Technology

Tencent is biggest target in China cyber crackdown

16 Aug 2017

As Beijing's campaign to control content gathers pace, gaming giant Tencent, which delivered another set of strong quarterly results, is an easy target for censors. Its soaring market value, however, suggests investors have yet to factor in the risk to earnings.

Chinese tech titans suffer credibility GAAP

16 Aug 2017

Online retailer JD generated quarterly profit of $144 mln. Apply conventional accounting practices, however, and it lost $42 mln. Alibaba also emphasizes figures that flatter by excluding stock-based pay. It widens a chasm with U.S. peers like Amazon that have kicked the habit.

Take the money and run is new Uber Benchmark

15 Aug 2017

The ride-hailing firm is beset by controversy, managerial turmoil and huge losses, despite its market dominance. Early investor Benchmark may be loath to give in to demands to sell its 13 pct stake. But it’d restore some stability and let the VC firm make some 200 times its money.

China’s biggest unicorns are a different breed

15 Aug 2017

The country’s biggest startups include purveyors of fintech, handsets, and apps offering rides, food and news. Compared to U.S. unicorns, there is even more focus on serving smartphone-wielding individuals – which is both understandable and risky.

Rocket buyback hints at change of trajectory

14 Aug 2017

A 100 mln euro share buyback is an attempt to show the German tech investor has completed its wobbly booster phase. As it now has 1.7 bln euros of net cash, that’s partly true. But ongoing losses, and doubt over the IPO of HelloFresh, could constrain its upward potential.

JD tests limits of China’s tech euphoria

14 Aug 2017

Stocks like JD, Alibaba and Tencent have soared amid a global tech boom and renewed optimism over China. As JD’s latest results show, some firms are also fundamentally getting stronger. A further run-up, however, will be hard to justify.

China’s car JVs make for an easy trade sacrifice

14 Aug 2017

Trump plans a probe into a requirement that American companies hand over tech secrets for market access. Amid the escalating battle, a painless concession would be to scrap a rule forcing U.S. automakers to partner locally. Chinese brands need export markets more than free IP.

Tech and telecom overdue to converge in Washington

11 Aug 2017

A bipartisan plan aims to level the regulatory landscape for broadband providers such as Comcast and influential web outfits like Facebook. Different online-data standards now apply. It's time for one set of rules and a single enforcer to police how privacy is handled.

UK shows consumers the value of their data

11 Aug 2017

A new law will hand citizens greater powers over the use of their online information. For companies, compliance standards will get steeper – as will fines for breaches. Showing people what happens to their digital data also makes it more likely they will seek compensation for it.

Uber investor’s lawsuit pounds on founder power

10 Aug 2017

Venture-capital firm Benchmark is suing the ride-hailing app's deposed boss Travis Kalanick, accusing him of entrenching himself on the board. The rare imbroglio for clubby Silicon Valley comes as stock indexes shun dual-class shares. Momentum is mounting for better governance.

Snap’s fade could make future IPOs vanish

10 Aug 2017

The parent of the disappearing-message app reported a second consecutive quarter of disappointing results. Slowing user growth, more losses and fresh fallout from lousy governance have erased a third of its market value. Spotify and others mulling going public may be scared off.

Goldman, Bridgewater embrace innovator’s dilemma

10 Aug 2017

The investment bank will use personality tests to hire bankers and traders. Ray Dalio’s $150 bln hedge fund may open its artificial-intelligence software to others. Such programs may improve practices. Longer term, though, many financiers will be disrupted by virtual Wall Street.

SoftBank’s Indian shopping spree gets even spicier

10 Aug 2017

The Japanese conglomerate’s Vision Fund is pumping $2.5 bln into online retailer Flipkart, rendering its parent’s near-$1 billion punt on rival Snapdeal largely worthless. It’s the group’s latest big-ticket fail on an Indian startup. This is venture capital on an epic scale.

Charter bid would be a deal too far even for Drahi

10 Aug 2017

Altice, controlled by French billionaire Patrick Drahi, wants to buy U.S. cable group Charter Communications. The $180 bln price makes a cash bid tricky. Altice could use its own stock too, but the group’s leverage and poor voting rights may deter Charter shareholder John Malone.

Toshiba’s market reprieve could be fleeting

10 Aug 2017

The troubled Japanese group has finally filed audited accounts. Yet it could still be delisted if Tokyo’s stock exchange faults its internal controls, or if it cannot sell a memory unit in time. That would be painful for small investors, though bigger funds might stick around.

Netflix losing Disney sounds like an HBO sequel

9 Aug 2017

“Cars” and other Magic Kingdom fare will be yanked from the $75 bln streaming service. Time Warner’s pay-TV network also once grew so popular that Hollywood studios started rival options. Like HBO in the 1980s, Netflix has enough subscribers and original programming to thrive.

Musk fine-tunes Tesla with junk-fueled turbo boost

7 Aug 2017

The electric-car maker’s CEO is using $1.5 bln of debt to fund ramping up production of the Model 3. Diluting its overvalued shares by just 3 pct would have done the trick at less risk. But the money is cheap. And bondholders don’t need stockholders’ faith in Musk to be paid back.

Bollywood treasure offers exotic plot for Apple

7 Aug 2017

The U.S. tech giant is eyeing top producer Eros’ library of Indian films and music. The mooted price tag of $1 bln for over 10,000 titles far exceeds the seller’s market value. Inflated prices reflect the rush to secure content in a market where consumers are willing to pay.

SoftBank gives graphic demo of complex new era

7 Aug 2017

The Japanese group’s first results to include the giant Vision Fund showed a surprise $1 bln gain on shares in a U.S. chipmaker. Vision has inspired frenetic dealmaking, but the benefits to investors are unclear. A complicated outfit has become even harder to decode.

White House dangles a $100 bln tech loyalty test

4 Aug 2017

Silicon Valley chiefs clash with President Trump on much including climate change, but most are sticking around to advise him. Some may have a practical reason: the big plan to upgrade government IT. Amazon and others will be challenging dominant contractors such as IBM and HPE.