Feeds:
Posts
Comments

Posts Tagged ‘Gerbsman Partners’

Article from NYTimes.

Apple fired the executives in charge of the company’s mobile software efforts and retail stores, in a management shake-up aimed at making the company’s divisions work more harmoniously together.

The biggest of the changes involved the departure of Scott Forstall, an Apple veteran who for several years ran software development for Apple’s iPad and iPhone products. Mr. Forstall was an important executive at the company and the one who, in many respects, seemed to most closely embody the technology vision of Steven P. Jobs, the former chief executive of Apple who died a year ago.

But Mr. Forstall was also known as ambitious and divisive, qualities that generated more friction within Apple after the death of Mr. Jobs, who had kept the dueling egos of his senior executives largely in check. Mr. Forstall’s responsibilities will be divided among a few other Apple executives.

While tensions between Mr. Forstall and other executives had been mounting for some time, a recent incident appeared to play a major role in his dismissal. After an outcry among iPhone customers about bugs in the company’s new mobile maps service, Mr. Forstall refused to sign a public apology over the matter, dismissing the problems as exaggerated, according to people with knowledge of the situation who declined to be named discussing confidential matters.

Instead, Timothy D. Cook, Apple’s chief executive, in September signed the apology letter to Apple customers over maps.

Apple said in a news release on Monday that the management changes would “encourage even more collaboration” at the company. But people briefed on Apple’s moves, who declined to be identified talking about confidential decisions at the company, said Mr. Forstall and John Browett were fired.

Steve Dowling, an Apple spokesman, said neither executive was available for an interview. Mr. Forstall did not respond to interview requests over e-mail and Facebook.

Mr. Browett, who took over as head of the company’s retail operations in April, will also leave the company after a number of missteps. Apple said that a search for a new head of retail was under way and that the retail team would report directly to Mr. Cook in the meantime.

Mr. Forstall will leave Apple next year and serve as an adviser to Mr. Cook until then.

Eddy Cue, who oversees Apple’s Internet services, will take over development of Apple maps and Siri, the voice-activated virtual assistant in the iPhone. Both technologies have been widely criticized by some who say they fall short of the usual polish of Apple products.

Jonathan Ive, the influential head of industrial design at Apple, will take on more software responsibilities at the company by providing more “leadership and direction for Human Interface,” Apple said. Craig Federighi, who was previously in charge of Apple’s Mac software development, will also lead development of iOS, the software for iPads and iPhones.

Apple said Bob Mansfield, an executive who previously ran hardware engineering and was planning to retire from Apple, will lead a new group, Technologies. That group will combine Apple’s wireless and semiconductor teams. Apple in a statement said the semiconductor teams had “ambitious plans for the future.”

Recently, Mr. Mansfield had been working on his own projects at the company, operating without anyone reporting to him directly. One of the areas of interest Mr. Mansfield had been exploring is health-related accessories and applications for Apple’s mobile products, said an Apple partner who declined to be named discussing unannounced products.

Mr. Forstall was a staunch believer in a type of user interface, skeuomorphic design, which tries to imitate artifacts and textures in real life. Most of Apple’s built-in applications for iOS use skeuomorphic design, including imitating thread of a leather binder in the Game Center application and a wooden bookshelf feel in the newsstand application.

Mr. Jobs was also a proponent of skeuomorphic design; he had a leather texture added to apps that mimicked the seats on his private jet. Yet most other executives, specifically Mr. Ive, have always believed that these artifacts looked outdated and that user interface design on the computer had reached a point where skeuomorph was no longer necessary.

Mr. Forstall, who trained as an actor at a young age, also shared with Mr. Jobs a commanding stage presence at events introducing Apple products, often delivering his speeches with a pensive style that echoed that of Mr. Jobs.

According to two people who have worked with Apple to develop new third-party products for the iPhone, the relationship between Mr. Forstall and Mr. Ive had soured to a point that the two executives would not sit in the same meeting room together.

A senior Apple employee who asked not to be named said Mr. Forstall had also incurred the ire of other executives after inserting himself into product development that went beyond his role at the company. One person in touch with Apple executives said the mood of people at the company was largely positive about Mr. Forstall’s departure.

“This was better than the Giants winning the World Series,” he said. “People are really excited.”

The departure of Mr. Browett was less surprising to outsiders. In August, the company took the unusual step of publicly apologizing for a plan by Mr. Browett to cut back on staffing at its stores. Charlie Wolf, an analyst at Needham & Company, said he was never convinced that Mr. Browett was a good choice to join Apple because he had previously run Dixons, a British retailer that is viewed as being more downmarket than Apple’s retail operations.

Read Full Post »

Article from PEHub.

If there is good news to be had in private equity these days, it is that limited partners seem to want to put new money to work.

