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Bitcoin Continues Slide Over Banning Fears

January 17, 2018 by  
Filed under Around The Net

Bitcoin fell 18 percent on Tuesday to a four-week trough close to $11,000, after reports that a ban on trading of cryptocurrencies in South Korea was still an option drove fears grew of a wider regulatory crackdown.

Bitcoin’s slide triggered a massive selloff across the broader cryptocurrency market, with biggest rival Ethereum down 23 percent on the day, according to trade website Coinmarketcap, and the next-biggest, Ripple, plunging 33 percent.

South Korean news website Yonhap reported that Finance Minister Kim Dong-yeon had told a local radio station that the government would be coming up with a set of measures to clamp down on the “irrational” cryptocurrency investment craze.

South Korea had said on Monday that its plans to ban virtual coin exchanges had not yet been finalized, as government agencies were still in talks to decide how to regulate the market.

 Bitcoin slid on the latest news, trading as low as $11,191.59 on the Luxembourg-based Bitstamp exchange, down 18 percent on the day, for a short period putting the digital currency on track for its biggest one-day fall in three years.

“It’s mainly been regulatory issues which are haunting the cryptocurrency, with news around South Korea’s further crackdown on trading the driver today,” said Think Markets chief strategist Naeem Aslam, who holds what he described as “substantial” amounts of bitcoin, Ethereum and Ripple.

“But we maintain our stance. We do not think that the complete banning of cryptocurrencies is possible,” he said.

Cryptocurrencies enjoyed a bumper year in 2017 as mainstream investors entered the market and as an explosion in so-called initial coin offerings (ICOs) – digital token-based fundraising rounds – drove demand for bitcoin and Ethereum, the second-biggest digital unit.

The latest tumble leaves bitcoin down more than 40 percent from the record high around $20,000 it hit in mid-December, wiping about $130 billion off its “market cap” – the unit price multiplied by the total number of bitcoins that have been released into the market.

The news from South Korea came as it emerged a senior Chinese central banker had said authorities should ban centralised trading of virtual currencies as well as individuals and businesses that provide related services, according to an internal memo from a government meeting seen by Reuters.

Bloomberg reported on Monday that Chinese authorities plan to block domestic access to Chinese and offshore cryptocurrency platforms that allow centralised trading.

 “(It) seems like it’s uncertainty spooking the markets,…with regulations unclear,” said Charles Hayter, founder of data analysis website Cryptocompare. “(Traders) are taking profits on the increased risk scenarios going forward.”

A director at Germany’s central bank said on Monday that any attempt to regulate cryptocurrencies must be on a global scale as national or regional rules would be hard to enforce on a virtual, borderless community.

Ford Aims For 22 Electric Vehicles By 2022

January 16, 2018 by  
Filed under Around The Net

Ford Motor Co will significantly increase its planned investments in electric vehicles to $11 billion by 2022 and have 40 hybrid and fully electric vehicles in its model lineup, Chairman Bill Ford announced at the Detroit auto show.

The investment figure is sharply higher than a previously announced target of $4.5 billion by 2020, Ford executives said, and includes the costs of developing dedicated electric vehicle architectures. Ford’s engineering, research and development expenses for 2016, the last full year available, were $7.3 billion, up from $6.7 billion in 2015.

Ford Chief Executive Jim Hackett told investors in October the automaker would slash $14 billion in costs over the next five years and shift capital investment away from sedans and internal combustion engines to develop more trucks and electric and hybrid cars.

Of the 40 electrified vehicles Ford plans for its global lineup by 2022, 16 will be fully electric and the rest will be plug-in hybrids, executives said.

“We’re all in on this and we’re taking our mainstream vehicles, our most iconic vehicles, and we’re electrifying them,” Ford told reporters. “If we want to be successful with electrification, we have to do it with vehicles that are already popular.”

General Motors Co, Toyota Motor Corp and Volkswagen AG  have already outlined aggressive plans to expand their electric vehicle offerings and target consumers who want luxury, performance and an SUV body style – or all three attributes in the same vehicle.

