Google’s M&A machine stuck in antitrust limbo 4 Apr 2011 The search giant again led by Larry Page once offered the best alternative to an IPO for fastgrowing startups. But the 9month delay in approvals for its $700 mln ITA deal shows how regulators have changed that. Absent huge breakup fees, what hot company would sell to Google?
AT&T not only telco worry for antitrust watchdogs 28 Mar 2011 A brewing spat between Google and Facebook over whether to allow its nextgeneration handsets to download contact info from the social network sounds like an esoteric geek debate. But it raises big questions about Google's growing mobile dominance and the temptation for abuse.
EBay sensibly bids $2.4 bln to go beyond auctions 28 Mar 2011 The fastgrowth days for the Internet auction giant's marketplace unit are behind it. Running Web efforts for others promises growth and is a natural extension of its own business. Buying GSI Commerce does the trick. The 51 pct premium is big but the price still looks reasonable.
German cable proves rich seam for private equity 22 Mar 2011 Swedish buyout firm EQT has achieved a decent $4.5 bln exit from its boomtime Kabel BW deal, securing a high valuation multiple for the German media group on much stronger EBITDA. New owner Liberty is paying a full price. But synergies and growth mean Kabel BW can keep giving.
New York Times prices digital to keep print alive 17 Mar 2011 The Gray Lady finally has a digital subscription plan. Web news junkies will pay $15$35 a month, but access is included with the dead tree edition. Online is still cheaper but not enough to cost the newspaper committed hardcopy subscribers and the ad revenue they bring.
Citi finally set to make money on U.S. housing 16 Mar 2011 No, the bank is still sitting on lots of toxic mortgages. But its investment banking arm is at least poised to reap fees from managing the IPO of Zillow, a website providing free data on real estate sales and valuations. It's meager consolation for some $50 bln of writedowns.
Chasing Amazon won’t help states much 14 Mar 2011 The Internet retailer doesn't collect sales tax in most states. Cashstrapped jurisdictions want to close the loophole. It's an easy way to find revenue without much hiss from voters and traditional retailers love the idea. But it won't go very far to closing budget gaps.
Internet value pops can’t be extrapolated for ever 4 Mar 2011 Facebook and Twitter's implied valuations are tripling annually. The former's worth has run up from $50 bln to $65 bln in two months. This explains the lack of hurry to sell out to the public. But the trends get silly quickly, and social network owners shouldn't get too greedy.
Chinese Twitter looks cheap versus real thing 2 Mar 2011 Weibo's owner, Sina, spooked investors saying it will take longer than expected for the microblog to make money. Yet the potential remains large. Weibo has half the users of Twitter, for a quarter the implied valuation. Even political unrest might create an unexpected boost.
Mystery helps Apple’s sales but not its governance 25 Feb 2011 It took more than a day to reveal that, with Steve Jobs sick, 30 pct of shareholders wanted to see a succession plan. Given the company's success, the low profile of the pension fund proposing the measure and the board's recommendation against, that should send a message.
Business world takes uncommon interest in Oscars 24 Feb 2011 Capitalism walks the red carpet this year. Films linking the financial crisis to Wall Street's fondness for hookers, attacking the shale gas boom and portraying the questionable ethics of Facebook's founder are up for big awards. Wins could turn more cameras on corporate America.
Silicon Valley creatures feeding on themselves 14 Feb 2011 Techland loves its ecosystems. When users, software and peripheral firms gel, they make standards like the iPhone valuable. The latest one is growing out of social media. JPMorgan's tech fund, Zynga's valuation and Pandora's IPO show how the bubbles can replicate and expand.
Cisco’s growth quest may be giving it sclerosis 10 Feb 2011 In its last quarter, the networking group had to extend favorable terms to customers just to get a 6 pct sales lift half its longterm target and hammering margins. It's setting up a working group to study what happened. It's not too hard to diagnose: Cisco needs a diet.
Old U.S. media firms storming back with new life 7 Feb 2011 Amid the hoopla surrounding Rupert Murdoch's launch of a nextgeneration iPadbased publication last week, oldfashioned television and magazines put up some impressive numbers. The Daily may represent the future of media, but financially speaking that day looks some ways off.
AOL takes alternative-Yahoo approach to M&A 7 Feb 2011 Reversing fading Internet brands is difficult especially if it isn't clear what a company stands for. Take AOL's $315 mln Huffington Post purchase. With this, AOL still looks like a patchwork of unrelated sites versus Yahoo's centralized approach. Yet both may not succeed.
Techies need plan to deal with despots 2 Feb 2011 Vodafone suspended its Egyptian service after demands from the authorities. Google, on the other hand, chose to pull back in China. There are no easy answers on how to deal with autocratic regimes. But being transparent about the reasons for complying or exiting helps everybody.
Ocado’s rich share price leaves no room for error 1 Feb 2011 The online grocer's equity has risen 30 pct since IPO last July, buoyed by good results, improbable bid talk and a tech sector rally. With new investors showing interest, betting on price falls is rash. To grow into its rich valuation, however, Ocado still has a lot to deliver.
LinkedIn rides in on Facebook’s hype 28 Jan 2011 With Web 2.0 shares in hot demand, the professional networking site with 90 mln users is trying to capitalize with an IPO. It's profitable, for now, and growing quickly. But LinkedIn's model looks a bit more Monster.com than Facebook. Hungry investors may overlook the difference.
Netflix makes it hard to run full speed with bulls 27 Jan 2011 The Internet video company keeps defying media honchos questioning its business model and short sellers piling into the shares. Now with 20 mln subscribers and growth still surging, Netflix looks solid. But less disclosure and the CEO's rant against doubters are worrying signs.
Demand Media kicks off Web bubble 2.0 26 Jan 2011 Investors can't get enough of the cheap Internet content factory. The company upsized its offering, raised the sale price and the shares still popped 38 pct in early trading. Yet Demand is littered with red flags. Just imagine how higher quality Web firms will be received.