Technology

Atos’ brassy Gemalto bid promises thin cashback

12 Dec 2017

The French group wants to buy the digital-security firm for $5 bln. Gemalto’s shares had fallen 41 pct this year after profit warnings. Its units that make chips for bank cards and phones are struggling, and even generous cost savings would give Atos a mediocre return.

Tencent’s list of impulse buys looks worrying

12 Dec 2017

China’s gaming giant is mulling a foray into bricks and mortar via a 5 pct stake in a hypermarket chain. Apart from irritating rival Alibaba, this tie-up makes little strategic sense. Nor do earlier stakes in Tesla, Snap and Spotify. Tencent owes investors a better explanation.

Uber’s taxi U-turn sets better Southeast Asia path

11 Dec 2017

Co-founder Travis Kalanick used derisive terms to describe the regulated industry he was trying to upend. Uber's new boss, however, just struck a deal with Singaporean taxi company ComfortDelGro. The JV should help it pare losses and compete in a tough market with rival Grab.

Crude-backed crypto-coin is mostly snake oil

8 Dec 2017

An ex-CFTC commissioner is launching a digital currency backed by the commodity. His promise of stable value sits oddly against bitcoin’s wild ride. While it offers a tax edge over oil-backed ETFs, it’s hard to imagine this coin existing if not for the wider crypto craze.

Bitcoin looks like speeded-up unicorn hype

7 Dec 2017

A sheen of futurism, fear of missing out, a lack of fundamental value, and an inability of big backers to sell without crashing the market are factors pumping up the digital currency’s price. It’s like accelerated startup funding rounds. The danger is a Theranos-like bloodbath.

Orange can squeeze out a higher valuation

7 Dec 2017

The telco’s share price has been held back by high investment, price wars, and the French state’s holding. But the company is ahead of rivals in laying fibre broadband and can pay bigger dividends. That will narrow the 16 percent discount at which it trades to European peers.

A $50 bln Xiaomi comeback is hard to figure

6 Dec 2017

After its fall from grace, the Chinese handset maker may be mulling an IPO again. Sales are on the rise, thanks to markets like India and other items including air purifiers. Even so, only optimistic assumptions and Hong Kong's tech fever can justify the eye-popping valuation.

Jack Ma enlarges his Chinese payments peloton

5 Dec 2017

Having invested in bike-sharing giant Ofo, Alibaba affiliate Ant is putting another $300 mln into rival Youon. That's 80 mln potential users to lock into Ma's Alipay system. The move reflects rising stakes in a cutthroat battle with Mobike, backed by payments rival Tencent.

ICO bust heralds U.S. crypto-currency rules chaos

4 Dec 2017

The SEC has taken its first action against a coin offering, alleging the perpetrators fraudulently raised $15 mln. The CFTC, though, just gave the green light to bitcoin futures. The growing regulatory discord on virtual currencies increases the risks to investors.

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 exerts gravitational pull on chipmaker rise

4 Dec 2017

UK-based Dialog lost a third of its value on fears the iPhone maker will build its own chips. Rising sales of smart gizmos have boosted demand for semiconductors, and their makers’ stocks. Rosy valuations downplay the risks for a fragmented sector in a rapidly changing industry.

Broadcom fires board broadside from shaky platform

4 Dec 2017

The chipmaker is nominating 11 directors at Qualcomm, which has rejected its roughly $105 bln unsolicited offer. Only a brave shareholder would replace a board solely to advance a not-yet-financed bid. But the move pressures Qualcomm to engage before its annual meeting in March.

Chinese fintech Qudian dangerously reverses IPO

5 Dec 2017

The $4.1 bln micro-lender backed by Alibaba's Ant Financial intends to buy back a big slug of the stock it just debuted in October. The plan follows China's crackdown on the industry. With the full implications unclear and a share-lockup expiry looming, Qudian's move is risky.

Wall St poised to stop worrying and love bitcoin

1 Dec 2017

Crypto-currencies are set to take center stage. Mike Novogratz is launching a hedge fund, exchanges are teeing up futures contracts, big banks are likely to enter the fray and even the Fed is taking notice. It may end in tears, but the industry won’t ignore a $300 bln market.

Spotify and Tencent make oddly logical supergroup

1 Dec 2017

The Swedish music-streaming service and the Chinese tech giant’s rival unit may swap 10 pct stakes. Tencent gains another trophy asset and access to expertise making users pay. Spotify gets cash and a peek into a huge market. The risk is it muddies already hard-to-price IPOs.

Review: Firm ideas for a world of soft assets

1 Dec 2017

Modern economies are increasingly built on intangible factors like research and development and software. "Capitalism Without Capital" shows how this trend contributes to problems like rising inequality. But it stops short of tackling the rising dominance of big tech groups.

Viewsroom: Uber’s hard route back onto the road

30 Nov 2017

The ride-hailing app has hit a damaging set of speed bumps including accelerating losses, a bruising court battle with Alphabet and covering up a security breach. But new Chief Executive Dara Khosrowshahi’s most important challenge is proving the firm can handle the long haul.

Guest view: Bitcoin bubble obscures real worth

30 Nov 2017

Crypto-currencies are like South Sea Company shares: unanalyzable, but here to stay. For one thing, they offer a government-proof store of wealth. For another, real technological advances exist along with the scams. More stable prices are, however, needed for long-term value.

Altran’s U.S. excursion needs precision execution

30 Nov 2017

The French engineering consultancy is buying KKR-controlled software specialist Aricent for 1.7 bln euros. There’s little overlap between the two, and cost savings may be hard to pull off. Still, rapid technological change and cheap borrowing make it a good time for bold deals.

Alibaba and the 40-year bond is one tall tale

29 Nov 2017

The e-commerce giant is selling the longest fixed-maturity paper ever by a Chinese company. Jack Ma’s outfit is smart to lock in cheap funding while it can. But with Beijing looking to influence the tech sector, investors should think hard about four decades of political risk.