Internet

Hummus maker offers cautionary tale of IPO greed

10 Nov 2017

Bakkavor pulled its UK listing only to return a week later with a lower price. After a string of disappointing initial public offerings, the message has finally sunk in that restraint is of the essence. Flip-flopping, though, will leave an unappealing aftertaste.

Singles’ Day is shop window for Alibaba’s new toys

10 Nov 2017

Jack Ma's $480 bln behemoth is set for its annual shopping festival. That means lots of free PR and huge transaction volumes. Ma’s stunts will also show how supermarkets, augmented reality and mobile payments fit together. That will help sell his "new retail" idea to investors.

Investors scramble for a slice of almost-Tencent

9 Nov 2017

Chinese search engine Sogou, which just listed in the U.S., is the No. 3 in its home market. The reason to invest, though, is its connection to the owner of near billion-user chat app WeChat. If ties with Tencent get closer, Sogou might merit its $5.1 billion valuation.

Cox: Lisbon turns Tatooine for tech Rebel Alliance

9 Nov 2017

If the internet world can be likened to Star Wars, its dominant companies are the Death Star – and EU competition enforcer Margrethe Vestager is Princess Leia. But the insurgents descending on Portugal's capital are mostly finding ways to live with, not overthrow, the empire.

Yahoo ex-boss shows everyone’s in dark on hacks

8 Nov 2017

Marissa Mayer told senators she still doesn’t know who was behind a 2013 data theft affecting 3 bln users. Equifax’s CEO said the same of a breach involving 145 mln consumers. And Congress struggles to draft cyber rules. Amid such cluelessness, the epidemic can only get worse.

Tencent and Snap send short message to Facebook

8 Nov 2017

The owner of China’s killer app WeChat now owns 12 pct of its struggling vanishing-photo peer. Even though the shares are non-voting, Snap has reason to embrace a powerful new friend. And Tencent will be slightly better positioned should Facebook get an entry visa from Beijing.

Broadcom faces down ghost of chip LBOs past

6 Nov 2017

The $111 bln soon-American-again chipmaker offered $105 bln for Qualcomm. If the unsolicited bid goes anywhere, borrowing nearly $90 bln would send debt-to-EBITDA ratios towards leveraged buyout territory. Two former chip LBOs – Freescale and NXP – give pause for thought.

Sina’s board wins Yahoo-like prize

3 Nov 2017

Bosses of the $8 bln Chinese web outfit thwarted a U.S. hedge fund's quest to add two directors. Sina's big problem is that it's worth less than its big stake in Weibo. As Yahoo laid bare, it can be hard to run a company whose value sits elsewhere – regardless of who's in charge.

Alibaba splurges to impress China’s store owners

2 Nov 2017

Sales are soaring at Jack Ma's $477 bln e-commerce giant. But it is investing heavily in experimental supermarkets and malls that show off its payments, logistics and marketing prowess to others. It's a costly way to keep Alibaba’s technology and services revenue growing.

BT leaves decisive dividend call on hold

2 Nov 2017

The UK telecoms group kept its interim payout flat and raised the prospect of investment in pricey full-fibre networks. Increasing the dividend while pleasing regulators may prove tricky. But ducking the trade-off for now means shareholders will have to dial up the uncertainty.

Facebook’s long-term problem just got shorter

1 Nov 2017

Mark Zuckerberg vowed to do more to combat fake content in response to the fallout from Russia-backed ads. He warned profitability will take a hit just as the social network added almost $5 bln to the bottom line. As government scrutiny grows, the $500 bln firm has little choice.

BT’s dividend signal faces interference

1 Nov 2017

The British telco has pledged to keep lifting payouts to shareholders despite the burden of pension payments, rising capex and sports rights. Dividends could suck up almost all its free cash over the next three years. A 6 percent yield suggests investors think it’s at risk.

Tencent’s hit spinoff reads like a prologue

1 Nov 2017

China Literature’s $1.1 bln IPO priced at the top of the range. That could encourage parent Tencent to list other units, which would both raise capital and lessen the regulatory scrutiny on some businesses. The most radical move would be floating crown jewel WeChat.

Complacency is biggest risk for Facebook investors

31 Oct 2017

Mark Zuckerberg’s firm set new highs even as it said nearly half of American voters may have seen Russian propaganda on its site. The fallout from fake content could hit its runaway value, but investors can’t be bothered as long as advertisers keep flocking to the social network.

WPP woes cement Mad Men bargain-basement valuation

31 Oct 2017

The group may cut targets for the third time this year. Advertising firms are grappling with frugal customers and online sales. Investors rate them as lowly as media dinosaurs like newspaper sellers. M&A options look tricky. Their best bet is to hope clients start spending again.

It’s time for Alphabet to feature YouTube

26 Oct 2017

The platform is the leading U.S. video-streaming service, by one estimate, yet the Google parent provides few details. Its stock has underperformed rivals Netflix as well as Amazon and Apple, which are ramping up TV efforts. CEO Larry Page may want to shed more light on the unit.

China’s Baidu stumbles in getting back to basics

27 Oct 2017

Investors wiped $10 bln from the web giant’s market value after it forecast disappointing sales for the rest of 2017. Baidu has cut costs and narrowed its focus to revitalise its scandal-hit search business. Unfortunately that has yet to translate into less volatile results.

Twitter’s credibility is for the birds

26 Oct 2017

Jack Dorsey’s social network had to restate user numbers for three years. Quarterly ad revenue fell a whopping 8 pct. However, a promise of coming profitability has put investors in a tizzy. Cutting costs is a start, but it’s going to take more to mend Twitter’s broken wings.

Infosys new-old saviour fails to make a splash

24 Oct 2017

Founder and returning Chairman Nandan Nilekani is throwing away revenue growth goals for India’s IT services group. He’s also putting past controversies over M&A and pay to rest. But details on a new strategy are light, a CEO search continues, and the board still needs a revamp.

Tencent’s books are less gripping than its games

24 Oct 2017

Publishing unit China Literature wants to list in Hong Kong at a value of up to $6.4 bln. Sales and earnings are taking off. But e-books are less lucrative than online games, with a smaller market and a shorter track record. This does not merit a valuation to match its parent.