© The Financial Times Ltd 2014 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
Want to hear a Silicon Valley joke? Two geek billionaires walk into a coffee shop and nobody notices.
There’s no punchline. This actually happened a couple of weeks ago when I was in Mountain View and the co-founders of WhatsApp popped into their local for a brew. Despite being full of start-ups, nobody in the Red Rock Café seemed to recognise the pair who had just sold their app to Facebook for upwards of $16bn.
WhatsApp has almost 500m active users around the world but many in Silicon Valley’s elite only discovered the chat app when Mark Zuckerberg opened his chequebook. It’s entirely possible that, in the past year, more people here have tried Google Glass, the sci-fi headset that most outside Silicon Valley love to hate, than sent a message on WhatsApp. Read more
The prospect of a US-based IPO by Chinese e-commerce juggernaut Alibaba has triggered a recent wave of short-term conjecture over the eye-watering figures involved.
A listing could garner as much as $25bn for example – making it the largest float in history. Wall Street banks could reap up to $400m in fees. Alibaba’s $170bn annual revenue now accounts for 2 per cent of China’s gross domestic product, and is bigger than those of eBay and Amazon combined.
The company, co-founded by Twitter’s Jack Dorsey, is today unveiling Spanish language support and software in hopes of tapping into the purchasing power of America’s more than 50m Latinos. Read more
Alibaba’s decision to head to the US for its blockbuster IPO – perhaps the world’s largest ever – is undoubtedly a major blow to Hong Kong’s global ambitions.
But chucking out years of hard-won progress for a single pay-day – with the risk of opening
the market to myriad potential problems down the road – would have been the wrong move.
The BBC thinks its iPlayer service is “the best online television service in the world” – a platform so good that it’s the envy of Silicon Valley. So will Apple and Google be impressed by the platform’s latest redesign, unveiled in London on Tuesday?
This is a crucial time for the iPlayer: it will soon become the only home of BBC Three, the off-beat channel which is being taken off air to save costs. Tony Hall, the BBC’s director-general, wants the platform to be the “front door” to all the broadcaster’s content.
So what’s on offer in the new version? Read more
Almost five years after launching, crowd-funding platform Kickstarter has received pledges worth $1bn. Half of the money has apparently been in the past twelve months (see chart below).
If Kickstarter were a venture fund, it would be a fairly significant player. So how exactly has humanity been enriched, for its money? Read more
News that Sina has hired Goldman Sachs and Credit Suisse to help spin off its Twitter-like Weibo service means it is the latest communications tool – after the acquisitions of chat apps WhatsApp and Viber – that investors will be asked put a value on.
Details about the potential New York IPO remain scant, other than that it could value Weibo at more than $5bn. The FT’s Lex has posed some probing questions about the floatation (i.e. Why?) but here are a few more. Read more
Is $19bn a lot of money? It certainly sounds like it – that’s what Facebook thought WhatsApp was worth when it scooped up the messaging app on Wednesday.
The fate of social networks depends on being able to turn huge pools of users into a source of cash. So one way to assess whether Mark Zuckerberg got value for money is to look at how much he paid per WhatsApp user compared with the price of each person in other networks: Read more