Mainstream automakers are reacting in part to pressure from regulators in China, Europe and California to slash carbon emissions from fossil fuels. They also are under pressure from

 Tesla Inc’s success in creating electric sedans and SUVs that inspire would-be owners to line up outside showrooms and flood the company with orders.

GM said last year it would add 20 new battery electric and fuel cell vehicles to its global lineup by 2023, financed by robust profits from traditional internal combustion engine vehicles in the United States and China.

GM Chief Executive Mary Barra has promised investors the Detroit automaker will make money selling electric cars by 2021.

Volkswagen said in November it would spend $40 billion on electric cars, autonomous driving and new mobility services by the end of 2022 – significantly more than when it announced two months earlier it would invest more than 20 billion euros on electric and self-driving cars through 2030.

Toyota is racing to commercialize a breakthrough battery technology during the first half of the 2020s with the potential to cut the cost of making electric cars.

Ford’s additional investments in electric vehicles contrasted with many of the vehicle launches at the Detroit show which featured trucks and SUVs. On Sunday evening, Daimler AG unveiled its new G-class SUV, a bulky off roader, in an abandoned movie theater in downtown Detroit once used as a set for the movie “8 Mile.”

Does CryptoCurrency Have Staying Power

January 4, 2018 by  
Filed under Around The Net

Cryptocurrency bitcoin has seen its value fall by 26 percent from in December 2017.

That comes as regulators in South Korea are threatening sanctions against cryptocurrencies such as bitcoin.

The value of bitcoin fell below $14,000 today. That, according to Bloomberg, is compared to the $19,000 plus figure on December the 18th.

Many financial analysts see bitcoin and other cryptocurrencies as bubbles which are ready to pop, leaving traders with a hole in their pocket. The South Korean moves follow concerns from other countries around the world, which wonder where the adoption of cryptocurrencies is going to end.

Meanwhile, according to CNBC, the Massachusetts Secretary of the Commonwealth described bitcoin as wild, uncontrollable and dangerous.

William Galvin said that investors in cryptocurrencies are playing with fire because of the way they can be manipulated. He said that the “wild” values showed how bitcoin is “entirely speculation”.

Courtesy-Fud

Will The Broadcom Hostile Takeover Succeed

December 26, 2017 by  
Filed under Computing

Over the last few weeks we’ve met with a few dozen Qualcomm and industry C level executives and of course discussed the potential Broadcom takeover of Qualcomm. The general conclusion is that this won’t happen as Broadcom might profit from it at the big expense of Qualcomm.

Qualcomm has quite a good roadmap with Snapdragon 845 and a few successors lined up for the years to come. A very important 5G NR chip should be ready for 2019. This will, without a doubt, be one of the most important technology transitions at the end of the decade.

Most analysts we talked about this matter including Patrick Moorhead and Anshel Sag of Moor Insights and Strategy, Jim McGregor from Tirias research and Bob O’Donnell from TECHnalysis Research think that Broadcom’s acquisition of Qualcomm is a bad idea. Here at Fudzilla we’ve had a lot of discussion about the acquisition and we cannot see how can this possibly be good for the industry or for Qualcomm.

As we said earlier, Broadcom, a company with a very unsexy roadmap, would benefit a lot. It would be able to show to its investors that it acquired the world leader in 5G, Android SoC, many wireless related technologies, and a great automotive and IoT portfolio. The list goes on.

Fudzilla got quite bullied by Broadcom’s  PR agency about the last article where our colleagues from the New York Post expected that Broadcom would slash one third of Qualcomm employees.

After many talks with senior stuff at Qualcomm, we haven’t heard a single head talking positive about it. Some of these off the record conversations resulted in comments including: “they (Broadcom) would fire us all.” Of course, Us in this semantic would be Qualcomm management.

Acquisitions are a long and painful process. One side must always suffer. A few weeks back, we talked about ex ATI employees who were in AMD’s graphics division. Despite the fact that AMD acquired ATI technologies in 2006, in some ways graphics people still felt that the acquisition didn’t finalize, 11 years later.

