Internet

Google’s mobile locator not as barmy as it sounds

4 Feb 2009

Tracking people by their cell phones may seem like an invasion of privacy. But like other jazzy inventions, this one could have some practical applications. And even if those don t pan out, it s another sticky way for Google to bring in the eyeballs.

OpenTable IPO may not be fine dining for investors

2 Feb 2009

The sadbuttrue adage is that the credit crunch has made fancy restaurant tables easier to come by. Yet online reservation service OpenTable just filed to go public. The company may have a strong following in the fine dining set, but its prospects look less than appetizing.

Death threats and saliva challenge blog business model

28 Jan 2009

The founder of influential Silicon Valley blog Techcrunch is temporarily giving up after being spat on in Munich and receiving death threats. That's understandable. But this highlights the keyman risk that could keep this emerging medium from hitting the big time.

Can Netflix sustain its torrid growth rate?

27 Jan 2009

The DVD rental service just announced big revenue growth amid a banner quarter. Cashstrapped consumers seem to be trading in movie tickets and cable extras for monthly subscriptions. But Netflix will need to make a bigger digital push to make this a lasting trend.

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.