The initial public offering of Weibo, China’s answer to Twitter, has provoked a combination of downbeat hand wringing and gleeful hand rubbing about the effect of the global tech sell-off on new companies coming to market.
So are investors fair in how they’re pricing Weibo? The company’s shares were priced at $17 each, the bottom of the range, putting the group’s valuation at $3.8bn after raising more than double the amount it had hoped for earlier in the year. 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
IBM has a tried and trusted method for turbo-charging its growth in promising new IT markets: rebrand its existing efforts in the field in question, boast about all the investments it’s already made – and then promise to double them.
Analytics, security and ecommerce have all come in for this kind of treatment, making them bright spots in an otherwise low-growth company. Now it’s the turn of mobile computing. Read more
The love affair with the mobile phone appears to have faltered a little, with worldwide mobile phone sales down for the second quarter in a row, according to new figures from Gartner. But is this just a small hiatus as consumers wait for the next round of handsets from Apple and Samsung to hit the shelves later this year, or a sign of something deeper?
Gartner is clearly a little worried, as it is paring back its earlier estimates for 2012 handset sales by between 25m and 40m units. Its not a huge drop, only about 2 per cent of the estimated 1.9bn unit sales this year, but Anshul Gupta, analyst at Gartner says he has been a little surprised by the fall. Read more
Coffee and techies go together like donuts and policemen, one the voracious consumer of the other. They have named programming languages after the stuff. And so the alliance between Starbucks and Jack Dorsey’s Square mobile payments start-up seems quite natural.
Starbucks has never been shy of experimenting with technology, having been one of the first US coffee shop chains to offer customers free wi-fi access. Starbucks also has its own mobile app, which allows customers to pay for their coffees using a phone. Although these mobile payments are still just a tiny fraction of overall revenues, it is considered one of the most successful mobile payments systems in use so far. Read more