Internet

Hack attacks may be West’s cue to try harder

6 Feb 2013

China’s alleged attacks on U.S. companies are a new twist on an old theme: outsiders wanting in. China sees itself as the ultimate underdog, so the urge to snoop should fall as it matures. Meanwhile, fears of hacking may spur useful new initiatives in potential targets.

Warning: it’s not just the hacks being hacked

5 Feb 2013

The New York Times and other media outlets may think network intrusions from China are payback for probing the Beijing regime. But PRC news paranoia is only a small part of a big story. Other Western companies should read between the lines, and beef up inadequate cyber-defenses.

U.S. venture capital needs a reboot

4 Feb 2013

A decade of insufficient shrinkage hasn’t fixed wimpy performance, which undershoots boring stock indexes. The dot-com boom is history, startups find capital elsewhere, and funds chase assets over returns. A few big names aside, investors need to strip VCs of their mystique.

Amazon undeservedly absorbs Apple optimism

30 Jan 2013

The online retailer’s profit rose a bit in Q4, but the 1.9 pct operating margin remains as slim as the justification for Amazon’s valuation of 165 times expected earnings. Apple’s 32 pct margin fetches it only a multiple of 10. The discrepancy is now even harder to compute.

Law firms face real disruption from virtual rival

24 Jan 2013

Already under threat from pickier clients and cheaper alternatives like LegalZoom, the profession now confronts Clearspire. Flat fees, salaried attorneys and online advice upend the traditional business model. This U.S. upstart’s approach could be the way of the future.

Google’s mobile pain coming to end

23 Jan 2013

The search giant’s fourth-quarter results imply advertisers are having a change of heart. They are overcoming their reluctance to pay top dollar to promote their wares and services on smartphones. With searches on these devices proliferating, that’s a boost for Google.

Facebook creativity isn’t too destructive yet

15 Jan 2013

The social network unveiled a new tool that allows users to find people, photos and interests more easily. It should make Facebook’s site stickier and could eat into Yelp, LinkedIn and IAC. But the search results will still be limited and there’s also no clear revenue windfall.

Google won’t evade rivals as easily as feds

4 Jan 2013

An extensive U.S. antitrust probe into the dominant search engine ended with a company promise to behave. The government’s case always looked shaky. If it couldn’t nail Microsoft, Google was a pipe dream. Just as well. For now, it’s still a problem for the market to sort out. 

German anti-Google bill sets unwelcome precedent

19 Dec 2012

Lawmakers in Germany are examining a bill that would force search engines to pay publishers for the listing of their free content. Media owners who are lobbying for the measure don’t realise it could hurt them most. Other European countries should steer clear of such foolishness.

Mobile advertising will boom in 2013

18 Dec 2012

Internet firms moaned for years that users were spending lots of hours on the Web, but marketing dollars weren’t following from print and TV. Time and the growth of broadband have closed this gap. The boom in smartphones now provides similar fuel for mobile advertising.

TripAdvisor deal excludes regular shareholders

12 Dec 2012

Barry Diller sold shares in the internet travel group to Liberty Interactive at a 63 pct premium. John Malone’s group paid up to regain voting control over its other shares. As so often where there’s supervoting stock, the moguls’ games have left ordinary owners powerless.

Netflix row opens a Pandora’s box on disclosure

7 Dec 2012

The SEC warned it may sue the online video company and CEO Reed Hastings over a Facebook post. What he wrote hardly looks material and it reached more people than if he had said it on CNBC. It’s a bad test case on the question of investor protection in the age of social media.

Groupon discounts dual-class share structures

30 Nov 2012

CEO Andrew Mason and Chairman Eric Lefkofsky are locked in a dysfunctional drama over how to run the flailing company. Super-voting shares like the ones both men own are meant to give founders flexibility. But Groupon is a reminder of just how dangerous the arrangement can be.

Weibo has reason to “open sesame” to Alibaba

20 Nov 2012

China’s Twitter may be considering selling a stake to the country’s largest e-commerce group. It could pave the way for owner Sina to spin Weibo off, and create revenue synergies for both. Minority stakes have limits, but co-operation might ultimately make Weibo more valuable.

China web truce may strengthen Baidu’s hand

2 Nov 2012

A trade group has asked major companies to sign a code of conduct to moderate rising tensions in the search market. If this helps to slow down upstarts like Qihoo, dominant player Baidu stands to benefit most. But for users, the impact is likely to be mixed.

Letter to the Editor: IAC

26 Oct 2012

Joey Levin, CEO of IAC Search & Applications, responds to an Oct. 19 Robert Cyran column about IAC’s internet strategy.

Apple results shrink iPad mini’s relevance

25 Oct 2012

Hawking nearly 27 mln iPhones last quarter dwarfs all the hoopla around the launch of the tinier tablet, which may sell about the same amount in a year. Moreover, iPad margins don’t compare – and the mini’s will be smaller still. The phone still energizes the Apple ecosystem.

Why do investors prefer Amazon to Apple?

24 Oct 2012

Sure, the gadget maker’s market value is far larger. Yet investors are willing to pay almost nine times as much for the retailer’s estimated earnings. That’s expensive in any case. But it’s also odd, because Amazon perpetually promises more jam tomorrow, while Apple delivers it.

Facebook shows signs of answering mobile question

24 Oct 2012

The social network’s mobile ad business grew sixfold in three months and provided 14 pct of ad sales in Q3. Worries remain about durability, cost control and competition. But for the first time, the shift to mobile devices seems an opportunity for Facebook rather than a threat.

Internet parasitism powers Barry Diller’s returns

19 Oct 2012

IAC is abandoning Newsweek in print as the mogul’s web businesses flourish. An online search boom has powered the $4.6 bln firm’s stock this year. But much of the growth seems driven by customers unwittingly downloading IAC toolbars. It’s a risky way to build a lasting business.