Big Tech labors under Trump-First policy 23 Jul 2019 The U.S. president may weigh in on a $10 bln Pentagon contract where Amazon is a lead bidder after rivals slammed the process. He also questioned Google’s China ties and may use Huawei licenses to help or punish others. Targeting firms with fear or favor is a worrying disruption.
Apple seeks new front in Qualcomm war via Intel 23 Jul 2019 The iPhone maker hopes to combat maturing sales by making more components in house. Buying Intel’s modem arm could give it a technological edge while avoiding costly royalty payments to Qualcomm. But the unit has struggled, and success isn’t guaranteed for Tim Cook’s company.
UK’s Huawei review amounts to an endorsement 23 Jul 2019 The outgoing government ducked making a call on whether the Chinese telecom supplier can build 5G networks. But its report makes a stronger case for Huawei than against. Probable next Prime Minister Boris Johnson will either have to ignore the findings or irk American hawks.
ByteDance charts a global path for China tech 23 Jul 2019 The $75 bln outfit behind video app TikTok is mending relations with Indian officials to avoid a ban. Even so, boss Zhang Yiming has outshone peers like Tencent's Pony Ma abroad, growing fast in the U.S. and beyond. Deep pockets and bold ambition could deliver a big payback.
Gamer favourite Razer’s next level demands focus 23 Jul 2019 The Hong Kong-listed maker of pro-keyboards wants to widen its appeal beyond gamers. It already sells phones, and is dabbling in payments. Distractions can be costly, though, and Razer's main business is doing fine. Doubling down on e-sports instead might help it turn a profit.
Disney movie mojo is tight squeeze on small screen 22 Jul 2019 The $250 bln media giant’s “Avengers: Endgame” is now the No. 1 grossing film in the world. The Mouse House is home to another six of the top 10 movies, too, thanks to boss Bob Iger’s savvy deals. Transferring the magic to its forthcoming video-streaming services may be hard.
The Exchange: Andreessen Horowitz’s Scott Kupor 22 Jul 2019 The venture capitalist’s new book, “Secrets of Sand Hill Road,” is a fundraising guide for entrepreneurs. At his office off the famed Silicon Valley street he discusses with Breakingviews whether tech founders make good CEOs and details the biggest financial mistakes they make.
Equifax shows how little it values consumers 22 Jul 2019 The credit-scoring firm gathers troves of sensitive financial information, making it systemically important. Yet it’s paying less than $3 in compensation for each of the nearly 150 mln Americans affected by its 2017 data breach. That provides little incentive to tighten security.
Philips will grow into its healthier valuation 22 Jul 2019 The 37 bln euro medical-technology group has erased its valuation discount to Siemens Healthineers. That is justified by strong orders unveiled in second-quarter results. CEO Frans van Houten’s company offers the same growth story as its German rival, but with fewer distractions.
China’s new tech bourse too much of a good thing 22 Jul 2019 Shares of all 25 firms on China’s answer to the NASDAQ at least doubled on their debut. Dig beneath the speculative mania, though, and there is a lot to like about the new board. Letting more companies list, and sticking to reforms, may be the best way to tame the price swings.
Elliott’s $1.3 bln SAP bet requires patience 18 Jul 2019 Shares in Europe’s biggest tech company, under pressure from the U.S. activist, fell 7% after sales and operating margins disappointed investors. SAP’s cost-cutting and cloud business targets still look achievable – eventually. But Elliott may need to stick around for a while.
Stalling Didi scrabbles to rev its China engine 18 Jul 2019 The ride-hailing app may try to raise a fresh $2 bln from investors. Even with a dominant share of its home market, loss-making Didi is struggling with regulatory demands and a plethora of small rivals. Lacklustre debuts from rivals Uber and Lyft may put off new backers too.
Netflix runs into an age-old Hollywood problem 17 Jul 2019 The $159 bln video-streaming service added fewer subscribers than forecast. A price hike played a part, but Netflix also blamed a less appealing line-up of shows. Predicting hits and flops has long flummoxed Tinseltown. The ensuing lumpy results are now in Netflix’s script, too.
Congress is all bark and no bite on Big Tech 17 Jul 2019 U.S. lawmakers failed to disrupt Silicon Valley executives in hearings about antitrust concerns and Facebook’s crypto coin. Amazon faced some heat about third-party sellers but queries about MySpace and iCloud ads were distractions. It provides little incentive to change.
EU Amazon case pushes tech towards utility status 17 Jul 2019 Antitrust tsar Margrethe Vestager may probe the $990 billion group’s use of merchants’ data. That would fit with a wider European drive to stop technology companies’ platforms from favouring their own services. Tighter rules will, however, cement bigger players’ dominance.
SoftBank’s robotics IPO faces a reality check 17 Jul 2019 China’s CloudMinds, 35% owned by Masayoshi Son’s Vision Fund, is seeking $500 mln in a U.S. float. The loss-making robot startup reckons AI-powered androids are tomorrow’s cleaners. It’s a tough sell in the real world, where most Chinese tech floats this year are now underwater.
Amazon’s data deal invites D.C. scrutiny 16 Jul 2019 As its executives appeared at an antitrust hearing in Congress, the e-commerce giant offered customers $10 to track their web browsing. It’s a smart way to grab business from rivals, and the price low-balls the value of user data. It’s also a demonstration of how dominance works.
Tech and NYC are so over the Amazon spat 16 Jul 2019 With Google and WeWork expanding, Manhattan office rents are setting records and the space being leased is at a 25-year high. Tech employment continues to grow, and even Amazon may be seeking more capacity. It suggests the city can do just fine without subsidizing big tenants.
Alibaba stock should have local staying power 16 Jul 2019 The New York-listed Chinese e-commerce titan may raise up to $20 bln in Hong Kong. Investors should be able to trade the shares between exchanges. So-called two-way fungibility has cost the Asian market liquidity in the past, but Alibaba’s regional appeal could be an exception.
Uber adds useful numbers to solve gender equation 15 Jul 2019 The ride-hailing app is tying executive compensation to targets for increasing the share of women and minorities in its ranks. Linking pay to worthy diversity goals is one concrete way for Uber to rehabilitate its toxic image. It also paves the road for others to follow.