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from Breakingviews:

Tim Cook’s pride may expand corporate talent pool

timcook.jpg

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Tim Cook’s pride may expand the corporate talent pool. The Apple chief executive’s decision to speak publicly about being gay should help advance the slow march toward acceptance. As boss of the world’s biggest company by market value, Cook could inspire others, giving C-suites and boardrooms more choice. They need it.

For an enterprise widely known for confidentiality, Cook’s sexual orientation wasn’t exactly a secret. Cook says many of his Apple colleagues were aware. For three years, Out magazine also put him atop its list of the most powerful gay people. And he has taken clear positions against discrimination of gay and transgender people.

His first public acknowledgement of being gay, in a Bloomberg Businessweek column published on Thursday, nevertheless represents a landmark. It’s extremely rare for the CEO of any sizable company to come out. One of the last notable examples was former BP boss John Browne, who did so under pressure in 2007 and later resigned. Cook’s timing and language set a decidedly different tone: “I’m proud to be gay, and I consider being gay among the greatest gifts God has given me.”

from Breakingviews:

Sky-high valuations no match for earnings reality

By Robert Cyran

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Sky-high valuations are no match for the sober black-and-white of quarterly earnings. Investors knocked more than 10 percent, or well over $3 billion, off Twitter’s worth in early trade on Tuesday despite a third-quarter report on Monday that showed sales doubling from a year earlier. Blame the company’s overdone valuation. Twitter trades at more than 100 times its own “non-GAAP estimated earnings” measure. Other U.S. companies on high multiples have suffered a similar reality check.

from Breakingviews:

Zuckerberg’s Chinese chat leaves CEOs tongue-tied

By Katrina Hamlin

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Mark Zuckerberg may spend his days running a $200 billion internet giant, but somehow he found the time to pick up Chinese. The Facebook founder surprised and delighted his hosts by answering questions in Mandarin during a visit to Beijing on Oct. 22. Other corporate chiefs may feel pressure to do the same.

from Breakingviews:

Amazon’s ambition outruns its cash flow

By Robert Cyran

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Amazon’s ambition is outrunning its cash flow. The online retailer’s 20 percent sales growth in its third quarter was slower than expected, and its $437 million loss was an ugly record. But it’s the firm’s voracious need for investment that is the bigger problem. Chief Executive Jeff Bezos’ vision may be limitless, but his company’s ability to finance it is not.

from Breakingviews:

Netflix stock horror follows familiar script

By Jeffrey Goldfarb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own. 

Netflix is sticking to the script. The film and TV streaming service lost $7 billion of market value in after-hours trading on Wednesday following news that it had signed up fewer new subscribers last quarter than originally forecast. Even for one of the most-shorted and volatile stocks, a 25 percent decline is notable. And yet investors have seen this movie before.

from The Great Debate:

Air strikes won’t disrupt Islamic State’s real safe haven: social media

jihad tweet President Barack Obama has pledged to destroy Islamic State and ensure fighters “find no safe haven.” But even as U.S.-led airstrikes are underway in Iraq and Syria, it is clear that bombs alone will not do the job. For Islamic State hides out in the most perfect haven: the World Wide Web.

In June 2014, the militant group that Obama refers to as Islamic State in Iraq and the Levant, or ISIL, grabbed the world’s attention after it took over much of northern Iraq in roughly four days. Islamic State accomplished this by building a massive, sophisticated virtual network of fighters in addition to those on the ground. Indeed, its expansion online has been as swift as its territorial gains. It is this virtual power grab that will be most difficult to combat.

The Internet has largely sustained the jihadist movement since 9/11. With this powerful tool, jihadists coordinate actions, share information, recruit new members and propagate their ideology.

from Breakingviews:

Alibaba IPO highlights SoftBank’s value dilemma

By Una Galani

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

Alibaba’s runaway initial public offering has turned the spotlight back onto SoftBank’s valuation dilemma. Following the Chinese e-commerce group’s successful New York listing, the Japanese conglomerate’s 32 percent stake eclipses the value of its other businesses. The 5 percent drop in SoftBank’s shares on the morning of Sept. 22 is a reminder the investment is both blessing and burden.

from Breakingviews:

Alibaba payments cleanup makes for neater IPO

By Peter Thal Larsen

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Alibaba just can’t stop tinkering with its corporate structure. Weeks before the Chinese e-commerce juggernaut is due to start a roadshow for an initial public offering, it has tidied up relations with its payments affiliate. Though the new arrangement is still messier than shareholders might want, it should make for a neater IPO.

from Breakingviews:

Behold the unversion: an inversion in all but name

By Jeffrey Goldfarb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Behold the unversion. U.S.-based data protection firm SafeNet may very well be able to slash its tax rate as part of a cross-border deal. Instead of doing so by acquiring an overseas company – a move known as an inversion – it is selling itself for $890 million to Dutch digital security outfit Gemalto. The deal shows the limitations of a possible U.S. government ban on inversions.

from Breakingviews:

Gannett split puts digital on wrong side of divide

By Jeffrey Goldfarb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Gannett is redefining the digital divide. The media conglomerate unveiled plans on Tuesday to spin off newspapers, including USA Today, to showcase the value of its broadcasting operations. At the same time, the company will take control of the parent of Cars.com, paying $1.8 billion for the 73 percent it doesn’t already own. Instead of using that online asset to buffer the weaker half, however, Gannett is forcing print to stand on its own.

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