Tag Archives: clips

New Story: As Allegations Swirl Around SoftBank, It Calls Them ‘Sabotage’

A new story out Thurs., which I wrote with my WSJ colleagues Bradley Hope and Alex Frangos, begins:

A contentious back-and-forth between SoftBank Group Corp. 9984 0.90% and attorneys who say they represent anonymous, disgruntled shareholders is riling the Japanese telecommunications titan.

The difficulties for SoftBank come as it is poised to begin investing $100 billion in technology startups around the world, and they have drawn concern from a Saudi Arabian investment vehicle that is set to commit $45 billion to the SoftBank technology fund.

The allegations from the attorneys have lingered over the past year about the conduct of top SoftBank executives, especially in India. The company announced last week it had taken a loss on $1.4 billion on investments, largely in Indian startups. In March, a complaint was submitted to an Indian financial regulator purporting to identify financial malfeasance in those deals, including that current or former SoftBank executives received kickbacks connected with the investments.

Click through to read the rest.

H-1B Visas and Trump: Round-up of My Recent WSJ Stories

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I’ve been writing a lot in the last few months about the H-1B skilled worker visa program, which thousands of people, mainly Indians, use to work in the U.S.

The program was designed to allow companies to hire workers for jobs they can’t fill locally, like those demanding sophisticated tech skills. But some say firms, like large Indian outsourcing companies with offices in the U.S., abuse the program to bring in less sophisticated workers as cost-saving measures — and lay off American workers — since they’ll do jobs for less than money.

It’s a huge issue not just for big American tech firms that want to be able to hire the best global talent, but also for Indian IT services firms that employ millions of people.

And with President Trump on the campaign trail assailing the program, many workers are concerned that changes to the program could force them to leave the country.

That’s the subject of my most recent story, which came out Monday. The headline: “Indian Workers in U.S. Fear Trump H-1B Visa Crackdown.

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They story — which I reported out for weeks, interviewing dozens of people — has produced quite a reaction online, prompting more than 450 comments on The WSJ site, and more than 800 reactions, 230 shares and 150 comments on Facebook.

Stay tuned for more on this topic.

Meanwhile, so they’re all in one place, I wanted to share links to some of my previous H-1B-related stories:

What the White House Said About Its Plans for H-1B Visas (Jan. 31, 2017):

Tighter restrictions on skilled worker visas to the U.S. could come via both executive action by President Donald Trump and via Congressional moves, White House press secretary Sean Spicer said Monday.

Indian IT services firms are already girding for possible changes to the H-1B program, which they use to send tens of thousands of workers to the U.S. annually.

While a significant shakeup of the visa program would likely need to be approved by Congress, President Trump could use an executive directive to take steps like ending a provision announced in 2014 that allows spouses of H-1B visa holders to work in the U.S, as The Wall Street Journal reported last week.

H-1B Visas: How Donald Trump Could Change America’s Skilled Worker Visa Rules (Jan. 24, 2017):

During his campaign, President Donald Trump assailed a skilled-worker visa program used to send foreigners to the U.S., and in his inaugural speech Friday he said the country would “follow two simple rules; buy American and hire American.”

Indian outsourcing firms are already preparing for potential changes to visa rules, which could present a challenge because they send thousands of workers to the U.S. every year via the H-1B program.

So how much, and how quickly, could Mr. Trump change the regulations?

A significant shakeup would likely need to be approved by Congress, though there are some steps Mr. Trump could take himself immediately, analysts say.

Indian Outsourcing Firms Prep for Curbs on H-1B Visa Workers Under Trump (Jan. 19, 2017):

NEW DELHI—President-elect Donald Trump doesn’t take office in Washington until Friday, but he is already forcing firms in India’s mammoth $108 billion technology-outsourcing industry to rethink their hiring practices in the U.S., their largest market.

While Mr. Trump has chastised U.S. firms for offshoring American jobs, Indian outsourcing firms could be set to see renewed heat for doing the opposite—placing foreign workers in the U.S., mainly through a skilled-worker visa, known as the H-1B. Faced with the prospect of possible new curbs on those visas from a president who has pledged to ensure that Americans get their first pick of available jobs, outsourcers are ramping up hiring both on American college campuses and at home in India.

H-1B Visas: U.S. Lawmaker Re-Introduces Bill to Tighten Rules (Jan. 6, 2017):

A prominent Republican lawmaker is taking another shot at tightening U.S. rules for high-skilled worker visas ahead of Donald Trump’s inauguration as president later this month.

Rep. Darrell Issa, one of the highest-profile Republicans in Congress and a supporter of Mr. Trump, said Wednesday in a statement on his website that he is reintroducing a bill designed to “stop the outsourcing of American jobs” and ensure laws are not “abused to allow companies to outsource and hire cheap foreign labor from abroad.”

What Will Happen to H-1B Skilled-Worker Visas Under Donald Trump? (Nov. 17, 2016):

U.S. President-elect Donald Trump will likely crack down on the use of skilled-worker visas issued to Indian outsourcing firms, said a leading anti-immigration campaigner.

Mr. Trump is still picking his cabinet, and how his policies will evolve is hard to guess, but he was elected pledging to restrict immigration. That means the tens of thousands of mostly Indian migrants entering America on high-skilled worker, or H-1B, visas could become a target for tougher vetting, said Roy Beck, president of Arlington, Va.-based NumbersUSA, which advocates for limited immigration.

“It would be very surprising if we don’t see the rules around H-1Bs really tighten,” he told The Wall Street Journal.

