Internet

Salesforce sufficiently acquiesces to angry mob

2 Mar 2023

The $170 bln software developer improved its operating margin, doubled its stock buyback plan and disbanded its M&A committee. It’s effectively everything multiple dissidents wanted. Unless pushy investor Elliott has superstar board nominees, it would be overkill to ask for more.

EU’s Big Tech shakedown heads down new blind alley

1 Mar 2023

The European Commission’s effort to squeeze money out of the likes of Alphabet and Apple now aims at telecommunications, with a bid to make Silicon Valley pay for the bloc’s broadband infrastructure. Regulators have pooh-poohed the idea since 2012. It hasn’t improved with age.

Robinhood’s stock awards tell a cautionary fable

22 Feb 2023

The stock-trading app’s founders just gave back an $806 million bonus linked to certain share-price targets. An accounting quirk means the company must pay for it anyway. It’s one reason such outlays are a bad way to reward executives, as GE and others have learned.

Hermès’ “MetaBirkin” win misses the big picture

17 Feb 2023

A court ruled an artist’s digital version of the $198 bln group’s iconic Birkin bag violated trademark rights. The verdict gives luxury firms more clout to commercially exploit the metaverse. Yet the jury is still out on whether such forays will be anything more than marketing.

Telecom Italia breakup can please all its masters

15 Feb 2023

The sickly telco needs to cut its 25.4 bln euro debt pile. Selling its fixed-line grid to KKR offers a fix, provided the government gets a stake in the strategic asset. For major investor Vivendi, the upside would be a chance to sell Telecom Italia’s revamped service business.

Malone’s Vodafone bet may take years to pay off

14 Feb 2023

Liberty Global bought 4.9% of the telco conglomerate, joining industry rivals Abu Dhabi’s e& and Xavier Niel. Chairman John Malone knows the $31 bln company well and may hope to influence any breakup. A 2015 investment in UK broadcaster ITV shows he’s willing to sit and wait.

Capital Calls: Cryptocurrency, Chelsea FC

1 Feb 2023

Concise views on global finance: Britain delivers a blow to digital assets by aiming to regulate them the same way as traditional ones, while the UK soccer team’s new owner Todd Boehly splashes the cash.

Capital Calls: AstraZeneca

9 Jan 2023

Concise views on global finance: The drug giant is to pay up to $1.8 bln for U.S. group CinCor Pharma to beef up its kidney and heart businesses.

Yandex split marks end of Russian tech hopes

1 Dec 2022

The group once known as the “Russian Google” may split its international and Russian businesses. Ex-finance minister Alexei Kudrin will head the shrunken local arm. The company’s founders can start anew, but investors in the former Nasdaq darling will likely remain bereft.

Naspers swaps one Tencent headache for another

17 Nov 2022

The South African investor’s valuation discount to its $100 bln stake in the Chinese tech giant has narrowed since it started selling the shares to fund buybacks. But Tencent's plunging value is another factor. Though Naspers' prized asset has become a drag, exiting is tough.

Tencent’s investor giveaway buys welcome respite

16 Nov 2022

The Chinese web giant is handing a $20 bln stake in food delivery firm Meituan to shareholders. The second such move in a year comes on top of increased share buybacks. The focus on boosting returns goes a long way to make up for slowing growth in Tencent’s video-game business.

Capital Calls: American shoppers

16 Nov 2022

Concise views on global finance: Target blamed its ugly quarterly results on consumers pulling back on discretionary items even as fresh government data shows they keep buying loads of stuff.

Vodafone’s misery strengthens Xavier Niel’s hand

15 Nov 2022

The 26 bln pound group’s shares sank 8% after it cut its profit forecast. CEO Nick Read’s efforts to streamline the sprawling telco are getting bogged down by rising costs and weak growth. His new shareholder, the Iliad founder, may push for faster disposals and deeper cost cuts.

Kakao has plenty more data fires to put out

20 Oct 2022

The $16 bln South Korean superapp owner's co-CEO has stepped down following a massive outage. Given how dependent the country is on the company's online services, that's unlikely to quell a rising public backlash. The costs of added rules and regulatory scrutiny will add up.

There’s method to Saudi’s $38 bln gaming madness

11 Oct 2022

Riyadh says it will splash out to become “the ultimate global hub” for gaming by 2030. Saudi and the freewheeling sector are peculiar bedfellows. But with a petrodollar windfall and falling valuations, the kingdom has a good opportunity to make its unlikely vision happen.

Vodafone’s UK merger plan has cost-of-living catch

3 Oct 2022

The $32 bln telecoms group and Hong Kong’s CK Hutchison are in talks to merge their British operations. A deal could unlock cost savings, but shareholders so far seem unenthused. It may be harder for watchdogs to accept lower competition while customers reel from higher prices.

Capital Calls: Tesla greases supply-chain fears

3 Oct 2022

Concise views on global finance: The $760 bln electric-car maker manufactured more vehicles in the third quarter but delivered fewer than analysts were expecting, raising fresh concerns about the industry’s ability to get production running smoothly again.

Capital Calls: Google and gaming

30 Sep 2022

Concise views on global finance: The search giant is binning “cloud gaming” service Stadia three years after its launch.

Vodafone’s new activist is mixed investor blessing

21 Sep 2022

French tycoon Xavier Niel bought 2.5% of the $34 bln telecoms company. That will cheer fellow shareholders, like Cevian Capital, who are pushing CEO Nick Read to simplify the group. Yet the risk is that Niel is more interested in getting hold of its Italian assets on the cheap.

Capital Calls: Richemont’s activist spat

7 Sep 2022

Concise views on global finance: Shareholders at the Cartier owner rejected investor Bluebell’s attempt to install former Bulgari CEO Francesco Trapani on the board.