Information Technology

Neuf Cegetel dials a modest number

11 Oct 2006

The telecoms company has gone for an undemanding valuation range bang between whizzy Iliad and dull old France Telecom at the mid point. That may seem unambitious. But it could be justified given the uncertainties surrounding Vivendi s SFR which will keep 41% of the shares.

Shareholders hand Google a blank cheque

10 Oct 2006

Google s risky purchase of YouTube, the world s biggest downloading service, has added $4bn to its market capitalisation. Whether investors will greet continued dilution with joy depends upon if Google s competence can match its limitless ambition.

Yahoo and Facebook are a perfect match

21 Sep 2006

Yet, as the best strategic fit, Yahoo can afford to pay more for Facebook than its competitors. The portal may buy Facebook after its own social networking effort failed. The question of valuation, however, remains to be determined.

HP fudges boardroom scandal

12 Sep 2006

Chairman Patricia Dunn was responsible for authorising the illegal snooping on other directors and journalists. Given such extraordinary misjudgement, remaining in her post until January when CEO Hurd takes over is pointless.

Dell humiliated by SEC, government probes

11 Sep 2006

The US computer maker has always prided itself on its strong balance sheet. That's precisely what regulators are now questioning. After three profit warnings in the past year and the recent battery recall, investors must be asking how many more cockroaches will emerge.

EU would frown on a Microsoft-Yahoo deal

8 Sep 2006

Conventional wisdom holds that Microsoft may buy Yahoo to polevault the software giant in online search and advertising. While this might be a sensible strategy, European authorities would fight it, making takeover talk nothing more than a pipe dream.

Hewlett-Packard’s chairman should go

7 Sep 2006

Snooping on directors private phone calls has so far produced a director s resignation and two inquiries into whether it broke the law. Having endorsed this questionable witch hunt for press leaks, chairwoman Patricia Dunn should walk the plank.

Spiralfrog not the panacea for record companies

30 Aug 2006

Universal Music is backing an iTunes killer in an attempt to loosen Apple's control over the digital music. Good idea. The snag is that the revenue model looks uncertain, and the service has too many constraints to really lure in the pirates.

Ebay’s Google deal highlights weakness

28 Aug 2006

The online auctioneer, desperate for growth, will share ad revenue with Google on its international websites. But it didn't receive hefty financial upfront guarantees the way MySpace or Facebook did from Google and Microsoft. But it didn't receive hefty upfront guarantees the way MySpace did. Still, there may be a silver lining for Skype.

Isoft secures survival – for now

25 Aug 2006

But the financing isn t cheap. And Isoft s future as an independent company is still questionable. The troubled UK software group has delivered good news: it avoided being delisted; renewed its bank financing; and even won a new contract.

Social networking could backfire

25 Aug 2006

A goldrush mentality is driving established firms like Microsoft, IAC and Sony to cut deals with hot online upstarts like Facebook. But as history teaches, when the dust settles, many of these deals will turn out to be blunders, driven by fear rather than financial logic.

Silly season for dealmakers in full swing

25 Aug 2006

It's late summer and Wall Street's finest are on boats and beaches, leaving junior bankers free to cook up wacky deal proposals. Dell and Ford are two names making the rounds as farfetched LBO candidates. These discussions may not survive past Labor Day.

Isoft implosion teaches harsh lesson

24 Aug 2006

The software provider s update of the UK health service s computer systems has gone terribly wrong. The shares could be suspended. Investors were slow to grasp the disaster. They forget the basic rule in software, the reality is usually worse than you think.

Google debuts free Wifi

16 Aug 2006

The internet company claims that providing free wireless access in Silicon Valley is just an experiment. But its real strategy is to profit in new ways through targeted local advertising.

Dell starts to emit black smoke

15 Aug 2006

The PC giant has recalled 4.1m batteries due to a risk they may catch fire the largest recall ever by a computer company. Dell s business model has come apart due to falling PC prices and rising customer demands. This is another large kick to Dell.

Polygon threatens mutually assured destruction

2 Aug 2006

The hedge fund seems ready to vote down rival Fortress' acquisition of Telent because it won t be cut into the takeover of the Marconi rump. Sure, this would torpedo the value of its 24% stake. But a reputation for being a lose cannon might be worth more.

Google still plagued by click fraud

2 Aug 2006

But the settlement has failed to eliminate fear of click fraud as the biggest potential threat to Google s fastgrowing money machine. The web giant hailed court approval of its $90m click fraud settlement as a major coup last week.

Apple’s iPod looks tired

20 Jul 2006

Secondquarter results were shiny, largely thanks to betterthanexpected Mac sales. But the company is seeing sales of its iconic digital music player and music to play on it start to shrink.

Ebay unveils $2bn buyback

20 Jul 2006

With the stock down 40% this year, chief Meg Whitman needed to send a clear message to shareholders that she put their interests first. By launching the first buyback in Ebay history, Whitman signals she views the stock as cheap and shored up confidence in her stewardship.

Microsoft needs to settle with EU

18 Jul 2006

Microsoft says it can t resolve the antitrust case due to lack of clarity. But failure to make peace damages its recruiting and reputation, aiding Google.