Internet

Microsoft’s $8.5 bln Skype price is in the cloud

10 May 2011

In theory, the WindowstoOffice giant could integrate Skype's voice and video calling to its advantage. In practice, Microsoft's M&A track record is poor. Combine that with a valuation at 10 times 2010 sales and this is one call that is unlikely ever to connect for shareholders.

Apple’s $150 bln brand value typifies tech motion

9 May 2011

The iPad maker's distinct label accounts for about half its market cap, a new survey finds. It's also 10 times what it was in 2006. Measuring brand worth is an imprecise art, but there are good reasons why technology companies dominate and are prone to big swings in value.

Netflix pay scheme inspires behind the scenes

9 May 2011

Blockbuster's new owner and Time Warner's CEO are the latest to be won over by the movie streaming service. But one feature of its success is less well known: the way it allows staff to tailor their compensation mix and awards options on a monthly basis. It's worth a peek.

Goldman got a steal of a deal on Facebook

4 May 2011

That's if Renren is any guide. After shares surged on their debut, China's answer to the social network giant was valued at about 100 times last year's revenue. On that basis, Facebook is worth $200 bln and Goldman bought in at a quarter of that. Here's a bubbly justification.

Renren hardly looks worth huge premium to Facebook

3 May 2011

The Chinese social network's IPO aims to fetch twice the implied valuation of its larger unlisted U.S. peer. Yet Renren's revenue growth is slowing, its audit chief just quit and user numbers deserve scrutiny. That means Facebook should be worth more or Renren less.

China’s hot Facebook clone will cool down

17 Apr 2011

Renren's may be the first big social network IPO anywhere. With 100 mlnplus users already and China's 1.3 bln population, investors are likely to fill their boots at the mooted $4 bln valuation. But if Facebook manages to join the many domestic rivals, there'll be less to like.

Facebook’s legal woes mirror earlier bonanza

17 Apr 2011

The social network's disputed paternity and burgeoning wealth as much as $85 billion at last check is attracting lawsuits galore. This may seem a modern dilemma, but parallels with the many claims on Nevada's wild silver rush 150 years ago are uncanny.

Google Q1 results highlight CEO Page’s challenges

14 Apr 2011

The search giant's cofounder took the reins just a few weeks ago. Yet the company's latest quarter provides a window into the troubles he faces: legal battles and talent wars. Revenue is still growing. But Google has to pay up for engineers and write hefty checks to lawyers.

Cisco takes first small step to focusing on core

12 Apr 2011

The networking giant's boss, John Chambers, acknowledged last week Cisco had lost its way. Now he's putting his money where his mouth is and shutting parts of its cashdraining consumer unit. That's sensible, but more will be needed to simplify the sprawl and improve returns.

Dot-com cleanup lingers with Level 3 deal

11 Apr 2011

Never mind the recent financial crisis the postmillennial technology mess is still spawning deals. Level 3 is loaded with debt from building its network over a decade ago and squeezed by falling prices. Its $1.9 bln purchase of rival Global Crossing dilutes both problems.

Expedia aims for (social) network effect

8 Apr 2011

The $6.8 bln online travel company plans to spin off its popular TripAdvisor site that allows tourists to share tips with each other. That should help it capitalize on the investing fever for online communities. But the flight and hotel booking sites left behind could suffer.

Google antitrust deal sets stage for bigger fight

8 Apr 2011

Allowing the Internet giant to buy ITA Software, with a few restrictions, is a mere sideshow. Online travel is small beer compared to control of search and mobile operating systems. The multibilliondollar question still to be answered is whether Google is an abusive monopoly.

IPO hopefuls want to sit around OpenTable

7 Apr 2011

The backers of nearly every company to market with an Internet angle Zipcar, Pandora, Zillow are conjuring comparisons to the restaurant reservation site whose shares have quintupled since their debut. While similarities exist, none have OpenTable's moat or network effect.

Google’s M&A machine stuck in antitrust limbo

4 Apr 2011

The search giant again led by Larry Page once offered the best alternative to an IPO for fastgrowing startups. But the 9month delay in approvals for its $700 mln ITA deal shows how regulators have changed that. Absent huge breakup fees, what hot company would sell to Google?

EBay sensibly bids $2.4 bln to go beyond auctions

28 Mar 2011

The fastgrowth days for the Internet auction giant's marketplace unit are behind it. Running Web efforts for others promises growth and is a natural extension of its own business. Buying GSI Commerce does the trick. The 51 pct premium is big but the price still looks reasonable.

AT&T not only telco worry for antitrust watchdogs

28 Mar 2011

A brewing spat between Google and Facebook over whether to allow its nextgeneration handsets to download contact info from the social network sounds like an esoteric geek debate. But it raises big questions about Google's growing mobile dominance and the temptation for abuse.

German cable proves rich seam for private equity

22 Mar 2011

Swedish buyout firm EQT has achieved a decent $4.5 bln exit from its boomtime Kabel BW deal, securing a high valuation multiple for the German media group on much stronger EBITDA. New owner Liberty is paying a full price. But synergies and growth mean Kabel BW can keep giving.

New York Times prices digital to keep print alive

17 Mar 2011

The Gray Lady finally has a digital subscription plan. Web news junkies will pay $15$35 a month, but access is included with the dead tree edition. Online is still cheaper but not enough to cost the newspaper committed hardcopy subscribers and the ad revenue they bring.

Citi finally set to make money on U.S. housing

16 Mar 2011

No, the bank is still sitting on lots of toxic mortgages. But its investment banking arm is at least poised to reap fees from managing the IPO of Zillow, a website providing free data on real estate sales and valuations. It's meager consolation for some $50 bln of writedowns.

Chasing Amazon won’t help states much

14 Mar 2011

The Internet retailer doesn't collect sales tax in most states. Cashstrapped jurisdictions want to close the loophole. It's an easy way to find revenue without much hiss from voters and traditional retailers love the idea. But it won't go very far to closing budget gaps.