Technology

M&A frenzy sets scene for epic tug-of-war

3 Jan 2018

The $3.6 trln of mergers announced in 2017, including huge deals from Disney and Broadcom, sets up some chunky targets for cost cuts. That means job losses, even if buyers say not. Yet given the political climate, shareholders can’t count on the extra profit being theirs to keep.

Tech salad will come with a side of SLAW in 2018

3 Jan 2018

Spotify, Lyft, Airbnb and WeWork are all potentially going public in the coming year. None of them may ever match the scale of a FAANG or BAT. But each is disruptive in its own way, and offers investors a unique play on the future of cities, mobility, work and play. Bon appetit!

Ant’s U.S. march may require China-like steps

3 Jan 2018

Jack Ma's payments business will have to rethink its global strategy after its MoneyGram deal was vetoed. Even an alliance is at risk if rival Euronet bids anew. Instead, just as U.S. companies have bought small stakes in China, Ant could do the same with Western Union or PayPal.

Predictions 2018

2 Jan 2018

From elections to electric cars, we offer a series of insights into what 2018 has in store for companies and economies. Read our predictions online or download the book  

TV content wars will have grisly season finale

2 Jan 2018

Netflix plans to hike its spending on programming by 33 pct this year. Add in Apple, Amazon and Hulu, and a fightback by traditional media, and budgets are rising faster than video-streaming revenue. It’s a golden age for viewers, and a nail-biter for the companies themselves.

Our 2018 predictions on Reuters TV

31 Dec 2017

From the CEOs who should run for U.S. president, to the banks that ought to be sizing up mergers, our writers give their take on the coming year in a series of Reuters video reports.

Viewsroom: Investors target sexual misconduct

29 Dec 2017

Companies that sweep settlements for bad behavior under the carpet will feel shareholder ire in 2018, Breakingviews predicts. Plus, Apple will float past the EU’s roving eye, splintering political parties are a ticking U.S. time bomb and bank bosses may hang up their hats.

European soccer’s spending splurge will intensify

29 Dec 2017

Transfer fees like the $263 mln Paris St Germain paid Barcelona for Neymar have stoked talk of a bubble. But increased spending is mostly justified by the soaring value of broadcasting rights. If U.S. tech giants join the action in 2018, players will reap the benefits.

Best of Breakingviews 2017: Our readers’ top picks

28 Dec 2017

From Snap's IPO to Saudi's economic transformation, readers’ taste for agenda-setting insight was diverse and voracious. Donald Trump's first year as U.S. president jostled for attention with bitcoin's coming wipeout, Chinese tech and, naturally, anything on Wall Street bonuses.

Apple and Saudi test out their comfort zones

28 Dec 2017

Saudi Arabia’s large population and income make it logical that the smartphone giant is in talks to open a shop. Enticing a cutting-edge global tech firm would also gloss the crown prince’s rule and modernizing campaign. There are risks for both; Saudi’s gamble may be bigger.

Ambani’s debt cure is no elixir for shareholders

28 Dec 2017

Anil Ambani says he has rescued his Reliance Communications with a $6 bln firesale. That’s a relief for lenders, assuming buyers turn up as promised. But it’s not the moral victory the tycoon claims. Even if creditors play ball, investors are left with a much diminished company.

Samsung soups up for car race of the future

28 Dec 2017

Slowing growth in smartphones and chips will steer the tech giant to focus on autonomous vehicles. But its 2016 purchase of parts-maker Harman and small stakes in upstarts aren’t enough to catch up to Intel, Delphi and others. That’ll require bolder driving skills.

GE exits 3D-printing fight only slightly bruised

27 Dec 2017

The U.S. group ended a 15-month tussle for ownership of Sweden’s Arcam by buying hedge fund Elliott’s stake at a modest premium. GE should benefit from having full control of a technology critical to its aviation business, even if it nets Elliott’s Paul Singer a handsome profit.

Geely could be useful back-seat driver at Volvo

27 Dec 2017

Seven years after buying Volvo Cars, the Chinese group is acquiring Cevian’s 8.2 pct stake in the Swedish truckmaker. The activist gets a decent exit after 11 years, while Volvo gets help with electric vehicles and China. The risk is Geely is getting in at the top of the cycle.

Musical debuts will produce financial syncopation

26 Dec 2017

Look for Spotify and Vivendi's Universal to float in 2018, thus presenting investors with a choice of content versus distribution. One is an unprofitable tech darling, the other a cash-generative rebound story. Both will be valued too richly, and Spotify is more apt to fall flat.

Even rich geeks can’t escape the Grim Reaper

22 Dec 2017

Silicon Valley’s best and brightest have earned fortunes by solving complex problems. Now many are turning brains and wealth toward conquering death. Applying an engineering mindset to health issues may benefit humanity, but it’s more likely to burn capital than discover the fountain of youth.

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.

Alphabet’s Eric Schmidt sails off before the storm

21 Dec 2017

The executive chairman of Google’s parent is stepping down as the $740 bln search giant heads into a showdown with EU regulators led by Margrethe Vestager worried by its dominance. Hiring a strong, independent chairwoman would reflect well on founders Larry Page and Sergey Brin.

Domino’s Pizza is 2018’s most unlikely tech stock

21 Dec 2017

True, there’s nothing high-tech about pizza. But the take-out chain also dominates the “last mile” that delivery companies covet. Its app-to-infrastructure model makes Domino’s a little bit Uber, and a little bit Amazon. Investors are already baking in some futuristic assumptions.

Sun will be setting on Silicon Valley imperialism

21 Dec 2017

Expect tech firms to keep going public with lopsided share-class structures like Snap's that treat public investors as serfs. Rising pressure from fund managers and index creators, however, will bear fruit in 2018, mainly by imposing temporal limits to super-voting tendencies.