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Tag: WSJ

  • Oracle In Talks to Buy Medical Records Giant Cerner

    Oracle In Talks to Buy Medical Records Giant Cerner

    Oracle is in talks to buy medical records giant Cerner, in a move that puts it on a collision course with its larger rivals.

    Oracle has been making headway in the cloud market, but still lags behind the top three: AWS, Microsoft, and Google Cloud. Cloud companies of all sizes are working to expand their markets, and the medical industry is a prime target. Microsoft acquired healthcare AI firm Nuance, and Google made a bid for the healthcare market with its Project Nightingale, before ultimately disbanding the effort.

    Oracle appears to be making its own bid for the healthcare market, with talks to purchase Cerner Corp, a leading electronic-medical-records company. According to The Wall Street Journal, the deal could be worth as much as $30 billion, which would make it the largest acquisition in Oracle’s history.

    According to WSJ’s sources, the deal could be finalized soon. If it goes through, it could help Oracle make significant headway in the cloud market, and add to the company’s reputation for offering a full end-to-end solution.

  • Google and Barry Diller’s IAC At Odds Over Chrome Extensions

    Google and Barry Diller’s IAC At Odds Over Chrome Extensions

    Google and IAC are at odds over what Google calls misleading marketing practices, putting a lucrative deal at stake.

    IAC/InterActive Corp. offers a number of extensions for Google’s popular Chrome web browser. IAC markets the extensions as useful tools to make users’ lives easier. These can include manuals for various tools, saving users from searching for them. Other extensions provide easy access to government forms, or daily Bible quotes.

    According to the Wall Street Journal, however, some of IAC’s extensions do not perform as advertised. Even worse, the Chrome safety and trust team found that some extensions steer users toward more ads. According to documents the WSJ gained access to, the behavior was egregious enough the Chrome team recommended “immediate removal and deactivation” of the company’s extensions from the Chrome store.

    IAC’s chairman, Barry Diller, has said doing so would be devastating to IAC’s business. That hasn’t stopped Google from removing a number of the extensions, although the company told Reuters it is still working with IAC and reviewing their remaining extensions.

    Part of Google’s concern as it moves forward is the need to juggle appearances with the security of its users. The company is already under extensive scrutiny over antitrust and anticompetitive concerns. As a result, any action Google takes need to be above reproach and not add to the scrutiny it’s already under.

  • Intuit Close to Buying Credit Karma

    Intuit Close to Buying Credit Karma

    Credit Karma, the popular credit and finance service, is on the verge of being bought by Intuit.

    According to reports by The Wall Street Journal, Intuit is planning to purchase Credit Karma for roughly $7 billion in a cash and stock deal. Intuit is already the king of tax preparation and accounting software, and the addition of Credit Karma would help round out the company’s personal finance services.

    The deal would allow Credit Karma to operate as a standalone business, with its current CEO continuing to run things. Combining forces would help the two companies better serve their customers, both in the data they have and the personalized recommendations that can be made based on that data, as well as the combination of services each company offers.

    If the deal is successful, it would be the largest acquisition in Intuit’s 37-year history.

  • eBay Pursuing Sale Of Its Classified-Ads Business

    eBay Pursuing Sale Of Its Classified-Ads Business

    eBay has been considering selling its classified-ads business for some time, but it appears the company is finally taking steps in that direction.

    The company’s classifieds business is estimated to be worth some $10 billion and mainly operates internationally, similar to Craigslist in the U.S. Selling the classifieds division would leave eBay with its core marketplace business.

    According to The Wall Street Journal, “Private-equity firms including TPG and Blackstone Group Inc. and strategic bidders including Naspers Ltd. and German publishing company Axel Springer SE have recently expressed interest in the business.” eBay has also been approaching other companies to gauge interest.

    Both Naspers and Axel Springer have existing online classifieds businesses, and the addition of eBay’s business would no doubt significantly increase their reach. The WSJ reports that indications of interest are due in March.

    We will continue to monitor developments and report updates.

  • Google May Start Paying Publishers For News

    Google May Start Paying Publishers For News

    Google may soon join the ranks of Apple and Facebook in paying publishers for news content.

    Google and news publishers have been at odds for years, with the latter wanting Google to pay for content. While Google’s search sends an untold number of visitors to news websites, Google doesn’t pay for any of the content that shows up in its News service.

