Internet

Indian e-tailer’s funds will disappear in a flash

19 Aug 2015

Online marketplace Snapdeal is raising $500 mln from investors led by Alibaba and Foxconn valuing it at $5 bln. Securing more big-name backers is a coup for the Indian start-up. But the huge discounts it offers to lure buyers and sellers means the new funds won’t last long.

Google learns ABCs of conglomerate life

10 Aug 2015

The web search giant is separating cars, balloons and such from its main ad businesses under a new Berkshire Hathaway-like structure called Alphabet. The move suggests Google sees how its sprawl spells trouble. It’s an easy way to erase some, but not all, the valuation discount.

Alibaba $4.6 bln retail deal dulls web-only charms

10 Aug 2015

Buying 20 pct of electronics chain Suning is a backward step for the Chinese e-commerce giant. Its motive may be gaining access to a delivery network. Yet Alibaba’s appeal has been its asset-light model. Defending its near-monopoly online will require more offline investment.

JD.com CEO takes small step toward good governance

10 Aug 2015

Richard Liu will forgo a salary in return for a 10-year option plan that only pays out if the Chinese online retailer’s share price rises. It’s an improvement on last year’s $591 mln bonus. Yet Liu’s $7 bln stake and super-voting shares mean he is still firmly in charge.

Alibaba borrows bigger brand to crack U.S. market

4 Aug 2015

Hiring Goldman Sachs former stalwart Michael Evans to grow the business overseas is shrewd. The Canadian rowing champ can open doors previously closed to the Chinese e-commerce group in the West. It’s bad practice, since Evans was an independent director - but good politics.

Apple has time on its side

21 Jul 2015

The iPhone’s frenetic Chinese growth powered a 33 pct rise in revenue. Marginally softened forecasts for the next few months nevertheless knocked $50 bln off Apple’s value. Minimal information about Watch sales also disappointed. A little patience, however, will go a long way.

Breakdown: What’s driving China’s latest web boom?

20 Jul 2015

The newest buzzword is O2O, or “online to offline”. Baidu, Alibaba and Tencent are racing to connect half a billion smartphone users to local services, from taxis to takeaways. There’s huge growth – but this is an expensive battle. Breakingviews offers a download.

Netflix saps "Mr. Smith Goes to Washington" act

17 Jul 2015

The online streaming service has become a power broker in the U.S. capital, positioning itself as an idealistic advocate for the little guy. It helped crush Comcast’s bid for Time Warner Cable, but now supports Charter’s. What’s good for Netflix, however, may not be good for all.

Google’s new CFO recalibrates investment algorithm

16 Jul 2015

Ruth Porat uttered a few words about capital discipline to accompany solid quarterly results. Fears over profit bummers, R&D moon-shots and Facebook’s mobile prowess quickly ebbed, as Google’s market value leapt by $40 bln. It’s a high new standard for boss Larry Page to honor.

Comcast’s streaming dribble will become flood

13 Jul 2015

The largest U.S. cable TV provider is dipping its toe in the water, offering a very limited set of channels via broadband. It’s a belated nod toward people who are pulling the plug on pricey bundled cable services. Comcast and its rivals will end up having to go much further.

Palantir’s mystery inflates its $20 bln valuation

24 Jun 2015

The private data analytics firm beloved by government intelligence is raising $500 mln. Going public may not be an option for Palantir given its clients and culture. That deepens the enigma that further feeds its potential value - a James Bond privacy premium of sorts.

Tencent dredges Hong Kong’s murky depths

24 Jun 2015

The tech giant is buying into Mascotte, an HK investment group mainly notable for a disastrous solar-materials acquisition. Financially, the $97 mln deal hardly matters for the $191 bln Tencent. But off-topic, unexplained moves like this should concern outside shareholders.

Ladbrokes bets ranch on 3 bln stg Gala finish

23 Jun 2015

A transformative deal will help the UK-listed bookmaker move on from recent troubles. Private equity-owned Gala Coral – corporate home of ex-HBOS chief Andy Hornby – is strong online, and could be an ideal partner. Potential cost cuts improve the odds of a successful deal.

China’s biggest U.S. buyout faces search for funds

22 Jun 2015

Qihoo 360 may become the largest Chinese company to flee foreign markets. But first the antivirus group’s bosses need at least $6 bln to buy out other shareholders. Banks might lend half - or more, if mainland lenders feel generous. Finding billions in new equity may be harder.

Qihoo’s $10 bln buyout tests take-private trend

18 Jun 2015

China’s number two search engine is the latest group to turn its back on the U.S. stock market. Like smaller peers, it’s probably hoping for a higher valuation at home. The switch may work if minority shareholders agree. But it’s hard to see bigger Chinese groups doing the same.

China mixes up crowdfunding and groupthink

17 Jun 2015

Helping small companies raise equity online promotes innovation and indulges the Chinese dream of getting rich quick. Alibaba and JD.com are getting in on the act. But as property developers join in, crowdfunding may become a way to get the public to provide a financial lifeline.

Rakuten cashes in on investors’ M&A optimism

5 Jun 2015

Its shares riding high, the Japanese group is raising $1.5 bln of equity to reduce acquisition-related debt. Investors have been supportive of Rakuten buying assets from messaging apps to airline stakes. This raises pressure to show the strategy can eventually generate returns.

SoftBank’s $1 bln Korean deal needs to travel well

4 Jun 2015

The Japanese giant has added a stake in South Korea’s Coupang to its portfolio. It’s a big bet on a young company in a relatively small country. The online retailer is leading the shift to mobile shopping. SoftBank may need to export its expertise to justify the investment.

Alibaba fluffs first rule of being a movie villain

4 Jun 2015

The Chinese group’s film-making unit is raising $1.6 bln of equity, diluting shareholders and effectively leaving it a loss-making cash shell. On-screen bad guys who torture the hero usually give a lengthy account of their plans. Investors in Alibaba Pictures don’t even get that.

Sale would add to gnarly Ancestry.com family tree

21 May 2015

The genealogy website went public in 2009, only to sell itself to a Permira-led private equity consortium three years later. Now it’s on the block again, according to Reuters. The company has been struggling to turn nostalgia into profit. A new owner may not fare any better.