Internet

Maybe Twitter should Google its IPO

15 Aug 2013

In anticipation of the $10 bln social network going public, the search engine’s 2004 example is worth considering. Google catered to individual investors with an auction-style sale. Though flawed, the approach would be a solid one for Twitter, especially after Facebook’s debacle.

Weibo beats WeChat in China’s internet bake-off

15 Aug 2013

Sina’s microblog and Tencent’s mobile chat app are China’s hottest properties. The former is a bet on online ads, the latter on mobile games. WeChat has investors more fired up, but Weibo’s revenue model, political usefulness and ties to e-commerce giant Alibaba give it an edge.

Google’s fiber plan is less quixotic than it looks

14 Aug 2013

The internet search giant has a knack for blunting the power of dominant companies. Just look at its Chrome browser and Android mobile operating system. Bringing super-fast internet service to U.S. masses will be a tougher and costlier fight, but even starting it may help Google.

Wash Post shows NY Times way to trophy status

5 Aug 2013

The $250 mln purchase of the famed D.C. daily by Amazon founder Jeff Bezos confirms what investors already knew. U.S. newspapers are no longer businesses – they’re toys for today’s plutocrats. The deal offers a template for the last of a breed, the Times’ Sulzberger family.

Facebook mobilizes back to square one

31 Jul 2013

The social network’s stock finally traded above the price set at its messy debut 14 months ago. Founder Mark Zuckerberg has made Facebook’s platform work on smartphones and tablets as his tech rivals flounder. Even so, he doesn’t deserve a thumbs-up from investors just yet.

Alibaba may be worth $100 bln – but not to Yahoo

29 Jul 2013

The U.S. internet group’s 24 pct stake in China’s biggest online retailer may be worth as much as all Yahoo’s booked assets, but investors shouldn’t bank on anything near that. Alibaba’s interests are unlikely to match Yahoo’s, and the Chinese company holds most of the cards.

Baidu digs deeper trench in China’s mobile wars

25 Jul 2013

More than 10 pct of the search engine’s revenue now comes from mobile. Google and Facebook show how heavy investments can pay off over time. Yet the cost is high and margins get squeezed. In China, competitive lines are more blurred. Returns may be even longer in coming.

Facebook answers questions rivals can’t

24 Jul 2013

Big tech firms have reported subpar Q2 earnings, with Microsoft the leading victim of the shift to mobile computing. By contrast, Mark Zuckerberg’s social network is thriving on portable gadgets, and Facebook’s revenue growth was the fastest since its IPO. There’s more fuel here.

Dan Loeb’s Yahoo exit hurts investors twice over

22 Jul 2013

The Internet firm is buying back most of the hedge funder’s stake, held by Third Point, for $1.2 bln. That sucks up most of the cash Yahoo reserved for repurchases. It also heralds the departure of three Third Point-approved directors, robbing Yahoo of some much-needed advisers.

Google shows hints of life like a newspaper

18 Jul 2013

The search giant is finding the rapid shift to mobile Internet usage tricky. It’s reminiscent of the pain print publications faced when Google effectively gutted their business. But journalists hoping for delicious irony will come up short. Google is well prepared for the leap.

Now comes the hard part for Marissa Mayer

16 Jul 2013

It has been a good first year for the Yahoo boss, whose arrival and geek chic revived investor enthusiasm about the wayward internet company. As Q2 figures show, however, salient financial measures haven’t improved under her stewardship. The honeymoon is officially over.

Zynga founder puts second set of hands on wheel

2 Jul 2013

Mark Pincus, who controls the flailing online gaming firm through super-voting stock, has replaced himself as CEO with Microsoft’s Don Mattrick. That sounds good for regular shareholders. But Pincus will still hover in the corner office, which could make Zynga harder to fix.

Bitcoin ETF signals time to make market in cash

2 Jul 2013

A virtual currency fund IPO means there will now be an index tracker for almost everything. Except that financial engineers have ignored the most important asset class of all. No more. Say hello to the Breakingviews Dollar Trust. It makes holding cash as easy as trading a stock.

Google shareholders get modest future-proofing

18 Jun 2013

A novel deal protects the search giant’s non-voting owners against a stock discount – and from the day when Larry Page and Sergey Brin no longer wield full control. The convoluted legal settlement, however, only goes to show it’s better to avoid a caste system in the first place.

Edward Hadas: Social media sets us free, or not

12 Jun 2013

Social media organised a would-be Turkish revolution. The Internet, like printing before it, spreads disruptive ideas. The prime minister is furious. But the U.S. government, which uses the Web to spy, understands that clever states exploit, rather than dismiss, new technology.

Google gets premium accident insurance with Waze

10 Jun 2013

Maps are critical to the search giant’s local commerce ambitions. Paying $1.3 bln for the crowd-sourced traffic app should make Google’s offerings even more effective. The price reflects Google’s desire to keep data out of the clutches of hard-driving rivals Apple and Facebook.

Microsoft stages nebulous Chinese comeback

24 May 2013

The software titan has for years been stuck in a piracy trap in China - many use its products, and few pay. Cloud-based services like Windows Azure are less prone to misuse. This time there are new problems: fierce competition, and politicians that favour domestic rivals.

Marissa Mayer puts exclamation point back in Yahoo

20 May 2013

Her $1.1 bln deal to buy blogging site Tumblr bolsters the website’s firepower in the mobile arms race. It’s the latest sign that Mayer has confidence from her board and shareholders to take risks. In less than a year, she has turned Yahoo from a purple joke to part of the buzz.

Alibaba’s next superlative: China’s top fee payer

20 May 2013

The e-commerce giant is already a big generator of investment banking revenue. Factor in a potential IPO, and for global banks Alibaba could be the biggest client to come out of China in a decade. In a weak market, the battle lines are already being drawn.

Morrisons’ click with Ocado makes M&A less likely

17 May 2013

The UK supermarket has gone for a joint venture with online Ocado rather than a full-blown bid. It will help Morrisons, a web laggard, catch up with rivals. A short squeeze explains most of the Ocado share surge, but the smaller firm has won surprisingly advantageous terms.