Internet

Xiaomi IPO will punish bankers twice

9 Jul 2018

The Chinese smartphone-maker’s shares opened below the issue price in their $54 bln debut. It’s not the start tech companies covet. Advisers failed to sufficiently lower an unrealistic valuation goal. Their penalty may be that other big listings in Hong Kong are delayed.

European TV can only dream of rivalling Netflix

5 Jul 2018

Broadcasters like ProSieben, ITV and Mediaset are losing viewers to streaming services and ad dollars to Google and Facebook. Together they could invest more efficiently in technology, but Europe’s fragmented market makes content hard to share. They look doomed to steady decline.

Tech backlash grows in Silicon Valley’s back yard

2 Jul 2018

California will force internet companies like Google to give consumers more control over their information and stop it being sold to third parties. The law is narrow but the Golden State is often a litmus test for legislation that takes hold nationwide.

Australia’s ban on Huawei would be a costly call

29 Jun 2018

Having passed a law on foreign meddling in its politics, Canberra now looks set to block the Chinese telecom giant from working on its next-generation mobile network. There are valid concerns. But a ban carries costs: pricier 5G, and worsening ties with its best export customer.

India will test Xiaomi’s two-pronged strategy

21 Jun 2018

The Chinese maker of affordable phones has scaled down its IPO with plans now to raise $6 bln. Much of the valuation hangs on internet services, which Xiaomi is starting to roll out in its top overseas market. Rivals in India are plentiful, though, and hungrier for content.

Buffett and pals pick good medic for U.S. tapeworm

20 Jun 2018

Berkshire Hathaway, Amazon and JPMorgan chose Atul Gawande to lead their fight against rising medical bills. The surgeon has written extensively on how the system rewards excess, but not outcomes. Changing this focus would be a good start, even if neither easy nor sufficient.

SoftBank’s $5 bln staff whip-round could backfire

20 Jun 2018

Masayoshi Son’s team could kick in that kind of money, using big slugs of debt, to help the Vision Fund hit $100 bln. Having so much skin in the game might prod the giant investment vehicle to spend more cautiously. It could also spell employee disillusionment if deals blow up.

Google takes JD.com to lunch to discuss Amazon

18 Jun 2018

The U.S. search firm’s $550 mln investment won’t buy much direct influence over the Chinese internet retailer. It’s more a hint that Google’s strategically flighty parent, the $800 bln Alphabet, hasn’t forgotten about taking on Amazon and Alibaba – and someday returning to China.

Holding: As AT&T case ends, trustbuster woes begin

13 Jun 2018

Donald Trump’s Justice Department lost its bid to stop the telco’s $85 bln Time Warner merger, battering DOJ’s Obama-era image as tough but savvy. Weak legal claims baffled experts and stalled other deals. The watchdog can expect fresh charges of putting politics over the law.

Look who’s sitting out the media M&A game

13 Jun 2018

AT&T will soon close its $85 bln deal for Time Warner. Comcast and Disney may fight over Fox. And yet among the big deals at least for now, Netflix, Amazon and Facebook are nowhere to be found. Their absence from the feeding frenzy may hint at the prospects for these mergers.

Adyen’s $17 bln pop flags bipolar IPO market

13 Jun 2018

The Dutch payments group’s shares doubled on its market debut, defying a recent trend for flops like publisher Springer Nature. It shows investors are putting a premium on companies that promise growth. The risk is that, as with Adyen, they end up giving away most of the upside.

Dutch $8 bln payments IPO banks fat growth premium

5 Jun 2018

Amsterdam-based Adyen is listing shares at a higher multiple than peers. That’s arguably justified by booming sales and racy customers like Netflix and Facebook. But card groups like Visa and tech giants are vying for a slice of the payments pie, likely hurting intermediaries.

Goldman VP insider rap is Goliath-beats-David tale

31 May 2018

A banker accused of using deal intel to make $140,000 was nabbed by U.S. investigators following a digital trail. Their sophistication is remarkable, but undercut by his lack of it. Either really big insider-trading fish have been successfully deterred, or they don’t get caught.

Cox: Peter Thiel’s next target should be Infowars

30 May 2018

The tech billionaire financed a lawsuit that bankrupted Gawker and said he’d help others challenging similar sites flouting First Amendment freedoms. A complaint by Sandy Hook families against conspiracy king Alex Jones provides a test for Thiel’s democratic bona fides.

BT network sale has too many parties to please

29 May 2018

Infrastructure groups may be eyeing the British telco’s broadband arm. BT would need to extract a high valuation and retain control to avoid spooking pension trustees. Any buyer planning to load the business up with debt risks angering politicians eager for more investment.

PayPal takes $2.2 bln step into physical payments

18 May 2018

The online pioneer is buying iZettle, which provides mobile card readers to small merchants. The valuation is higher than U.S. rival Square, and twice the Swedish group’s mooted IPO value. For PayPal, though, it’s a worthwhile move to expand its appeal to real-world retailers.

Ocado investment case requires heavy guesswork

17 May 2018

The UK retailer’s shares rose 45 pct after U.S. grocer Kroger agreed to use its online-delivery technology and take a 5 pct stake. The deal solves Ocado’s cash flow problems. But a valuation of almost four times sales is toppy given scant detail on its international partnerships.

Chinese antivirus giant’s cash-call is well-timed

16 May 2018

360 Security Technology is making the most of its new home after fleeing New York. It’s capitalizing on an exuberant new Shanghai valuation to raise $1.7 bln through a private placement so it can chase AI and big data. This is another smart trade from founder Zhou Hongyi.

Viewsroom: 1MDB rears head in Malaysian election

16 May 2018

The $5 bln sovereign-wealth fund’s scandal played a role in voters replacing Prime Minister Najib Razak with nonagenarian Mahathir Mohamad. Its resurgence could mean bad news for Goldman Sachs and Najib himself. Plus: Walmart nabs Flipkart in a big bet on e-commerce in India.

Europe’s payments crown does not come cheap

15 May 2018

Worldline is paying 2.3 bln euros for the credit card processing arm of Switzerland’s SIX. That will strengthen its position as Europe’s largest electronic payments group. But the French company had to pay a hefty multiple - and accept a humdrum return - to secure its dominance.