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.
Nintendo’s augmented shares reflect new reality 14 Jul 2016 The runaway success of the Japanese group's Pokemon app has sent its shares up more than 50 pct. That's a big vote of confidence in Nintendo's future mobile games, too. To justify the move, EBITDA will need to top 250 bln yen by 2018-2019 - more than double previous forecasts.
Fintech: bigger and dicier for insurers than banks 13 Jul 2016 Financial technology is highly likely to disrupt the insurance industry, executives told PwC. Preventive cover that use sensors to anticipate damage could benefit society. But many shifts may require intrusive Big Brother-like methods - or questionable changes to risk management.
Nintendo’s big Pokemon boost depends on Asia 11 Jul 2016 Investors have added $7.5 bln to the Japanese company's market value after its Pokemon GO mobile game proved a smash hit in the United States. Conquering Japan is the next challenge. It all bodes well for transferring Nintendo characters like Super Mario onto mobile devices.
Theranos hobbles toward gluenicorn fate 8 Jul 2016 The blood-test upstart's value was already racing from $9 bln to zero. Now a U.S. watchdog is set to ban Elizabeth Holmes' company from the industry for two years. Theranos' aims were appealing, but reinventing technology, regulation and governance in one go is hard.
Temasek’s goals are bold for a low-yield world 8 Jul 2016 The $180 bln Singaporean investor just suffered its first down year since the financial crisis. Still, it beat benchmarks, and some key holdings have since rebounded. However, Temasek is still targeting a feisty 8 pct annual return. That could skew future investment decisions.
Japan’s chat app IPO is more Twitter than WeChat 1 Jul 2016 Messaging platform Line is going public with a valuation of up to $6.6 bln. Like Chinese rival WeChat, it has lured millions with games and virtual stickers. Yet its user base has stopped growing. Like Twitter, it must now try to squeeze more revenue out of those people.
Kuka shows bargaining power of China’s M&A targets 29 Jun 2016 Foreign companies with prized technology can demand much more than a fat premium from Chinese bidders. That is the message from Midea's extensive binding agreement to keep the robotics maker's headquarters, factories and jobs in Germany for the next seven and a half years.
China’s innovators set to ratchet up patent wars 28 Jun 2016 Homegrown firms have been busy building a war chest of patents. A recent ruling in Beijing against a design of Apple’s iPhone suggests local tech rivals are increasingly willing to wield them too. As competition for market share heats up in China, more skirmishes will follow.
Qualcomm lawsuit is test of its China standing 27 Jun 2016 Less than two years after a record antitrust settlement with Beijing, the U.S. chip giant is suing a local handset maker for breaching patent agreements. It's a big gamble on China's legal system. The outcome will set the tone for the market where Qualcomm earns half its revenue.
SoftBank’s mixed signals prevent market upgrade 22 Jun 2016 The Japanese group has shown it can sell winners and tackle debts, with an $18 bln blizzard of selloffs. But botched succession planning tightens founder Masayoshi Son’s grip. The group’s sprawl, problematic core holdings and grand ambitions mean investors will remain wary.
ASML’s $3 bln deal is a big bet on tiny tech 16 Jun 2016 The semiconductor-equipment maker is buying Taiwan's Hermes Microvision. The target's sales have plunged and global chip demand is cooling. But ASML's biggest-ever deal should make it even more indispensable to manufacturers as they prepare to make next-generation chips.
Alibaba’s new candour is overdue but welcome 15 Jun 2016 The Chinese e-commerce giant has promised to shed more light on the financial performance of a range of businesses. That’s a relief for investors amid an accounting probe by U.S. regulators. A better-than-expected revenue forecast also helped ease concerns about slowing sales.
China engineers low-risk $3 bln chip deal with NXP 14 Jun 2016 Beijing’s appetite for overseas semiconductor assets is controversial. Yet NXP is selling a commodity business, based in Europe, to a familiar Chinese buyer at a reasonable price. So this deal is less likely to short-circuit for either regulatory or financial reasons.
Baidu’s health setback may be a chronic condition 14 Jun 2016 A crackdown on healthcare advertising has forced China’s top search engine to cut its quarterly revenue forecast by over 10 pct. The risk is that Beijing’s medical sector cleanup permanently damages Baidu’s ad business. The path to recovery depends on finding new revenue sources.
India’s smartphone giant eyes China role reversal 3 Jun 2016 Micromax has bested Chinese rivals in its home market. To realise its lofty goal of being one of the world's top five handset makers by 2020, it must succeed in the People's Republic. Raising the fresh capital required might be the easiest part for the Indian firm.
India’s unicorns limp along without foreign funds 2 Jun 2016 As capital dries up, signs of stress are emerging among the country’s few $1 bln-plus startups. Delayed hires have prompted a business school spat, while a founder ranted about valuations on his blog. At least unprofitable habits are vanishing along with unreal expectations.
SoftBank’s $8 bln Alibaba sale is late but prudent 1 Jun 2016 Masayoshi Son's tech and telecom conglomerate is offloading 4.2 pct of the Chinese e-commerce giant to pay down debt. The hugely successful investment is now more burden than blessing. As SoftBank takes a more disciplined approach to its portfolio, further disposals may follow.