Technology

Masayoshi Son could make easy work of $100 bln job

27 Feb 2017

His SoftBank may plunk $4 bln into office-space upstart WeWork. Son blanched at two earlier opportunities to invest at valuations lower than the $20 bln now on offer. One big difference is the Vision mega-fund. Perspectives can change when other people's money gets in the mix.

Buffett’s $1 trln target for Apple is in sight

27 Feb 2017

The Berkshire Hathaway boss reckons the iPhone maker might be the first company worth that much. Growth has slowed, but Apple will continue to churn out huge profit for the foreseeable future. Just valuing the underlying business in line with the S&P 500 would hit the mark.

China’s unicorn shortcut sidelines IPO reform

27 Feb 2017

The securities watchdog is mulling faster listing approvals for big tech firms. Letting Jack Ma's $60 bln Ant Financial jump the queue may convince other entrepreneurs to follow, eschewing New York and Hong Kong. But this would be a poor substitute for meaningful IPO reform.

Viewsroom: We need to talk about Uber

23 Feb 2017

A former employee accused the ride-hailing company of sexual harassment and gender discrimination. It’s not only bad form but yet another roadblock for money-losing Uber. Plus, where do Kraft Heinz and its owner 3G go after their failed $143 billion bid for Unilever?

Ctrip maps route to become China’s next web giant

23 Feb 2017

A near-monopoly in online travel makes Ctrip an attractive bet on Chinese tourism. Better-than-expected results and punchy growth targets have also impressed investors. If the $24 bln outfit stays on course, it may join Baidu, Alibaba and Tencent among China's online elite.

Tesla investors shift into new cultish gear

22 Feb 2017

The $45 bln electric-car maker's latest results fail to help explain the huge recent jump in its share price. More calls for capital are likely, production targets are tough and the SolarCity deal remains a mystery. More than ever, owning Tesla means revering boss Elon Musk.

Baidu’s AI reboot is overdue and welcome

22 Feb 2017

The scandal-hit search engine is prioritising artificial intelligence. Playing to its core strength is sensible. But after costly diversions into video streaming and food delivery, the Chinese tech group owes investors an explanation of how this new pivot will deliver profit.

Uber’s missteps add up to revenue disruption

21 Feb 2017

The car-hailing firm hired a former top U.S. government lawyer to probe claims of sexual harassment. That's potentially serious. It's also another business risk. Already on the back foot with urbanites, CEO Travis Kalanick may need to start asking more questions first.

Viewsroom: Trump’s management failures

16 Feb 2017

The president's vacillating over firing national security adviser Michael Flynn is the kind of mistake that gets corporate chiefs fired. Toshiba deals its way to a $6.3 bln loss. California's water woes are a national wake-up call. And Wall Street parties like its 2007.

Patent anger makes Apple Qualcomm’s new Nokia

16 Feb 2017

The iPhone maker's $1 bln claim against its cellphone-chip supplier echoes a showdown a decade ago that threatened to derail Qualcomm's business model. Then, settlements with Nokia and others helped line up another decade of healthy earnings. Qualcomm needs a repeat performance.

Snap’s IPO momentum could be hard to break

16 Feb 2017

The messaging app is seeking a valuation of up to $18.5 bln, less than in its last private fundraising. A cautious initial price may lure buyers. Despite Snap's fading user growth and poor governance, the hype and dearth of new issues mean investors are unlikely to disappear.

Yahoo paying small price for big hacks

15 Feb 2017

The $40 bln internet company may be on the verge of discounting its core-business sale to Verizon by $250-350 mln, less than a 10 pct cut in the original price. For such poorly handled data breaches involving over 1 bln users, some 25 cents each seems a light penalty.

Wall St veterans help SoftBank party like it’s ’07

15 Feb 2017

The Japanese group is nearly as much fun for financiers now as Wall St was precrisis. So, for example, an ex-Deutsche credit trader is masterminding a $100 bln tech fund. Hopefully this new mix of big money, ambition and complexity will end better than those heady years did.

SoftBank’s bet on Fortress is a smart acqui-hire

15 Feb 2017

SoftBank boss Masayoshi Son is following through - in a big, unexpected way - on his investment pledge to Donald Trump. Buying Fortress for $3.3 bln won't add any tech luster to SoftBank, but the $70 bln alternative-investment firm provides a platform for acquisition-led growth.

Toshiba memory-chip selloff is drastic medicine

14 Feb 2017

The Japanese group unveiled a $6.3 bln writedown, forecast negative equity and parted company with its chairman. The delivery was chaotic but the message well-telegraphed. The possible sale of a majority of its most valuable unit is new, and reveals the depth of its crisis.

Apple sows seeds for India iPhone awakening

10 Feb 2017

The company is nearing a deal to assemble phones in one of the world's fastest growing handset markets. That may lower retail prices and boost potential sales. But lifting Apple's 2 pct market share depends on opening stores and resolving thornier issues like selling used models.

Viewsroom: Keeping banks in the sin bin

9 Feb 2017

President Trump wants to "do a number" on post-crisis financial reforms, but overturning them will be tough. Paris emerges as the top city for financial types after Brexit. Plus, why a legal brief filed by Google and others against Trump’s immigration ban is such an unusual move.

Twitter CEO’s excuses look like fake news

9 Feb 2017

Donald Trump's preferred social-media platform posted a feeble 1 pct increase in Q4 sales. Boss Jack Dorsey, also CEO of Square, said ad revenue would lag user growth, but Twitter only added 4 pct more monthly users. If the two-timing boss is giving his all, it's not enough.

Infineon U-turn is canary in Trumpian coal mine

9 Feb 2017

The German semiconductor group abruptly warned its Wolfspeed deal could be blocked by the U.S., a week after saying all was well. American regulators have tended to get antsy when Chinese deals are involved. A protectionist in the White House implies this could now be broadened.

Ant shows off its might with $3 bln debt round

9 Feb 2017

Banks are lining up to help the Chinese fintech giant raise cash. Taking on U.S. dollar debt when China is tightening capital controls is sensible. The Alibaba affiliate can also flex its muscles with bankers and sound out the market before a much-anticipated IPO.