Today’s initial public offering of Weibo, China’s answer to Twitter, has provoked a combination of downbeat handwringing 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 came in at $17 each, the bottom of the range, putting the group’s $3.8bn valuation just over half what it had hoped to raise 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