Why the Internet Could — But Probably Won’t — Land a Mega-Deal With the NFL (Re/code)

To one analyst, Virtustream's value seems to be less than zero, versus the $1 billion plus paid for it earlier this year
Was once SAP acquisition candidate

Tom Paine

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A report in Friday's Wall Street Journal cites one analyst who apparently questions the economic viability of EMC's Virtustream acquisition. The Journal piece was
based upon a Reuters article.

Virtustream, founded six years ago, was seen as extremely valuable in helping to implement SAP Hana applications, so much so that SAP offered to buy the company (though there are quetions about who walked first) before it eventually sold this past summer to the so-called "EMC Federation" for $1.2 billion.

But in a research note this week, FBR & Co. analyst Daniel Ives recommends that EMC / VMware shutter (not sell) Virtustream as part of a number of steps aimed at saving the Dell / EMC deal (which naturally leads to the question, why does it need to be saved?)

One issue revolves around simple financial engineering. By keeping Virtustream under EMC, rather than folding part of it into a planned JV with VMware, EMC/Dell could prop up the value of VMware's publically traded "stub", a key to the deal.

In addition, Ives evidentially sees Virtustream as a continuing cash drain. That is partly due to a planned ramp up in expenditures related to
a broader corporate cloud strategy. VMware Chief Financial Officer Jonathan Chadwick said on a conference call on Oct. 20 that Virtustream would have an operating loss of about $200 million to $300 million in 2016.

But it leads to the further question as to whether the technology and economics of cloud architecture has changed so much in a few years that Bethesda, MD-based Virtustream may simply not have the value it was percieved to have had by some not long ago. Which may bring up that dirty word, Amazon Web Services.

If EMC, by partially following Mr. Ives' logic, were to cut its losses and offer Virtustream to SAP at a fraction of the price it paid for it, would SAP even have an interest in it?

Links 11/27: LG ups OLED game, with talk of possible Apple usage; Universal Display may benefit

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Atlassian IPO to raise upwards of $370 million (Fortune)

EMC to keep majority stake in Virtustream - sources
Interesting move, though mostly for financial engineering rather than strategic reasons.
Virtustresm is an important implementation partner of SAP HANA; in fact, SAP passed on aqcuiring the Richmond-based company earlier this year before it was acquired by EMC.

Universal Display Up On iPhone Speculation (Investor's Business Daily)
Universal Display (NASD: OLED), based in Ewing NJ near Princeton, frequently bounces up and down due to various rumors and market reports. For example, I don't know how many times the Apple rumors have resurfaced. Yet if you believe in OLED technology long term, then Universal Display may not be a bad investment since its pretty much a pure play (dependng upon current valuation, your risk tol`erance and time horizon, all the usual caveats).

Japan Apple Suppliers Fall on Report IPhone to Use OLEDs (Bloomberg)

LG bets $8.7 billion you'll want a TV with rich OLED colors (CNET News)

Black Friday’s online sales look to hit $2.7 billion (Internet Retailer)

Witness: Gun pulled on Jahlil Okafor in October Old City altercation (CSN Philly)

NJ State gov't internet access restored after 7-hour outage (NJ.com)

Fraud Tech lab tracks dark side of online sales: theft, burglary, murder (Philadelphia Inquirer)

Read more at http://www.philly.com/philly/blogs/inq-phillydeals/KofP-Fraud-Tech-lab-tracks-online-theft.html#tSpVlSbvaSk0EYpy.99

Turkey Links: Disney cable sub losses; Amazon's bold online plans

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Amazon Said Planning to Add Other Online Networks to Prime Video (Bloomberg)

Veeva Systems Set for More Growth (Barron's)

Veeva Announces Fiscal 2016 Third Quarter Results (Business Wire)

Disney's Cable Channels See Steep Subscriber Losses (Hollywood Reporter)

SAP shows it took Gartner’s warning seriously, but is it enough? (IT World Canada)

Road to SAP S/4HANA will be long, but many aim to get there (SearchSAP)

How Master Data Management Demand May Change in 2016 (Andrew White/Gartner Blogs)

Comcast update: The good, the bad, and the ugly?

