Technology

Tesla’s surprise surge lights up China policy risk

15 Mar 2017

The electric carmaker unexpectedly tripled sales in the People's Republic last year to $1 bln. Favourable licence plate policies adopted recently in key cities are a likely factor. For Tesla, China's fast-moving green car rules can be as much an opportunity as they are a problem.

Chipmaker’s chairman short-circuits shareholders

10 Mar 2017

The man leading Cypress Semiconductor's board also helps run a Beijing-backed private equity firm that's buying a tech outfit Cypress eyed in the past. Cypress' recently departed founder now wants the chairman ousted. The governance and conflicts could fry the corporate wiring.

Intel puts self-driving pedal to financial metal

13 Mar 2017

Buying Mobileye for $15 bln values the autonomous-car parts supplier at 30 times estimated revenue. It’s possible to see how Intel’s gamble could pay off in this rapidly growing market. But its M&A record is patchy and the price assumes near-perfect success in a far-flung future.

White House disrupts Silicon Valley pecking order

10 Mar 2017

Trump's arrival has rearranged how tech firms stack up in Washington. Some have criticized the U.S. president's policies while others see opportunities to sway the new regime. The shift has legal battles between Oracle and Google, and Apple and Qualcomm spilling over into D.C.

Bitcoin’s ETF drive may spark volatile backfire

9 Mar 2017

The Winklevoss twins of Facebook fame are among those who want to open up the crypto-currency to a wider audience via an exchange-traded fund. Watchdog approval could unleash big inflows, but also fuel bitcoin’s scariest white-knuckle ride yet – and impede mainstream acceptance.

Cox: Kalanick gives future Uber investors a lift

9 Mar 2017

The longer the impulsive founder remains at the wheel, the more apparent the flaws become at the $68 bln ride-hailing app. The jig is up on violating livery laws, as it may be on avoiding capex now that drivers understand depreciation. It's best all this happens before an IPO.

SoftBank loses focus with $100 bln Vision fund

9 Mar 2017

The Japanese giant may inject an $8 bln stake in chip designer ARM into the tech fund, at the behest of the latter. Other recent buys will also be offered. That would help SoftBank pare debt. But the benefits of Vision are tainted by a related deal frenzy and murky relationship.

Britain needn’t fear SoftBank’s pass-the-parcel

8 Mar 2017

The Japanese tech group may shift part of its stake in British chip designer ARM to a $100 bln fund forged with Saudi Arabia. If SoftBank and ARM's board retain control, commitments over UK jobs should be upheld. A more international shareholder base may extend ARM's clout.

Virtual-reality hype fades, 3D printing solidifies

6 Mar 2017

Tepid sales, legal questions, immature technology and a chicken-and-egg problem are putting dreams of immersive digital worlds on the back shelf. Meanwhile, steady progress is burning away disillusionment over digital manufacturing to order, as a Ford initiative makes clear.

Snap deal is latest in NBC’s Ponce de León series

3 Mar 2017

The U.S. TV network plunked $500 mln into the hyped IPO after some promising experiments with the messaging app. Comcast-owned NBC also has made big investments in BuzzFeed, Vox and other millennial-hunting firms. Beware older generations on epic quests for the fountain of youth.

Toshiba meter sale may ease chip selloff pressure

3 Mar 2017

The stricken Japanese group is mulling a sale of its power meter subsidiary for $2 bln. The proceeds are unlikely to shore up finances much. But disposing of a non-core, underperforming unit is sensible, and it may help Toshiba hold on to more of its prized chip unit.

Viewsroom: SoftBank deal frenzy lacks hard logic

2 Mar 2017

The giant Japanese tech firm has been on a global M&A tear, but shareholders aren’t buying it. President Trump's mix of details-free policy pledges and jingoistic militarism looks dazed, confused and dangerous. Plus: Silvio Berlusconi's AC Milan sale puts Chinese buyers offside.

Cox: Snap IPO marks moment investors donned sweats

2 Mar 2017

The "camera company" debuted successfully because buyers swapped pinstripes for baggy cotton and abrogated their right to fair treatment, good governance and reasonable valuations. If $24 bln Snap becomes the next GoPro, shareholders have only their capitulated selves to blame.

Wells Fargo beats Yahoo on crisis clawbacks

2 Mar 2017

Both companies are docking executives' pay for failing to deal with long-running scandals. Yahoo CEO Marissa Mayer is losing some 2016 and 2017 bonuses after a 2014 security breach. Wells' decision to reach further back in time is a more appropriate response to a multi-year mess.

China bike-sharing turns into VC pileup

2 Mar 2017

Startups Mobike and ofo have raised huge sums. But a glut of venture capital sloshing around, combined with misguided state support for entrepreneurship, has attracted a parasitic swarm of competitors too. Without policy changes, investors could suffer, as could the public good.

Amazon outage triggers internet alarm

1 Mar 2017

Websites, apps, connected cameras and the like went dark on Tuesday after a breakdown of the online giant's cloud service. Amazon's dominance, Silicon Valley's self-confidence and users’ reluctance to pay extra for backup all add up to rising risk for the internet of things.

Harry Potter conjures Japanese growth for Comcast

1 Mar 2017

The U.S. cable giant is paying $2.3 bln to buy out Goldman Sachs and other partners in Universal Studios Japan. The theme-park operator's success highlights a part of the Japanese economy where growing domestic consumption is no chimera. A boom in tourism helps too.

Snapchat valuation requires different filters

28 Feb 2017

Parent Snap is set to go public this week. The traditional market cap at the top of the indicated range is $18.5 bln. Including stock promised to staff, that shoots up to $22.3 bln. Blocking out new money, it's $20 bln. All tallies demand heart-shaped, rose-tinted lenses, though.

SoftBank satellite bid orbits optimistic creditors

28 Feb 2017

The Japanese telecom group wants to merge its OneWeb startup with industry titan Intelsat. A combination depends on bondholders accepting haircuts on much of the $14 bln in debt. There's a juicy quid pro quo: long-term backing from Masayoshi Son’s giant tech fund.

Pilot error poses biggest risk to Thales ascent

28 Feb 2017

A successful restructuring has left the French defence and aerospace group well positioned to benefit from any increase in governments’ defence spending. The biggest hazard is that growing financial strength may tempt boss Patrice Caine into value-destroying big-ticket M&A.