Tag Archives: Billion

China approves HP's $1.1 billion buy of Samsung's printer business with curbs

BEIJING (Reuters) – China said on Thursday it has approved HP Inc’s (HPQ.N) $ 1.1 billion purchase of Samsung Electronics’ (005930.KS) printer business with certain restrictions, citing concerns about the U.S. firm’s dominance of the domestic laser printer market.

HP announced the deal in September 2016, hoping to disrupt the $ 55 billion copier market by focusing on multifunction printers and more deeply embedding mobile and cloud printing technologies to its product solutions.

It hoped at the time to close the transaction within 12 months, pending regulatory review.

In a statement issued late on Thursday, the Ministry of Commerce said sale of A4 format laser printers by HP in China should be done on “fair and reasonable” terms and the firm must report every six months on their prices and related data to the ministry.

HP must not buy any stakes in other A4 printer manufacturers in China even if they are a minority equity investment, it said.

It must not adapt its printers to restrict compatibility with third-parties or claim in advertising that its printers are not compatible with other suppliers, the ministry said.

HP expects to close the acquisition in the fourth quarter which ends on Dec. 31, a spokeswoman said in an email. She declined to comment on the regulatory process.

Samsung was not immediately available for comment.

Under the deal, HP would add an intellectual property portfolio of more than 6,500 printing patents and nearly 1,300 researchers and engineers with expertise in laser printer technology, imaging electronics and printer supplies.

Reporting by Josephine Mason and Stella Qiu; Editing by Muralikumar Anantharaman

Our Standards:The Thomson Reuters Trust Principles.

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Alibaba raising stake in Cainiao to majority, investing $15 billion to grow logistics

HONG KONG (Reuters) – Chinese e-commerce giant Alibaba Group Holding Ltd is raising its stake in logistics affiliate Cainiao Smart Logistics Network Ltd to 51 percent from 47 percent by investing 5.3 billion yuan ($ 801.21 million), Alibaba said on Tuesday.

Alibaba also said in a statement it will invest another 100 billion yuan ($ 15.12 billion) in the next five years to expand its global logistics network.

The additional investment will be used in research and development of Cainiao’s logistics data technology, and smart warehousing and smart delivery development, among other things, it said.

Alibaba co-founded Cainiao in 2013, with partners including department store owner Intime Group, conglomerate Fosun Group and a few logistics companies.

Reporting by Kane Wu; Editing by Muralikumar Anantharaman

Our Standards:The Thomson Reuters Trust Principles.

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Bain Again Appears to Be Toshiba’s Choice for Its $22 Billion Chip Unit

Japan’s embattled Toshiba (tosbf) has selected a group led by U.S. private equity firm Bain Capital to buy its prized memory chip unit, three people with knowledge of the talks said on Wednesday, a last-minute dramatic twist to a highly contentious auction.

But it’s unclear whether the decision by Toshiba’s board will mean the sale will now proceed smoothly, as rival suitor Western Digital (wdc) has initiated legal action, arguing no deal can be done without its consent due to its position as Toshiba’s joint venture chip partner.

The Bain-led offer for the world’s No. 2 producer of NAND semiconductors is worth some $ 22 billion, sources have said.

It has partnered with South Korea’s SK Hynix (hxscl) and brought in U.S. buyers of Toshiba chips such as Apple and Dell to bolster its bid. Kingston Technology and Seagate Technology are also part of the group.

The make-up of the consortium could spell trouble ahead, said Hideki Yasuda, an analyst at Ace Research Institute.

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“The large number of stakeholders could complicate decision-making and slow down key investment decisions,” he said, adding that the participation of Toshiba clients would also sap the ability of the chips business to negotiate competitively on pricing.

Bain’s win, first reported by Reuters, has been hard fought as wrangling went down to the wire and late on Tuesday the Western Digital-backed consortium, which includes KKR & Co (kkr), appeared to be in the lead, sources said.

But the California-based firm would not agree to limits to any future stake in the chip business that had been demanded by Toshiba, said one person briefed on the matter.

Sources declined to be identified as they were not authorized to speak about discussions on the sale.

Toshiba declined to comment. A representative for Bain was not immediately available for comment while SK Hynix declined to comment.

After a slew of revised bids and changing alliances among suitors, an agreement comes not a moment too soon for Toshiba. It has has been under pressure from its lenders to clinch a deal this month to ensure enough time for regulatory reviews so that it can finish the sale by the end of the financial year.

If it doesn’t, it won’t have the billions of dollars it needs to plug a huge hole in its finances caused by its now bankrupt U.S. nuclear unit Westinghouse, and could be delisted.

Even without that problem staring it in the face, the semiconductor business requires huge amounts of investment and Toshiba’s chip unit runs the danger of losing its competitive ability as rivals roll out big capital spending plans.

A representative for Western Digital was not immediately available for comment.

The U.S. firm has already taken the dispute to the International Court of Arbitration to prevent the sale and a source with knowledge of the matter has previously said it is prepared to seek an immediate court injunction should the deal not go its way.

The Bain-led group had at one stage been chosen as preferred bidder but those talks lapsed as Japan government investors who had been part of that consortium told Toshiba they were reluctant to close a deal in the face of legal challenges posed by Western Digital.

The Bain consortium has since revised the offer, aiming to get around that problem by inviting the state-backed investors—the Innovation Network Corp of Japan (INCJ) and the Development Bank of Japan—to invest in the business only after any arbitration with Western Digital is settled.

But sources familiar with the talks have said it remains unclear if INCJ will commit to joining the consortium even when the legal dispute is resolved, casting uncertainty over the whether Japanese government will be able to prevail in its desire to have the chip business mainly under domestic control.

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With Half A Billion Customers Lost, McDonald’s Gambles On Mobile Ordering To Get Them Back

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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IDG Contributor Network: Red Hat expected to rake in $2.4 billion in revenue this year

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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The YouTube-Music Feud, Part 1: Why “$3 Billion To Rights Holders” Means Nothing

Yes, billions of dollars are flowing from YouTube to the music industry—but to whom?


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Microsoft Corporation Stock Drops As Cloud Demand Breaks $10 Billion

… as it represents the company’s ongoing transformation into a cloud computing giant. In Microsoft’s fiscal year 2013, it stood at about $ 1 billion, but it …


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‘Screening Room’ vs. The Screening Room: The $11 Billion Question

When it comes to disrupting industries, Sean Parker takes home the gold medal. With the help of Prem Akkaraju, he’s onto his next venture: Screening Room.

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Red Hat To Be First $2 Billion Open Source Company

Red Hat reports 13% growth in the second quarter, improved cloud and emerging technology sales, and an expanded revenue estimate for third quarter.
InformationWeek: Cloud


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Red Hat To Be First $2 Billion Open Source Company

Red Hat reports 13% growth in the second quarter, improved cloud and emerging technology sales, and an expanded revenue estimate for third quarter.


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