TikTok has escape route that Huawei lacks 18 Nov 2019 The Chinese-owned video app and its telecom compatriot are both under fire from U.S. lawmakers who fear political meddling. TikTok may have fewer allies to lobby on its behalf, but owner ByteDance could sell or spin its subsidiary off. Huawei, though, is in a long-term trap.
YouTube spinoff would be a must-watch 15 Nov 2019 The video service is stifled under parent Alphabet, which is valued more like Twitter than faster-growing Netflix. Sharing a stable with search engine Google hurts both in dealing with separate regulatory probes. And Alphabet’s siloed setup means it’s part way to a split already.
U.S. crackdown on TikTok gets help from Beijing 6 Nov 2019 A new Chinese cybersecurity law will give the government unfettered access to data that companies collect. It gives American lawmakers more excuses to probe the popular ByteDance-owned video app. The pressure could also squeeze the likes of Apple to limit their mainland exposure.
Holding: Watchdogs may deserve two bites at deals 31 Oct 2019 Unwinding Facebook’s Instagram purchase or other previously cleared mergers seems unfair – and costly. Yet recent research shows many tie-ups have caused unforeseen harm. Allowing regulators limited do-overs would pass legal muster and could help consumers and investors alike.
Apple needs CEO charm more than Facebook 30 Oct 2019 Tim Cook has Washington and even Beijing on side, while Mark Zuckerberg can barely speak without annoying someone in power – and Facebook is blocked in China. Yet since D.C. pressure ratcheted up a year ago, Zuckerberg’s stock has performed better. Diplomacy only goes so far.
Twitter’s advertising model gets ratioed 24 Oct 2019 The social network’s shares crashed nearly 20% after it revealed unexpectedly slow summer sales and a slew of issues of its own making such as bugs that hampered targeting ads and sharing data. Fall may be better for ads, but it’s fair to question Twitter’s ability to fix itself.
Microsoft acts the grown-up on tech rules 23 Oct 2019 Satya Nadella’s firm has built a constructive reputation in D.C. and Brussels, unlike Facebook, Google and others. It helps that it lacks a social network. Microsoft has also learned from past watchdog tussles. Less mature peers could do worse than copy its understated approach.
The clock is ticking on TikTok’s U.S. business 21 Oct 2019 A senator wants parents to delete the popular video app owned by China’s ByteDance. Even Facebook is taking potshots. TikTok, meanwhile, is building lobbying strength in Washington. But the mood in D.C. is ripe for curbs on any Chinese upstart with global ambitions.
Facebook would be wise to just give up on politics 15 Oct 2019 Over the past 90 days, political ads brought in less than 1% of forecast Q3 sales. But after presidential hopeful Elizabeth Warren showed up Facebook’s patchy vetting, they continue to garner way more in the way of negative vibes. Mark Zuckerberg can afford to exit the category.
Tech firms show usefulness in the face of tragedy 10 Oct 2019 Twitter, Facebook and others worked together to remove footage of a gunman who attacked a German synagogue. Social media is a potential channel for extremism, and Silicon Valley is making amends for past slow responses. This at least helps their claim to be part of the solution.
Global tax war inches towards a fragile peace 9 Oct 2019 The OECD wants companies like Facebook to pay tax partly based on where they make revenue, rather than where profit is declared. It makes sense. But even if countries agree with the idea, national interests mean it will be a long slog before the principle is put into practice.
Viewsroom: Mark Zuckerberg is stuck in 2006 3 Oct 2019 That’s when the Facebook CEO rejected Yahoo’s $1 bln takeover bid. Now he uses the decision to justify his grip on control and decisions on data, privacy and the chance of a breakup under a Democratic president. Plus: How a spat over shrubbery almost felled Credit Suisse’s CEO.
Zuckerberg grasps big problem with tech breakups 1 Oct 2019 The Facebook boss expects the U.S. to try and dissect the social network if Democratic detractors win office. His argument: Making tech firms smaller would be counterproductive in preventing election interference. He’s right on both counts. That could be Facebook’s best defense.
Facebook’s brain-computing goals are distant 24 Sep 2019 Mark Zuckerberg’s $533 bln social network is taking a step toward making computers even more omnipresent by purchasing CTRL-labs, a startup tapping nerve signals to control devices. It’s a little creepy, but it’s also a long-term spur for a company mired in near-term problems.
Facebook gives Match’s parent a reason to split 20 Sep 2019 Barry Diller’s IAC may separate its holdings in the $22 bln dating site to uncork value. It would give some agility to a company already experimenting with new ideas like video and gaming. Mark Zuckerberg moving on Match’s turf provides another good excuse to make the move.
U.S. antitrust effort cries out for a monopoly 19 Sep 2019 The U.S. Department of Justice and FTC admit to squabbling over turf as they target the likes of Amazon and Facebook. Both agencies also could use more money and people to take on deep-pocketed tech giants. Pooling resources and power through a merger is a natural solution.
Some startups truly make the world a better place 16 Sep 2019 Silicon Valley likes the idea of doing good, but it’s undermined by the power and missteps of firms like Facebook. New ventures aim to help people directly, connecting students at non-elite colleges to job leads or helping teachers buy homes. The trick will be making money, too.
Next step for China’s Pinduoduo is the hard part 2 Sep 2019 The Groupon-meets-Facebook outfit has established itself as a $38 bln nuisance to larger Alibaba. A savvy mix of social networking, group discounts and heavy marketing did the trick. Those can work only so long, though. It will take an impressive second act to be a killer app.
Peppa Pig buyer risks going too high on hog 23 Aug 2019 Hasbro has found juicy slabs of fat to cut to justify the $4 bln it is paying to buy UK studio Entertainment One, home to the porcine cartoon character. The U.S. toymaker is also larding up on debt and diluting shareholders for the deal. That could leave it stuck in some mud.
Breakdown: The global fight over Big Tech’s taxes 22 Aug 2019 OECD countries are trying to agree a new set of rules for the likes of Google. States in Europe and elsewhere want more income from digital behemoths but could well face U.S. intransigence. That makes a messy patchwork of local levies and American countermeasures likely.