Tag Archives: Billion

SoftBank considers IPO for Japan wireless unit, said to seek $18 billion
January 15, 2018 6:00 am|Comments (0)

TOKYO (Reuters) – SoftBank Group Corp (9984.T) said on Monday it was considering listing its Japanese wireless business, seeking to raise a reported $ 18 billion in a move that would accelerate the conglomerate’s transformation into one of the world’s biggest tech investors.

A spin-off – potentially the biggest IPO by a Japanese company in nearly two decades – would also give the unit more autonomy as well as help investors with valuing the business and its parent.

SoftBank Group, which saw its shares climb 4 percent on the news, has a vast range of holdings including stakes in British chip designer ARM Holdings ARM.L, struggling U.S. wireless service provider Sprint Corp (S.N) as well as Alibaba Group Holding Ltd (BABA.N).

It has with other investors also set up a $ 93 billion Vision Fund, that is investing in range of firms to capitalize on a tech future expected to be driven by artificial intelligence, robotics and interconnected devices.

SoftBank Group plans to sell some 30 percent of SoftBank Corp, raising around 2 trillion yen ($ 18 billion) that would go towards investments in growth, such as buying into foreign information-technology companies, the Nikkei newspaper said without citing sources.

It plans to seek approval from the Tokyo Stock Exchange as early as spring and aims to debut in Tokyo as well as overseas, possibly London, around autumn, the business daily said.

SoftBank Group said in a statement that a listing of the business was one option for its capital strategy but that no such decision had been made.

A 2 trillion yen ($ 18 billion) IPO would be one of the biggest listings by a Japanese company, rivaling the 2.2 trillion yen 1986 offering of Nippon Telegraph and Telephone Corp (9432.T) as well as a 2.1 trillion yen listing by NTT DoCoMo Inc (9437.T) a decade later.

“It makes sense to spin off the mobile-phone business using a public offering that would leave SoftBank in control and provide SoftBank with more cash to pursue its strategy of investing in companies with potentially high growth prospects,” Erik Gordon, a professor at the University of Michigan’s Ross School of Business.

“It is a way of obtaining capital without adding debt or diluting SoftBank’s equity interests in the growth companies.”

The domestic telecoms unit, Japan’s No. 3 wireless carrier, posted a 4.5 percent rise in operating profit to 720 billion yen in the year ended March on sales of 3.2 trillion yen.

SoftBank Group’s complicated structure and constant stream of new investments have left many investors struggling to value the company with analysts often noting that its market value does not accurately reflect the value of its massive holdings.

SoftBank’s market value currently stands at around $ 92 billion. By contrast, its near 30 percent stake in Alibaba is worth around $ 140 billion.

Large companies seeking to list in Tokyo are required to float at least 35 percent of their shares although these rules can be eased when the company is also listing overseas.

Reporting by Yoshiyasu Shida and Sam Nussey; Additional reporting by Chris Gallagher and Minami Funakoshi; Writing by William Mallard; Editing by Edwina Gibbs

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Apple's $213 Billion Problem
December 27, 2017 6:00 am|Comments (0)

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Roku’s IPO Price Just Gave the Company a $1.3 Billion Valuation
September 28, 2017 10:30 am|Comments (0)

Video streaming platform Roku has raised $ 219 million in its Wednesday initial public offering.

Priced at $ 14 a share, the company sold 15.7 million shares from Roku and some of its private shareholders, valuing the company at $ 1.3 billion. The stock will make its debut on the Nasdaq exchange today under the symbol “ROKU.” The IPO was a success for Roku, which had initially proposed a $ 12-14 a share range.

Read: How Advertising Could Be Roku’s Growth Engine

Roku’s boxes allow users to stream content from a variety of video services, including Netflix, YouTube, and HBO. As of June 30, the company has 15.1 million active accounts, with users streaming more than 6.7 billion hours in first half of the year.

While the growing streaming trend has made Roku popular, the company has had largely unprofitable growth since it was founded in 2002. Last year, the company brought in $ 399 million in revenue, but lost $ 43 million. In the first half of this year, it lost $ 24.2 million.