Of course, this sounds crazy but to some extent there is always “us and them” in this equation. As Fudzilla predicted, Broadcom’s putative acquisition of Qualcomm would slow down innovation and skew the roadmap with some significant delays.

Qualcomm senior management is very clear, they don’t want the company to be acquired. We doubt that a hostile takeover with the help of board members would work out either, this is never a good idea.

Tom Horton, Qualcomm’s Presiding Director also said: “No company in the industry is better positioned than Qualcomm in mobile, IoT, automotive, edge computing and networking and to lead the transition to 5G. Qualcomm stockholders expect a Board that will support this innovation while evaluating objectively the full range of opportunities available to maximize value for all Qualcomm stockholders.”

 Fudzilla has implied that the accusation might be to give Broadcom more business and enter into an eternal peace with Apple.

Courtesy-Fud

Daimler Buys Into Uber Rival, Chauffeur Prive

December 22, 2017 by  
Filed under Around The Net

German automaker Daimler has agreed to acquire a majority stake in Chauffeur Prive, a French rival to the larger Uber car-ride app, in the latest example of traditional companies looking to deal with challenges from technology-driven start-ups.

The deal was announced in a joint statement by both companies. The price of the acquisition, which will be carried out by the German company’s Daimler Mobility Services division, was not disclosed.

Chauffeur Prive was founded in 2011. The company says it has more than 1.5 million customers and access to 18,000 drivers, and the service is relatively popular in Paris.

Traditional automakers from around the world are examining how best to work on new, disruptive technologies – from electric vehicles to autonomous driving – that require hefty investment and have turned companies such as Google and Tesla into rivals.

Daimler has already made forays into the growing industry of car-ride hailing mobile applications.

In June, Dubai-based ride hailing firm Careem said it would step up its expansion into new markets after raising $150 million from investors, which included Daimler and Saudi Arabia’s Kingdom Holding.

Earlier this month, Daimler’s French rival Renault bought a stake in a glossy magazine publishing group, which it said formed part of its strategy to see how to keep travelers entertained in an era of driverless cars.

Sony Focuing On Its Sensor Business For Growth

December 21, 2017 by  
Filed under Consumer Electronics

Sony Corp is on track to report its highest-ever profit this year on strong sales of image sensors after years of losing ground in consumer electronics and hopes to develop the technology for use in robotics and self-driving cars as competition heats up.

The results will mark a significant turnaround for the conglomerate, once famed for leading the world in consumer gadgets such as its Walkman music player, but now finding a new focus on image sensors and gaming.

Sony  forecasts that operating profit in the year through March will more than double to 630 billion yen ($5.6 billion) compared with the year earlier and expects the chips division, most of which is made up of the image sensors business, to be the conglomerate’s biggest growth driver.

Executives say a technological breakthrough in image sensors and sea change in the company’s thinking are behind the success. The breakthrough, creating a sensor that captures more light to produce sharper images, coincided with soaring consumer demand for better smartphone cameras for sharing photos on social media.

The breakthrough, which involved reconfiguring the sensor layout and known as backside illumination, allowed Sony to grab nearly half of the market for image sensors.

“We knew we wouldn’t be able to win if we did what our rivals were doing,” said Teruo Hirayama, technology chief of Sony’s chip business, recalling initial skepticism around the technology that is now used widely.

Japanese names such as Hitachi Ltd,  NEC Corp and Fujitsu Ltd,  which dominated mainstream chips through the late 1980s, have lost business to Asian rivals such as Samsung Electronics.

 Sony’s success “is really a function of having decided a long time ago to focus on that niche within semiconductors,” says Andrew Daniels, a Tokyo-based managing director at Indus Capital, an investment management firm. He declined to say whether his fund owns Sony shares.

“The process technology is very much that kind of ‘takumi-no-waza’,” he said, using a Japanese phrase for the pursuit of manufacturing perfection.