Tom Paine

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Comcast Said to Face DOJ Probe Over Local Cable-TV Ad Market (Bloomberg)
The unit at the center of this inquiry, Comcast Spotlight, is based in Chesterbrook.
Comcast Spotlight / Chesterbrook

Comcast-backed CTI Towers nabs 120 towers from @VyveBroadband, remains small player in overall mkt (Multichannel News)
Comcast doesn't like to remain a small player in any market for too long.

Wall Street Journal: Comcast's previous agreement with YES Network was based on presumption of Time Warner Cable deal going through:
"But Comcast agreed to the higher rate while it was in the process of buying Time Warner Cable, the person close to Comcast said. After the merger fell apart, the price no longer made sense, the person said."
Here Are the Real Reasons Comcast Customers Won’t Get to Watch Nets, Yankees Games (WSJ)`

Comcast, Time Warner Cable get 71% of new Internet subscribers (Ars Technica)

Fox, Time Warner, Comcast Dragged Into Legal Mess Surrounding Daily Fantasy Sports (Hollywood Reporter)

FanDuel, Facing Opposition, Maintains Its Visibility in New York (NY Times)
Its hard to account for how much of the $361 million in venture funding FanDuel is reported to have received came from what sources, but Comcast Ventures snd NBC Sports Ventures (separately) have been major investors. bi-coastal area native Paul Martino's Bullpen Capital was an important early if smaller backer, and Rudy Karsan through his Karlani Capital also invested. Its a high stakes poker game, but for Comcast the number of chips it staked will be barely a small rounding error.

Stream TV: Comcast’s cable guys have ‘cracked the code’ for cord-cutters (Boston Globe)

Fun With Outages --- Xfinity Style

Links 11/18: Salesforce rising? Air Liquide \ Airgas merger marries conflicting ERP stratagies

Salesforce Outlook Shows Surging Demand for Cloud Services (Bloomberg)
Catching up to SAP?

Beyond Fidelity: Even More Mutual Fund Markdowns of Tech Startups (Fortune)

Square Pays $93 Million Penalty tiro Some Investors in IPO (Wall Street Journal: Digits)

Airgas founder: Air Liquide deal is right for shareholders
(Philadelpia Inquirer)

Airgas installed SAP a few years back. Wonder if that contributed to its success, and whether Air Liquide is also an SAP user?

Well, Airgas is a big believer, judging from this article appearing ealier this year in CIO.com.

Actualy, Air Liquide announced late last year that it was "standardizing the ERP system used by Air Liquide companies throughout North America, including Canada, the United States, Mexico and the Caribbean to Oracle E-Business Suite 12.2."

And no, as some Americans may think, Air Liquide is not one of those low-cost European airlines.

So how is this conflict going to be resolved?

Exclusive: What's behind the exodus from Rent the Runway? (Fortune)

FinTech Stock Research Firm Chaikin Analytics Relocates to Philadelphia to Expand Software Development and Quantitative Research Teams
(PR Newswire)

Links 11/17: EPAM buys Conshohocken firm Alliance Global; Liberty Global to Buy Cable & Wireless for $5.3 Bln in Stoc

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Liberty Global to Buy Cable & Wireless for $5.3 Bln in Stock (AP via CED Magazine)
John Malone strikes again.

NBCU Acquires Programming From Universal Sports Network (Broadcasting and Cable)

Time Warner Cable customers who bought modems may have to pay rental fee after Charter takeover (LA Times)

YES Network Tonight Could Go Dark On Comcast Systems In Northeast (Sports Business Daily)

EPAM Acquires Conshohoken-based Alliance Global Services (Globe Newswire via CNN Money)

EPAM Systems Acquires Again, Scoops Up Alliance Global

Salesforce needs to show Wall Street some big new customers to keep up its winning streak (Business Insider)
Earnings Day tomorrow.

SuccessFactors gears up to prove HANA multi-tenancy at scale (Diginomica)

Why Urban Outfitters Bought a Pizza Chain (Wall Street Journal: MoneyBeat)

Emergency hearing set for FanDuel, DraftKings (USA Today)

Philly Tech People News 11/16/2015

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Jeff Shell, a film novice, leads Universal Pictures into the digital age (LA Times)

Jon Litner In A Surprise Move Is Leaving NBC After Running RSN Group For A Decade (Sports Business Daily)

Former Verizon Cloud Chief Surfaces at IBM

Checkpoint Systems, Inc. Appoints James M. Lucania Senior Vice President, Chief Financial Officer and Treasurer (MarketWatch)