Wednesday, May 31, 2006
Sun Also Sets on Tech Workers
I can't help but remember some of the heady headlines in the tech press pre-bust that read "Sun Also Rises."
That was when the Internet gold rush was on and Sun servers and software -- the picks and pans -- were sold for the online land grab. Sun hasn't seen much of that glitter in a while.
So it's perhaps appropriate to note that the Sun is setting for some tech workers, as reported today by The Mercury News, which knows a thing or two about layoffs.
The casualties at Sun: About 4,000 to 5,000 employees will get whacked.
New CEO and corporate hitman Jonathan Schwartz has successfully completed his gang initiation by pulling the trigger to prove he can suck up to the penchant for layoffs at Wall Street, which always likes a good bloodletting.
Schwartz has blogged at length about today's layoffs. He wrote one line that stood out:
"Our industry is littered with companies that try to be all things to all people. That's not Sun."
So why's all the fresh spaghetti still on the wall from throwing up half-cooked ideas at Sun?
And yet Schwartz in his blog posting on layoffs touts the strength of that Stanford University Network of R&D fat heads.
"Next, I'd like to focus on our research and development priorities.
As many of you are aware, Sun has one of the strongest R&D organizations in the world ..."
... leaving us with an operating system and microprocessor platform which makes our competitors begin to appear as partners. We have some demonstrable technology advantages... energy efficiency [for real???], operating systems innovation, dramatic gains in developer adoption. That's certainly the cornerstone of our recovery."
Are you sold on recovery yet?
Well, maybe if the Sun is setting in Silicon Valley it's rising in Bangalore.
That was when the Internet gold rush was on and Sun servers and software -- the picks and pans -- were sold for the online land grab. Sun hasn't seen much of that glitter in a while.
So it's perhaps appropriate to note that the Sun is setting for some tech workers, as reported today by The Mercury News, which knows a thing or two about layoffs.
The casualties at Sun: About 4,000 to 5,000 employees will get whacked.
New CEO and corporate hitman Jonathan Schwartz has successfully completed his gang initiation by pulling the trigger to prove he can suck up to the penchant for layoffs at Wall Street, which always likes a good bloodletting.
Schwartz has blogged at length about today's layoffs. He wrote one line that stood out:
"Our industry is littered with companies that try to be all things to all people. That's not Sun."
So why's all the fresh spaghetti still on the wall from throwing up half-cooked ideas at Sun?
And yet Schwartz in his blog posting on layoffs touts the strength of that Stanford University Network of R&D fat heads.
"Next, I'd like to focus on our research and development priorities.
As many of you are aware, Sun has one of the strongest R&D organizations in the world ..."
... leaving us with an operating system and microprocessor platform which makes our competitors begin to appear as partners. We have some demonstrable technology advantages... energy efficiency [for real???], operating systems innovation, dramatic gains in developer adoption. That's certainly the cornerstone of our recovery."
Are you sold on recovery yet?
Well, maybe if the Sun is setting in Silicon Valley it's rising in Bangalore.
Ask.com for Blog Search and You Shall Receive
IAC Interactive-owned Ask.com, formerly the butler-themed AskJeeves, is the latest to serve up blog search.
Ask.com appears to be bowing to interest in queries using blog search, a category occupied by Google Blog Search and Technorati, among others. The story was reported at News.com on Wednesday.
Barry Diller's IAC Interactive portfolio includes Citysearch, Ticketmaster, Match.com, Evite and other Internet sites. IAC Interactive also has such diverse holdings as cable TV's HSN and online lending exchange LendingTree.
For certain, interest in blog search is high right now as media companies act to integrate blogs into their mix and readers attempt to sift through what's out there. However, from a purely unscientific study of blog queries, it remains yet to be seen whether blog search engines dish up relevant results.
Ask.com appears to be bowing to interest in queries using blog search, a category occupied by Google Blog Search and Technorati, among others. The story was reported at News.com on Wednesday.
Barry Diller's IAC Interactive portfolio includes Citysearch, Ticketmaster, Match.com, Evite and other Internet sites. IAC Interactive also has such diverse holdings as cable TV's HSN and online lending exchange LendingTree.
