Technology

ProSieben is the worst show on a lousy channel

9 Nov 2017

The German broadcaster cut its full-year sales target and abandoned a TV-advertising forecast, sending shares down 11 percent. Management churn and an inability to predict the rate of its own decline makes the group more vulnerable than similarly-challenged European peers.

Cox: Lisbon turns Tatooine for tech Rebel Alliance

9 Nov 2017

If the internet world can be likened to Star Wars, its dominant companies are the Death Star – and EU competition enforcer Margrethe Vestager is Princess Leia. But the insurgents descending on Portugal's capital are mostly finding ways to live with, not overthrow, the empire.

Peugeot swerves carmakers’ biggest dilemma

9 Nov 2017

PSA Group is targeting 1.7 billion euros of savings from its purchase of Opel without sackings or plant closures. Renault and Nissan show that’s plausible. Job cuts would make the deal more lucrative and will be hard to avoid across the industry with the rise of electric cars.

Cars are the last big headache for Tata

9 Nov 2017

Newish group Chairman Natarajan Chandrasekaran has moved swiftly, tying up loose ends in steel and telecoms and reducing cross-shareholdings. The money-losing Indian unit of the $21 bln Tata Motors may be the toughest challenge. Even here, there are signs of a turnaround.

Tencent and Snap send short message to Facebook

8 Nov 2017

The owner of China’s killer app WeChat now owns 12 pct of its struggling vanishing-photo peer. Even though the shares are non-voting, Snap has reason to embrace a powerful new friend. And Tencent will be slightly better positioned should Facebook get an entry visa from Beijing.

Hong Kong’s IPO market is turning Chinese

8 Nov 2017

China Literature smashed the chandeliers in its $1.1 billion Hong Kong debut, soaring more than 80 pct in early trade. As local punters swarm into mainland tech, the new-issue market is mimicking distortions common in China. For the exchange, it's a good problem to have.

China’s Sina fires up governance Wayback Machine

8 Nov 2017

Days after escaping a board insurgence effort, the web outfit issued new stock that hands control to its chairman. It retroactively aligns Weibo's parent with Silicon Valley structures just as momentum swings against them. It's a bad turn for China Inc that also cost $500 mln.

Broadcom grows its way to strategic dead end

7 Nov 2017

The acquisitive chip company has become so big that it needs to take larger and riskier bets to maintain its super-charged expansion. Its $130 bln unsolicited offer for Qualcomm qualifies on both counts. If successful, Broadcom will be short of targets that can move the needle.

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.

Hong Kong tech fervour defies Western IPO wobbles

7 Nov 2017

Investors have snapped up shares in Razer, a maker of keyboards for gamers, and China Literature, an electronic publisher backed by Tencent. That contrasts with signs of IPO fatigue in New York and London. Limited supply, particularly in tech, has helped keep the market healthy.

Broadcom deal cements boutiques’ M&A takeover

6 Nov 2017

Moelis is heading up the chipmaker’s $105 bln Qualcomm bid. It’s not the largest transaction an independent adviser has led, but it’s striking for one so dependent on financing. With smaller firms now prominent in most big deals, the bulge bracket risks becoming just dumb money.

Broadcom lenders shed prudence just as it’s needed

6 Nov 2017

The chipmaker’s advisers are “highly confident” of arranging finance for its $105 bln Qualcomm bid. Ample liquidity, low defaults and easing regulations have banks itching to lend. But rising corporate leverage and looser covenants pose big risks for anyone coming to the dance.

Broadcom faces down ghost of chip LBOs past

6 Nov 2017

The $111 bln soon-American-again chipmaker offered $105 bln for Qualcomm. If the unsolicited bid goes anywhere, borrowing nearly $90 bln would send debt-to-EBITDA ratios towards leveraged buyout territory. Two former chip LBOs – Freescale and NXP – give pause for thought.

SoftBank pace should endure after Sprint stumble

6 Nov 2017

Boss Masayoshi Son ditched a deal between his U.S. mobile operator and rival T-Mobile US, losing out on some $10 bln in synergies. SoftBank investors have two solid consolations: a long-term case for keeping control of Sprint and a slew of investments at the $98 bln Vision Fund.

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.

Chinese auto-trading IPO may prove to be a lemon

5 Nov 2017

Yixin is preparing a Hong Kong IPO. Connecting auto buyers, sellers and lenders is good business as China’s car market booms and millennials embrace debt. But a mooted value of up to $6.5 bln sounds over-revved. Even if the float goes well, the stock could later go into reverse.

Investors put their chips on Broadcom mega-deal

3 Nov 2017

Fresh off its plan to move to the United States, the semiconductor firm is weighing a $100 bln bid for rival Qualcomm, Bloomberg reported. The industry is consolidating while patent and regulatory woes make the target vulnerable. An exuberant market reaction could seal the deal.

Sina’s board wins Yahoo-like prize

3 Nov 2017

Bosses of the $8 bln Chinese web outfit thwarted a U.S. hedge fund's quest to add two directors. Sina's big problem is that it's worth less than its big stake in Weibo. As Yahoo laid bare, it can be hard to run a company whose value sits elsewhere – regardless of who's in charge.

The Exchange: Ellen Pao

2 Nov 2017

The investor sued Kleiner Perkins for discrimination, becoming a canary in the coal mine for a raft of sexual-harassment and gender-bias allegations rocking Silicon Valley, Hollywood and beyond. She discusses if this is a turning point for what she describes as a systemic problem.

BT leaves decisive dividend call on hold

2 Nov 2017

The UK telecoms group kept its interim payout flat and raised the prospect of investment in pricey full-fibre networks. Increasing the dividend while pleasing regulators may prove tricky. But ducking the trade-off for now means shareholders will have to dial up the uncertainty.