Internet

TikTok has escape route that Huawei lacks

18 Nov 2019

The Chinese-owned video app and its telecom compatriot are both under fire from U.S. lawmakers who fear political meddling. TikTok may have fewer allies to lobby on its behalf, but owner ByteDance could sell or spin its subsidiary off. Huawei, though, is in a long-term trap.

UK Labour’s broadband plan is free of most logic

15 Nov 2019

The opposition wants to nationalise telecoms provider BT’s network and deliver fibre to all. A state boost to lagging communications infrastructure would be welcome. But providing free web surfing would be very costly - and wipe out private rivals like Sky and Liberty Global.

SoftBank would win from $15 bln Yahoo-Line rejig

13 Nov 2019

Masayoshi Son’s restless conglomerate may combine its stake in the Japanese search engine with Naver’s holding in the country’s leading messaging app. Both could benefit from a pickup in digital payments. SoftBank, though, would gain new exposure to Line’s more dynamic business.

Lisbon tech confab is antidote to WeWork gloom

11 Nov 2019

Entrepreneurs and investors who joined the 70,000-strong Web Summit crowd were unfazed by plunging valuations of SoftBank-backed companies, including the office sublessor. Still, the reality check is making sustainable growth and positive cash flow the industry’s new watchwords.

Tech firms muscling in on banks, like it or not

5 Nov 2019

Uber and Facebook have designs on finance, and Japanese e-commerce group Rakuten wants to set up a U.S. bank. Community lenders have warded off interlopers before. But if regulators value financial inclusion and customers want innovation, small banks are fighting the tide.

Disney streaming service has plus for Netflix too

31 Oct 2019

Others are also going live, but with a low price and a vault of content Disney+ will be Netflix’s toughest rival. There’s a benefit for CEO Reed Hastings, though: Being lumped together with the Magic Kingdom makes his firm look less like a tech giant in need of regulation.

Super Mario turbo-charges case for Sony breakup

29 Oct 2019

Shares of $45 bln Nintendo have gained 30% this year, partly thanks to a mobile hit featuring its iconic plumber. A richer valuation should also be an inspiration to sprawling rival Sony. Separating its video-games and entertainment business could be one way to narrow the gap.

Alphabet at risk of middle-aged M&A spread

28 Oct 2019

The Google owner is pumping out profit from internet ads, but growth – while still rapid – is slowing. A reported bid for Fitbit suggests it sees wearable devices as a path to second youth. There’s something to that, though an expanding waistline brings its own pitfalls.

Google could buff its browser-privacy blemishes

11 Oct 2019

Chrome’s owner lags both Mozilla’s Firefox and Apple’s Safari in trying to make the web less creepy. The prospect of losing revenue may explain Google’s resistance to blocking certain ad trackers. If more users abandon the web’s most popular browser, Google is likely to act.

Holding: Net neutrality needs the feds, eventually

8 Oct 2019

A U.S. court said the likes of California can require internet service providers to treat all content equally, despite conflicting federal rules. As in areas like antitrust, though, national standards provide crucial clarity. The best states can do is prod Congress to step up.

Baidu’s Ctrip sale leaves room for risky wandering

27 Sep 2019

The $37 bln web giant is offloading nearly a third of its holding in China's largest travel agency for $1 bln. Ctrip stock has shed over 30% since Baidu came in; still, thanks to an initial share swap, boss Robin Li can book a profit. Now he needs to spend on more than buybacks.

Tencent jams pedal into battered China car market

16 Sep 2019

The tech giant and others have made a roughly $1.2 bln offer for comparison site Bitauto. That will in turn mean bidding for online retailer Yixin, which the target part-owns. It’s a cheap bet that may bring benefits in payments; acceleration will still require an auto recovery.

Chinese video-games takeover bid may start a trend

10 Sep 2019

Internet pioneer Sohu is offering to buy out minority investors in a U.S.-listed gaming subsidiary for a near-70% premium. The move looks opportunistic: the shares, hit by Beijing’s regulatory crackdown, are at less than half of a 2017 peak. Peers could lure bargain hunters too.

Alibaba finds a new ally against an old foe

6 Sep 2019

The Chinese titan is buying part of video-games group NetEase's e-commerce business for $2 bln. More significantly, the two are forging closer ties in music-streaming, where rival Tencent’s dominance is under antitrust scrutiny. That combination paves the way for further deals.

It is too soon to call a bottom on Baidu

20 Aug 2019

Despite a 62% decline in quarterly profit, the $36 bln Chinese internet company gave investors something to cheer with unexpected growth in video. Its main search business is hurting, though, and the ad outlook is weak. ByteDance and Meituan Dianping are coming for Baidu, too.

Tencent holds key to China’s e-sports bonanza

15 Jul 2019

DouYu, which lets fans live-stream top video gamers, wants to raise $1 bln in a New York IPO. Competition for star players has crushed margins. Investors will bet backer Tencent, which also owns a stake in a rival, can limit the destruction and push for consolidation.

Amazon could be a smart shopper in Southeast Asia

8 Jul 2019

The U.S. e-commerce giant pushed into Singapore in 2017, but hasn’t tackled the region's larger, faster-growing markets. Indonesia’s $7 bln Tokopedia and Alibaba-owned Lazada are among those scrapping for dominance. Amazon would be a formidable rival if it bought Sea's Shopee.

Facebook discovers money is tougher than data

26 Jun 2019

Fed Chair Jerome Powell joined foreign watchdogs in vowing tough scrutiny of the $539 billion company’s planned crypto coin. Some of its own partners may have doubts about the project, too. The tactics Facebook used to pioneer social networking don’t transfer easily to finance.

Creepy data practices go beyond Silicon Valley

26 Jun 2019

A U.S. Senate plan requires big tech firms like Facebook to disclose the value of user information. Large merchants such as Walmart are included; financial firms like JPMorgan aren’t. Yet they all monetize data in ways not clear to consumers. There’s a case for widening the net.

Big Tech warrants Bank of England’s open eyes

21 Jun 2019

The central bank may let technology firms deposit funds alongside regular lenders as Governor Mark Carney seeks to keep up with rapid shifts in finance. Lower costs and more competition are broadly positive. Large groups like Facebook, however, deserve a more cautious embrace.