For certain, interest in blog search is high right now as media companies act to integrate blogs into their mix and readers attempt to sift through what's out there. However, from a purely unscientific study of blog queries, it remains yet to be seen whether blog search engines dish up relevant results.
Tuesday, May 30, 2006
First-Quarter Internet Ads Up
Internet advertising in the United States increased about 38 percent compared with the same period a year ago, according to this report. Compared with the fourt quarter, it's up 6 percent.
That's good news for the CNETs, Yahoos and Googles. However, it's just a matter of time for advertising to take a dump. It's only a question of when.
That's good news for the CNETs, Yahoos and Googles. However, it's just a matter of time for advertising to take a dump. It's only a question of when.
When China Doesn't Need The Street: Bank of China
The world's largest IPO in six years is going out on the HK markets Thursday. It's China Bank at a whopping $9.7 billion.
"Hong Kong's new popularity for the mega IPOs is seen by some as the latest trend in globalization -- the rise of a new world with many financial capitals," says a report at BusinessWeek.
"Hong Kong's new popularity for the mega IPOs is seen by some as the latest trend in globalization -- the rise of a new world with many financial capitals," says a report at BusinessWeek.
'Apple v. Does' Ruling Recognizes Bloggers
While most were hightailing it for the holiday weekend, a California court on Friday was issuing a ruling in the closely watched Apple v. Does case.
In Apple v. Does, or O'Grady v. Superior Court, Justice Conrad Rushing of the 6th District Court of Appeal ruled in favor of bloggers, rejecting Apple's attempt to unmask sources of leaked product information that made its way to Web sites. The ruling grants online reporters and bloggers the same protections given to MSM (mainstream media) folks under California shield law.
"Today's decision is a victory for the rights of journalists, whether online or offline, and for the public at large," EFF Staff Attorney Kurt Opsahl, who argued the case before the appeals court last month, said in a statement on EFF's site. "The court has upheld the strong protections for the free flow of information to the press, and from the press to the public."
Column of note from News.com:
Who's a journalist? Now we know, thanks to Apple
Thursday, May 25, 2006
Dell Embraces Google, How Warm and Fuzzy
Certain members of the tech press are so enamored with Google that they're getting companies to hug it in their headlines: "Dell embraces Google," for example over at Red Ball.
Could you imagine this headline: Microsoft embraces Google? Just suppose, for a moment, that they were play buddies and not rivals. Wouldn't there be a big stink about how Microsoft is trying to monopolize the desktop if they cut such a deal? But this is Google, which does no evil.
Note this key phraseology in the Red Ball story today:
"A Dell representative said that the deal will not hamper consumer choice on the Dell desktop, however," the story reports.
Google
Dell
Microsoft
Could you imagine this headline: Microsoft embraces Google? Just suppose, for a moment, that they were play buddies and not rivals. Wouldn't there be a big stink about how Microsoft is trying to monopolize the desktop if they cut such a deal? But this is Google, which does no evil.
Note this key phraseology in the Red Ball story today:
"A Dell representative said that the deal will not hamper consumer choice on the Dell desktop, however," the story reports.
Dell
Microsoft
Digesting Enron
The big story is in: The long-awaited day has come for the Enron trial as Kenneth Lay has been convicted of all six counts against him and Jeffrey Skilling has been convicted of 19 of the 28 counts against him for conspiracy to commit securities and wire fraud. Observers of the Enron case have weighed in across blogs.
Professor Stephen Bainbridge of the blog ProfessorBainbridge has posted some thoughts on the verdict, which he says was somewhat predictable if you were checking with your bookie over at Tradesports. But here's some of Bainbridge's analysis:
"The acquittal of Skilling on some of the insider trading counts suggests the jury approached the issues with an open mind, contrary to defense claims that they could not get a fair trial in Houston.
"It's not the crime, it's the cover up. The real crimes at Enron mainly consisted of turncoat government witness Andrew Fastow's shady deals, but Skilling and, especially, Lay are going down for improperly misrepresenting Enron's fortunes."
