Technology

Crypto-currencies can’t salvage hedge-fund junkies

27 Sep 2017

One-time star manager Mike Novogratz is pinning a comeback on digital coins. Their volatility is alluring when tranquil markets are depressing industry returns. But as the former Fortress executive knows, that can be a trap. He was burned by a bad Swiss franc bet two years ago.

Google clears deck for huge antitrust fight

27 Sep 2017

The company is separating its European shopping unit and allowing rivals to bid for ads. That solves one problem it has with watchdogs while minimizing losses and continuing an appeal. It also frees up Google to battle the EU over claims it uses Android to dominate online search.

Electric vehicles lack killer spark – for now

27 Sep 2017

BHP reckons battery-powered cars are reaching a tipping point. Even vacuum maker Dyson is building one. And driverless vehicles could make EVs a huge money-spinner. High costs and concerns over raw-material supplies, though, will keep the combustion engine purring for years.

Marc Andreessen’s software prophecy reverses

26 Sep 2017

It's now the world doing the eating. Technology takeovers, led by acquirers from far beyond the sector, are outpacing the overall M&A market, a BCG study finds. Many of these deals waste capital, however, and they provide a shaky underpinning for lofty industry valuations.

Uber finally seeks permission, not forgiveness

26 Sep 2017

Facing a ban in London, the ride-hailing app’s new CEO conceded mistakes. It’s a big shift for a company that famously takes few prisoners. Londoners may want Uber’s service but rules are mostly there for a reason. Compromise could be the Silicon Valley invader’s reboot strategy.

Market to Rocket Internet: initiate breakup mode

26 Sep 2017

The $4 billion German tech investor trades at a whopping discount to the sum of its parts. To unlock that value, Oliver Samwer’s company needs urgent repair. Returning spare cash to shareholders and spinning off its stake in Delivery Hero would be a good start.

Macau mobster’s ICO is ideal test for watchdogs

26 Sep 2017

Former gangland boss “Broken Tooth” is backing a $500 million initial coin offering, according to Hong Kong’s SCMP. The convicted money-launderer’s deal lends ammo to those calling for the suppression of new crypto-currencies. But this is a great opportunity to refine rules.

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.

China-backed fund’s latest chip deal looks safer

25 Sep 2017

Canyon Bridge wants to buy troubled UK firm Imagination Technologies, after President Trump stymied an earlier attempt to snap up a U.S. chipmaker. This $700 mln deal will likely set off fewer alarms. Still, the fund's murky state links might attract UK scrutiny too.

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.

Uber may be low on fuel for London fight

22 Sep 2017

The UK capital has decided not to renew the ride-hailing app’s licence, citing an irresponsible approach to safety and security issues. Boardroom upheaval makes it harder for Uber to address the concerns credibly, while a dented image could undermine Londoners’ enthusiasm to help.

Tencent heats up fintech fight with CICC stake

21 Sep 2017

The Chinese tech giant is taking a 5 pct stake in the investment bank. Tencent has already cut deeply into Alibaba's share of electronic payments. This will help Tencent grow in wealth management – and chip away at its archrival’s dominance of online money-market funds.

HTC tethers itself to a new virtual reality

21 Sep 2017

The ailing Taiwanese firm will sell part of its handset unit to Google for $1 billion. This will free up HTC to focus more on its risky but promising VR business, where it is winning market share. Deeper ties with the U.S giant might also help fend off rivals Sony and Facebook.

Options hurt Bill Ackman’s cause at ADP

20 Sep 2017

The pushy hedge-fund boss owns most of his 8.3 pct stake in the $50 bln payroll processor with derivatives. It's a common ploy, but Ackman's plan is lackluster and investors can pick from plenty of activist campaigns. His choice of securities only makes it harder to gain support.

Uber hops in driving seat to serve ad firms notice

20 Sep 2017

The ride-sharing firm sued a digital advertising agency claiming fraud and seeking some $40 mln in damages. Clients rarely, if ever, take Madison Avenue to court. Already under pressure to prove their value, the case is another sign ad middlemen need to clean up their act.

Memory sale leaves a hollowed-out Toshiba

20 Sep 2017

After many leaks, lawsuits and U-turns, Toshiba is set to sell its prized flash-memory unit to Bain and partners for $18 bln. A successful sale would fix the balance sheet and placate lenders. It also reduces a Japanese industrial icon to a ragbag of barely profitable businesses.

Market returns Best’s IPO plans to sender

19 Sep 2017

The Alibaba-backed logistics firm has cut the price of its New York flotation, and slashed the deal’s size to $495 mln, IFR reports. Best has belatedly recognised it was asking too much of investors, given the poor performance of rival ZTO, and its own evolving business model.

Roku IPO warrants swimming against stream

18 Sep 2017

The TV-gadget maker may capitalize further on the cord-cutting trend. Some 15 mln accounts are helping grow revenue and reshape the business model. A $1.3 bln valuation is lofty, though, if TiVo and Pandora are guides. Elusive profit and a dual-class structure are also turnoffs.

Next SoFi CEO needs both social and finance skills

15 Sep 2017

The foolish plan to keep founder Mike Cagney around amid a sex scandal has ended quickly. Whoever steps in will have to clean up the culture quickly. Growth targets also should be revisited at SoFi, last valued at $4.3 bln. Picking a woman with this talent mix might help, too.

Toshiba soap opera employs vast cast of middlemen

15 Sep 2017

The plot twists keep coming in the $20 bln sale of Toshiba’s memory unit, as vested interests clash. The drama may not do much for shareholder value, but the lawyers, stockbrokers and advisers don't want this fee-based passion play to end.