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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.

U.S. public radio needs new funding model

10 Mar 2011

Impolitic remarks by an NPR executive and a political push by Republicans have jeopardized the broadcaster's federal money. The government should support the arts but, all things considered, it may be time for a new approach. A $3 bln endowment could set a path to independence.

Old U.S. media firms storming back with new life

7 Feb 2011

Amid the hoopla surrounding Rupert Murdoch's launch of a nextgeneration iPadbased publication last week, oldfashioned television and magazines put up some impressive numbers. The Daily may represent the future of media, but financially speaking that day looks some ways off.

Only advertisements live up to Super Bowl’s hype

4 Feb 2011

A 30second commercial on the year's biggest U.S. TV event now costs up to $3 mln. That's 500 pct more than it was 25 years ago even though the audience has grown by just 24 pct. The hyperinflation may be warranted, though. These days, most viewers don't tune in for the game.

Google’s $100 mln babysitter may be worth it

24 Jan 2011

After handing him millions of shares over a decade as CEO, Google is paying Eric Schmidt handsomely over four years to stick around as chairman. It's no fortune compared with his nearly $6 billion of stock. But he's needed to balance cofounder Larry Page, the new CEO.

Google sets surprising example for CEO succession

20 Jan 2011

Usually it's the founders that step aside for professional managers. But Google's young cofounders did that a decade ago. Eric Schmidt's adult supervision is no longer needed and Larry Page is ready to run things again. This adds a fresh blueprint for a new crop of geniuses.

Will 2011 be the year Facebook’s value gets real?

28 Dec 2010

Though the social network doesn't need money to grow, an IPO should come next year. Trouble is, trading in unlisted shares suggests it's already worth some $40 bln. To justify that number requires some astonishing, if just about possible, growth assumptions.

Privacy is the Person of Last Year

15 Dec 2010

Mark Zuckerberg has been crowned Person of the Year by Time. Julian Assange topped a reader poll. A certain arrogance and superior coding abilities aren't the only parallels between the Facebook and WikiLeaks bosses. Both are also leading the technological assault on privacy.

Google’s innovation engine sputtering big time

1 Dec 2010

The search giant's willingness to spend $6 bln on a startup in a business with almost no barriers to entry is the most damning evidence yet. In the past, Google would've tried to create a Groupon of its own. But these initiatives rarely panned out. It now has to buy innovation.

EU antitrust pile-on overshadows Google’s Groupon

30 Nov 2010

The European Commission is examining whether Google is using its dominance in search to unfairly extend its reach into related areas the way Microsoft once did. The probe is auspiciously timed: Google is contemplating a near$6 bln bid to enter the ecoupon business.

Google earnings show cost of ambition

15 Jul 2010

The Internet search group's revenue continued to grow at a good clip in the second quarter. But the firm eased its formerly tight control on costs at an even faster rate. Some investment is appropriate. The worry is Google's cash hoard will encourage overindulgence.

Twitter takes small step to becoming a business

13 Apr 2010

The microblogging site for the attention deficit disordered is carefully rolling out advertising. Ads will be limited and those that don't generate favorable response pulled. It's a sensible first step in Twitter's need to generate revenue without annoying users. More are needed.

Wall Street could teach Google a thing or two

16 Feb 2010

Tapping user information promises lots of ad dollars. But going too far, as Google's Buzz did, can trigger privacy concerns and send customers fleeing. Establishing banklike conflict committees to kibosh plans that appear lucrative, but put the company at risk, might work.

Still too early to call McClatchy’s recovery

1 Feb 2010

The Miami Herald publisher is marketing $875 mln of bonds. The group has boosted online revenue and slashed costs. But its performance will be hard to maintain without stemming the decline in metro newspaper print advertising. Investors should demand to be paid for this risk.

Conditions finally ripe for mobile ad bonanza

6 Jan 2010

That's what recent deals by trendsetters Apple and Google appear to suggest. Thanks to the rising popularity of smart phones, mobile advertising could reach $13 billion in revenues by 2013. But it's less clear who the financial beneficiaries of this longanticipated boom will be.

Informa deal machine goes into overdrive

24 Nov 2009

The UK publisher has another big deal in its sights: the German Springer. The mooted E2.5bln price sounds cheap in some ways. But even with synergies, Informa would need a massive rights issue to pay for Springer. Its acquisitive history will help it get away with such moxie.

WPP should be prepared to defend its credit rating

14 Aug 2009

The UK ad group is at risk of a rating downgrade. Investors fear it may follow indebted publisher Reed and raise equity. Nonfinancial firms shouldn t be ruled by ratings. But WPP may be an exception. At least CEO Martin Sorrell can pull other levers apart from a share issue.

Pru takes capital out, Aegon puts it in

13 Aug 2009

The UK s largest insurer has raised the dividend while peers are cutting payouts to conserve capital. Holland s Aegon is raising E1bn in a share issue. Prudential is an outlier in taking capital out of the sector, but that may be the best way to serve its shareholders.

In death, Jackson finds his financial way

6 Jul 2009

At the end of his life, the King of Pop was struggling to make his legend pay. But posterity is proving kinder. Jackson is set to join Elvis and the Beatles as a cashspewing cultural icon. Stars, unlike businessmen, can be more valuable when they leave the stage.

The LBO club doesn’t look so chummy anymore

4 Jun 2009

Not long ago, the government was probing private equity firms for acting too clubby. As the brewing battle over Clear Channel s proposed debt exchange suggests, however, it could soon be more like open warfare in the land of the leveraged.