Software

Facebook discovers cost of factory-farming users

12 Jan 2018

The $550 bln social network’s success harvesting ad dollars from mass-appeal content made it very profitable. The snag is that users are increasingly unhappy. Mark Zuckerberg’s return to focusing more on their welfare may limit short-run profits but should improve sustainability.

Software stickiness provides SS&C with rollup glue

11 Jan 2018

The U.S. tech group’s $5.4 bln acquisition of rival DST added well over $1 bln to the market value of each company. Investors are betting possible cost savings are twice as high as the buyer has said. That happens rarely, but in software it’s just about possible.

Xiaomi IPO could plug into Internet of Things hype

22 Dec 2017

Sales at the Chinese tech company are booming, Reuters reports, probably thanks to a turnaround in smartphones. A mooted $100 billion valuation at listing sounds aggressive, but Xiaomi might be able to position itself as the first big consumer-facing play on the connected home.

Google center exposes flaw in Beijing’s AI push

13 Dec 2017

By opening an artificial-intelligence research center in China, the Alphabet unit is acknowledging the Xi government's bid for leadership. Yet unlike most IP battles, knowledge in this nascent field is fluid and hard to capture. Beijing’s AI largesse is bound to leak to the U.S.

Facebook targets children with Snap rip-off

4 Dec 2017

Mark Zuckerberg’s outfit is launching a messaging app for kids under 12. It’s a bid to attract a new generation of users by a company struggling to lure youngsters from Snapchat. Yet it’s also a gamble for Facebook. Targeting tweens will invite even closer regulatory scrutiny.

Apple has deciding vote in Broadcom-Qualcomm deal

9 Nov 2017

A dispute over iPhone royalties left U.S. chipmaker Qualcomm vulnerable to rival Broadcom’s opportunistic $105 bln bid. Settling could preserve its independence. The question is whether Apple thinks a bigger Broadcom would be slavishly devoted, or even surlier.

Bill Ackman is losing his touch

7 Nov 2017

Fewer than one ADP shareholder in four backed the activist's bid for board seats at the payroll processor. That puts his Pershing Square hedge fund on a three-year losing streak after failed bets at Valeant and Herbalife – and makes it easy for other firms to ignore his demands.

U.S. rally, pain at home deter China tech’s return

5 Nov 2017

After a bold take-private deal last year, software maker Qihoo’s $8 bln backdoor listing has hit a regulatory snag. Meanwhile, shares of U.S.-listed Chinese outfits are outperforming those on the mainland. Tech firms considering an escape from New York might rethink their plans.

Production snags don’t take the shine off Apple

2 Nov 2017

Customers ordering today won’t see the latest handset until December, and developers are still figuring out the augmented-reality apps that make it worth buying. Hiccups aside, the X model will accelerate demand for services. The iPhone gold mine has plenty of nuggets left.

Twitter’s credibility is for the birds

26 Oct 2017

Jack Dorsey’s social network had to restate user numbers for three years. Quarterly ad revenue fell a whopping 8 pct. However, a promise of coming profitability has put investors in a tizzy. Cutting costs is a start, but it’s going to take more to mend Twitter’s broken wings.

Cisco buys more growth, but at unclear value

23 Oct 2017

The $170 bln networking giant’s $1.9 bln deal for collaboration-software outfit BroadSoft will help offset shrinking sales. The price, a 28 pct premium, looks rational. Cisco didn’t elaborate on synergies, though. Like its 200-plus other purchases, success will be tough to track.

Exchange Podcast: Scott Galloway

19 Oct 2017

The NYU marketing guru swung by Times Square to discuss what's next for "The Four" tech behemoths - Google, Apple, Amazon and Facebook. Among his predictions: one of them will be hit with a $10 bln-plus antitrust fine and Amazon will choose New York for its second headquarters.

Apple’s iPhone pricing goes out on a tech limb

12 Sep 2017

The X features a new screen, wireless charging and facial recognition. It'll start at $999, the most expensive iPhone ever. That defies convention in an industry where products typically get cheaper. Design, performance and customer inertia, however, give Apple uncommon power.

Apple distance from startup tree ensures X success

11 Sep 2017

The $835 bln giant is set to unveil its 10th anniversary iPhone from its new $5 bln circular campus. The device may boast more speed, face recognition, and a better screen. Apple’s massive scale makes Silicon Valley-style nimbleness impossible - but global bestsellers possible.

Rebooted UK-French software merger rewards patience

5 Sep 2017

After two botched attempts in as many years, French industrial group Schneider and UK software maker Aveva are trying to hook up again. The $3.9 bln deal is as complex as it is financially alluring. With past glitches ironed out, the merger has a good chance of becoming reality.

SoftBank’s Indian shopping spree gets even spicier

10 Aug 2017

The Japanese conglomerate’s Vision Fund is pumping $2.5 bln into online retailer Flipkart, rendering its parent’s near-$1 billion punt on rival Snapdeal largely worthless. It’s the group’s latest big-ticket fail on an Indian startup. This is venture capital on an epic scale.

Visma goes viral for private equity owners

29 Jun 2017

KKR is bowing out of the Norwegian software group, with a 22 pct annual return. The buyer, HgCapital, was the seller when KKR bought in 2010. All have done well, because the company’s value has increased ninefold to $5.3 bln. The hard part will be securing an exit at that price.

Buyout firms’ $16 bln mainframe roll-up may compute

21 Jun 2017

BMC Software, owned by Bain and Golden Gate, is mulling an offer for CA Inc. Both have their roots in the giant computers that powered industry before the cloud. The numbers could work out, especially with hefty cost cuts, but wrinkles include how to exit an untrendy business.

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.

Apple plays soothing iPhone hold music

2 May 2017

The tech colossus sold nearly 51 mln smartphones despite a resurgent Samsung and maturing markets. App-store sales also grew and more dividends and buybacks are on the way. That should pacify investors until Apple rolls out the 10th anniversary edition of its pioneering device.