Baidu’s ad recovery is a work in progress 29 Jul 2016 Earnings at China's top search engine fell by over a third in the second quarter after a crackdown on healthcare advertising. Baidu says the setback is temporary and margins will recover. But other parts of its search business are vulnerable too. Investors may be too sanguine.
Alphabet may need to crank up spinoff machine 28 Jul 2016 Google's parent delivered another solid quarter thanks to its search and digital-advertising ubiquity. Such success may make outsiders wary of cooperating with the $525 bln firm's many side projects. Carving these out may be the answer, as it did with the maker of Pokemon GO.
Telecom Italia gives investors reasons to hope 27 Jul 2016 Fierce competition, Brazil and high debt levels are problems that don't easily go away. But Telecom Italia's new chief Flavio Cattaneo has seemingly improved things by sharply cutting costs. The group still faces challenges on many fronts, but it should be a nimble competitor.
Vizio buy stars China’s latest breed of web giants 27 Jul 2016 LeEco is buying the U.S. TV-maker for $2 bln. Little known outside of China, Jia Yueting's tech group is trying to take on Netflix, Apple and Tesla all at once. The unabashed global ambitions make it different from more established Chinese giants like Alibaba and Tencent.
Jack Dorsey may want to pull a Marissa Mayer soon 26 Jul 2016 The Twitter CEO's plan to get the $13 bln social-media firm to take wing has been mostly ineffective. Revenue and user growth are slowing. Now would be a good time to find a suitor. The human news feed could find a home on the island of misfit media assets Verizon is assembling.
Apple’s muted results belie building pressure 26 Jul 2016 With little reason for customers to update their iPhones, the $520 billion firm led by Tim Cook again reported declining quarterly sales. Yet favorable forces pile up with each mediocre result - existing handsets are aging, services growing, and investor expectations falling.
Daimler’s European answer to Uber gains momentum 26 Jul 2016 The German carmaker is merging its ride-hailing app Mytaxi with UK-based rival Hailo. The all-share deal creates Europe’s strongest competitor to Uber while avoiding paying the sector’s frothy multiples. For now, Daimler’s digital first-mover advantage is paying off.
Elon Musk’s new plan will test investor faithful 20 Jul 2016 The Tesla boss has a compelling vision for building more vehicles with more autonomy for a sharing economy. But Musk's missive fails to address shareholder concerns about the electric carmaker's planned merger with SolarCity. It's also unclear how he will finance his ambitions.
UK grocers pedal themselves down bumpy path 20 Jul 2016 Sainsbury's is trialling a one-hour bike-delivery service in London. A third of Britons have access to Amazon Prime Now, putting pressure on grocers to match it on speed. But with retailers struggling to make money online, being sucked into a delivery war won't help profit.
ASML could be cousin to ARM in next tech wave 20 Jul 2016 Like the UK chip-designer Japan's SoftBank has agreed to buy, ASML is a niche but dominant player. Its tools make chips smaller and punchier. ASML would be harder to take over than ARM, but if big data and the internet of things merit the hype, it's in a good position to cash in.
Pokemon tempts market into playing familiar games 20 Jul 2016 Nintendo shares have soared thanks to augmented-reality hit Pokemon GO. So have firms offering Pokemon bread, burgers, cartoons, and arcades. With Nintendo stock now retreating, this looks like a classic case of markets overshooting as investors pile into a good story.
Activist faces long odds to stop Baidu video deal 20 Jul 2016 Acacia Partners objects to a bid from Baidu's CEO for the group's video unit. The U.S. fund is right to highlight potential conflicts of interest. But it is hard to see an activist victory here, given the boss's influence. Same goes for China's other internet giants.
EMC owners shift concerns from Dell to VMware 19 Jul 2016 The storage maker's shareholders overwhelmingly backed a sale to the PC producer, cementing a deal once valued at $67 bln. Now they have to get comfortable with the untested VMware tracking stock they'll receive. For now, the implied discount of nearly 50 pct makes sense.
SoftBank’s Son tests limits of investor patience 19 Jul 2016 SoftBank shares tanked after its no-synergy, $32 bln bet on UK chip designer ARM. Having just lost his heir apparent, founder Son talks about the company as if it is private and says the highly leveraged entity is "net debt zero". It takes the shine off his striking track record.
Corporate GOP convention snub boosts Trump appeal 18 Jul 2016 The dearth of company sponsors at the Republican bash reflects unease with the White House hopeful's stance on issues like trade. Businesses usually provide support for the nomination party. Ironically, their absence may serve to enhance the real-estate mogul's outsider image.
ARM bids best left to the irrational or desperate 18 Jul 2016 Japan's SoftBank's $32 bln offer for the UK chip designer is a monster bet on the "internet of things". It would only make financial sense if the bidder quintupled ARM's operating profit. That sets a high bar for rivals like Intel, who in any case could face anti-trust hurdles.
Britain can’t have its chips and eat them too 18 Jul 2016 A takeover of microchip-designer ARM Holdings by Japan's SoftBank shows Britain is open for business. There is little choice. The UK may need dozens of new trade deals on leaving the European Union. However rare ARM's charms, and whoever the buyer, protectionism isn't an option.
SoftBank’s $32 bln ARM bet gives investors a shock 18 Jul 2016 The Japanese tech group has reportedly agreed to buy the UK chip designer. It's a pricey punt on connected devices, and an unwelcome surprise for those who thought SoftBank was focused on reducing debt. Shareholders remain at the mercy of Chairman Masayoshi Son's "crazy ideas".
Tencent’s Chinese Spotify tribute misses key note 15 Jul 2016 The web giant is merging its music-streaming service with a local rival to create a market leader worth $6 bln. It's part of a costly and aggressive push into online content. But unlike its Western role model, Tencent lacks paying listeners. Profits look out of tune for now.
Samsung charges up electric car dream with BYD 15 Jul 2016 The smartphone-to-chips giant will buy a stake in Tesla's Chinese rival. Having a local ally may smooth ties with Beijing after regulatory setbacks in the People's Republic – and ensure the cash-rich South Korean group gets a slice of China's turbo-charged electric car market.