Technology

Beijing’s reversal on credit scores is ominous

5 Jul 2017

China's central bank no longer wants to let private outfits like Alibaba assess consumer creditworthiness, Reuters says. That’s doubly unwelcome. Borrowers need better credit scoring. And this will concentrate even more power in the state’s Orwellian “social credit” system.

Tencent’s e-books require some Hollywood stardust

5 Jul 2017

The tech giant’s publishing arm may raise up to $800 mln in a Hong Kong listing. Catering to bookworms isn’t very lucrative, even if more readers are paying for electronic literature. The real payoff will lie in turning stories into blockbuster films, video games and merchandise.

Altice discount a dubious buying opportunity

30 Jun 2017

A float of its U.S. arm has made the Dutch telco’s discount to the sum of its parts more visible. It’s a good time to invest in the parent if founder Patrick Drahi can succeed at running it more as an integrated group. Limited synergies and questionable governance raise doubts.

Rocket cleans its plate in Delivery Hero IPO

30 Jun 2017

Floating its food delivery offspring for 1 bln euros is a much needed success for the German tech investor. It sold the maximum number of shares at the top end of the price range. The only snag is that there’s not a great amount left on the table for outside investors.

Visma goes viral for private equity owners

29 Jun 2017

KKR is bowing out of the Norwegian software group, with a 22 pct annual return. The buyer, HgCapital, was the seller when KKR bought in 2010. All have done well, because the company’s value has increased ninefold to $5.3 bln. The hard part will be securing an exit at that price.

Alibaba readies for showdown in Southeast Asia

29 Jun 2017

The Chinese giant spent another $1 bln to tighten its grip on regional arm Lazada. The extra control could be useful as Alibaba confronts local upstarts, domestic peer JD, and possibly Amazon in the future. All will face formidable challenges, from logistics to payments.

Video offers thinning ray of hope for LeEco

29 Jun 2017

Worsening cash problems have pushed the Chinese tech conglomerate to focus increasingly on smart televisions and online streaming, as it sells other assets. Even if mounting financial and legal woes are surmounted, squeezing more profit out of Chinese television will be tricky.

Cornered Toshiba rounds on Western Digital

28 Jun 2017

A $1 bln Tokyo lawsuit is meant to force Western Digital to back off from its U.S. litigation. If it doesn't, a vital $18 bln sale could be held up. That would imperil Toshiba’s future, but could hurt Western Digital too. Compromise appears implausible, yet it's urgently needed.

Google’s EU fine more about principle than money

27 Jun 2017

While a 2.4 billion euro penalty is the biggest Europe has ever applied for antitrust violations, Google is rich enough to absorb the hit. More damaging, if it sticks, is the new idea that the search giant ought not to use its market dominance to privilege its own products.

Cable guys’ Sprint lurch bound for crossed wires

27 Jun 2017

Comcast and Charter are in talks with the $33 bln U.S. mobile carrier that may include a range of options, from the use of airwaves to an acquisition. Wherever they end up, a ménage-à-trois involving moguls John Malone, Brian Roberts and Masayoshi Son could prove ungainly.

Silicon Valley reinvents avoidable sexism scandals

26 Jun 2017

Binary Capital is imploding amid claims of predatory behavior. Uber is belatedly tackling similar issues. Venture-capital doyen Reid Hoffman wants an industry “decency pledge.” That's fine, but the tech world could have learned long ago from experience, including on Wall Street.

Italy’s broadband farce risks state overreach

23 Jun 2017

Ministers are threatening to punish Telecom Italia for building broadband in poor areas. The snag is that it is competing with government-linked rival Enel. Telecom Italia’s French ownership also adds complexity. Whatever the motive, attacking private investment is a risky move.

Viewsroom: Helping Uber hail a new CEO

22 Jun 2017

Filling departed founder Travis Kalanick’s seat is no easy task, so we offer some suggestions. Elsewhere, Amazon CEO Jeff Bezos’ seemingly crazy $13.7 bln offer for struggling grocer Whole Foods has some logic. Anbang lands in hot water in China. And the lure of 100-year debt.

China web giants stuck with telco reform bill

22 Jun 2017

Alibaba and Tencent will join a group investing $10 bln in struggling China Unicom, Reuters reported. It’s part of Beijing's plan to increase private investment in state-owned firms. Unicom is the clear beneficiary of the boost. How the internet giants will profit is unclear.

Hong Kong needs actual fintech, not just IPOs

22 Jun 2017

The city is trying to lure hot financial technology listings. But it's a slow mover when it comes to mobile payments and e-commerce. In stark contrast with mainland China, much of Hong Kong still shops on foot and pays with paper. That reflects a broader struggle with innovation.

Oracle’s cloud warrants a partly sunny forecast

21 Jun 2017

Larry Ellison's software titan increased web-based storage and services revenue quickly. Oracle's retreat from traditional databases also isn't hurting as much as expected. Remixing the way cloud results are reported is suspect, though, and rival Amazon keeps growing fast, too.

New app: Uber, but for an Uber CEO

21 Jun 2017

Co-founder Travis Kalanick has quit under a cloud of business and cultural troubles that threaten the ride-hailing service's eye-popping $68 bln valuation. He leaves a dearth of senior managers and a void at the top. Breakingviews imagines an Uber-like widget that helps fill it.

Governance coup caps first leg of Uber’s journey

21 Jun 2017

Travis Kalanick quit as CEO amid pressure from the ride-hailing app's investors. His stewardship had become a distraction. For a private firm to jettison its controlling shareholder suggests a modicum of market discipline in startup land – if he really does take a back seat.

Toshiba has reason for Tokyo-friendly chip choice

21 Jun 2017

A team of two local outfits and a U.S. buyout firm are the preferred bidder for the $18 bln chip unit. That looks like a stitch-up. But Toshiba urgently needs this deal, and to minimise completion risk. It is betting it can bat off a legal dispute with partner Western Digital.

Trump’s CEOs do more listening than influencing

20 Jun 2017

The U.S. president’s hobnobbing with corporate chiefs is largely a one-way street. Executives can claim some impact on China policy but not yet on immigration, and they got stiffed on climate. The White House forums are still useful for their insight into administration thinking.