The professor says that the Powers Report should be "your 'go to' document for background on the Enron mess."
Meanwhile, over at the WSJ.com's Law Blog, Peter Lattman points out what some observers had noticed: that Lay's testimony was less than flattering. He writes, Was Lay’s Testimony his Downfall? Lattman says:
"In the Law Blog’s view, Lay’s testimony proved fatal. Everyone expected a charming, avuncular presence on the witness stand; instead, what they got was an argumentative, challenging, embittered man who refused to accept any personal responsibility for Enron’s collapse. "
For Skilling, Lattman says, it came down to one thing: Credibility, Credibility, Credibility. He writes:
"A jury will grasp on to things that it can easily understand, like issues of veracity and personal credibility. And during cross-examination Skilling suffered some serious blows in that regard. Here are three aspects of the cross that might have been issues ..."
BusinessWeek has a first-person piece from Jeffrey Skilling's ex-girlfriend, who was dragged into involvement with the case for Lay's and Skilling's combined $270,000 investments in her Internet startup, Photofete. She explains how she had forgotten about the matter until it made front-page news. She writes about the case:
"Skilling and Lay admitted that they had not disclosed their investment in Photofete, though I wish they had! That appeared to constitute a clear violation of the company's ethics rules ...
"Skilling's and Lay's efforts to explain their actions got them into even hotter water. 'Rules are important,' Lay told the jury, 'but you shouldn't be a slave to rules either.' Prosecutor Kathy Ruemmler loved that quote so much that she made it a highlight of her closing argument."
Professor Stephen Bainbridge of the blog ProfessorBainbridge has posted some thoughts on the verdict, which he says was somewhat predictable if you were checking with your bookie over at Tradesports. But here's some of Bainbridge's analysis:
"The acquittal of Skilling on some of the insider trading counts suggests the jury approached the issues with an open mind, contrary to defense claims that they could not get a fair trial in Houston.
"It's not the crime, it's the cover up. The real crimes at Enron mainly consisted of turncoat government witness Andrew Fastow's shady deals, but Skilling and, especially, Lay are going down for improperly misrepresenting Enron's fortunes."
The professor says that the Powers Report should be "your 'go to' document for background on the Enron mess."
Meanwhile, over at the WSJ.com's Law Blog, Peter Lattman points out what some observers had noticed: that Lay's testimony was less than flattering. He writes, Was Lay’s Testimony his Downfall? Lattman says:
"In the Law Blog’s view, Lay’s testimony proved fatal. Everyone expected a charming, avuncular presence on the witness stand; instead, what they got was an argumentative, challenging, embittered man who refused to accept any personal responsibility for Enron’s collapse. "
For Skilling, Lattman says, it came down to one thing: Credibility, Credibility, Credibility. He writes:
"A jury will grasp on to things that it can easily understand, like issues of veracity and personal credibility. And during cross-examination Skilling suffered some serious blows in that regard. Here are three aspects of the cross that might have been issues ..."
BusinessWeek has a first-person piece from Jeffrey Skilling's ex-girlfriend, who was dragged into involvement with the case for Lay's and Skilling's combined $270,000 investments in her Internet startup, Photofete. She explains how she had forgotten about the matter until it made front-page news. She writes about the case:
"Skilling and Lay admitted that they had not disclosed their investment in Photofete, though I wish they had! That appeared to constitute a clear violation of the company's ethics rules ...
"Skilling's and Lay's efforts to explain their actions got them into even hotter water. 'Rules are important,' Lay told the jury, 'but you shouldn't be a slave to rules either.' Prosecutor Kathy Ruemmler loved that quote so much that she made it a highlight of her closing argument."
MSFT's Vista: On track to be off track
Ballmer indicates in this Reuters story here that Microsoft is on track with Vista. But on track for a delay is more what it sounds like:
"It's on track, but we're going to see what kind of feedback we get from users ... and we're going to work to make sure it's absolutely a high-quality product. That's number one," Ballmer told a news conference at the Seoul Digital Forum.
I hear: Blah, blah, blah, DELAY, blah, blah, blah. Oh, wait my Windows XP is crashing right n ...
