doesn't wear off soon, the scarcity value of listed Western social networks surely will.
Baidu spat shows censorship is a capitalist issue 19 May 2011 A lawsuit against the Chinese search engine by U.S.based activists sounds farfetched. But it shows freespeech tensions are spilling over into the corporate world. This is bad news for those like Facebook who fancy China's online growth, but not the political brickbats.