Bitcoin Hits Another Record High

December 18, 2017 by  
Filed under Around The Net

Bitcoin sailed past another record of almost $18,000 on the Bitstamp exchange on Friday, up 9 percent on the day, as warnings grew over the risks of investing in the highly volatile and speculative instrument.

The cryptocurrency’s staggering recent price rises — more than 1,700 percent since the start of the year — have driven worries that the market is a bubble that could burst in spectacular fashion.

Bitcoin has climbed almost 80 percent so far in December alone, putting it on track for its best month in percentage terms since December 2013.

On Friday it reached as high as $17,900 BTC=BTSP on the Luxembourg-based Bitstamp exchange.

While bitcoin has added another fifth to its value since Monday, trading has been slightly calmer than the wild price swings the market has seen in recent weeks, with volatility lower since the launch of bitcoin futures from Cboe Global Markets on Sunday.

Market-watchers said bitcoin’s price was being lifted by the launch of rival CME Group’s bitcoin futures contracts on Sunday.

“The hope (is) that futures signal the unlocking of institutional money into the digital arena and (that there will be) a rapid demand increase and ratification of the technology and its principles,” said Charles Hayter, founder of industry website Cryptocompare.

But outside of the crypto market, worries continue to grow about the amount of money piling into the space.

A study by Anglia Ruskin University, Trinity College Dublin and Dublin City University released on Friday said bitcoin could pose a threat to the financial stability of traditional currencies and markets.

“Our evidence finds that the price of Bitcoin has been artificially inflated by speculative investment, putting it in a bubble,” said Larisa Yarovaya, one of the report’s authors and a lecturer at Anglia Ruskin University.

“Although bitcoin is not regulated by governments, it could still have a knock-on effect on traditional markets due to the interconnectedness of cryptocurrency markets with other financial assets.”

Others, however, say bitcoin’s total market size — around $300 billion — mean the impact of any future price collapse would not be large enough to have a knock-on effect on financial stability.

The BBC reported late on Thursday that the head of Britain’s Financial Conduct Authority, Andrew Bailey, had warned that bitcoin buyers should be prepared for the possibility that they could “lose all their money”.

Outages on some of the world’s biggest exchanges this week, which left millions of investors unable to access their funds during periods when trading volumes are high, have also fueled concerns about the fragility of the market’s infrastructure.

Toshiba AND Western Digital Settle

December 14, 2017 by  
Filed under Around The Net

Toshiba and Western Digital have agreed in principle to settle a dispute over the Japanese firm’s plans to sell its $18 billion chip unit and aim to have a final agreement in place next week.

Word on the street is that the Toshiba board has approved a framework for a settlement.

Western Digital had been able to block a deal to selling the unit to a Bain Capital-led consortium.

The settlement under discussion calls for Western Digital to drop arbitration claims seeking to stop the sale in exchange for Toshiba allowing it to invest in a new production line for advanced flash memory chips that will start next year.

A Toshiba spokesman said that while the company was open to a settlement, it would not disclose discussion specifics or details of board of directors meetings. “It is not a fact that we have reached an agreement with Western Digital,” he said.

Western Digital is not saying anything.

Toshiba was forced to put the unit – the world’s no. 2 producer of NAND chips – on the block to cover billions of dollars in liabilities arising from its now bankrupt US nuclear power unit Westinghouse.

The deal with the Bain-led consortium will, however, see it reinvest in the unit and together with Hoya a maker of parts for chip devices, Japanese firms will hold more than 50 percent of the business – a keen wish of the Japanese government.

As part of the planned settlement, Toshiba and Western Digital would extend existing agreements for their chip joint ventures in Yokkaichi, central Japan, one of the sources said. The current agreements are set to start expiring from 2021.

Western Digital would also invest in a completely new chip plant that Toshiba will start building next year in northern Japan, the source said.

Western Digital, one of world’s leading makers of hard disk drives, paid some $16 billion last year to acquire SanDisk, Toshiba’s chip joint venture partner since 2000.

With data storage key to most next-generation technologies from artificial intelligence and autonomous driving to the Internet of Things, NAND chips have only grown in importance and Western Digital has been desperate to keep the business out of the hands of rival chipmakers.