    The company is under additional pressure, however, after the passage of a new copyright law in the European Union (EU). Under the new law, search engines must pay a license to display a preview of a news article, something Google has so far refused to do.

    According to a report in The Wall Street Journal, that may be about to change. People close to the matter told the WSJ that Google is in talks with news publishers, specifically those outside the U.S., to license content for a news product. Whether that will be the company’s existing News service or an entirely new product is anyone’s guess at this time.

  • T-Mobile/Sprint Merger Expected to Gain Approval

    T-Mobile/Sprint Merger Expected to Gain Approval

    The Wall Street Journal is reporting that people familiar with the matter expect U.S. District Judge Victor Marrero to rule in favor of the planned T-Mobile/Sprint merger.

    The third and fourth wireless carriers have been fighting to gain approval for a merger for months, with both the Federal Communications Commission (FCC) and the Department of Justice (DOJ) supporting the merger. In spite of that, a coalition of states sued to prevent the merger, citing the belief that it would negatively impact the competitive landscape.

    T-Mobile and Sprint have both argued the merger was necessary to take on larger rivals, Verizon and AT&T, and have insisted consumers would ultimately benefit. Especially as carriers work to roll out 5G networks, the combination of the third and fourth largest carriers would give the combined company the scale necessary to offer customers the best 5G experience.

    There are also significant legal ramifications for the case. If the states prevail in their argument, it will give individual states unprecedented power to stop mergers—despite federal approval.

    We will continue to provide updates as the story develops.

  • eBay a Takeover Target For Intercontinental Exchange

    eBay a Takeover Target For Intercontinental Exchange

    The Wall Street Journal is reporting that Intercontinental Exchange (ICE), the owner of the New York Stock Exchange “has made a takeover offer for eBay Inc.”

    ICE has been interested in buying eBay before, and has now approached the e-commerce giant once again, although the WSJ says the talks are not formal. If eBay were interested, ICE would likely have to come up with more than $30 billion to make the deal happen, reflecting eBay’s current valuation of $28 billion, plus a considerable premium.

    The WSJ’s sources said ICE is mainly interested in eBay’s marketing business, not the online classified division, which even eBay has considered selling.

    We will continue to monitor the story and provide updates as it develops.

  • Uber Letting Drivers Change Rates For Some California Fares

    Uber Letting Drivers Change Rates For Some California Fares

    In an effort to comply with a new California law that would make “gig-economy” workers employees, Uber is experimenting with letting drivers raise prices, according to The Wall Street Journal.

    California’s gig-economy law, Assembly Bill 5 (AB5), went into effect on January 1 and has had profound impacts on Uber, Postmates, Lyft and others. Workers who were previously classified as contractors are now considered employees, requiring companies to provide them with benefits.

    The pricing change is just the latest Uber is making in an effort to comply with AB5 and keeps its workers classified as employees. For a worker to be an independent contractor, they need a measure of independence, including the freedom to set their own prices rather than have them dictated by the company they work for.

    According to the WSJ, “starting Tuesday morning, drivers who ferry passengers from airports in Santa Barbara, Palm Springs and Sacramento can charge up to five times the fare Uber sets on a ride.”

    The move is not without challenges, however, as it could lead to price extremes. On the one hand, drivers may raise prices too high and hurt business. On the other hand, with freedom to change prices, drivers may engage in price wars with each other, driving the price down to the point that no one profits.

    Whatever the outcome, Uber will no doubt do whatever is necessary to keep its drivers as contractors. Otherwise, especially if other states follow suit with similar laws, it could forever change the ride-sharing business.

  • Facebook Backtracks On Ads In WhatsApp

    Facebook Backtracks On Ads In WhatsApp

    More than a year after WhatsApp’s founders resigned in protest, Facebook is backtracking on its plans to include ads in the messaging app, according to The Wall Street Journal.

    WhatsApp’s founders, Jan Koum and Brian Acton, were so strongly opposed to ads being implemented in the app that “the two changed WhatsApp’s terms of service to explicitly forbid displaying ads in the app, and complicating any future efforts to do so,” people familiar with the matter told the WSJ.

    When Facebook acquired WhatsApp, Mark Zuckerberg said he agreed that ads were not a good fit for messaging platforms. Eventually, however, Facebook starting looking for ways to recoup the $22 billion price tag and put ads on the table. Koum and Acton’s response were likely an effort to stave off Facebook’s changing views.

    As Facebook became more determined to implement ads, the two founders decided to part ways with the company, leaving “a combined $1.3 billion in deferred compensation” on the table.

