Dell deal falls short on three fronts out of three 19 Sep 2018 The PC maker is trying to persuade owners of VMware tracking stock to accept a big discount to the tracked shares, a whopping valuation for its own equity, and third-class voting status. The simplification ought to appeal, but Dell’s $22 bln offer includes too much to dislike.
Starbucks’ Italy push may help it more at home 19 Sep 2018 The $74 bln coffee giant unveiled a massive espresso emporium in the centre of Milan. It sounds like the equivalent of carrying coals to Newcastle. But there may be some logic here if the buzz created around the Italian launch gives a jolt to flagging sales in America and beyond.
Google’s car deal is hazard light for auto groups 18 Sep 2018 Renault and Nissan will install the Android operating system in their cars from 2021, making it more likely others will follow. That extends the search giant’s data dominance beyond smartphones. Consumers will win, but carmakers may give up a valuable source of future income.
Chinese IPOs bring casino trading to New York 18 Sep 2018 U.S. markets are getting a taste of mainland volatility. News app Qutoutiao more than doubled on its first day before plunging on the second; carmaker Nio has also see-sawed. Small floats and untested models are partly to blame, but erratic behaviour will hamper future debuts.
The Benioffs become Time’s Person of the Year 17 Sep 2018 The Salesforce co-CEO and his wife are buying the magazine from Meredith for $190 million. They join the likes of Jeff Bezos and Laurene Powell Jobs, who have swooped in to save struggling news outfits. The cachet of old-school media brands appeals even to newish tech riches.
Indonesia’s Go-Jek can hitch ride on Meituan IPO 17 Sep 2018 The smartphone-based taxi service is raising about $2 bln. New cash will help Nadiem Makarim’s unicorn expand in the region and even into online shopping. A successful market debut by its Chinese backer Meituan Dianping also should fuel Go-Jek’s quest to be a multi-purpose app.
Nio zooms from carmaker to tech star 14 Sep 2018 China’s answer to Tesla reversed out of a dismal NYSE debut as its shares jumped 76 pct in their second day of trading. That imputes a $13 bln market cap that values Nio less like a manufacturer and more like an internet darling. Production figures make it hard to justify.
Washington traps Big Tech in pincer movement 13 Sep 2018 The Federal Trade Commission may change its antitrust and consumer-protection policies, with issues like inequality part of the debate. Facebook and others already face scrutiny from the DOJ and Congress. The squeeze from all sides may restrict M&A and spur a push for breakups.
Meituan Dianping feeds into Chinese tech fears 13 Sep 2018 The Tencent-backed super-app owner raised over $4 bln in its IPO. Big fund managers could scarcely afford not to buy shares, but mom and pop investors were less enthusiastic than for other recent market debuts in the sector. It’s a good indication of waning investor appetites.
Apple’s new innovation: tap fear as well as greed 12 Sep 2018 The $1 trillion firm’s new watches can detect falls and heart conditions, making them a useful gift for grandma, as well as hypochondriacs everywhere. Meanwhile, aesthetic appeal and better cameras should be enough to convince many users to pay up for an improved phone.
Elon Musk is even higher on space than cars 12 Sep 2018 Having already captured two-thirds of U.S. rocket launches, the entrepreneur plans a massive boost to SpaceX's capacity. Unlike Tesla, there's no public market pressure. But Musk is gambling the $28 bln firm can slash prices and spur demand for satellite-based internet service.
EU arms media with a pea-shooter for Google fight 12 Sep 2018 Brussels’ proposals would make it easier for publishers to charge tech groups for using their articles. But given Google and Facebook hold all the market power, the plan would make little difference. Digital dominance calls for antitrust remedies rather than ineffective fiddling.
Japan’s Renesas speeds into autonomous M&A wreck 11 Sep 2018 The Tokyo-based chipmaker is buying U.S. peer Integrated Device Technology for $6.7 bln. A promised uplift in revenue from selling self-driving and connected-car technology sounds optimistic. Even if Renesas can achieve such synergies, the return on investment barely stacks up.
Didi falls way behind Uber on road to IPO 11 Sep 2018 Both burn heaps of cash, but new figures reveal that the $56 bln Chinese app pockets just two cents of every rider dollar. For $72 bln Uber, the roughly equal sum after subsidies is 23 cents. Differences are getting clearer even if neither looks ready to ride onto public markets.
Chinese Tesla’s $1.3 bln IPO revs up too fast 11 Sep 2018 Electric-car maker Nio has a rich price tag to match its premium branding. Under the bonnet, though, it looks less shiny. The group combines an opaque legal structure favoured by tech giants with dependence on a local auto partner. Sales are still nascent, and rivals abound.
Wall Street brains mostly stumped by tech dilemmas 10 Sep 2018 Giant opportunities and pay packages lured Imran Khan and other rainmakers to Silicon Valley. Their record is mixed at best at Snap, Alphabet and Twitter. Raising capital is easy, instilling discipline harder, and finding ways to beat dominant rivals nearly impossible.
Apple gets schooled in lose-lose trade strategy 10 Sep 2018 President Trump suggested that the iPhone maker build products in America if it wants to avoid tariffs on Chinese goods. That sends the message that hurting U.S. companies is an acceptable price to pay for insisting trade partners bend to U.S. demands. Escalation is inevitable.
Jack Ma’s exit plan just raises more questions 10 Sep 2018 Alibaba says CEO Daniel Zhang will succeed the $420 bln group's co-founder as chairman in 2019. Planning ahead is laudable, but the sketchy blueprint, after a baffling interview, leaves worries over the top job and Ma's influence unanswered. It's one step forward, two steps back.
Jack Ma’s next moves will instruct China tech 8 Sep 2018 The charismatic co-founder of Alibaba says he plans to retire. It’s a sign of the $420 bln company’s maturity that others are ready to step up, unlike at rivals like scandal-hit JD. But he will still wield huge influence. Investors will want clarity on who really holds the reins.
BA is guinea pig for tougher EU data rules 7 Sep 2018 The UK airline said some customer payment records were hacked. Companies used to shrug off such attacks. But this breach comes after the rollout of new data protection laws. Now that non-compliance means fines, such lapses are a headache for investors as well as customers.