Internet

SoftBank’s Indian shopping spree gets even spicier

10 Aug 2017

The Japanese conglomerate’s Vision Fund is pumping $2.5 bln into online retailer Flipkart, rendering its parent’s near-$1 billion punt on rival Snapdeal largely worthless. It’s the group’s latest big-ticket fail on an Indian startup. This is venture capital on an epic scale.

Worldpay wrings ample concessions from Vantiv sale

9 Aug 2017

The British payments group finalised a 7.9 bln pound ($10 bln) takeover by its U.S. rival after twice extending a bid deadline. Worldpay investors were unhappy at the price and offer of mostly U.S. shares. A UK listing and the option to take more in cash should appease them.

Online giants can learn a lesson from Wall Street

1 Aug 2017

Some U.S. lawmakers want to make Facebook, Google and other internet firms liable for things users publish on their networks. There are also calls for more oversight. Big banks drew similar scrutiny after the crisis. Their experience shows Silicon Valley how to avoid a crackdown.

Viewsroom: Citi lays out path to mediocrity

27 Jul 2017

CEO Mike Corbat pledged a huge earnings boost at the bank’s first investor confab in nine years. But Citi’s enduring crisis hangover will still leave it trailing most rivals. In China, HNA’s shadowy ownership may be a big problem for U.S. M&A. Plus: Google keeps clicking.

Facebook quest beyond ads should top itinerary

26 Jul 2017

The social network beat profit estimates as more brands sought to reach its 2 bln users. Yet revenue growth is easing and mobile’s dominant share of advertising has limited upside. For a company near the top of its game, it’s a good time to explore alternatives to Madison Avenue.

New York Times could risk all-digital bet

26 Jul 2017

Online subs surged with Trump’s rise. But print-ad revenue is down a quarter in two years, adding to job-cut angst. Ending printing would be radical but not absurd. Breakingviews estimates the company would need 1.4 mln, or 50 pct, more paying digital users to end up even.

Alphabet opacity hinders Google’s antitrust fight

24 Jul 2017

Despite huge efforts outside online search the $685 bln juggernaut still looks like a one-trick pony dependent on ad sales. Shedding more light on its autonomous vehicle, YouTube, biotech and other ventures might comfort investors about the looming risks of antitrust regulation.

WebMD gets second opinion on rollup strategy

24 Jul 2017

Back in 1999, the online health-information publisher united with another fledgling rival in a deal backed by Microsoft and Intel. KKR is now buying WebMD for $2.8 bln, far less than the earlier stock-swap valuation. This fresh merger with other websites may work out better.

Buyout firms bet $3.7 bln on fintech’s dicier side

21 Jul 2017

Blackstone and CVC’s bid for Paysafe fits with an M&A rush for financial technology. The UK-based payment processor has a penchant for the racy world of online gambling. Those risks may be better handled in private ownership. In exchange, the buyers stand to make a decent return.

Netflix triggers shareholders’ Pavlovian response

17 Jul 2017

The video-streaming service added more subscribers than expected in the quarter and grew operating income, up 83 pct, faster than revenue. That sent shares soaring, even though expected profitability falls a long way short of being able to justify the stock’s fairy-tale multiple.

Britain’s 5G auction puts customers before coffers

14 Jul 2017

Regulators capped incumbent BT’s participation in upcoming mobile-spectrum auctions. That may lead to less fevered bidding, and smaller takings with which to pay down the national debt. It’s a reasonable trade-off in order to ensure a competitive four-player telecoms market.

Protest to keep internet weird is worthy fight

12 Jul 2017

Amazon, Netflix and 100,000 others are urging resistance to a U.S. watchdog's plan to scrap rules on so-called net neutrality. Broadband provider AT&T is among them, with its own arguments. The common thread is that companies shouldn't be able to choose which content gets online.

Ocado has a delivery problem to fix

5 Jul 2017

The UK online grocer’s pre-tax profit fell in the first half and net debt is rising. Its big dream of selling cutting-edge technology to other retailers generates less than 10 percent of revenue. Rapid delivery is imperative at a time when Amazon is prowling the aisles.

Altice discount a dubious buying opportunity

30 Jun 2017

A float of its U.S. arm has made the Dutch telco’s discount to the sum of its parts more visible. It’s a good time to invest in the parent if founder Patrick Drahi can succeed at running it more as an integrated group. Limited synergies and questionable governance raise doubts.

Murdoch’s Sky bid promises lack credibility

29 Jun 2017

Regulators say a bid by 21st Century Fox for control of pay-TV firm Sky may give the mogul’s family too much power over UK news. The government could approve the deal if it accepts remedies such as a separate editorial board. Murdoch’s history of meddling makes this unconvincing.

Visma goes viral for private equity owners

29 Jun 2017

KKR is bowing out of the Norwegian software group, with a 22 pct annual return. The buyer, HgCapital, was the seller when KKR bought in 2010. All have done well, because the company’s value has increased ninefold to $5.3 bln. The hard part will be securing an exit at that price.

Ransomware reveals tech challenges past and future

28 Jun 2017

The Petya cyber attack spread from Ukraine to 65 countries, infecting software that could have been patched. Human error enables hacking of today's IT setups, making prank emails that deceived bank bosses alarming, too. The cloud reduces that danger – but introduces others.

Google’s EU fine more about principle than money

27 Jun 2017

While a 2.4 billion euro penalty is the biggest Europe has ever applied for antitrust violations, Google is rich enough to absorb the hit. More damaging, if it sticks, is the new idea that the search giant ought not to use its market dominance to privilege its own products.

Italy’s broadband farce risks state overreach

23 Jun 2017

Ministers are threatening to punish Telecom Italia for building broadband in poor areas. The snag is that it is competing with government-linked rival Enel. Telecom Italia’s French ownership also adds complexity. Whatever the motive, attacking private investment is a risky move.

Weibo walks blurry line between censors, investors

23 Jun 2017

Beijing has cracked down on politically-sensitive videos on the microblog, wiping $1 bln off its market value in a day. Other Chinese internet outfits are exposed to similar risks. But Weibo's business model will keep putting it at odds with the country’s unpredictable censors.