Technology

Alibaba crafts an archetypal Davos deal

19 Jan 2017

The Chinese e-commerce giant unveiled a 12-year tie-up with the Olympics. This is more about status than financial returns. The blend of Chinese ambition, tech optimism and deal-doing among international elites is gold-standard Davos.

Samsung leads Elliott outside its comfort zone

19 Jan 2017

A graft scandal and ongoing probe of heir Jay Y. Lee cast uncertainty over the U.S. fund's second big showdown in South Korea. Elliott wants to restructure Samsung Electronics, where it has a $1.2 bln stake. But the activist may now have limited power to influence the outcome.

Netflix finances keep producing stranger things

18 Jan 2017

The $57 bln video-streaming service blew past quarterly subscriber expectations, quickly approaching 100 mln as it celebrated a decade online. After burning through still more cash, its share price soared to a new high. Apparently growth can come at almost any cost for Netflix.

LeEco’s $2 bln rescue rewards bad habits

16 Jan 2017

Property developer Sunac is ploughing funds worth more than half its market value into the overstretched TVs-to-electric cars group led by billionaire Jia Yueting. The partnership makes Jia's earlier pledge to slow down sound unconvincing, and could lead Sunac astray too.

Review: Mapping out China’s fast-changing internet

13 Jan 2017

The world's largest mobile economy is powered by an internet with Chinese characteristics, says Winston Ma. His book is an insightful guide to the forces behind the country's thriving tech sector. But it turns a blind eye to challenges faced by outsiders like Facebook and Airbnb.

Amazon repackages order for 1600 Pennsylvania Ave.

12 Jan 2017

The man moving in wants delivery of jobs and the e-commerce titan says it can supply 100,000 of them by mid-2018. That sounds impressive, but also tracks Amazon's workforce growth of late. It's just the sort of box with a bow, however, that seems to satisfy the intended recipient.

Uber for tech financial analysis proves elusive

12 Jan 2017

Bank regulators are unhappy with how Morgan Stanley and other advisers pitched a loan for the $70 bln ride-hailing app. Imaginative slicing and dicing of figures is an irksome investment-banking art. The Fed's leverage guidance is also messy, however, for unprofitable ventures.

Holding: Dealmakers can expect big MAC attack

11 Jan 2017

Unnerving tweets and fickle policy ideas from Donald Trump add to angst already undermining mergers like Abbott's $5.8 bln bid for Alere. Buyers invoke material adverse change clauses for escape purposes, but they're almost never enforced in court. That may be about to change.

Market indifference to Samsung swipe unhealthy

11 Jan 2017

Heir Jay Y. Lee is now a suspect in a corruption scandal involving South Korea's president. Yet shares in flagship unit Samsung Electronics comfortably beat an up market. Hardened investors are too used to local company bosses running into trouble – and deftly getting out of it.

Ma’s job offer to Trump is no Chinese peace pipe

11 Jan 2017

Alibaba founder Jack Ma met with the U.S. president-elect and pledged to create 1 mln jobs. Trump, well-pleased with this tribute, says he and the Chinese e-commerce tycoon will do "great things" together. There is less to both statements than meets the eye.

Wacky Yahoo rebrand obscures Verizon deal risk

10 Jan 2017

The firm is pressing on with the sale of its internet assets. Then boss Marissa Mayer will step back and what's left - mainly a stake in Alibaba - will be renamed Altaba. More importantly, though, the $4.8 bln deal is still far from certain. Mayer's task is to ensure it happens.

Alibaba’s new brick-and-mortar bet looks pricey

10 Jan 2017

The Chinese e-commerce giant thinks it can save physical retail. It's offering to take Intime, a struggling operator of mainland malls and department stores, private for $2.6 bln. This is a pricey experiment trying to solve China's traditional shopping woes with tech.

Carmakers rattled by Backseat-Driver-in-Chief

6 Jan 2017

President-elect Donald Trump's attacks on imports soured the mood ahead of next week's industry jamboree in Detroit. Scrapping a Mexico plant, as Ford did, is easy. Bigger upheavals could spell trouble, though, as a slowing market and autonomous driving jolt financial prospects.

Samsung hits a sweet spot in new technology cycle

6 Jan 2017

The world's biggest smartphone-maker expects fourth-quarter operating profit to top $7.7 bln, smashing expectations. As more devices move to new-generation memory chips and displays, Samsung's early investments in those areas are starting to pay off. That bodes well for 2017.

Breakingviews predicts a shaken-up world in 2017

3 Jan 2017

After the upheavals of 2016, governments, companies and investors face unfamiliar terrain. Once-unthinkable scenarios, good or bad, now seem possible. From the U.S. economy to European elections, from M&A to magic mushrooms, our financial insights offer a guide to the year ahead.

China’s search dinosaur struggles to find new life

4 Jan 2017

The search engine arm of Sohu, known for its online portal in the early 2000s, wants to list. That could free up resources for its parent to push into areas like video streaming, competing with giants like Baidu and Tencent. But Sohu's costly reinvention looks like a long shot.

Exec pay is crying out for a race to the bottom

3 Jan 2017

Battles against corporate excesses are worthy but come unstuck all too quickly. Bosses keep getting paid more than their predecessors. To save capitalism, some could tender their services more cheaply. The tradition of the $1 CEO serves as a template. Even better: work for free.

Breakingviews predicts a shaken-up world in 2017

3 Jan 2017

After the upheavals of 2016, governments, companies and investors face unfamiliar terrain. Once-unthinkable scenarios, good or bad, now seem possible. From the U.S. economy to European elections, from M&A to magic mushrooms, our financial insights offer a guide to the year ahead.

Drones will take off for big business

30 Dec 2016

Today's market mainly targets hobbyists. That will change in 2017, as countries clear up legal uncertainty and big corporations turn to commercial drones for everything from crop-dusting to parcel delivery. Tech groups from Intel to Chinese unicorn DJI should benefit.

Tencent heads for high score in gaming M&A

29 Dec 2016

China's biggest tech company will look abroad for growth in 2017. It will probably follow its $9 bln purchase of mobile hit-maker Supercell with similar-sized deals. But these will barely move the needle. A bolder move would be to bid for U.S. heavyweight Activision Blizzard.