Social Media

Expect buybacks but not M&A from China’s Sina

29 Sep 2017

An activist wants the $8 bln web group to consider a sale or a merger with subsidiary Weibo. The former would never get past boss Charles Chao, and the latter is a bad idea. But Chao could compromise by expanding the board, stepping up buybacks and handing out more Weibo shares.

Cox: Facebook’s about-face is only partial victory

25 Sep 2017

Opponents of multi-class share structures can hail Mark Zuckerberg's nixing of zero-vote stock as a landmark moment. But the social network is facing other challenges that probably made it expedient to avoid a courtroom fight with investors. The battle for good governance rages on.

Facebook owners ignore Russian affair at own peril

22 Sep 2017

The $500 bln social network's alleged role in election meddling has legislators flapping, regulators gearing up and even roiled Mark Zuckerberg from paternity leave. Yet Facebook's valuation, at 27 times forward earnings, remains robust. There's a risky disconnect at work here.

Activist has fighting chance with China’s Sina

19 Sep 2017

U.S. hedge fund Aristeia is going after the $8 bln Chinese web company. Sina looks like a good target: it is clearly undervalued and its boss is not protected by super-voting shares. A big stake in microblogging affiliate Weibo offers some straightforward ways to create value.

Facebook’s fuzzy math blurs its TV picture

6 Sep 2017

A claim to reach 100 mln younger people in America doesn't square with U.S. census figures, an analyst found. Despite a growing list of number blunders, advertisers have limited sway over the $500 bln titan. As Facebook pushes into streaming, though, it'll find tougher pushback.

Bell Pottinger falls victim to PR disruption

5 Sep 2017

The UK public relations firm is in meltdown after a divisive South African campaign. The rise of online media makes it harder to justify big fees and spurs forays into far-flung markets. The result in this case is a warning to an industry that has so far shrugged off media woes.

Apple sets course for China policy minefield

31 Jul 2017

The U.S. tech giant has minted money in China for years thanks to the iPhone. But slowing sales are forcing it to turn to cloud and payment services. This puts Apple squarely in the sights of the hostile regulators and local rivals that helped drive off Facebook and Uber.

Murdoch’s Sky bid promises lack credibility

29 Jun 2017

Regulators say a bid by 21st Century Fox for control of pay-TV firm Sky may give the mogul’s family too much power over UK news. The government could approve the deal if it accepts remedies such as a separate editorial board. Murdoch’s history of meddling makes this unconvincing.

Old media with a tech-like multiple is new Vice

19 Jun 2017

With $450 mln raised from TPG, the company boosted its worth to nearly $6 bln. That’s 14 times projected EBITDA, way above CBS or Disney. The valuation suggests scorching growth of Vice’s cable network and digital properties. Investors, however, may be snapping to conclusions.

Pinterest valuation logic is yet to be discovered

7 Jun 2017

A funding round at a $12.3 bln all-in worth puts "the world's catalog of ideas" on a 25 times revenue multiple, close to Snap's, and in the same market-cap ballpark as Twitter, which has double the users and nearly five times the sales. It's a DIY figure in search of support.

Facebook investors shouldn’t discount fake news

7 Jun 2017

Investors spurned a proposal that the social network report on the business risks of bogus news on its site. It’s a complacent stance on a topic Mark Zuckerberg has started taking seriously. At least opposition to multiple voting rights suggests governance isn’t a dead issue.

Review: Tragedy makes Facebook a better place

2 Jun 2017

COO Sheryl Sandberg’s "Option B," a moving exploration of grief, emerged from the death of her husband. Top executives rarely reveal so much. She has also changed Facebook's policies. More so than "Lean in," Sandberg's new book sets her up as the $450 bln firm's best ambassador.

Mark Zuckerberg listening tour could start at home

31 May 2017

Activists want the Facebook CEO to give up his role as chairman. The quixotic proposal doesn’t stand a chance as Zuckerberg controls the vote. Yet the idea holds merit. The $440 bln firm would benefit from an independent board boss and a patina of good corporate governance.

Twitter’s savior may yet be a socialism network

23 May 2017

The $13 bln microblogging site’s investors voted against studying whether to become a user-owned cooperative. It would be a smart solution for a company with lots of dedicated users but few revenue opportunities. Twitter’s sky-high valuation would need to drop considerably, though.

Jack Ma’s buy-and-pay supremacy looks less certain

17 May 2017

The billionaire controls Alibaba and Ant, China's dominant e-commerce and payments outfits worth more than $350 bln. But users are increasingly turning to Tencent's messaging app WeChat to fulfill both functions. The shift is a significant threat to the core of Ma's empire.

Snap lays an egg worthy of Twitter nest

10 May 2017

The messaging app reported its first quarterly results showing a slowdown in user growth. That’s a worrisome trend since its lofty $27 bln value hinges on attracting more people. Meanwhile, rivals are co-opting features. The sheen of being the next new thing is fading fast.

Even yellow flags can’t dent Facebook’s growth

3 May 2017

The social network largely defied its own executives’ slowdown warnings with a 51 pct jump in ad sales, helped by Instagram’s success. Boss Mark Zuckerberg is adding 3,000 staff to police content after a spate of violent videos. He may need more to contain reputational risk.

Twitter unduly attracts financial followers

26 Apr 2017

The struggling social-media company touted user growth as evidence it can get back on track under moonlighting boss Jack Dorsey. Revenue also fell 8 pct, a first since Twitter's 2013 IPO, as advertisers grew skeptical. There's hardly enough evidence to justify the market zest.

United shows service and shareholders don’t fly

10 Apr 2017

The airline’s stock jumped even after video of an innocent passenger being ejected from a flight went viral. Behind the PR flub, United’s second in a month, is an industry at its healthiest in years. Crummy service and low-cost rivals may yet bring shares down to earth.

Facebook will be lost in India’s payments crowd

5 Apr 2017

A mooted move to enable payments through WhatsApp, the messaging service, might help the social media giant retain users in its biggest market. But Alibaba-backed Paytm and a state-backed rival would be fierce competitors. It is hard to see how WhatsApp could stand out.