Technology

Facebook owners ignore Russian affair at own peril

22 September 2017

The $500 bln social network's alleged role in election meddling has legislators flapping, regulators gearing up and even roiled Mark Zuckerberg from paternity leave. Yet Facebook's valuation, at 27 times forward earnings, remains robust. There's a risky disconnect at work here.

Uber may be low on fuel for London fight

22 September 2017

The UK capital has decided not to renew the ride-hailing app’s licence, citing an irresponsible approach to safety and security issues. Boardroom upheaval makes it harder for Uber to address the concerns credibly, while a dented image could undermine Londoners’ enthusiasm to help.

Tencent heats up fintech fight with CICC stake

21 September 2017

The Chinese tech giant is taking a 5 pct stake in the investment bank. Tencent has already cut deeply into Alibaba's share of electronic payments. This will help Tencent grow in wealth management – and chip away at its archrival’s dominance of online money-market funds.

HTC tethers itself to a new virtual reality

21 September 2017

The ailing Taiwanese firm will sell part of its handset unit to Google for $1 billion. This will free up HTC to focus more on its risky but promising VR business, where it is winning market share. Deeper ties with the U.S giant might also help fend off rivals Sony and Facebook.

Options hurt Bill Ackman’s cause at ADP

20 September 2017

The pushy hedge-fund boss owns most of his 8.3 pct stake in the $50 bln payroll processor with derivatives. It's a common ploy, but Ackman's plan is lackluster and investors can pick from plenty of activist campaigns. His choice of securities only makes it harder to gain support.

Uber hops in driving seat to serve ad firms notice

20 September 2017

The ride-sharing firm sued a digital advertising agency claiming fraud and seeking some $40 mln in damages. Clients rarely, if ever, take Madison Avenue to court. Already under pressure to prove their value, the case is another sign ad middlemen need to clean up their act.

Memory sale leaves a hollowed-out Toshiba

20 September 2017

After many leaks, lawsuits and U-turns, Toshiba is set to sell its prized flash-memory unit to Bain and partners for $18 bln. A successful sale would fix the balance sheet and placate lenders. It also reduces a Japanese industrial icon to a ragbag of barely profitable businesses.

Market returns Best’s IPO plans to sender

19 September 2017

The Alibaba-backed logistics firm has cut the price of its New York flotation, and slashed the deal’s size to $495 mln, IFR reports. Best has belatedly recognised it was asking too much of investors, given the poor performance of rival ZTO, and its own evolving business model.

Roku IPO warrants swimming against stream

18 September 2017

The TV-gadget maker may capitalize further on the cord-cutting trend. Some 15 mln accounts are helping grow revenue and reshape the business model. A $1.3 bln valuation is lofty, though, if TiVo and Pandora are guides. Elusive profit and a dual-class structure are also turnoffs.

Next SoFi CEO needs both social and finance skills

15 September 2017

The foolish plan to keep founder Mike Cagney around amid a sex scandal has ended quickly. Whoever steps in will have to clean up the culture quickly. Growth targets also should be revisited at SoFi, last valued at $4.3 bln. Picking a woman with this talent mix might help, too.

Toshiba soap opera employs vast cast of middlemen

15 September 2017

The plot twists keep coming in the $20 bln sale of Toshiba’s memory unit, as vested interests clash. The drama may not do much for shareholder value, but the lawyers, stockbrokers and advisers don't want this fee-based passion play to end.

AI is the big driver of SoftBank’s Uber move

15 September 2017

A mooted $10 bln investment in Uber would leave Masayoshi Son’s group with stakes in most of the world’s big ride-hailing firms. It’s a huge sum, even if SoftBank buys in at a big discount. The strategy reflects Son’s belief in the disruptive power of autonomous driving.

Trump follows Obama’s lead on Chinese chip deals

14 September 2017

The U.S. president blocked a $1.3 bln takeover of Lattice Semiconductor. It’s not a new position: his predecessor was sensitive to Beijing’s ambitions and nixed a similar acquisition. With scrutiny likely to intensify, buyers and sellers can save face by rethinking these mergers.

Ericsson reaches for India’s new creditor weaponry

14 September 2017

The Swedish telecoms equipment maker has filed a bankruptcy petition against Anil Ambani's Reliance Communications. It is the first high-profile foreign outfit to use a new insolvency code to try to force a settlement. This shows creditors are becoming more powerful in India.

Hong Kong is better off without dual-class shares

14 September 2017

Hong Kong’s securities watchdog has conceded in a battle for control over listing approvals, says the SCMP. Regulators can still reject proposals for unequal voting rights, which might lure tech IPOs at the expense of governance. But they'll need to get used to being unpopular.

New iPhones take features from Asia and add profit

13 September 2017

Apple's latest handset boasts a big screen, wireless charging, facial recognition and other upgrades. Much would be familiar to users of Samsung or Huawei phones. Apple's branding wizardry, price discipline and focus on richer customers set it apart when it comes to profit.

Apple’s iPhone pricing goes out on a tech limb

12 September 2017

The X features a new screen, wireless charging and facial recognition. It'll start at $999, the most expensive iPhone ever. That defies convention in an industry where products typically get cheaper. Design, performance and customer inertia, however, give Apple uncommon power.

Equifax boss in danger of getting Stumpfed

12 September 2017

The U.S. credit-scoring agency has now lost a fifth of its market value since revealing a massive hack. A bumbling response leaves CEO Rick Smith on the back foot as lawmakers and consumers demand answers. Under similar circumstances, Wells Fargo's John Stumpf paid with his job.

SoFi is the Uber of finance in more ways than one

12 September 2017

The founder of the private online lender is resigning amid a harassment lawsuit and claims he fomented an inappropriate work vibe. As with Uber, the danger is that Mike Cagney, who will remain CEO until a replacement is found, will still cast too long a shadow on his creation.

Holding: GrubHub serves up a gig-employment pickle

11 September 2017

If the $5 bln food-takeout service wins a rare trial over the job status of workers, discontent could grow in a labor force demanding more benefits. A loss, though, may put the so-called sharing economy at risk. It’s time for a sector that shuns regulation to work with Uncle Sam.