So Verizon is buying the heart of old Yahoo! I include the exclamation point because it was always there in the Yahoo! we knew back when the Internet was young. $4.83 billion in cash is a lot of cash, but for Verizon it’s a way of buying into the future while buying what to many of us seems to be the past. So let’s get the business part out of the way: Verizon can see Yahoo! as a bargain because Yahoo! has nearly always been more profitable on a gross margin basis than Verizon, a phone company. Even Yahoo! in decline will pull Verizon up. But that’s not why I’m writing […]
Is anyone at Yahoo! paying attention? Probably not.
Why SoftBank is paying $32 billion for ARM Holdings
SoftBank is buying ARM Holdings for $32 billion. Why would a company not presently in the semiconductor business spend 32 times sales to enter a new industry? By traditional measures it makes little sense. But for SoftBank it makes perfect sense, because here’s a company that has spent more than 30 years making high-risk bets on entering new businesses by apparently over-paying for assets. It’s the way they’ve always done it and it has nearly always worked. In this case SoftBank is paying a 43 percent premium over the recent ARM share price because that’s how much money it took to overcome the resistance of ARM management. And it’s just a guess […]
The FBI v. Apple isn’t at all the way you think it is
The FBI holds an iPhone that was owned by one of the San Bernardino terrorists, Syed Rizwan Farook, and wants Apple to crack it. Apple CEO Tim Cook is defying the FBI request and the court order that accompanied it, saying that cracking the phone would require developing a special version of iOS that could bypass passcode encryption. If such a genetically modified mobile OS escaped into the wild it could be used by anyone to crack any current iPhone, which would be bad for Apple’s users and bad for Amurica, Cook says. So he won’t do it, dag nabbit.
That’s the big picture story dominating the tech news this […]
Amazon bookstores: It’s the drones, stupid
Remember the motto of the Clinton Presidential campaign back in 1992: “It’s the economy, stupid!” That election was about the economy and Clinton won as a result. Well Amazon.com this week let slip its plan to open 300-400 bookstores in U.S. cities, sending Wall Street analysts into a tizzy because bookstores look to them like a lousy business even for the world’s biggest bookseller. But this isn’t about selling books. This Amazon plan — if it happens at all — is about creating bases from which to fly delivery drones.
Delivery drones are to me a stupid idea except in certain rare circumstances like flying prescriptions to people living […]
Personal computers approach retirement age
My birthday was this past week. When I came to Silicon Valley in 1977 I was 24 years old. Thirty-nine years later I am 63 and a lot changed around me in those four decades. I went from young to old. The personal computer industry, of which I consider myself to be a part, went from being two years old to 41 — an even greater change than I have experienced. And the point of this column is to write a bit about how personal computers have matured and where they are going, because I am pretty sure the PC is going away. And I have figured […]