    Now, it appears that Facebook has again had a change of heart. According to the WSJ, the team responsible for figuring out how to best integrate ads into WhatsApp has been disbanded, and “the team’s work was then deleted from WhatsApp’s code.”

    Instead, WhatsApp is focusing on commercial interactions, since the messaging service is increasingly being used by companies to provide customer service. This opens all new ways for Facebook to monetize the platform without undermining the privacy and security that made it what it is today.

  • Fiat Chrysler And Foxconn Partner To Develop Electric Vehicles

    Fiat Chrysler And Foxconn Partner To Develop Electric Vehicles

    The Wall Street Journal is reporting that Fiat Chrysler and Foxconn are working together to develop electric vehicles.

    Fiat Chrysler may be the eighth largest automaker, but it lags significantly behind in the electric vehicle market. This is a long-term problem the company must deal with, as both China and Europe have increasingly been cracking down on automotive emissions.

    Foxconn, on the other hand, is well known in the electronics industry and is one of the main companies behind the success of Apple’s iPhone manufacturing. The company has been working to branch out into other industries, and its “chairman, Young Liu, said during an investor call in November that electric vehicles were one area the company was focusing on for future growth,” according to the WSJ.

    The company had indicated it was not interested in building the entire car itself, but providing a chassis platform for automakers to use. That approach was evidently agreeable to Fiat Chrysler.

    While Fiat Chrysler did not return the WSJ’s request for comment, regulatory filings in Taiwan provided evidence of the proposed joint venture, with Foxconn having roughly a 40% share.

  • GM Bringing Back The Hummer—As An Electric Vehicle

    GM Bringing Back The Hummer—As An Electric Vehicle

    Few SUV designs are more recognizable as GM’s Hummer. Following its retirement in 2010, in the midst of GM’s bankruptcy, the company is bringing the iconic SUV back as an electric vehicle.

    According to The Wall Street Journal, the Hummer will not be its own brand as it was previously. Instead, it will be another model under the GMC line. GMC has increasingly become GM’s premium line and should be a good fit for the redesigned Hummer.

    Moving the vehicle to an electric platform should also help Hummer avoid the criticism it faced the first time around. Weighing in at over 6,000 pounds and getting a mere 10 miles-per-gallon, the Hummer was a favorite target of environmentalists. The size of the vehicle will also give it plenty of space for batteries.

    WSJ reports that GM has already enlisted Lebron James to help promote the new vehicle, including during a Super Bowl commercial next month. The combination of rugged looks, off-road performance and electric economy will likely prove to be a winning combo for the Detroit automaker.

  • Slack’s Troubles Mount: SEC Launches Investigation

    Slack’s Troubles Mount: SEC Launches Investigation

    Slack has not had a good week. On the heels of a CNBC report that Microsoft Teams is maintaining its lead over the messaging service, The Wall Street Journal (WSJ) is reporting that the Securities and Exchange Commission (SEC) has opened an investigation into Slack, among others.

    According to the WSJ, “the SEC is probing IPOs over the past several years of other so-called unicorns, companies known for achieving high valuations while private.”

    The SEC’s staff evidently sent letters to Citadel Securities LLC to inquire about “how it opened Slack’s stock for trading on June 20 in the workplace-messaging app’s so-called direct listing.”

    As the WSJ points out, there is no indication what type of wrongdoing the SEC is looking for, or who may be the specific target of the investigation. Nonetheless, an SEC investigation is the last thing any company wants.

  • T-Mobile, Sprint Merger Case Begins Monday; Major Issues On the Line

    T-Mobile, Sprint Merger Case Begins Monday; Major Issues On the Line

    A case that will have significant ramifications for the U.S. wireless industry will begin Monday, as T-Mobile and Sprint defend their merger plans.

    The number three and four carriers have been pursuing a merger agreement that has been widely opposed by various entities. After initial concerns, both the Federal Communications Commission (FCC) and the Department of Justice (DOJ) signed off on the merger. Despite the federal agencies backing it, a coalition of nearly 20 states filed a lawsuit to prevent the merger.

    Over the course of the past few months, T-Mobile has been working overtime trying to address concerns the individual states have, in the hopes of whittling down opposition. The strategy has proved relatively successful, as a number of states have dropped out of the lawsuit after receiving concessions from T-Mobile. Texas, Nevada and Colorado are the most recent ones to drop the suit, leaving 13 states and the District of Columbia still pursuing it.

