Spotify is readying an initial public offer next year, pressured by its most recent financing. Private-equity firm TPG, hedge fund Dragoneer Investment Group and Goldman Sachs are part of a group that issued $1 billion in convertible debt, which carries an interest rate that increases until Spotify’s IPO. Investors also get a discount on shares if they convert debt into equity — 20 percent now, but increasing if Spotify delays the IPO. One problem prevents Spotify from doing so: long-term rights for the music it plays. Continue reading Spotify Prepares to Go Public, Seeks Long-Term Music Rights

Yahoo has distributed letters to potential buyers to launch an auction for its portfolio of 3,000 patents that could earn more than $1 billion. The collection dates back to the company’s 1996 IPO, including its original search tech, say those familiar with the plans. “Yahoo has set a mid-June deadline for preliminary bids,” reports The Wall Street Journal, “and hired Black Stone IP, a boutique investment bank that specializes in patent sales, to run the auction.” Yahoo confirmed the sale of patents and pending applications “related to Web search and advertising.” The company is also selling its core Internet business; Verizon reportedly bid about $3 billion. Continue reading Yahoo Plans for Auction of Patent Portfolio, Lines Up Buyers

Today’s open-source software startups are trying a new tack to gain adoption, after the first generation mainly failed to successfully launch. That first generation sold services to support technology widely available on the Internet, but very few of them — Red Hat, with its $2 billion in annual revenue is one exception — were able to scale up. The new approach involves providing free software to users, followed by proprietary products that work with that software; VC firm Accel Partners is now funding some of these companies. Continue reading Open-Source Startups and VCs Craft a New Model for Success

Twitter reported revenue of $595 million for Q1 2016, below Wall Street expectations, adding to its growing list of woes. User growth, an area of concern since its 2013 IPO, remains modest, with an average 310 million monthly users in Q1 2016, up from 305 in Q4 2015. But most of the growth came from outside the U.S., where markets are less mature and therefore less lucrative. One ray of hope is Twitter’s deal with the NFL to live-stream Thursday Night Football games, which has drawn interest from other sports leagues. Continue reading Twitter Hopes to Prove Live-Streaming Value with NFL Games

Hispanic media powerhouse Univision Communications has launched Univision Now, a $5.99-per-month Internet video service that features live broadcasts of the Univision and UniMás networks for Spanish-speaking viewers. The SVOD service features DVR-style replays of its live programming for up to three days after broadcast, in addition to on-demand access to primetime shows up to seven days after airing. Univision Now — offering the networks’ full slate of news, sports, telenovelas and award shows — is available via the Internet and iOS and Android apps. Continue reading Univision Launches Subscription Video with Live Broadcasts

In an October IPO filing, Vizio described its ability to provide “highly specific viewing behavior data on a massive scale with great accuracy.” This refers to Vizio’s Smart TVs ability to track the user’s viewing habits and share that information with advertisers, who use it to connect with that user’s devices. Vizio dubs this “Smart Interactivity” and it is turned on by default for the more than 10 million Smart TVs the company has sold. Users who do not want to be tracked in this fashion must opt-out. Continue reading Vizio Smart TV Tracks Users’ Viewing, Shares with Advertisers

Two years ago, venture investor Aileen Lee coined the term “unicorn” for what was then a fairly rare commodity: a startup company that investors valued at $1 billion. In the current market, at least 131 startups are valued at a total of $485 billion, says research firm CB Insights, making the designation “unicorn” — a mythical beast — less accurate. Apparently, unicorns not only exist, but only half of the current crop hail from their birthplace in Silicon Valley. And they now focus on a wide variety of industries. Continue reading Over 131 Startups Now Valued at $1 Billion, Says CB Insights

E-commerce giant Alibaba is taking another significant step beyond its core business by investing $50 million in Mountain View-based startup Peel, which makes apps that allow consumers to use their smartphones and tablets to control their TVs. The Android version works with TVs, cable boxes and streaming video boxes, while the iOS version can replace the remote for Dish and DirecTV boxes. Peel’s Android version also comes preloaded on some HTC and Samsung mobile devices. Continue reading Chinese Tech Firm Makes Major Investment in TV Remote App

Facing new competition in the mobile payment space, including the recently unveiled Apple Pay, eBay announced yesterday that it plans to spin off its PayPal business into a separate publicly traded company in late 2015. This is an about face by the online retailer, which had defended keeping the companies together after investor Carl Icahn aggressively pushed for a separation. EBay now says that a split will provide both companies with better competitive positions and allow them to focus on strategy. Continue reading Course Reversal: eBay Plans to Spin Off PayPal Biz Next Year

While Apple had a big weekend selling more than 10 million new iPhones, it wasn’t the only tech giant breaking records. Chinese e-commerce company Alibaba Group Holding Ltd. closed its first day of trading on Friday at $93.89 per share, a 38 percent increase from its IPO price, and the biggest first-day jump for an IPO of at least $10 billion. The IPO became the largest ever at $25 billion, after underwriters exercised a greenshoe option to increase the deal size by 15 percent based on strong demand. Continue reading Alibaba Sets World IPO Record After its First Day of Trading

The Alibaba Group, China’s leading e-commerce operator, raised nearly $21.8 billion in its initial stock sale yesterday. While not the biggest initial public offering to-date, Alibaba did have one of the strongest stock sales on record, surpassing those for Facebook and General Motors. When it begins trading today on the New York Stock Exchange, it is poised to become one of the world’s most impressive Internet powerhouses, a compelling blend of Amazon, eBay, Google and other tech giants. Continue reading Alibaba Raises $21.8 Billion in IPO: Ready to Take On Google

In May, Chinese e-commerce company Alibaba filed for a public stock offering in the United States. However, this fast growing company still has a way to go before it will be able to compete with the American tech giants that currently control the multibillion-dollar cloud computing business. For now, Alibaba appears to be focusing on expanding in China, where it already has four data centers and handles up to $5.8 billion in commerce per day at its peak. Continue reading Alibaba Growing, But Not a Threat to Top Cloud Services Yet

About 14 percent of Twitter’s 271 million users do not log in directly to the mobile app or website, where Twitter features its ads. These 37.9 million consumers instead access Twitter content through third-party apps such as Flipboard, Instagram, Foursquare or various news sources. When Twitter filed its IPO last year, the company projected that the number of people accessing via third-party apps would decline. However, growth of the third-party app population has doubled since then. Continue reading Nearly 40 Million Twitter Users Do Not See Ads on Site or App

One new feature suggests that Twitter may be experimenting with online shopping. “Buy Now” buttons began appearing in the mobile app this week in tweets from Fancy, an online retailer. The buttons previously took users to a checkout page, but the function is no longer active. If the function is restored, it will be the first time that Twitter allows users to pay for products from a tweet. Twitter has been expanding its e-commerce capabilities since the company went public. Continue reading E-Commerce: “Buy Now” Buttons Appear in Twitter Mobile App

The largest e-commerce company in China, Alibaba Group Holding, has launched a U.S. shopping website as it plans to go public in what is expected to be one of the largest IPOs in history. The new site, 11 Main hosts over 1,000 merchants in categories such as clothing, jewelry and interior goods. The site is currently available to users who sign up and receive an email invitation. Alibaba has invested in a range of U.S. companies over the past year, including e-commere and mobile messaging. Continue reading China’s Alibaba Group Launches U.S. Shopping Site 11 Main