The sale still needs to clear the snarling mauls of the regulatory watchdogs but they are not expected to rip the trousers of the deal.

Courtesy-Fud

Is The EU Setting The Stage To Tame Bitcoin

December 7, 2017 by  
Filed under Around The Net

European Union and United Kingdom regulators will take action to prevent trading in the Bitcoin cryptocurrency being conducted under conditions of anonymity, amid claims that people are hopping on the bandwagon to finance drug dealing, terrorism and money laundering.

The plans aim to make traders reveal who they are and impose rules consistent with other financial trading.

The United Kingdom has already signaled its intention to regulate cryptocurrencies amidst fears that trading in cryptocurrencies – as well as being used for criminal purposes – also destabilizes the financial markets.

Meanwhile, the popular UK tabloid, The Sun, reports that a Brit dumped a laptop with over 7,000 “coins”, worth an estimated £74 million now. 

James Howells kept the hard drive that contained his hoard of “coins” but it was accidently thrown away and is now deep in a landfill that is hard to “mine”.

As readers of Fudzilla well know, the effect of “mining” has been to boost profits for firms like Nvidia and AMD, with “miners” forcing the price of add in cards through the roof.

Courtesy-Fud

SoftBank Gets Steep Discount On Uber Shares

November 29, 2017 by  
Filed under Around The Net

Japan’s SoftBank Group Corp has offered to acquire shares of Uber Technologies Inc at a valuation of $48 billion, a 30 percent discount to its most recent valuation of $68.5 billion, a person familiar with the matter said.

The investment, which was approved by the Uber board in October, would also trigger a string of governance changes at Uber that would limit some early shareholders’ voting power, expand the board from 11 to 17 directors and cut the influence of former Chief Executive Travis Kalanick.

The investment and board moves are supported by new Chief Executive Dara Khosrowshahi and come at the end of a year of scandals and change for Uber, including the announcement last week that executives covered up a major hack in 2016.

 The consortium of investors led by SoftBank and Dragoneer Investment Group plan to take a stake of at least 14 percent in the ride-services company. The tender offer will launch on Tuesday, sources told Reuters, and investors have nearly a month to respond.

The SoftBank-led investor group will acquire two of the new board seats, with the remaining four going to independent directors.

Another person familiar with the deal said the offer price was in line with what investors had been expecting. SoftBank’s offer is close to what Uber was worth in 2015, when shares were priced a little less than $40 apiece for a $51 billion valuation, according to data from PitchBook Inc.

Even at the discounted price, Uber is the world’s second-highest valued private venture-backed company, after China’s ride-service company Didi Chuxing, and the offer is a chance for early investors to lock in substantial profits and for employees to cash in shares that have to date only had value on paper. Shareholders, including employees, with at least 10,000 shares are eligible to sell.

Nearly all secondary transactions, when a new investor purchases from existing shareholders, come at a discount to the company’s valuation.

However, the 30 percent discount is steep given Uber’s plan to launch an initial public offering in 2019, said Phil Haslett, co-founder and head of investments at secondary marketplace EquityZen. Usually valuation cuts of this size happen when a company is at risk of being sold at a heavy discount, which Uber is not.

“It really comes down to a re-pricing of Uber’s value,” Haslett said.

Since it was valued at $68.5 billion more than a year ago, the company has been hit by scandals, including accusations of sexual harassment. It has also weathered federal criminal probes into software Uber used to deceive regulators and allegations of paying bribes to authorities in Asia, and a lawsuit by Alphabet Inc’s self-driving unit Waymo, accusing Uber of stealing trade secrets.

Square Allowing Bitcoins For Payments

November 17, 2017 by  
Filed under Around The Net

Payments company Square Inc announced that it has started allowing select customers to buy and sell bitcoins on its Cash app, as it looks to tap into a craze that has sent the cryptocurrency up nearly sevenfold this year.

For the most part though, institutional investors have stayed away from bitcoin BTC=BTSP, the original and largest cryptocurrency in terms of market capitalization, despite outperforming all the world’s traditional currencies.