Read: A New Phishing Scam Is Targeting Netflix Users

According to TechCrunch, Roku had previously raised more than $ 200 million in capital since 2008. Menlo Ventures was the largest stakeholder prior to the IPO, owning 35.3%, and Fidelity owned 12.9%.

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United Technologies Will Buy Rockwell Collins for $30 Billion
September 5, 2017 12:43 am|Comments (0)

Jet-engine maker United Technologies Corp has agreed to would buy aircraft parts manufacturer Rockwell Collins Inc for $ 30 billion, including debt, the companies said.

Under the deal, Rockwell shareholders will receive $ 140 per share in stock and cash, split between $ 93.33 in cash and $ 46.67 in United Tech stock, the companies said in a statement.

The offer represents an 18 premium to Rockwell’s closing share price on Aug. 3, the day before media reported that UTC was weighing a bid for Rockwell.

Under the deal, the companies said that Rockwell Collins and UTC’s aerospace systems segment will be combined to create a new business unit named Collins Aerospace Systems.

“This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems,” UTC’s chairman and chief executive officer, Greg Hayes, said in the statement.

“Together, Rockwell Collins and UTC Aerospace Systems will enhance customer value in a rapidly evolving aerospace industry by making aircraft more intelligent and more connected,” he said.

The deal, which includes $ 7 billion in Rockwell’s debt, is expected to save more than $ 500 million by the fourth year after its completion, the companies said.

Morgan Stanley & Co LLC was the financial adviser to United Tech and Wachtell, Lipton, Rosen & Katz was its legal adviser.

J.P. Morgan Securities LLC and Citigroup Global Markets Inc were Rockwell’s financial advisers, while Skadden, Arps, Slate, Meagher & Flom was its legal adviser.

Reporting by Yashaswini Swamynathan in Bengaluru; editing by Leslie Adler.

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With Half A Billion Customers Lost, McDonald’s Gambles On Mobile Ordering To Get Them Back
March 25, 2017 12:50 pm|Comments (0)

McDonald’s has always boasted about the billions of customers it has served. But now it has a big problem: the 500 million potential visitors it estimates it’s lost in the past five years. It hopes mobile ordering and curbside delivery will lure them back.


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Mapping Global Happiness In 2016 Through A Quarter Billion News Articles
February 23, 2017 4:50 am|Comments (0)

How the power of the cloud makes it possible to sentiment mine, machine translate, geocode and map a quarter billion news articles to map global happiness in 2016 as seen through the eyes of the world’s press


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IDG Contributor Network: Red Hat expected to rake in $2.4 billion in revenue this year
October 17, 2016 4:55 pm|Comments (0)

The king of Linux, Red Hat, continues its growth as a leading Linux vendor that’s betting big on the cloud. Yesterday, the company announced financial results for its second quarter of fiscal year 2017 ended August 31, 2016.

The company generated $ 600 million in revenue for the quarter, a 19 percent year-over-year increase. Red Hat is often credited with creating a business model around Linux and Open Source: a subscription based service and support model.

Subscription revenue for the quarter was $ 531 million, which accounts for 89% of total revenue. It was a 20% year-over-year increase. Based on these numbers we can safely assume that Red Hat will be generating revenues around $ 2.415 billion in this fiscal year. That makes Red Hat the most successful pure open source company to date.

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Oracle takes the cloud revenue fast track with $9.3 billion Netsuite deal
July 29, 2016 5:45 pm|Comments (0)

… the cloud in a 2008 interview, saying the computer industry was “more fashion-driven than women’s fashion” when it came to cloud computing.


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Foxconn Unit Plans IPO That Could Raise $1 Billion
July 5, 2016 11:20 am|Comments (0)

Demand for those products could grow in the coming years as cloud computing services become more widespread and need faster connectors to link …


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Amazon's cloud boss told us something that should terrify a $140 billion industry
March 12, 2016 6:15 pm|Comments (0)

… it all from cloud computing vendors. That spells bad news for companies like IBM, HP, Dell, EMC, Cisco, the hardware makers selling companies the …


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