Atento is bad omen for Spain’s busy IPO pipeline 10 Jun 2011 Tough markets forced Telefonica to slash the price range for the flotation of its call centre unit. Raising money was not the telecom group's top priority. But other Spanish companies on the IPO runway, like Loterias and Bankia, will need flawless execution to get their cash.
Vodafone isn’t getting rich quick in Qatar 7 Jun 2011 The telco has won a small but significant fight against incumbent Qatar Telecom. It still faces a long slog to lift Vodafone Qatar's share price above its IPO level. Things may improve over time. But it looks like Vodafone underestimated the frontier market challenge.
Apple throws music industry another life vest 6 Jun 2011 Its new iTunes Match service lets users listen to music on any device for $25 a year. Significantly, it also works as an amnesty of sorts for customers with illgotten songs in their hard drives. It looks a concession to piracy but it at least offers a way to more revenue.
Apple readies latest version of the halo effect 3 Jun 2011 The tech dynamo cleverly uses each introduction of a new device, like the iPad, to trigger virtuous circles where purchasers tend to buy other Apple products. Expanding its cloud offerings, where data and programs are stored remotely, could set off more favorable feedback loops.
AT&T risks Faustian regulator bargain in T-Mobile 1 Jun 2011 American watchdogs deciding whether to greenlight the $39 bln deal have ample precedents overseas where greater market concentration hasn't noticeably harmed consumers. But heavier regulation seems to have made the difference that may be the industry's price for AT&T's deal.
Vodafone shares on course to bag Verizon boost 1 Jun 2011 Is the UK telco's 45 pct stake in Verizon Wireless fully reflected in its share price? Vodafone's capacity to pay dividends should be enhanced in 2012 when fat cash payments are expected from its U.S. partner. A likely raised payout means yield investors could chase the stock.
Nokia’s new warning spells double trouble 31 May 2011 Investors have taken fright at more grim news from the handset maker, sending the shares down 18 pct. The direct cause is the rapid decline of its legacy business. But the reaction also shows the market's doubt that Nokia's tieup with Microsoft provides a way out of the hole.
Uncle Sam scrambles signals on smartphone privacy 24 May 2011 BlackBerries and iPhones record our daily lives. But the law shielding the data is up for grabs. An Oregon court is mulling whether cops need warrants to search a phone and it's an issue that has split U.S. judges. People and businesses can only wait for the law to catch up.
Skype schmuck insurance pays off richly for eBay 10 May 2011 The online auctioneer can now claim to have made money on the Internet telephony group. Though eBay wrote down its original 2005 $3.1 bln purchase, and then sold it for less to Silver Lake and friends, keeping a stake allowed it to save face and show a return well over 30 pct.
Microsoft’s $8.5 bln Skype price is in the cloud 10 May 2011 In theory, the WindowstoOffice giant could integrate Skype's voice and video calling to its advantage. In practice, Microsoft's M&A track record is poor. Combine that with a valuation at 10 times 2010 sales and this is one call that is unlikely ever to connect for shareholders.
Apple’s $150 bln brand value typifies tech motion 9 May 2011 The iPad maker's distinct label accounts for about half its market cap, a new survey finds. It's also 10 times what it was in 2006. Measuring brand worth is an imprecise art, but there are good reasons why technology companies dominate and are prone to big swings in value.
CenturyLink takes measured leap into the cloud 27 Apr 2011 The rural U.S. landline operator is jumping into the sexier business of data hosting by acquiring Savvis for $3.2 bln. Though there's a hint of desperation about it, especially with the big Qwest integration task, it's a smart way to get with the times. And the price looks right.
Russian squeeze points Telenor to Vimpelcom exit 19 Apr 2011 Having closed its deal with Egypt's Wind Telecom, Vimpelcom's core Russian shareholder Altimo intends to scrap its agreement with Telenor. That will weaken the Norwegian telco's influence, encouraging it to sell out. But it will also hurt other minority shareholders.
Dot-com cleanup lingers with Level 3 deal 11 Apr 2011 Never mind the recent financial crisis the postmillennial technology mess is still spawning deals. Level 3 is loaded with debt from building its network over a decade ago and squeezed by falling prices. Its $1.9 bln purchase of rival Global Crossing dilutes both problems.
Vodafone set for long and dirty war with Essar 8 Apr 2011 The UK group's partner in its Indian venture disputes the valuation of its 33 pct stake it's a nasty surprise for Vodafone which last week assumed Essar had agreed a $5 bln exit and won applause cleaning up its portfolio. This messy dispute makes both sides look bad.
Vodafone pips Vivendi in $11 bln SFR deal 4 Apr 2011 The UK telco is selling Vivendi its 44 pct stake in mobile unit SFR at a 20 pct premium to sector trading multiples, even though its French rival was the only buyer. That underscores Vodafone's greater success in restructuring and helps justify its shares' outperformance.
Vodafone’s Essar victory gives it an uphill task 31 Mar 2011 The UK mobile operator is buying out Essar's 33 percent stake in its Indian joint venture for $5 billion. Though the deal ends a messy dispute, Vodafone has to pay a chunky valuation. Its challenge now is to extract value from India's cutthroat mobile market. That won't be easy.
AT&T not only telco worry for antitrust watchdogs 28 Mar 2011 A brewing spat between Google and Facebook over whether to allow its nextgeneration handsets to download contact info from the social network sounds like an esoteric geek debate. But it raises big questions about Google's growing mobile dominance and the temptation for abuse.
AT&T deal ironies may play for more than laughs 22 Mar 2011 The No. 2 U.S. mobile provider had sued to stop Verizon ads showing its network had better rural coverage. Now, AT&T is featuring the same map to sell its $39 bln TMobile bid to regulators. There's plenty more backtracking, too. It's rather amusing but also fodder for critics.
German cable proves rich seam for private equity 22 Mar 2011 Swedish buyout firm EQT has achieved a decent $4.5 bln exit from its boomtime Kabel BW deal, securing a high valuation multiple for the German media group on much stronger EBITDA. New owner Liberty is paying a full price. But synergies and growth mean Kabel BW can keep giving.