    As The Wall Street Journal (WSJ) reports, “legal experts say it is unprecedented for the states to reject such a settlement and sue to block a merger of this size and national scope without the support or involvement of federal authorities.”

    The WSJ report emphasizes the long-term stakes hanging in the balance.

    “A victory for the carriers, which say the merger will allow them to offer better services, could arm other companies with new arguments for the benefits of consolidation. But a win for the coalition could give states newfound power in antitrust enforcement when they are also investigating U.S. tech giants.

    “If the states prevail, ‘companies will have to take them more seriously,’ said New York University law professor Harry First. ‘They’ll have to have really serious discussions with states like California and New York.’”

  • John Legere Not Leaving T-Mobile For WeWork

    John Legere Not Leaving T-Mobile For WeWork

    The Wall Street Journal reported earlier this week that WeWork was in talks with T-Mobile CEO John Legere to take over at the office space company. Now, according to Alex Sherman at CNBC, Legere is not taking the job.

    In many ways, Legere was a natural choice for a WeWork CEO. WeWork is being taken over by SoftBank, the parent company of Sprint. T-Mobile and Sprint are nearing the end of a merger deal years in the marking. With FCC and DOJ approval, the merger only has to survive a lawsuit from a handful of states. In the meantime, however, Legere is a known factor for SoftBank leadership, as they have worked with him throughout the merger process. That first-hand experience no doubt made him a top candidate for the job.

    Sources familiar with the situation, however, said that Legere has no plans on leaving T-Mobile. The news is no doubt a welcome relief to T-Mobile investors. During his time with the company, Legere has taken it from a distant fourth place among U.S. carriers to a solid third place and growing at a record rate. Legere was also instrumental in helping get approval for the merger, and will be a steadying influence as the two companies combine.

    It should be interesting to see how much T-Mobile can grow with the combined revenue, subscribers and spectrum of the two companies, not to mention Legere’s continuing leadership.

  • Investigation Into Google Expands to Include Android and Search

    Investigation Into Google Expands to Include Android and Search

    This has not been a good week for Google.

    First, the Wall Street Journal reported that Google has been collecting very detailed healthcare records of millions of Americans through its deal with Ascension, prompting severe backlash and a government inquiry. Then Google announces its plans to offer checking accounts, only to face backlash from individuals concerned about privacy ramifications, and predictions that Congress may try to thwart the company’s efforts.

    According to Business Insider, things are about to get much worse. An investigation by 48 states, Washington, D.C. and Puerto Rico into alleged anti-competitive behavior in Google’s advertising business is being expanded to include its Android operating system and search engine results.

    The investigation, led by Texas Attorney General Ken Paxton, could see Google face the same level of scrutiny it has in the EU, which ultimately led to $9.4 billion in fines. On the heels of EU Commissioner Margrethe Vestager’s comments questioning the value of breaking up big tech companies in favor of holding them to a higher standard, it appears the U.S. may be taking a similar approach.

    With Google expanding into new markets and industries, a widening inquiry is the last thing it needs.

  • Google Branching Into Finance, Partnering With Citi to Offer Checking Accounts

    Google Branching Into Finance, Partnering With Citi to Offer Checking Accounts

    The Wall Street Journal is reporting that Google is looking to expand into finance, with a Citi-backed checking service.

    Code-named “Cache,” the service is expected to roll out next year, and is just the latest in a string of efforts by tech companies to branch out into finance. Apple made headlines with Apple Card, Facebook is working on its Libra cryptocurrency and Amazon has been investigating the possibility of offering its own checking account.

    Google seems intent on maintaining good relations with banks and customers alike, something both Apple and Facebook have struggled with. Facebook faced enough political backlash to scare off backers of its Libra currency, while Apple upset its partner, Goldman Sachs, by downplaying the bank’s involvement.

    Despite its intentions, Google faces challenges of its own, not the least of which is a perception that it does not protect user privacy. Following a revelation that Google was collecting the records of millions of patients through its partnership with the Ascension healthcare group, the Department of Health and Human Services is planning on launching an inquiry. In view of that, analysts are already predicting that Congress will fight Google’s foray into banking.

    If Congress doesn’t prevent Google from launching it’s service, customers will be able to access their checking account through Google Pay. While Google Pay is set to reach 100 million users in 2020, a Google checking account will likely skyrocket those numbers even higher.

