Advertising

Twitter share buyback is an odd way to take flight

10 Feb 2022

New CEO Parag Agrawal plans to repurchase $4 billion in stock. He will also spend more to improve tepid revenue growth. But tough competition and the $30 bln company’s slim slice of the ad market mean Agrawal could do with keeping more in the coffers to help him hit his targets.

Facebook’s future rests on Reels, not metaverse

9 Feb 2022

Mark Zuckerberg’s iffy bet on virtual reality cost Meta Platforms $10 bln last year. But the $600 bln social network has gotten higher returns for investors by improving on ideas that already exist. The best way to stop its decline is to copy its biggest competitor TikTok.

Facebook $250 bln slump punctures antitrust case

7 Feb 2022

That’s how much Mark Zuckerberg’s firm Meta Platforms lost in value after growth stalled. Competition from TikTok specifically is getting tough, but U.S. antitrust regulators who are fighting Facebook have said the Chinese-owned app isn’t a rival. The market begs to differ.

Google’s cloud is starting to make rain

1 Feb 2022

Beneath parent company Alphabet’s 32% jump in fourth-quarter revenue, losses at Google’s cloud businesses are shrinking. Investors have sent the shares down 7% this year, but they may be underestimating the shift from unprofitable challenger to established oligopolist.

Breakdown: Real profit and loss in the metaverse

28 Jan 2022

Mark Zuckerberg is on the case, and nascent virtual spaces like Decentraland could be the next social-networking hit. Breakingviews unpacks the metaverse, what it offers users and investors, and the risks.

Digital ad hogs leave room at the trough

11 Jan 2022

Google and Facebook dominate U.S. online advertising, but the overall pie is growing quickly. Even if the twin giants take their usual share, that leaves an additional $50 bln up for grabs, Breakingviews estimates. That’s an opportunity for the likes of Snap and Microsoft.

Ant will be best among China’s BAD bunch

23 Dec 2021

After a brutal year for tech, ByteDance, Ant and Didi will spearhead the sector’s recovery. A shaky ad market looms for the restructured TikTok owner, however, while the ride-hailing company faces rising driver costs. Jack Ma’s fintech outfit has the clearest path ahead.

Capital Calls: Fund services M&A, Mattress mystery

6 Dec 2021

Concise views on global finance: Shareholders of Amsterdam-listed Intertrust dodge a regulatory crackdown with a 1.8 bln euro sale; the western man credited with Chinese retailer DeRucci’s success finally has his identity revealed.

UK’s Facebook slap-down raises bar for US watchdog

1 Dec 2021

Britain’s antitrust body told the social media giant now named Meta to sell GIF maker Giphy. Its ruling hinges on a view of how the online ad market will evolve, not what it’s like now. CEO Mark Zuckerberg can appeal but the order still sets a punchy precedent for Big Tech deals.

Capital Calls: China’s data centre sale

24 Nov 2021

Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.

Plastic-surgery app MBO aggravates governance scar

23 Nov 2021

Boss Xing Jin wants to buy the 85% he doesn’t own of New York-listed So-Young, which matches users with beauty services. Shares have slumped since its IPO and China may regulate ads. But Xing’s supervoting stock means investors have themselves to blame for any forced face-lift.

Capital Calls: Google, Twitter, Swedish grocer

10 Nov 2021

Concise views on global finance: The search giant’s defeat in appealing a $2.8 bln EU fine is tolerable if American judges don’t follow; the social media network hopes to charge hardcore U.S. users a monthly fee; ICA Gruppen’s top shareholder takes the $12 bln retailer private.

IPO could be the next spin for WPP’s PR combo

13 Oct 2021

The $16 bln ad firm’s Finsbury Glover Hering is merging with Sard Verbinnen to make a $917 mln group. The latter’s owners get a partial exit and option to sell out later on. But, by dangling a potential float, WPP gives the company’s spinners an incentive to make the merger work.

Intuit bites off a lot with $12 bln Mailchimp deal

14 Sep 2021

The TurboTax maker is paying 15 times 2020 sales for the digital marketing firm to better crack the big market for small business services. Mailchimp’s record suggests it has a shot. The trick will be to avoid indigestion as Intuit is still integrating an earlier $7 bln purchase.

Tencent’s Disney-like ambitions will enchant Xi

18 Aug 2021

Games, movies and web shows did well in the quarter, showcasing the $540 bln group’s entertainment prowess. Unlike the U.S. giant, censors dictate what Tencent can do. Yet a Chinese answer to the Magic Kingdom at least fits into Beijing’s vision of a prosperous middle class.

Capital Calls: U.S. inflation, Big Tech’s ad gains

10 Jun 2021

Concise views on global finance: A 5% annual jump in U.S. consumer prices reflects warped comparisons; the prospects for U.S. advertising are getting hotter, and the largest Silicon Valley firms will be the beneficiaries.

Netflix’s biggest threat lurks behind the curtain

14 May 2021

YouTube is lavishing money on creators and lapping up revenue from brands at a scorching pace. If the trend continues, the video network behind “MrBeast” could soon be worth as much as Netflix. The fact its value is hidden within that of parent Alphabet increases the danger.

Capital Calls: Pfizer, ConocoPhillips

4 May 2021

Concise views on global finance: About $6 bln of additional earnings from Covid vaccines at the U.S. drug giant should mean more capital returned to investors; the independent oil group is offloading stock in Canada-based Cenovus it collected as part of a deal four years ago.

Tech lions circle fattened-up U.S. consumer

27 Apr 2021

Google and Facebook stand to rake in ad revenue as consumer-facing businesses jostle for Americans’ pent-up savings. Amazon should benefit as a retailer and a rising power in advertising. The result could be Silicon Valley predators gobbling up an ever-bigger share of the market.

Big Tech’s data virtue-signalling has casualties

16 Mar 2021

Apple and Google are making it harder for marketers to track individual users. It’s a no-brainer: the changes will cement their dominance and please privacy-focused regulators. But mobile-game developers and the rest of the $330 bln online advertising sector will feel the pain.