 But Square, best known for its technology that allows merchants to process credit card transactions without a cash register or expensive system, says its customers have shown an appetite for the “alt-currency.”

“We’re always listening to our customers and we’ve found that they are interested in using the Cash app to buy bitcoin,” a company spokesperson said.

Traditional investors still view bitcoin as opaque and highly speculative with potential to collapse. The currency’s legitimacy has often been called into question because of its association with Silk Road, an online black market for illegal drugs.

China has already forced several bitcoin exchanges to close down, while Russia’s central bank said it would ban cryptocurrency trading websites. JPMorgan Chase & Co  Chief Executive Jamie Dimon has called cryptocurrency a “fraud”.

None of that has deterred investors who continue to buy bitcoins, and that had attracted the attention of U.S. exchange operators.

CME Group Inc,  the world’s largest derivatives exchange operator, said last month it will launch a futures contract for bitcoin later this year.

Rival Cboe Global Markets Inc is awaiting regulatory approval for a bitcoin exchange traded fund they announced earlier this year.

 Major financial firms will soon start to offer bitcoin or similar products as an investment option, with a turning-point product about six months away, Mike Novogratz, CEO of Galaxy Investment Partners, a firm that bets on cryptocurrencies said earlier this week.

Square did not say when it started rolling out the feature to customers or when it plans to make it available to all its customers.

Yahoo Out, Google In For Firefox Corporate Browser

November 16, 2017 by  
Filed under Around The Net

Alphabet Inc’s Google picked up a previous location as the default search engine on Mozilla Corp’s Firefox Internet browser in the United States and other regions as the browser maker stunned Verizon Communication Inc’s Yahoo by canceling their deal.

Google confirmed the move but declined, along with Mozilla, to disclose revenue-sharing terms of the multiyear agreement. Google’s growing spending to be the primary search provider on apps and devices such as Apple Inc’s iPhone has been a major investor concern.

 Google will be Firefox’s default search provider on desktop and mobile in the United States, Canada, Hong Kong and Taiwan, said Denelle Dixon, Mozilla’s chief business and legal officer.

The decision was “based on a number of factors including doing what’s best for our brand, our effort to provide quality web search and the broader content experience for our users,” Dixon said. “We believe there are opportunities to work with Oath and Verizon outside of search.”

Verizon said Mozilla terminating the Yahoo agreement caught it off guard.

“We are surprised that Mozilla has decided to take another path, and we are in discussions with them regarding the terms of our agreement,” said Charles Stewart, a spokesman for Verizon’s Oath unit, which oversees Yahoo.

The search provider switch came as Mozilla announced Firefox Quantum, a faster, new version of the browser that company says is “30 percent lighter” than Google Chrome in that it uses less computer memory.

For a decade until 2014, Google had been Firefox’s worldwide search provider. Google then remained the default in Europe while regional rivals such as Yahoo, Russia’s Yandex and China’s Baidu Inc replaced it elsewhere.

Former Yahoo Chief Executive Marissa Mayer won a five-year contract with Mozilla in 2014 when Firefox and Google’s Chrome browser were battling for users.

 Chrome’s U.S. market share has since doubled to about 60 percent, according to data from analytics provider StatCounter, with Mozilla, Apple Inc and Microsoft Corp browsers capturing the rest.

Yahoo paid Mozilla $375 million in 2015 and said that it would pay at least the same amount annually through 2019, according to regulatory filings.

Yahoo and Google aim to recoup placement fees by selling ads alongside search results and collecting valuable user data. Google said in October that contract changes drove a 54 percent increase in such fees to $2.4 billion in the third quarter.

 

Roku Signs Licensing Deal For Inclusion On Philips TVs

November 15, 2017 by  
Filed under Consumer Electronics

Roku Inc’s shares skyrocketed by 43 percent to a record high earlier this week after the streaming device maker said it signed a licensing deal that would put its technology on Philips-branded televisions in the United States this year.