"It's on track, but we're going to see what kind of feedback we get from users ... and we're going to work to make sure it's absolutely a high-quality product. That's number one," Ballmer told a news conference at the Seoul Digital Forum.
I hear: Blah, blah, blah, DELAY, blah, blah, blah. Oh, wait my Windows XP is crashing right n ...
Wednesday, May 24, 2006
Lenovo Loss Lags Expectations
No. 3 computer maker Lenovo posted a worse-than-expected loss in the fourth quarter.
Reuters story here.
It bought IBM's PC business last year.
Reuters story here.
It bought IBM's PC business last year.
MSFT: 'We're on Superdeadline' for Vista
The latest line from the software maker, "We're on superdeadline," regarding Vista, courtesy of a Q&A over at CNET News.com. So let me figure out this development schedule for Vista:
- Deadline: To get it out eventually after many delays in 2004
- Superdeadline: To meet a November date in 2006
- Superduper deadline: The deadline that's after November gets missed.
VC Forecast: Hot?
Law firm Fenwick & West has dished out results from its first-quarter 2006 Silicon Valley Venture Capital Survey.
The San Francisco Bay Area VC benchmark analyzed the valuations and terms of venture financings for 101 technology and life science companies based in the area. And if the climate keeps getting better for venture capital, it might be time for still hotter predictions.
Take their barometric reading: Fenwick & West's Venture Capital Barometer -- the measurement of change in share price of Silicon Valley companies funded during the quarter compared with their previous financing round -- was up 64 percent. Does this mean it's going to start raining VC money soon?
Compare it with a San Jose Mercury News report on Fenwick's survey of December 2005, when it seemed the mercury, as in thermometer, wasn't quite so high, up 38 percent.
Also, the survey revealed:
"Up rounds significantly outpaced down rounds 74 percent to 15 percent," said Barry Kramer, partner in the firm and co-author of the survey. "That differential is also the largest since our survey began."
An "up round" is defined as one in which the price per share that a company sells its stock has increased since its prior financing round. A "down round" is defined as one in which the price per share has declined since a company's prior financing round.Fenwick is a technology specialist with expertise in venture capital, IPOs and other corporate finance, joint ventures and M&A, among other areas.
To its credit, Fenwick pointed to a note of caution.
"IPO activity continued to be weak with only 13 venture backed companies going public, and with Nasdaq down 7 percent in the quarter to date," said Fenwick & West partner Michael Patrick. "A note of caution is appropriate."
One word: Vonage.
The San Francisco Bay Area VC benchmark analyzed the valuations and terms of venture financings for 101 technology and life science companies based in the area. And if the climate keeps getting better for venture capital, it might be time for still hotter predictions.
Take their barometric reading: Fenwick & West's Venture Capital Barometer -- the measurement of change in share price of Silicon Valley companies funded during the quarter compared with their previous financing round -- was up 64 percent. Does this mean it's going to start raining VC money soon?
Compare it with a San Jose Mercury News report on Fenwick's survey of December 2005, when it seemed the mercury, as in thermometer, wasn't quite so high, up 38 percent.
Also, the survey revealed:
"Up rounds significantly outpaced down rounds 74 percent to 15 percent," said Barry Kramer, partner in the firm and co-author of the survey. "That differential is also the largest since our survey began."
An "up round" is defined as one in which the price per share that a company sells its stock has increased since its prior financing round. A "down round" is defined as one in which the price per share has declined since a company's prior financing round.Fenwick is a technology specialist with expertise in venture capital, IPOs and other corporate finance, joint ventures and M&A, among other areas.
To its credit, Fenwick pointed to a note of caution.
"IPO activity continued to be weak with only 13 venture backed companies going public, and with Nasdaq down 7 percent in the quarter to date," said Fenwick & West partner Michael Patrick. "A note of caution is appropriate."
One word: Vonage.
Tuesday, May 23, 2006
Bank of China Prices in IPO: $9.73 B-i-l-l-i-o-n
No surprise to those watching the clamoring for business in China: Bank of China's IPO is a biggie.
