JD CEO’s arrest steps on governance landmine 3 Sep 2018 Richard Liu is being investigated for sexual misconduct in the United States. Super-voting stock gives him control of the $45 bln e-commerce firm; the board can't meet without him. Even if Liu is cleared, this raises questions about JD’s use of legally-untested structures.
Tencent’s big battle goes from fantasy to reality 31 Aug 2018 The “Honour of Kings” maker lost another $20 bln in market value on a fresh videogames crackdown. This time, Chinese officials say they’re worried about myopic kids. It leaves investors exposed to nearly unpriceable risks and Tencent’s failure to build new businesses fast enough.
Huawei’s hang-ups open 5G line for Samsung 31 Aug 2018 Japan may soon echo U.S. and Australian restrictions on the Chinese telecom equipment maker and peer ZTE. That should help South Korea’s $280 bln titan make a move in the markets. Nokia and Ericsson will challenge for share, too, but Samsung’s heft and stamina give it an edge.
“No” is the best answer for SurveyMonkey IPO 30 Aug 2018 The online survey firm is nearly two decades old, but it continues to lose money and releases little of its historical financial results. That’s presumably because growth isn’t impressive for a tech firm, and the key to turning a profit remains elusive.
Berkshire’s India deal is so wrong it’s right 27 Aug 2018 Warren Buffett’s company is taking a small stake in digital-payments firm Paytm. Indian tech doesn’t fit the Omaha sage’s playbook, but his outfit has $110 bln in cash and holdings like Kraft Heinz are flatlining. Letting his lieutenants place some bets on the future makes sense.
Corbyn goes mainstream with UK tech tax idea 23 Aug 2018 The opposition Labour Party’s leader, Jeremy Corbyn, wants to tax tech giants like Google and Facebook to fund journalism. The normally radical politician is in line with European thinking. His proposed solution has flaws but a better designed subsidy would be worth considering.
Chinese news app IPO delivers hilarious feed 23 Aug 2018 Tencent-backed Qutoutiao, or "fun headlines", filed to go public in New York hours after raising money privately. The unprofitable outfit pays users to read, lacks important licenses to operate in China, and even rights to its name are shaky. The prospectus befits the business.
Viewsroom: Amazon’s JEDI rebellion 23 Aug 2018 Amazon looks set to win the Pentagon’s $10 bln JEDI cloud contract, but Oracle is fighting back. Plus: Is it time for Airbnb to sell its China business? And should Elon Musk be worried about a Chinese Tesla lookalike listing in New York?
China’s Xiaomi passes first public market test 22 Aug 2018 After a bumpy IPO, the newly listed handset maker delivered better-than-expected maiden results, with quarterly sales up 68 pct to $6.6 bln. Smartphones and gadgets did well at home and abroad. If that growth continues, investors may cut Xiaomi some slack on internet services.
Consumers offer Ping An cover from market storms 21 Aug 2018 The $160 bln conglomerate's first-half earnings rose by just over a third, thanks to life and health insurance. Market clouds present dangers for an insurer with lots of investments, but its results suggest Chinese households can provide some protection from the squalls.
China’s startups can reinvent fewer wheels 17 Aug 2018 Beijing-based Redcore admits its "100-percent" homegrown browser has a Google base. Its programmers are the latest to dress up open-source software as Chinese, seeking state support. A clumsy localisation strategy does little for security, and distracts from real innovation.
Activist board hack is a boon for Symantec 16 Aug 2018 Hedge fund Starboard is seeking five seats at the $12 bln cybersecurity outfit after taking a 5.8 pct interest. Accounting troubles and upheaval in its enterprise software business have slashed the firm’s value by a third this year. Fresh oversight could help fix the bugs.
Revamped U.S. deal reviews are skid risk for Tesla 16 Aug 2018 Saudi help in a buyout could spur national-security scrutiny under new powers. Tesla’s tech might be deemed critical, while D.C. also worries about China's ambitions. Rules and pilot programs are works in progress, but it's another uncertainty for CEO Elon Musk’s convoluted plans.
JD’s shopping problem worsens bad financial habits 16 Aug 2018 Quarterly earnings at China's $46 bln web retailer halved year-on-year, as it pays up for new users. The market is maturing and competition with Alibaba is fierce. JD's off-piste bets, and its use of non-conventional accounting practices, are adding to the noise.
Airbnb’s China business could learn from Uber 16 Aug 2018 The flat-sharing giant faces stiff competition and regulatory risk in the People’s Republic, but that doesn’t mean it should cut and run like Uber did. Partnering with a domestic incumbent could help both sides cash in on China’s travel boom.
China crackdown exposes Tencent’s gaming addiction 15 Aug 2018 Disappointing second-quarter revenue adds to fears of a slowdown at the Chinese web giant, which has shed $170 bln in market value in 2018. Now Beijing is restricting new video games. Despite heavy investment in new businesses, Tencent’s bottom line still depends on gamers.
Amazon Pentagon ties may receive greater scrutiny 14 Aug 2018 Donald Trump is no fan of Jeff Bezos. But the U.S government could become an even bigger Amazon client as the Department of Defense seeks pitches for a $10 bln cloud deal. The juggernaut’s slick Pentagon networking could give rivals like Oracle some curious optics to exploit.
Nielsen’s best option is to rip off the band-aid 13 Aug 2018 Paul Singer’s Elliott disclosed a 5 pct stake in the stumbling $8.5 bln TV-ratings firm and is pushing for a sale. It’s a surer remedy than auctioning one floundering business unit amidst a protracted CEO search. Buyout firms took Nielsen on once before. Maybe they will again.
China’s #MeToo momentum has broader benefits 10 Aug 2018 Allegations of sexual misconduct levelled at tech and media executives will inspire others to speak out. If more women confront bullies and bosses, a wider push for equal treatment could creep up the agenda too. That would be a welcome shift in China’s male-dominated boardrooms.
Tesla gets a lesson in buyout realities 9 Aug 2018 Elon Musk wanting to take the money-losing carmaker private has set Wall Street all atwitter. But Dun & Bradstreet’s $5.4 bln LBO is a reminder of what it usually takes: a mature, mediocre, profitable firm. That’s a better bet than capital-draining dreams of domination.