Internet

Apple’s new debt is more iBond 1S than iBond 2

29 Apr 2014

The iPhone maker is venturing into bond markets for the second year, even though it has $151 bln of cash. Investors who snapped up last year’s $17 bln offering are nursing losses thanks to Apple’s good timing. The 2014-model debt issue’s main improvement is its smaller size.

Alibaba control issues get fuzzier with Youku deal

28 Apr 2014

The Chinese e-commerce group is investing $1.2 bln in the online video channel. That’s logical, given Alibaba’s media ambitions. But a co-investment from founder Jack Ma’s private equity vehicle isn’t. Though Ma gives away his profit, that makes the complexity more unnecessary.

China’s twitchy censors could clip tech valuations

28 Apr 2014

Four U.S. TV shows have been inexplicably banned from the web. For online video sites such as Youku-Tudou, which turned profitable for the first time last quarter, this could spell financial trouble. Investors can tolerate censorship – but unpredictability is a definite turn-off.

FCC opts for net reality over neutrality

24 Apr 2014

The U.S. communications watchdog will allow charges for carrying content faster but keep the internet open to all. That means data hogs like Netflix pay extra and others still get access. It’s a way to protect consumers while bowing to the need for more broadband investment.

Apple and Google spats threaten the silicon goose

23 Apr 2014

America’s high-tech epicenter thrives on shared ideas and expertise. The smartphone rivals stifle both by squabbling over patents and poached workers. Silicon Valley shows no signs of slowing down, but the behemoths’ penchant for protecting their empires could inhibit innovation.

China travel merger could mean liftoff for Baidu

16 Apr 2014

A potential $11 bln tie-up of booking sites Ctrip and Qunar sounds dandy. But the real break may be for search engine Baidu. As Qunar’s biggest shareholder, it could get a first-class seat in the merged duo, with room to take a bigger stake when valuations come back to earth. 

Is this the last time Yahoo’s earnings matter?

15 Apr 2014

The company’s stagnant U.S. business plays second fiddle to its overseas holdings. Yahoo’s 24 pct stake in Alibaba accounts for almost 60 pct of its market value. The Chinese internet giant’s upcoming IPO strips investors of their biggest reason to follow the stock.

Icahn loses battle of bluster at eBay

10 Apr 2014

The activist is quitting his proxy fight now that the company is appointing one new director and agreeing to talk to him. Considering Icahn had “never seen worse governance” and was right about separating PayPal, that’s a retreat. But he may yet win the spinoff war.

China tech rout sifts IPO haves from don’t-needs

9 Apr 2014

Volatility in internet stocks is a nuisance for those with plans to list. Alibaba is big and profitable enough to wait. Rival JD.com needs the money but has rich backers. Most exposed is microblog Weibo, which has the weakest business model and least reason to go public.

Weibo’s subdued IPO is no more attractive

7 Apr 2014

China’s Twitter has cut its offering from $500 to $380 mln amid a sector-wide drop in Chinese tech stocks. Investors may be right to question sky-high valuations. But a comparable drop in value in Weibo’s parent makes the spin-off, now valued at $3.9 bln, no more compelling.

Alibaba’s “public-private” model key to its value

4 Apr 2014

The internet giant is one of China’s largest private companies. Yet from e-commerce to online finance, executives stress it supports government policy. While that can make Alibaba sound like a state firm, it’s a reminder that official support is essential to its success.

Buyers bake fat growth into Just Eat IPO value

3 Apr 2014

London’s third sizeable e-commerce debut in weeks values the online takeaway firm at 1.5 bln stg. That’s an unpalatable 15 times 2013 sales. This business is harder than it looks and Just Eat has built a strong position. But investors’ hunger for growth has led them to over-order.  

Alibaba shopping spree needs better explanation

3 Apr 2014

The Chinese e-commerce group has spent $3.8 bln on acquisitions since 2013, but the strategic logic remains hazy. Other internet giants are making similar deals, and the land grab may excite prospective investors. Even so, Alibaba will eventually have to justify its purchases.

ASOS’s glitzy rating assumes a lot goes right

2 Apr 2014

Even after a blip last month, the UK fashion and tech darling still fetches more than 75 times forward earnings. Ploughing money into new warehouses is vital, but could create supply disruptions. Global expansion is causing headaches. And other retailers won’t stand still.

Convertible boom fuels China’s internet land grab

2 Apr 2014

Chinese tech companies with U.S. listings are building up their war chests by issuing bonds that convert into stock. A market rally, demand from investors for the securities, and an acquisition spree by Alibaba and Tencent is driving smaller rivals to raise cash while they can.

Candy Crush IPO a dose of reality for gaming saga

26 Mar 2014

King Digital, maker of the hit product, fell as much as 15 pct on its market debut. At least investors have a bit of healthy skepticism. But there’s no way to value a hit-driven business dependent on one game. Rivals may still manage to go public, but not at such lofty multiples.

Time for Sheryl Sandberg to lean out of Facebook

26 Mar 2014

She was the adult supervisor as Mark Zuckerberg’s dorm room creation became a $165 bln enterprise. The founder is now doing his own thing, as his latest $2 bln gadget acquisition shows. For Sandberg, he’s a liability. She could be U.S. president, but first needs to run something.

Zuckerberg grabs at alternate financial reality

26 Mar 2014

The Facebook founder is buying virtual-reality upstart Oculus for a whopping $2 bln. It’s arguably a riskier punt than spending $19 bln on WhatsApp. Both deals suggest a quest for the next big thing – and a willingness to use the social network’s stock to buy rather than build.

Big tech valuations come in small packages

25 Mar 2014

Dropbox is now worth $10 bln and Airbnb soon could be thanks to recent funding rounds. Both cases would involve just a wee slug of equity. A flurry of such later-stage, private deals seems to be less about raising cash and more about egos, attention and anchoring future IPOs.

Box ties a neat bow on Silicon Valley IPOs

25 Mar 2014

The cloud storage company plans to go public with a net loss greater than its revenue. Box is growing fast, doesn’t expect to be profitable any time soon, will have two classes of shares, a CEO who is under 30 and some mysterious metrics. It’s the internet era in one package.