Technology

Old media with a tech-like multiple is new Vice

19 Jun 2017

With $450 mln raised from TPG, the company boosted its worth to nearly $6 bln. That’s 14 times projected EBITDA, way above CBS or Disney. The valuation suggests scorching growth of Vice’s cable network and digital properties. Investors, however, may be snapping to conclusions.

Orange has grounds to lose confidence in BT

20 Jun 2017

The French telecoms company is cutting its stake in the British firm. That is a wise move. BT, whose shares have fallen nearly 40 percent in two years, is at the mercy of regulators and faces increasingly high costs as it battles to keep up with rivals such as Sky.

Blue Apron’s $3.2 bln debut could be its best dish

19 Jun 2017

The meal-kit service is cooking up an IPO valuation of about three times sales. Despite hot growth, though, losses are rising and rivals, maybe including the Amazon-Whole Foods combo, will make profitable expansion tough. The spicy offering price could be as tasty as it gets.

LeEco showcases tech hubris in widescreen format

19 Jun 2017

Jia Yueting’s outfit aimed to be Apple, Netflix, and Tesla in one. Now it is slashing jobs, pulling back abroad, and fielding lawsuits. LeEco was exceptionally ambitious. But when overconfident founders have a free rein and easy money, the results rarely make comfortable viewing.

Bonderman gaffe spreads toxicity past Uber exhaust

14 Jun 2017

The TPG founder’s sexist joke at a meeting about sexism shows how far the ride-hailing app has to go to change its culture. He at least quickly took responsibility and quit the board, unlike CEO Travis Kalanick. But the financier’s poor judgment may worry other firms he advises.

Hexagon would be a pointy-edged takeover target

14 Jun 2017

At a price of almost $20 bln, the Swedish manufacturing software group offers a poor return for a buyer. That may not deter a rival such as ABB tooling up for the switch to automated factories. If globalisation goes into retreat, such a deal could even prove forward-thinking.

Getting Uber out of reverse hard for whoever’s CEO

12 Jun 2017

Whether it's Travis Kalanick or anyone else, running a sprawling enterprise is a challenge. Uber also faces a mass exodus of senior executives, a toxic culture about to be laid bare and a business model based on inventing the future. Downward spirals in tech don't often end well.

Tech selloff lumps apples with oranges

12 Jun 2017

Shares in technology giants including Apple, Facebook and Amazon have suddenly tumbled. Given their rapid ascent this year, a correction always seemed likely. Still, such sector-wide moves obscure huge differences in different companies’ earning power and cash reserves.

Data-center realty disconnects from tech reality

12 Jun 2017

The race by Amazon, Google and other firms to dominate cloud computing has brought huge demand for server farms. A $7.6 bln merger of Digital Realty and DuPont Fabros creates one of the biggest such collections. It's a good use of overvalued stock, but still too pricey.

Review: Zippy Uber trip gets barely halfway there

9 Jun 2017

Readers of "Wild Ride" are in safe hands with Fortune's Adam Lashinsky at the wheel. The book is efficient and effective, like travel using Uber's app. Given the fast pace of events for the $68 bln firm, however, life already has sped past this literary journey's destination.

SoftBank gets robotic leg-up from Alphabet

9 Jun 2017

The Japanese group is buying U.S. robot-maker Boston Dynamics. The undisclosed price was probably not high, since Alphabet was a keen seller. Boston’s dog-like automatons are scarier than SoftBank’s cutesy android Pepper. But both help SoftBank prepare for a robot-heavy future.

Jack Ma’s data ambitions get investor green light

9 Jun 2017

Investors rewarded Alibaba with another $41 bln in market value after the e-commerce giant unveiled startlingly optimistic revenue growth forecasts. It's a powerful vindication of Ma's forays into AI and cloud technology. Expectations for Alibaba to deliver are higher than ever.

Facebook investors shouldn’t discount fake news

7 Jun 2017

Investors spurned a proposal that the social network report on the business risks of bogus news on its site. It’s a complacent stance on a topic Mark Zuckerberg has started taking seriously. At least opposition to multiple voting rights suggests governance isn’t a dead issue.

Earnings will be late dessert for Delivery Hero

6 Jun 2017

The Berlin-based food delivery startup is prepping a listing valuing it at around 4.5 bln euros. The loss-making group needs to double sales by 2019 to achieve the same valuation as rivals like Just Eat. Its fat war chest should help. But investors are in for a low-profit diet.

UK cyberspace crackdown faces reality checks

5 Jun 2017

Prime Minister Theresa May pledged new curbs on extremist propaganda and communications via YouTube, WhatsApp and the like following attacks in London and Manchester. Such promises can be good politics, but to actually happen they must make technological and economic sense.

Spat exposes Alibaba’s dependence on shared data

5 Jun 2017

The e-commerce giant has resolved an information-sharing dispute with delivery partner SF Holding for now. But the squabble shows the risk uncooperative partners pose to Jack Ma's plan to use cloud technology and AI in shopping, logistics and finance. Expect more tiffs to come.

Review: Tragedy makes Facebook a better place

2 Jun 2017

COO Sheryl Sandberg’s "Option B," a moving exploration of grief, emerged from the death of her husband. Top executives rarely reveal so much. She has also changed Facebook's policies. More so than "Lean in," Sandberg's new book sets her up as the $450 bln firm's best ambassador.

Top U.S. CEOs revolt against reality TV version

2 Jun 2017

Donald Trump’s rejection of the Paris climate pact drew swift opposition from corporate bosses, including those of GE and Goldman. The Tesla and Disney chiefs quit his advisory council. Losing business support this early bodes poorly for the administration’s economic promises.

Art world upstart sprays tech fortune on canvas

2 Jun 2017

Japan's Yusaku Maezawa is building a collection of Basquiats and other masterpieces. The soaring value of his fashion portal vividly illustrates how investors are enchanted by the tech industry’s fast growth and fat margins. It also means he can afford to paint the town red.

NXP activists have a good shot at a sweeter offer

31 May 2017

Qualcomm is short of support for the purchase of its Dutch rival for $47 bln including debt. A rally in the chip sector has eroded the premium, and Qualcomm is desperate for diversification. A price hike looks needed to get NXP's owners – including agitator Elliott – on side.