Internet

Google shooting blanks in smartphone patent wars

2 May 2013

Buying Motorola and its cache of inventions was meant to shield the search giant’s Android operating system from legal attack. But authorities are defusing the patent arsenal, saying the underlying technology must be shared on fair terms. Google’s losses are innovation’s gain.

Facebook’s Instagram option less out-of-the-money

2 May 2013

The social network agreed to pay $1 bln for the revenue-free photo sharing app last year. Even paid for in overpriced stock, the deal looked pricey. Instagram’s growth spurt – it passed 100 mln monthly users in Q1 – suggests Facebook is turning a defensive move to its advantage.

"French YouTube" deemed as strategic as yoghurt

1 May 2013

Remember eight years ago when Paris moved to stop a bid for Danone? Now Yahoo has abandoned its friendly attempt to acquire Dailymotion, the French video web site, after a minister threatened to veto the deal. So much for François Hollande making peace with the business world.

Google looks too clever on UK tax

1 May 2013

The tech giant pays little corporate tax in Britain, saying deals are actually struck in Ireland. Yet a Reuters report suggests London is a sales hub. That won’t impress politicians and papers. Austerity has upped the tax debate from “don’t be evil” to “don’t be underhand”.

Alibaba spots pricey treasure in Weibo’s network

30 Apr 2013

The e-commerce giant has paid a punchy price for an 18 pct stake in the Chinese microblogging phenomenon. A $3 bln valuation is a lot for a business without much in the way of revenue. Alibaba may lure some Weibo users to its stores, but its thinking looks mainly defensive.

Web’s creative retail destruction has room to run

29 Apr 2013

The Internet is the economy’s Shiva – destroying multitudes of companies and enabling the creation of new ones. The 10 fastest-growing industries all rely on the Web, according to a new report. This god of annihilation and conception is just getting started.

Will Netflix star in "The Easter Island Effect"?

23 Apr 2013

The Internet video service seems to be using up resources faster than it can produce them. New series like “House of Cards” lure customers, at a cost. Netflix cash flow remains negative and obligations are rising. It’s starting to evoke the centuries-old Polynesian society.

Mafia and Cyprus may release IPO animal spirits

22 Apr 2013

High debt didn’t deter buyers from Intelsat and SeaWorld stock sales. Now comes Qiwi, a Cyprus-domiciled, Russian payment system warning about risks from organized crime, the island’s bailout, money laundering and dual-class shares. It puts investor appetite to the ultimate test.

Google has an enduring mobile harvest to reap

19 Apr 2013

The search company has hit its smartphone stride. In its first-quarter results paid clicks grew strongly and revenue per click fell less that in the previous three months. That’s good, because high-profile efforts like Google Glass and Fiber aren’t going to deliver profits soon.

RTL is a gamble on the future of old-fashioned TV

17 Apr 2013

Bertelsmann is reducing its exposure to TV by selling a chunk of RTL. The German broadcaster seems well-placed to deal with the status quo, but the longer term prospects are less clear. Internet distribution channels present free-to-air terrestrial TV huge headaches.

Facebook super-app wants to live off Google

4 Apr 2013

The social network’s new Home software sits on top of the Android smartphone operating system. That encourages people to use Facebook over rival services for things like messaging and photo sharing. Google built Android, but Mark Zuckerberg’s creation wants a piece of it.

Tencent’s troubles reflect monopolistic shift

3 Apr 2013

The Chinese dot-com’s killer app, WeChat, has been targeted by envious telcos who face losing profit. It’s not just a case of squashing innovation. It’s more like an old monopoly fighting to keep its economic rents, and an upstart hoping to create some of its own.

Bitcoins need more than fear and love to thrive

25 Mar 2013

The value of the digital currency beloved by inflationistas and libertarians has shot up more than 60 pct in a week thanks to the Cyprus-infused panic over deposit insurance. But it currently has too many drawbacks: utility, not emotion, will determine whether Bitcoins catch on.

U.S. deals Europe poker industry a betting hand

25 Mar 2013

New laws allow gamblers to take seats at America’s online poker table. Investors got burned in the gaming craze that took hold last decade and ended in the U.S. arrest of two CEOs of foreign companies. The stakes remain high but the odds facing Europe’s croupiers are shortening.

Review: Bending over backwards to lean in

15 Mar 2013

Facebook COO Sheryl Sandberg has stirred a debate with her advice book for professional women. Interpretations vary, but essentially “Lean In” posits that they need to be more ambitious and men more accommodating. Maybe the discussion alone will help toward that goal.

China social media must please everyone to succeed

15 Mar 2013

Sites like Sina Weibo tread a fine line. Censor too little, and the government is unhappy; censor too much, and users are unhappy. Investors and advertisers have their own agenda. Elusive profitability depends on keeping everyone just happy enough.

Morrisons is right to keep its Ocado powder dry

14 Mar 2013

The UK grocer is way off the pace in the online market. Buying Ocado could help, but with a fresh 20 pct hike the stock is up 180 pct since November. Morrisons needs the Web-based retailer’s knowhow, rather than loading up with M&A debt, to get where it needs to be.

Microsoft case shows how tech monopolies get fixed

6 Mar 2013

European regulators have fined the U.S. software giant yet another $731 mln for anticompetitive behavior, this time for not giving users a choice of browsers, as agreed. Neither Microsoft nor the EU acted on the offense too swiftly. Rivals, however, moved much more aggressively.

Weak CEO the least of Groupon’s woes

1 Mar 2013

The troubled Internet daily deal firm has fired witty boss Andrew Mason. But with overseas operations a mess, coupons in decline and a controversial chairman calling the shots, the company has bigger problems. Few talented executives would fancy trying to turn things around.

Music upturn shows digital death isn’t forever

27 Feb 2013

The Internet didn’t kill music, after all. The industry is half its former size, but global sales rose in 2012 for the first time since 1999. Growth came from subscriptions and cheap legal downloads. There’s hope - eventually - for other industries facing a digital tsunami, too.