Tag Archives: technology

Twitter Banned, But Hires China Exec To Boost Advertising ‘Success’

Twitter ( TWTR ) has hired a new exec to head up its China division as it looks to court local businesses for advertising, even though the government has banned the social media service from operating on China’s mainland since 2009. Twitter CEO Jack Dorsey announced the appointment of Managing Director for China Kathy Chen in a tweet late Thursday. “A big welcome to Twitter, @KathyChen2016! She joins us as our MD for China!” Jack Dorsey’s post said. In response Chen tweeted, “We have many ways to connect China to the world.” San Francisco-based Twitter opened an office in Hong Kong a year ago to court Chinese companies wanting to advertise their products and services to its millions of users around the globe. The microblogging service has seen 340% growth in its number of Chinese advertisers since then, according to a report in the South China Morning Post quoting Shailesh Rao, Twitter vice president for Asia-Pacific, Latin America and Emerging Markets. Major Chinese advertisers for Twitter include brands such as Lenovo Group and Huawei Technologies, as well as China media outlets like the state-owned Xinhua news agency and People’s Daily, the report said. “Because of the success we’ve seen, we want to expand the investment we’re making” in the region, said Rao. Twitter China Chief Worked At Microsoft, Cisco Chen is a veteran information technology executive who previously worked at Microsoft ( MSFT ) and Cisco Systems ( CSCO ). She will take over from Peter Greenberger, the former director of emerging markets, Greater China and Russia. Greenberger is now the Asia-Pacific head of global brands and agencies at Twitter, according to the report. Twitter got a price-target cut Thursday from investment bank Morgan Stanley , citing falling user engagement and shrinking user growth at the social media site. Morgan Stanley also trimmed its projections for Twitter’s user growth. Twitter will end this year with 307.1 million global users, the investment bank now says, down from its original projection of 310.6 million. The amount of time that each user spends on the site is also declining, said Morgan Stanley, with those lower engagement levels holding back revenue growth. In Q4, Twitter’s U.S. mobile users averaged just 2.7 minutes daily on the site, said Nowak, compared to 40.5 mobile minutes for music streaming service Pandora Media ( P ), 30.3 minutes for Facebook ( FB ) and eight minutes for YouTube, owned by Alphabet ( GOOGL ) subsidiary Google. The figures are based on research from ComScore and Morgan Stanley. Twitter will capture a 1.4% share of net digital ad spending this year, up marginally from a 1.3% share in 2014, according to a March survey from eMarketer. Google ranks first, with a 30.9% share of net digital ad spending; Facebook ranks second, with a 12.0% share of the total market, which eMarketer estimated will reach $186.8 billion market in 2016. Twitter stock was up 1% in midday trading on the stock market today , near 18. Alphabet stock was up a fraction, while Facebook stock was down a fraction.

Ligado Spectrum Push Good For Verizon, AT&T, But Bad For Dish?

Federal regulators appear to be warming up to a radio spectrum proposal from Ligado Networks, formerly LightSquared, which could provide AT&T ( T ), Verizon Communications ( VZ ) or T-Mobile US ( TMUS ) with a new strategic option — but could spell trouble for Dish Network ( DISH ) and its spectrum holdings. The Federal Communications Commission recently began its Broadcast Incentive Auction involving airwaves owned by local TV stations. The top bidders are expected to be AT&T, Verizon and T-Mobile. The complex auction is expected to drag on for months. Ligado’s re-emergence from Chapter 11 has been a wild card . Verizon, AT&T or T-Mobile might be less likely to buy Dish’s spectrum or partner with the satellite TV broadcaster if Ligado’s spectrum becomes commercially available. Dish has struggled to find a wireless partner to pursue mobile video services. Former Verizon CEO Ivan Seidenberg is chairman of Ligado, while former FCC Chairman Reed Hundt is a board member. Ligado, controlled by private equity firms, has a sizable 35 megahertz of midband spectrum. “Recent filings suggest the FCC may soon open inquiry on Ligado’s new spectrum proposal,” said Paul Gallant, an analyst at Guggenheim Partners, in a research report. “We believe Ligado’s restructured spectrum plan stands a reasonable chance of winning FCC approval. “If Ligado’s path to market becomes clear, it (would be) a long-term positive for Verizon, AT&T and T-Mobile, and a potential concern for Dish’s spectrum valuation (if Dish has not already monetized its spectrum).” After emerging from bankruptcy, Ligado has reached agreements with tractor maker Deere ( DE ) and GPS device maker Garmin ( GRMN ), resolving issues over potential global positioning system interference.

SunEdison Torched After Confirming Bankruptcy Loan Negotiations

SunEdison ( SUNE ) acknowledged Friday it’s in debtor-in-possession talks with creditors and will need a $310 million loan to dig through a potential bankruptcy. The company’s first- and second-lien loan holders entered into confidentiality agreements March 17, a day after SunEd missed the second deadline to file its annual 10-K paperwork. But “the negotiations with respect to such potential financing transactions are still ongoing,” SunEdison cautioned in an 8-K filing. “There can be no assurance that any agreement will be reached.” Debtor-in-possession negotiations are often a precursor to a bankruptcy filing. SunEd yieldcos TerraForm Power ( TERP ) and TerraForm Global ( GLBL ) have separately warned of “substantial risk” that SunEd might seek bankruptcy protection. As of Sept. 30, SunEdison had wracked up $11.7 billion in debt. In the March 17 presentation — furnished Friday alongside the 8-K — SunEdison said it planned to focus on core North America, India and Latin America regions, while maintaining growth regions on “hot idle” stance until liquidity improves. SunEd aims to monetize its residential and smaller commercial (RSC) unit and reduce operational expenses to below $400 million. The now-failed Vivint Solar ( VSLR ) acquisition was originally intended to be melded into SunEd’s RSC business. In Q1, SunEdison said it plans to use $779 million in cash, with $481 million spent on projects. As of April 2, SunEdison had 3.7 gigawatts in project investments expected to generate $897 million in proceeds. But it still needs $272 million in future project investments to reach that value. Since October, SunEdison has cut its workforce by 40%, and it is angling for a total 50% reduction, along with a $150 million cut from additional non-labor savings. The firm also completely exited Japan. In morning trading on the stock market today , SunEdison stock was down more than 30%, near 40 cents, losing nearly all its 58% gains Thursday, when a filing with the U.S. Securities and Exchange Commission showed no evidence of fraud by SunEd executives. But the auditor found wrongdoing by a former non-executive employee involved in the bungled Vivint Solar acquisition talks and an “ overly optimistic culture ” related to projected cash flow. SunEdison noted it terminated the employee upon discovery of the wrongdoing.