The company said the licensing partnership with Japan’s Funai Electric Co Ltd, which manufactures Philips N.V. televisions for North American, would place its operating system on Philips’ smart TVs.

 Roku also said that it would give a $20 discount on its $69.99-priced streaming stick for the Black Friday weekend, and separately said its customer would get a free one-month trial of AT&T Inc’s streaming service DirecTV Now.

The barrage of news was well received by investors, who sent Roku’s shares jumping 28.5 percent to close at $42.71 on Monday. The stock hit a high of $47.49 earlier in the session.

“The price move was solely due to long shareholders bidding up ROKU’s stock price” and not due to investors covering their short positions in the stock, financial analytics firm S3 Partners said in a note.

S3 Partners said while the short interest in Roku has risen since its initial public offering (IPO) in late September, it has stayed relatively flat in November and isn’t likely to go up further due to the limited number of shares available to borrow.

Investors who sell securities short first borrow shares and then sell them, expecting the price to fall so they can then buy the shares back at the lower price, return them to the lender and pocket the difference.

Roku, one of the first to make a device to stream content such as from Netflix Inc onto TVs, is now combating deeper-pocketed entrants such as Apple Inc, Alphabet Inc’s Google and Amazon.com Inc among others.

Still, up to Monday’s close, Roku’s stock has now more than tripled from its IPO price of $14 on Sept. 27. The stock debuted at $15.78 on the Nasdaq on Sept. 28.

 Los Gatos, California-based Roku’s success in the stock market is in stark contrast to the fortunes of other technology companies to make their market debuts this year.

Snap Inc’s shares have fallen 26 percent since its February IPO, while Blue Apron Holdings Inc has lost about 70 percent since its IPO in June.

Qualcomm Rejects Broadcom’s Takeover Bid

November 15, 2017 by  
Filed under Consumer Electronics

Mobile chipmaker Qualcomm Inc officially rejected rival Broadcom Ltd’s $103-billion takeover bid, saying the offer undervalued the company and would face regulatory hurdles.

Shares of Qualcomm were up 1.8 percent at $65.74 in early afternoon trading, while those of Broadcom were down 0.4 percent at $263.95.

Broadcom said it would seek to engage with Qualcomm’s board and management, adding that it had received positive feedback from key customers and stockholders.

 “We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders and we are encouraged by their reaction,” the company said.

Both companies count Apple among their top customers. Analysts have said a deal between the two would help Qualcomm settle its legal battle with the iPhone maker as Broadcom has a closer relationship with Apple.

Analysts said Broadcom can now raise its bid, go for a proxy fight or launch a hostile exchange offer.

“Qualcomm’s ‘thanks, but no thanks’ response to the unsolicited bid by Broadcom isn’t surprising and we would be surprised if at this point, Broadcom didn’t move forward with a proxy fight,” Loop Capital analyst Betsy Van Hees told Reuters.

Tencent Takes Stake In Snapchat Company

November 10, 2017 by  
Filed under Mobile

Snapchat got a vote of confidence from a new investor.

Chinese tech behemoth, Tencent, has taken a 12 percent stake in Snap, the company that gave us disappearing messages first, reported the Financial Times. Tencent sits among China’s three biggest tech companies along with Baidu and Alibaba, collectively known as BAT.

The news, revealed in Snap’s quarterly filing with the US Securities and Exchange Commission on Wednesday, comes after the company posted disappointing results of its growth this quarter.

It’s not Tencent’s first investment in a US company, having bought a five percent stake in Tesla in March. Tencent, the creator of popular Chinese mobile game, Honour of Kings, also owns Riot Games, the makers of League of Legends.

It’s no secret that Tencent has been making efforts to expand to the US. Also the owner of Chinese messaging platform, WeChat, Tencent brought its digital payment service, WeChat Pay, to the country earlier this year.

In the filing, Snap said it has “long been inspired by the creativity and entrepreneurial spirit of Tencent.”

Tencent president Martin Lau said the company “looks forward to sharing ideas and experiences.” This could come in the form of a collaboration between both companies on mobile games and news feed, according to a statement obtained by Reuters.

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