Google’s innovation engine sputtering big time 1 Dec 2010 The search giant's willingness to spend $6 bln on a startup in a business with almost no barriers to entry is the most damning evidence yet. In the past, Google would've tried to create a Groupon of its own. But these initiatives rarely panned out. It now has to buy innovation.
EU antitrust pile-on overshadows Google’s Groupon 30 Nov 2010 The European Commission is examining whether Google is using its dominance in search to unfairly extend its reach into related areas the way Microsoft once did. The probe is auspiciously timed: Google is contemplating a near$6 bln bid to enter the ecoupon business.
Global risk of U.S. impotence at heart of Wikileak 29 Nov 2010 The site's classified document dump gives the impression the cozy 1990s world of American hegemony and peaceful globalization is irrevocably ending. The risk is that without U.S. leadership, regional rivalries turn nasty, trade barriers rise and fiscal policies destroy wealth.
Mary Meeker well suited to the VC life 29 Nov 2010 The queen of the net courted controversy as Morgan Stanley's web guru and backed her share of doozies. But she also has a sterling track record for spotting new trends and huge successes like eBay, Amazon and Google. That makes her a good fit for new employer Kleiner Perkins.
i-banking expansion makes sense for StanChart 29 Nov 2010 While many rivals are reducing their exposure to volatile ibanking, StanChart plans to boost the division with 1,800 hires. Its earlier push into high finance is already bearing fruit. With emerging market trading and dealmaking volumes growing quickly, the plan looks sound.
Kayak floats, or sinks, behind U.S. antitrust boat 18 Nov 2010 The $50 mln IPO of the fastgrowing travel website looks promising. There s one big hitch Google s purchase of ITA Software means the giant wants to dominate online travel search. A bet on Kayak is a wager that Uncle Sam will halt Google s acquisition which isn t far fetched.
EMI will long for yesterday on iTunes 16 Nov 2010 Nearly 40 years after The Beatles broke up and seven years since Apple launched its digital music shop, the band s songs will finally be sold online. The trademark litigation that held up the move won t suppress the hype. But the Fab Four's label left money on the table.
Print is dead – long live old media 12 Nov 2010 The business model of print magazines and newspapers is no longer enviable. But old media s outsized impact and credibility still carry huge value. The Daily BeastNewsweek merger highlights the point. It s not just a case of old fogeys nostalgic for newsprint.
Amazon races to bottoms for retail domination 8 Nov 2010 Eager to keep feeding its huge distribution network, the online vendor is paying $545 million for Quidsi, the owner of Diapers.com and Soap.com. Though it will only add about 1 pct of sales, these humble staples should help Amazon get a firmer grip on consumer wallets.
Netflix clangs death knell for the lowly DVD 21 Oct 2010 The video rental service says its customers will watch more content through online streaming than from mailed DVDs by the end of the year. While the disk is dying rapidly, Netflix has made the tricky switch and is thriving. Now it just has to see off a whole new slew of rivals.
Yahoo chief’s grip is slipping 14 Oct 2010 Carol Bartz wants to fix the Internet group s US business. With few signs her plan is working, investors are increasingly focused on the company s valuable Asian holdings, which Bartz is loath to sell. A big value gap and growing impatience mean outsiders may do the job for her.
Google starts to benefit from mobile surge 14 Oct 2010 The Internet search giant s sales jumped 25 pct in the third quarter from a year earlier. The knock against the company is an overdependence on web advertising. But it is finding new growth. The market for ads on mobile devices is young, but it is already reinvigorating Google.
Facebook stake not the only charm of Mail.ru IPO 11 Oct 2010 The Russian internet group will raise $500 million in a London IPO that would give it a $3.3$5 billion valuation. At the right price, it could be a rare chance to tap into a booming market, with the added allure of the 2.4 percent Facebook stake owned by the listed entity.
Betfair: a fair bet, or priced for perfection? 7 Oct 2010 The UK's dominant online betting exchange is listing in London. It seems like an investor's dream: Betfair throws off cash, and has technology which is scalable and hard to replicate. But do these glittering prospects really make it worth 33 times last year's EBITDA?
Art imitates Wall Street in Dealbreaker.com sale 4 Oct 2010 The Internet site that thrives on skewering the financial set finds itself in an ironically Wall Streetstyle pickle. Its owner wants to sell, but its editor wants more of the spoils. It s like a big dumb bank buying a securities firm employees get the rewards or they walk.
AOL’s spending spree doesn’t speak to a strategy 28 Sep 2010 The Internet firm is redeploying cash from its fastfading dialup business into the acquisition of dotcom sites. Fair enough AOL needs to remake itself. But it s hard to see an investment thesis in buying a video syndication firm, a hyperlocal journalism site and tech blogs.
Zuckerberg gives it away at Internet speed 23 Sep 2010 Andrew Carnegie said a man who dies rich dies disgraced. Facebook s 26yearold founder is taking note early, giving $100 mln to a troubled U.S. city's schools. It s a generous move and a burnished reputation will probably help the social networking magnate s business, too.
Betfair should break UK tech IPO jinx 21 Sep 2010 Tech groups floating in London this year have tanked. Now Betfair is seeking a possible 1.3 bln stg valuation. But it generates cash, has no debt or private equity investor rushing for the exit, and its online betting exchange has transformed the industry. It should be different.
Web firm deal hints at private equity’s next phase 20 Sep 2010 Hellman & Friedman is buying website owner Internet Brands for $640 mln, a 47 pct premium. The leverage broadly available implies the firm could be stumping up half the equity. If so, it s emblematic of how the business model is changing for buyout barons.
Yahoo’s Asian sale resistance looks futile 16 Sep 2010 The Internet firm s stakes in Chinese and Japanese businesses are worth an estimated $15 bln, or about equal to its enterprise value. The ostensible barrier to exiting is taxrelated. But this may not be the problem it seems. Yahoo would be worth more carved up and refocused.