stories about: "alibaba"
by Mike Masnick
Thu, Dec 20th 2007 10:41am
A while back, we had pointed out that the success of a few Chinese search engines wasn't necessarily that they were any better than their counterparts -- but that because they were pretty explicit in helping people find downloadable music. Baidu was famous for this -- and we wondered if the company's move to go public would force a crackdown on such activities. Indeed, soon after Baidu went public in the US, it got sued. However, eventually the courts found that it was not guilty -- but because of the way the copyright laws were worded. Simple solution: a little pressure from the recording industry and... voila: new laws. So, with those new copyright laws in place, the IFPI went after Alibaba, who also happens to run Yahoo China. And, with those new laws in place, Alibaba has now been found guilty of copyright infringement for providing easy to find links to downloadable music (not hosting the music, just linking to it). Not surprisingly, the recording industry pulls out its favorite adjective, calling the win "significant." Given all of these "significant" wins, and the fact that the recording industry's future keeps getting bleaker and bleaker, while file sharing (and the rest of the music industry) continues to grow, I'm beginning to think that the industry maybe does not really know what that word means.
by Mike Masnick
Tue, Nov 6th 2007 2:14pm
from the not-such-a-good-thing dept
There's lots of buzz today about how China is experiencing a dot com bubble similar to what the US faced a while back, with the news of Alibaba.com's first day pop on the Hong Kong Stock Exchange. The stock nearly tripled after debuting, which is the type of thing that gets lots of press. Yet, once again, people seem to be missing out on the simple fact that this first day pop means the company left a lot of money on the table. The bankers who brought the stock out mispriced the offering by 3x apparently. Pricing certainly isn't an exact science -- and it's perfectly reasonable to slightly underprice the offering to lower some of the initial risk, but to underprice a stock so badly is not a good thing. Effectively, Alibaba could have raised 3x the amount of money they got, with no additional dilution. Instead, it raised 1/3 the money, and the other 2/3 went to Wall Street folks who flipped the stock quickly. While this does mean that Alibaba can now raise more with secondary offerings (assuming the price stays up), it still looks like the company left an awful lot of money on the table.