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Google adds to nest egg

The search giant acquires Nest Labs, a digital thermostat maker, for $3.2 billion.

Paul Booth
By Paul Booth
Johannesburg, 20 Jan 2014

Google's $3.2 billion acquisition of Nest, IBM's $1 billion+ investment in cloud, and Apple's multimillion-dollar payout to parents whose children incurred charges through mobile apps without their parents' consent were three of the main international ICT stories last week.

The local market was still quiet, following the long summer break.

Key local news of the past week

* A negative trading update from Datatec.
* Pilot Software acquired its Tshwane partner.
* Tencent made a $193 million investment in China South City Holdings, in a move that is expected to expand the former's e-commerce business. (Tencent's largest shareholder is Naspers.)
* Huge Group disposed of its shares in Ambient Mobile.

Key African news

* Nokia Solutions & Networks has opened an office in Tripoli, Libya.
* Pyramid Research announced its technology predictions for 2014. The top four for Africa are:
- By the end of the year, one in three mobile subscriptions will be on 3G or more advanced networks;
- M & A activity will intensify;
- Five more African countries will launch long-term evolution (LTE) this year; and
- Netflix, the Internet streaming service, will launch in Africa this year, with SA possibly being the first country.
* MTN has launched the first LTE service in Zambia.

Key international news

Apple must pay out millions in compensation to parents.

Parental payback

* Equifax bought UK debt management firm, TDX Group.
* Facebook purchased Branch, a start-up that has developed a service that seeks to revamp the classic Internet discussion forum.
* Google acquired Nest Labs, a digital thermostat maker, for $3.2 billion.
* Platinum Equity bought Telstra's 70% stake in its directories unit, Sensis, for $407 million.
* Qualcomm purchased Kooaba, an image recognition software developer.
* Verisk acquired EagleView Technology, a provider of an image library of US structures, for $650 million.
* Samsung disposed of its remaining stake in UK-based semiconductor manufacturer, CSR.
* Marvell Technology Group has failed to reduce its $1.17 billion US patent verdict.
* Apple must pay out millions in compensation to parents billed for charges incurred by children through mobile apps without their parents' consent.
* HP is getting back into the smartphone market.
* Infosys will separate its new generation business into a subsidiary headed by Sanjay Purohit, an SVP of Infosys.
* IBM amassed more US patents than any other company for the 21st straight year, and was followed in second and third place by Samsung Electronics and Canon.
* Very good quarterly figures from Tata Consultancy Services.
* Good quarterly numbers from Skyworks Solutions.
* Satisfactory year-end figures from Computacenter and Huawei Technologies.
* Satisfactory quarterly results from Intel, Shaw Communications and TSMC.
* Mediocre quarterly results from Linear Technology.
* Quarterly losses from Acer.
* John Chen as appointed CEO of BlackBerry (was acting CEO).
* The departure of Henrique de Castro, COO of Google.
* A shelved IPO by EE, the UK mobile network owned by Orange and Deutsche Telekom.

Look out for

International:

* The outcome of discussions between Vodafone and Tata regarding the latter's floundering mobile division.
* The outcome for control of Time Warner Cable, a battle started by Charter Communications, which has made a $37.3 billion offer.
* The possible sale of Alcatel-Lucent's enterprise business that sells telecommunications equipment and services, and in 2012 had revenue of US$1 billion, although it is understood to have posted an operating loss of EUR12 million.
* The possibility that Hans Vestberg, CEO of Ericsson, could be the new CEO of Microsoft.

Africa:

* The disposal by Etisalat Nigeria of its 2 500 towers.

South Africa:

* The outcome of talks between Telkom SA and several media companies such as Bertelsmann, Comcast, Naspers and Netflix.

Research results and predictions

* Worldwide notebook shipments in Q4 2013 dropped 5.9%, according to Digitimes Research.
* Less than 1% of consumer mobile apps will be considered a financial success by their developers through 2018, according to Gartner.
* BCX has replaced Dimension Data as the number one IT services provider in SA, with T-Systems holding its position at number three, according to IDC.
* MEA PC shipments in Q4 2013 declined by 13%, according to IDC.
* Over-the-top services and increasing smart device penetration is set to shape the MEA consumer landscape in 2014, according to IDC.
* Revenue generated by mobile data roaming will reach $42 billion by 2018, according to Juniper Research.

Stock market changes

* JSE All share index: Up 2.5% (highest-ever weekend close)
* Nasdaq: Up 0.5% (highest weekend close for over 13 years)
* NYSE (Dow): Up 0.1%
* S&P500: Down 0.1%
* FTSE100: Up 1.3%
* Top SA share movements: Adapt IT (+10.5%), ConvergeNet Holdings (+37.6%), Gijima (+8%), Huge Group (+74.4%), Net 1 UEPS Technologies (-13.6% and Sekunjalo (+27.8%)

Final word

The latest issue of Fortune magazine includes its predictions for this year. From a technology perspective, the following were included:

* Mark Hurd will assume the CEO role at Oracle, since Ellison turns 70 this year (odds 81%);
* Twitter will close below its IPO price (odds 56%);
* Another snooping scandal will break (odds 36%);
* Google will develop and release a killer app for Glass that will track respiration, eye movement and other data to determine emotional well-being (odds 76%);
* AT&T will merge with Vodafone (odds 75%); and
* A decent 3D printer will fall below the $1 000 mark (odds 73%).

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