Several recent studies have pointed in this direction, including one from Preqin, which found that a large number of endowments, public pensions, family offices, sovereign wealth funds and foundations want to invest in the coming year.

The top area of interest is buyouts. Second on the list is venture capital. Almost half of potential investors name venture as an asset class they will consider, Preqin says in a report issued this month.

This is welcome news to the industry. That’s because there is no shortage of funds out looking for cash. Preqin, in its study, finds 372 venture capital funds on the road, or nearly a fifth of all private equity funds on the fundraising trail. Together they seek $47.2 billion in commitments.

Many GPs will argue that consistency is their forte. But only some can truly make that claim, the study finds. Preqin assembled a list of the most consistent performers in venture based on IRR, fund year, strategy and geography. Only active managers that have three or more funds with a similar strategy are included and still formative 2010, 2011 and 2012 funds are not included.

Tied at the top of the list are Benchmark Capital, GGV Capital, Pittsford Ventures Management and Sequoia Capital, with the strongest record of top quartile funds. The list from the report is reprinted below.

(Editors note: The average quartile rank in the table is determined by scoring each fund. A top quartile fund gets a “1” and a second quartile fund gets a “2,” etc. The ranking is an average. Photo above courtesy of Shutterstock.)

Read Full Post »

Article from GigaOm.

SolarCity, which started as a residential solar installer and is planning a $201 million IPO, has now jumped into building solar panel farms for utilities. The company announced on Thursday a deal to build a 12 MW(ac) project for Hawaiian utility Kaua’i Island Utility Cooperative.

The $40 million project is unusual because SolarCity, founded in 2006, has spent most of its resources building up an installation and financing business for residential and business customers (including schools and public agencies). This business has positioned the company as an electric retail service provider who competes with utilities. The Kauai project is the first announced project by SolarCity to build a solar farm for a utility, said Jonathan Bass, SolarCity’s spokesman. (The company previously also lined up a fund from Pacific Gas & Electric‘s investment arm to market solar panels and leasing products to home and business owners).

The engineering and construction contract on Kauai will give SolarCity the experience of working with a new class of customers. More utilities across the country are interested in building their own solar energy projects in order to meet regulatory mandates or because they see it as a good investment opportunities to bet on renewable energy. We have noted in previous posts that SolarCity was going after larger and larger projects, and that placed the company in direct competition with more established players in that segment, such as SunEdison, SunPower and First Solar.

The utility solar market is growing faster than the residential and commercial segments primarily because the projects involved tend to be larger, in tens or hundreds of megawatts, and potentially more lucrative. And many utilities in large states, such as California, need to serve an increasing amount of renewable energy to their customers. Some of the overhead costs also could be lower when it comes to utility-scale projects: you don’t need to send out an army of marketing and sales people to sell consumers systems that are kilowatts in size.

If SolarCity has any ambition to expand beyond the U.S. market, it would do well to gain an expertise in developing and installing utility projects. In many markets overseas, the biggest opportunities lie with working with utilities to boost the amount of renewable energy they serve and taking advantage of government subsidies for that type of projects.

SolarCity is among the first to offer homeowners leases so that they don’t have to pay a high upfront cost of installing solar panels. Instead, homeowners pay a monthly fee via long-term contracts for the electricity from the panels, which are owned by the investors, typically banks, that have set up funds for SolarCity to install and manage the equipment. Solar leases have become popular and are offered by many more companies now, and they accounted for over half of the residential installations in California, the country’s largest solar market. Part of the sales pitch for the leases is a promise  – or at least a strong suggestion – that consumers will end up paying lower electric rates over time than they would with their local utilities.

The California company also has lined up some big-name business customers, including Walmart, eBay and Intel. Nearly a year ago, SolarCity said it had secured a loan to install 300 MW of solar panels in military housing communities across the country.

In recent years, SolarCity entered other types of energy service businesses. It began to offer energy audits and home-improvement services to help homeowners save electricity use and cost. It also now offer energy storage using lithium-ion battery packs from Tesla Motors and install solar powered charging stations for electric cars (such as Tesla’s cars).

For the Kauai project, SolarCity intends to install solar panel on 67 acres that are part of a former sugar plantation. The utility and SolarCity still need to secure local and state permits, but the plan is to start construction in July 2013 and switch on the solar farm in 2014. Electricity from the solar farm will be enough to serve about 6 percent of Kauai’s daily energy demand, the companies said.

Kauai is one of the Hawaiian islands and is home to nearly 68,000 residents. It’s set a goal of generating renewable energy to meet 50 percent of its needs by2023. The project announced Thursday is one of the three solar farms, totaling 30 MW(ac), that are being developed by the Kauai utility.

Read more here.

Read Full Post »

Article from SFGate.