  • Youtube Has Super Tuesday Coverage For GOP Primaries

    Youtube has changed a bunch over the years. One of the things it has done is to become more dynamic and more able to change what it is at a moments notice. One of the things it is doing to take views away from network and cable news is to have great politica coverage of events such as the GOP primaries on Super Tuesday.

    Super Tuesday is a day when 9 states are voting with a total of 419 delegates at stake, but none of the states voting today are winner take all.

    Youtube’s official blog had this to say today:

    “The election season heats up today as voters in ten states — with a total of 419 delegates at stake — head to the polls to cast a ballot in the GOP primary. We’ve been following the race closely on YouTube, featuring this cycle’s trending videos, political advertisements and campaign highlights on youtube.com/politics. Tonight, you can watch live coverage from the Wall Street Journal, whose top editors and reporters will be providing commentary and analysis as the results come in. Tune in to youtube.com/wsj starting at 7pm ET to follow the evening’s returns. And if you’re in one of the ten states holding a primary or caucus today, we’d love to see your videos!

    For those on the campaign trail documenting the political process at work, you can upload your videos to YouTube using a new mobile app created by the team at Storyful. Available for both Android and iOS, Storyful Direct is an easy way to share your videos with Storyful, who will be choosing a selection to be featured on YouTube and google.com/elections. Even if you don’t live in a state that’s holding a primary tomorrow, Storyful Direct can be used to document your experience during the run-up to the Presidential election in November.”

    Live coverage from the Wall Street Journal, which is in my opinion, the only respectable news organization left in the United States, is available after 7pm with analysis of the voting returns and what their impact means.

  • Zynga Stock Downgraded By JP Morgan

    Zynga Stock Downgraded By JP Morgan

    On the heels of Zynga’s announcement that they were in the beta stage of the “Zynga Platform,” the Wall Street Journal is reporting that JP Morgan is downgrading their rating to neutral due to an “increased investor focus on social gaming, the potential for legalization of online gambling, and optimism in the soon-to-be launched Zynga platform,” J.P. Morgan analyst Doug Anmuth wrote. “We are also positive on these fronts, but we believe some of the potential upside is now being factored into the stock and it will likely take some time for both online gambling and Zynga.com traction to materialize.”

    Their stock rose 12% Since announcing their new platform to get players off of Facebook and onto something they have more control over. Until yesterday when it fell back 6% to $13.78. The grim outcast by the WSJ is partially due to Zynga reaching away from their Facebook comfort zone and partially due to the markets concern that another dotcom bubble is going to burst again.

    Zynga is a social network game development company located in San Francisco, California. Founded by Mark Pincus in April of 2007. According to the company’s website, as of December 2009, it had 60 million unique daily active users.

  • WSJ Pulls Free Google-Searched Content

    Certain content exclusively accessible via Google’s “First Click Free” program on the the Wall Street Journal’s website is being pulled behind the paywall, a practice that some suspect other newspapers might emulate. And the WSJ has been blocking certain stories from the program since last summer.

    In a statement from Ashley S. Huston, Vice President, Corporate Communications, for the Wall Street Journal, she explains that “Google First Click Free is a way to introduce our content to new readers and broaden our audience. As a strategy, we hold back a few of our top stories by not having the full story crawled, which limits select articles from being available via First Click Free. We have been doing this since last summer as a strategy to encourage subscriptions.”

    Google’s First Click Free program allows users to see full-text content that is typically hidden behind a subscription barrier. With certain articles remaining “unlocked,” Google can understand them better as it runs a query, which in turn affords more visibility to the website of the publication. Also, Google doesn’t have to worry about users getting mad that they can’t fully read articles that show up in a search. Basically, if a user searches for something in Google, the full article comes up, though subsequent clicks within the site are blocked per subscription status, as detailed at the bottom let of the image below:

    Google allows 5 First Clicks per day, to limit the amount of free content one can access, but publishers are still pulling back on this. So far, news outlets have been all or nothing on the matter, with the New York Times offering all of their content available to be first-clicked. Some outlets allow none. The Wall Street Journal has been implementing a sort of hybrid model where only some content is available. Google wants to be able to search and index all of the content of an entire website, which can make subscription news sites tricky, as an outlet might mistakenly (or purposely) cloak some of their content, to maintain site traffic, while still locking their stories. The WSJ’s hybrid system looks to be mutually beneficial to its website and Google.