To be exact, Bank of China raised a whopping $9.73 billion, according to a Bloomberg report from Germany. The bank priced shares at $2.95, just 5 cents below the top of its expected range.
UPDATE: Seen on Bloomberg TV this a.m. that a Saudi prince wants a 2.7 percent stake in Bank of China for $2 billion. Oh, just found it -- here's the details.
To be exact, Bank of China raised a whopping $9.73 billion, according to a Bloomberg report from Germany. The bank priced shares at $2.95, just 5 cents below the top of its expected range.
UPDATE: Seen on Bloomberg TV this a.m. that a Saudi prince wants a 2.7 percent stake in Bank of China for $2 billion. Oh, just found it -- here's the details.
VoIP's Vonage Prices IPO
VoIP provider Vonage has made a financial call.
The voice over Internet Protocol provider has priced its initial public offering at $17 per share, the middle of its expected $16 to $18 range. It plans to offer 31.25 million shares, a multiple that would raise $531 million in the offering.
Shares of Vonage are proposed to sell on the New York Stock Exchange under the ticker symbol "VG."
Citigroup, Deutsche Bank Securities, and UBS Investment Bank led
the offering. Bear Stearns & Co., Piper Jaffray and Thomas Weisel Partners are co-managers.
The voice over Internet Protocol provider has priced its initial public offering at $17 per share, the middle of its expected $16 to $18 range. It plans to offer 31.25 million shares, a multiple that would raise $531 million in the offering.
Shares of Vonage are proposed to sell on the New York Stock Exchange under the ticker symbol "VG."
Citigroup, Deutsche Bank Securities, and UBS Investment Bank led
the offering. Bear Stearns & Co., Piper Jaffray and Thomas Weisel Partners are co-managers.
Saturday, May 20, 2006
IPO: Whopper or small fries?
Was Burger King IPO underwhelming? Only 3 percent?
I was expecting more even though the markets were in a mini funk on inflation concerns.
I'm still looking for a tech angle here to make this fit for BizTech.
I was expecting more even though the markets were in a mini funk on inflation concerns.
I'm still looking for a tech angle here to make this fit for BizTech.
Creative Sues Apple; Apple Sues Creative
CNET News.com reports: "Apple countersues Creative in patent dispute."
In this twist, Apple claims:
"In its complaint, Apple accuses the company of infringing on four of its patents related to user interfaces and icon displays for digital media players. The company is requesting monetary damages and an injunction barring continued use of its patents," reports News.com.
Hmmm.
In this twist, Apple claims:
"In its complaint, Apple accuses the company of infringing on four of its patents related to user interfaces and icon displays for digital media players. The company is requesting monetary damages and an injunction barring continued use of its patents," reports News.com.
Hmmm.
You've Got Nothing!
Funny how much this deal was valued at over six years ago:
"The purchase, an all-stock deal, amounted to more than $160 billion based on today's trading prices. According to both companies, the new firm will have an estimated combined value of $350 billion."
Can you name it?
And based on the loss of share price, how would this historic deal be valued today?
I spoke with a former Time Warner media employee recently who said that after the stock shot up it was essentially all down hill, carving nearly 80 percent off the share price.
It struck me that there was a lot of breathless reporting at the time of the deal about how AOL could help Time Warner to find its footing as an Internet player. I didn't know any Net subscribers before that deal who would touch AOL with a ten foot pole.
Great story over at The Economist about what an empty bag Time Warner is holding today.
"The purchase, an all-stock deal, amounted to more than $160 billion based on today's trading prices. According to both companies, the new firm will have an estimated combined value of $350 billion."
Can you name it?
And based on the loss of share price, how would this historic deal be valued today?
I spoke with a former Time Warner media employee recently who said that after the stock shot up it was essentially all down hill, carving nearly 80 percent off the share price.
It struck me that there was a lot of breathless reporting at the time of the deal about how AOL could help Time Warner to find its footing as an Internet player. I didn't know any Net subscribers before that deal who would touch AOL with a ten foot pole.
Great story over at The Economist about what an empty bag Time Warner is holding today.
