Internet

Microsoft and Google should gear up for yard sales

21 Jan 2009

Both onetrick ponies have used prodigious cash flows to fund outside projects with little success. A trying environment should change this. Google recently axed its print ad project and Microsoft sold its longheld stake in Comcast. A host of other distractions could be next.

Apple needs to prepare for a future without Jobs

14 Jan 2009

Steve Jobs is stepping down for health reasons. Investors can hope he ll recover and return. But Apple needs a credible transition strategy in any case. It should name a new CEO and leave Jobs as chairman. That would minimise disruption and set the stage for the postJobs era.

What does Wall Street have against porn?

6 Jan 2009

Despite a historic drought in the IPO business, no investment bank save the Cyprus unit of a Russian bank has put its hand up to handle the $460m offering of nudie magazine Penthouse s parent. Maybe that's because the business looks a little too sexy for bankers tastes.

Venture capital shakeout will leave few winners

15 Dec 2008

A decade of too much money and dismal performance has caught up with venture capital. Only a few wellconnected firms can now raise new funds. This means higher returns for the survivors. But most investors won't have access and funding for startups will be tight.

Sarin would tick important boxes for Yahoo

9 Dec 2008

The former Vodafone chief is in the running to fill Yahoo s vacant CEO seat. His background certainly makes him a sound candidate. In fact, his extensive experience in the mobile phone business a potential growth area for Yahoo could be just what it needs.

Facebook-Twitter sucker’s game reveals vulnerabilities

25 Nov 2008

Merger talks that would have seen Facebook acquire Twitter for $500m have reportedly ended. The details emerging make it seem both parties were trying to pull one over on each other. Their methods reveal critical flaws in the Silicon Valley darlings.

How a PowerPoint panicked Silicon Valley

14 Nov 2008

For a while, VCs shrugged at Wall Street s pain. Then a presentation by Sequoia predicting Armageddon made the rounds. A month on, investments are being slashed and startups cutting ranks. It seems an odd trigger, but Sequoia s viral hit may have started an industry shakeout.

IPO drought finds unlikely relief in for-profit university

11 Nov 2008

It s a terrible time to float a company. But Grand Canyon Education is going public anyway, even though it doesn t need money. So why are insiders, who will reap most of the proceeds, selling? A government investigation and a whistleblower suit might explain the timing.

Google snub reduces Yahoo’s negotiating leverage

5 Nov 2008

The search giant has walked away from their muchballyhooed advertising deal via a blog. This isn't only embarrassing. It eliminates one of Yahoo s key methods of creating value outside Microsoft's clutches. Yahoo is back in play, but at a lower price.

Google wins by leaving Yahoo in lurch

5 Nov 2008

Its outsourcing agreement with Yahoo derailed Microsoft s attempt to buy Yahoo and gave Google a deep look into its rival s business. The search giant may have walked away just before the pact annoyed government and advertisers enough to act.

What will happen to Google in a recession?

17 Oct 2008

The search giant has held up fine for now. Search terms like FDIC , home safes or gold are heating up, but will bring less profit. Advertisers will flock online but there will be fewer clicks. And less capex may shrink Google's lead.

Ebay shareholders over-react to grim outlook

16 Oct 2008

The online auctioneer expects falling sales and a terrible holiday season next quarter. But its diversification and balance sheet should provide a cushion. It s still trading at a huge discount to other retailers. Ebay will feel pain but looks too cheap.

DIY subprime site looks like credit crunch casualty

16 Oct 2008

Prosper.com, a site that allows amateurs to invest in subprime loans, looks like a casualty of the credit crunch. No surprise allowing Joetheplumbers to construct their own subprime CDOs captured a credit bubble moment long gone.

Facebook sees trouble in the mirror

8 Oct 2008

The social network is ailing. Five top executives have quit, including a cofounder who s starting a competitor. And the company may start buying employees stock, which it can ill afford. Facebook needs to find a few rich friends if it's to avoid becoming Silicon Valley history.

Online political futures markets show signs of manipulation

8 Oct 2008

A few online exchanges allow bets on the US presidential race and other contests. In theory, this should be a very accurate barometer of Obama and McCain s odds. But some sites show pricing discrepancies that could be attempts to distort the markets, says Jeff Segal.

Has Ebay bought another Skype or Paypal?

6 Oct 2008

The auctioneer is buying online payment system Bill Me Later for $945m. Investors are still burned by Ebay's purchase of internet telephony firm Skype. Luckily this is more like its savvy 2002 Paypal deal. It may even help Ebay weather economic hard times.

How does Google’s green push help shareholders?

2 Oct 2008

The search giant has announced a plan to wean the US off fossil fuels clearly a worthy goal. But it could also prove a distraction for the company s executives. Google should consider its shareholders before trying to save the world.

Fat finger fiascos flourish in volatile markets

1 Oct 2008

Google s stock swung $200 per share in minutes yesterday due to erroneous orders . Such errors can be expected in small and illiquid stocks. But automated strategies now direct huge pools of money. Throw in market panic, and problems can beset even market giants.

Yahoo needs to hone its focus

22 Sep 2008

Tuesday is the company s first board meeting since Carl Icahn and his supporters joined the team. It can no longer just pine for Microsoft. And its new marketing efforts and search deal with Google won t solve its problems. Yahoo needs to decide what it wants to be.

Facebook offers sliver of hope for jobless bankers

16 Sep 2008

Bankers recently booted by Lehman and other shredded Wall Street firms could do worse than spend their new free time updating their Facebook pages and removing embarrassing photos. That's because recruiters with jobs to fill are scouring social networking sites for candidates.