Technology

Samsung Electronics is due a board upgrade

31 Aug 2017

The $300 bln tech giant is in disarray after the third-generation leader of its founding family was sentenced to jail. This would be a good time for other shareholders to push for a stronger board, bolstered by experienced outsiders and led by an independent chairman.

Uber’s new CEO choice will travel well

28 Aug 2017

Expedia boss Dara Khosrowshahi is a surprising but solid pick to run the ride-hailing firm. He has led a newly public travel company, delivering shareholder returns and ticking the right boxes on diversity. Still, Uber’s scale and fluid business model makes it a bigger challenge.

SoftBank’s Vision Fund has $34 bln jackpot in sight

28 Aug 2017

Japan’s Masayoshi Son is nearly done raising a $100 bln tech war chest. If investments double in value, SoftBank’s own holdings would swell by $28 bln, and it would share in nearly $6 bln more of profits. The challenge is finding good, big bets in already expensive markets.

Spotify’s business model is an unfinished symphony

25 Aug 2017

The streaming service is closer to an IPO after sealing deals with music labels like Warner. But Spotify’s ability to turn a decent profit is still in doubt since it may not have won much ground on royalties. Apple and Amazon also pose threats that could deter investors for now.

Infosys founders get second chance on succession

25 Aug 2017

Nandan Nilekani will return to chair the IT firm he helped found. That is less than ideal - but could calm investors after its first outside CEO quit. The reputation of the king of Indian fintech now rests on bringing in new faces and leaving a firm that won't crash again.

Viewsroom: Fiat Chrysler’s painful choices

24 Aug 2017

Great Wall Motor wants to buy Jeep. That’d leave the Italian-American carmaker cash rich but devoid of profit in a fast-changing industry. Meanwhile, Uber tries to find a silver lining to the cloud its drivers are under. Plus: what makes China’s unicorns a different breed.

SPAC solves none of tech world’s hardest problems

24 Aug 2017

A new venture says its $500 mln blank-check IPO can help end the dearth of public offerings from tech startups. Yet capital is plentiful, an opaque acquisition won’t improve valuation, and the target would still be stuck with public disclosure. This solution has no real value.

Uber could help itself by giving drivers equity

23 Aug 2017

The ride-hailing firm is considering handing them stock. They aren't employees, so the SEC would have to agree. The plan could boost Uber's damaged brand and help keep drivers. Other gig-economy workers might gain, too. But existing irate investors could present a roadblock.

WPP underestimates pinch from corporate austerity

23 Aug 2017

The ad group cut its 2017 net sales guidance, blaming lower spending by consumer-goods giants which make up about a third of revenue. Boss Martin Sorrell reckons this will reverse. The danger is that zero-based budgeting and shareholder activism make frugality the new normal.

Tencent’s team has upper hand in Chinese food fight

23 Aug 2017

China’s three web giants are supporting rival food-delivery firms, in a big bet on “online-to-offline” services. The leader, Tencent-backed Meituan-Dianping, is cashed-up and looks unassailable. Even a mooted merger of its rivals could distract them and help bring subsidies down.

Jeep sale would leave Marchionne nowhere to hide

22 Aug 2017

The Fiat Chrysler CEO advocates using M&A to stop carmakers wasting precious capital. Selling the company's top brand to China's Great Wall - a long shot politically - might raise $23 bln. But it would leave an emaciated rump and set up Marchionne’s last lap to be a dismal one.

Snap won’t easily pull a Facebook-Google-Alibaba

22 Aug 2017

The messaging app's stock is 20 pct below the IPO price. That's territory its big internet predecessors encountered before roaring back - and beyond. Evan Spiegel's creation could snap back, but it's on weaker footing and losing money.

Three steps to an Infosys reboot

22 Aug 2017

The $31 bln Indian IT giant is in a mess after its CEO quit. To restore confidence, it needs fewer bosses and to find a strong outside CEO. Publishing a report into whistleblower claims would also help draw a line under a founder's complaints of mismanagement.

Holding: The law rides shotgun on Uber obfuscation

21 Aug 2017

Whether the ride-hailing app fixed prices may remain a secret after a court sent a case to arbitration. It’s the same deal on whether drivers were stiffed on expenses or female workers sexually harassed. It’s tough to make Uber fess up when it's allowed to operate in the shadows.

O2 – and Britain – are losers in 5G spectrum fight

21 Aug 2017

Telecom operators BT and CK Hutchison’s Three are threatening legal action over planned auctions of mobile spectrum. The rules are sturdy enough to promote competition and a court fight could delay the rollout of superfast 5G internet. Rival O2 and Britons have the most to lose.

Founders’ coup leaves a void at Infosys

18 Aug 2017

Vishal Sikka delivered three years of outsize returns. Now the Indian outsourcer's first professional CEO has resigned, against the board's wishes, after criticism from founder shareholders. Finding a solid outsider who can put up with the backseat driving will be challenging.

India’s e-tailers burn bright in festival season

18 Aug 2017

Amazon India and SoftBank-backed Flipkart are going head-to-head for the first time in India’s months-long shopping season. Both will offer massive discounts despite New Delhi's dislike of the practice. The challenge will be growing the customer base enough to justify the losses.

Rot spreads to Lenovo’s core

18 Aug 2017

Flat sales and rising costs in the Chinese group’s main PC unit pushed it to an unexpected quarterly loss. The $7 bln group is already struggling to turn around smartphone and server arms, while pushing into AI. Lenovo’s top priority now has to be fixing its core business.

Advertisers rise to VIP status for Alibaba

17 Aug 2017

The Chinese e-commerce group raked in over $7 bln of sales in the recent quarter, thanks to a surge in ad dollars. Marketing revenue already accounts for half of the total, and Alibaba is pushing hard to attract more top brands. These early efforts look promising.

Like much else, Amazon can sell debt in a flash

16 Aug 2017

The e-commerce giant’s blowout $16 bln bond deal suggests further potential for it to pursue M&A. Yet in nearly tripling debt to buy brick-and-mortar Whole Foods, Jeff Bezos’ outfit is starting to look like a traditional retailer. The risk is that its stock will do the same.