The Knight Capital Group Inc. trading firm said it lost $764.3 million in the third quarter because of a software glitch that flooded the stock market with trades one day in August, causing dozens of stocks to fluctuate wildly.

Knight said Wednesday that the software glitch cost it $461.1 million in financial losses. The company also took a charge of $143 million to reflect its weaker brand and competitive position after the episode.

The problems began for Knight early on Aug. 1, when dozens of stocks started rising and falling sharply for no apparent reason. Wizzard Software, for example, shot up above $14 after closing the night before at $3.50.

Knight takes stock trading orders from big brokers like TD Ameritrade and E-Trade. It routes the orders to exchanges including the New York Stock Exchange.

After Knight acknowledged that a technical glitch in its software had caused the disruption, its stock lost three-fourths of its value in two days. Knight had to cede control of its operations on the New York Stock Exchange and obtain a financial rescue from Wall Street peers.

Knight, based in Jersey City, N.J., managed to eke out a small profit after excluding losses from the trading fiasco. Its stock rose 5 percent in premarket trading.

Knight’s loss amounts to $6.30 per share for the period ended Sept. 30. That compares with net income of $26.9 million, or 29 cents per share, a year ago.

The technology issue accounted for a financial loss of $2.46 per share, plus 76 cents per share for the related impairment charge.

Excluding those and other one-time items, Knight said it earned a penny per share. Analysts had forecast 2 cents per share, according to a FactSet survey.

Chairman and CEO Tom Joyce said that the company was gratified that it managed a small profit on an adjusted basis.

“I believe the recovery to date speaks to the strength of our offering, the dedication of Knight’s client teams and deep client relationships we enjoy,” he said.

Net trading revenue was negative because of the software glitch. Knight Capital’s market making segment was hit the hardest, reporting net negative revenues of $341.2 million.

After the trading losses threatened its survival, Knight received $400 million from an investor group that included Jefferies Group, Blackstone, Getco, Stephens, Stifel Nicolaus and TD Ameritrade. The investors received stock that can be converted into a 73 percent stake in Knight, which means Knight essentially handed over control to the investor group.

Knight also added three directors to its board, increasing its size to 10 members.

Knight’s stock slipped 5 cents to $2.53 in morning trading Wednesday. Its shares fell to a 52-week low of $2.27 in August. They traded as high as $14 per share almost a year ago.

Read more here.

Read Full Post »

Article from NYTimes.

Japanese companies have made a string of deals in the United States this year, but the pact announced on Monday is one for the record books.

The agreement by SoftBank to take control of Sprint Nextel is the biggest deal by a Japanese company in the United States since at least 1980, according to Thomson Reuters, which values the deal at $23.3 billion.

That far exceeds the next-largest deal, the $9.8 billion stake that NTT DoCoMo, SoftBank’s rival, took in AT&T Wireless in 2000.

The SoftBank deal is also worth more than some recent takeovers, including Takeda Pharmaceutical’s 2008 purchase of Millennium Pharmaceuticals for $8.1 billion. It also tops the $7.8 billion agreement the Mitsubishi UFJ Financial Group struck with Morgan Stanley in the depths of the financial crisis in 2008, according to Thomson Reuters data.

It also ranks as the biggest foreign deal involving an investment in an American company so far this year, according to Thomson Reuters.

The deal on Monday is a welcome development for the financial advisers involved, in a year starved for deal activity.

The agreement has lifted Citigroup, an adviser to Sprint, to sixth from seventh place in the Thomson Reuters global league table this year. Sprint’s other advisers, UBS and Rothschild, each moved up one spot as well.

One of SoftBank’s advisers, the Raine Group, entered this year’s league table in 30th place after the deal. (The deal is the group’s biggest, according to Thomson Reuters.) The Mizuho Financial Group, another SoftBank adviser, rose to 17th place from 22nd.

For American consumers, SoftBank is set to be the latest Japanese company to make its mark on daily life in this country.

In 1989, the Mitsubishi Estate Company made headlines with a deal to buy a 51 percent stake in the Rockefeller Group in New York. (The stake eventually grew to 100 percent, after Rockefeller went through bankruptcy.)

Craig Moffett, an analyst with Sanford C. Bernstein, drew a comparison to that deal last week, when Sprint confirmed it was in talks with SoftBank.

“This is tantamount to Japanese buyers buying Rockefeller Center,” he said.

The year 1989 was also when the Japanese electronics giant Sony took a foothold in Hollywood. Its roughly $4.7 billion purchase of Columbia Pictures Entertainment was a blockbuster at the time.

SoftBank’s shares fell 5.3 percent in Tokyo on Monday, with investors concerned over the company’s ability to turn around the ailing Sprint.

Read more here.

Read Full Post »

« Newer Posts - Older Posts »