Exclusive By Me Yesterday: Facebook Messenger Hires Anand Chandrasekaran

The story begins:

NEW DELHI— Facebook Inc. is hiring a high-profile technology executive with expertise in Silicon Valley and India to help develop strategies for its Messenger app, an increasingly important platform for the social-media company.

Anand Chandrasekaran, a former senior executive at Yahoo Inc., will assume a global leadership role working on strategies and partnerships for Facebook’s billion-user-strong texting service, said people familiar with the situation.

It wasn’t immediately clear whether Mr. Chandrasekaran would be based in the U.S. or India.

An announcement could be made as soon as Tuesday, one of the people said.

A Facebook spokeswoman confirmed the hire, but didn’t add anything further.

After working at Yahoo, Mr. Chandrasekaran served as chief product officer at Bharti Airtel Ltd., India’s largest cellular company, where he launched Airtel’s mobile application and a popular music-streaming app.

Last year, he joined New Delhi-based Snapdeal, one of India’s major e-commerce startups, as chief product officer. He departed the company in recent months.

With global users increasingly flocking to messaging platforms such as Facebook’s own WhatsApp and Chinese internet company Tencent Holdings Ltd.’s WeChat, the Menlo Park, Calif., company is eager to transform Messenger into a hub for activities such as e-commerce.

In April, Facebook emphasized its focus on the app at its annual F8 conference in San Francisco, showing developers how to create so-called chatbots for the service. These automated services can interact with consumers in real time to answer questions about the prices of goods, for example.

By Me Monday: How Singapore’s Grab is Battling Uber Here in Southeast Asia

The story begins:

SINGAPORE—Uber Technologies Inc. is locked in major tussles with local rivals in China and India, but a homegrown upstart is also grabbing an advantage in the race for another Asia prize.

A startup called Grab is winning ride-hailing turf in Southeast Asia—home to 600 million people, almost double the population of the U.S. The startup serves more cities in the region than Uber and, according to mobile-app analytics firm App Annie, is beating the world’s most valuable startup in the race for users here.

The region’s ride-hailing market is forecast to grow more than five times to $13.1 billion by 2025 from $2.5 billion last year, according to a recent report on Southeast Asia’s internet economy conducted by Alphabet Inc.’s Google and Singapore state-investment firm Temasek Holdings.

There’s also a video, embedded at the top of the post, in the story, and online here. (You may recognize the narrator’s voice.)

I last wrote about Grab — previously known as GrabTaxi — when they teamed up with fellow ride-sharing firms Lyft and Ola, and when they raised new funds last year.

Recent Stories: Grab <--> Lyft; Microsoft Exec on Self-Driving Cars; Venture Capital in Southeast Asia

I’m behind in sharing some of the stories I’ve been working on. Here are a few from last week.

The first, on Grab’s integration with Lyft in the U.S., begins:

The latest step in a global ride-sharing alliance between rivals of Uber Technologies Inc. went into effect Thursday, allowing users of a popular Southeast Asia-focused transportation app to begin making car bookings via Lyft Inc. in the U.S.

Users of the app from GrabTaxi Holdings Pte. Ltd., which operates in 30 cities across six Southeast Asian countries, can now use the service to hail vehicles in more than 200 U.S. cities via Lyft. In December, Lyft said it was teaming up with Grab, as the company is known, after announcing a similar agreement with Chinese startup Didi Chuxing Technology Co. in September, bolstering the competitive field against the much larger Uber.

The second, on Microsoft, which I wrote while in Hong Kong for our Converge tech conference, begins:

Microsoft Corp. isn’t building its own self-driving car, but is bullish on helping others with related technology, a senior executive said.

“We won’t be building our own autonomous vehicle but we would like to enable autonomous vehicles and assisted driving as well,” said Peggy Johnson, who heads business development for the Redmond, Wash., tech titan, speaking at the Converge technology conference hosted by The Wall Street Journal and f.ounders in Hong Kong Friday.

Ms. Johnson said Microsoft has asked various auto makers what kind of technological applications they are looking for, whether it is working with Azure, its cloud-based service for businesses, Office 365, the cloud version of its productivity software suite, or its Windows operating system.

And finally, another from the conference: a look at how investors – such as Facebook co-founder Eduardo Saverin – are increasingly pouring venture capital funds into Southeast Asia:

Venture capitalists and investors attending the Converge technology conference in Hong Kong on Friday expressed optimism about the future of startups in Southeast Asia, despite significant challenges.

“Between Southeast Asia and India there are about two billion people,” said Facebook Inc. co-founder Eduardo Saverin, speaking on a panel about investment opportunities in the region. “It’s arguably the fastest-growing internet market in the world.”

In the first quarter of this year, funding to companies in Singaporethe region’s startup hub–rose sharply to $199 million from $53.1 million a year earlier, according to Hong Kong-based AVCJ Research.

By Me and a Colleague Wed.: Alibaba to Invest $1 billion in Southeast Asia-Focused E-Commerce Startup Lazada

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The story begins:

Chinese Internet giant Alibaba Group Holding Ltd., in its biggest overseas acquisition to date, said Tuesday it would pay about $1 billion for a controlling stake in Singapore e-commerce startup Lazada Group, betting on growth in populous Southeast Asia.

The acquisition of Lazada—which sells everything from rice cookers to smartphones and operates e-commerce platforms throughout Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam—comes as Alibaba has been using its $3.7 billion in free cash flow to expand into e-commerce, logistics and media, as well as entertainment both at home and abroad.

You may recall back in 2014 I wrote about Lazada’s operations in Indonesia, Southeast Asia’s largest market. (I snapped the image above at a Lazada warehouse outside Jakarta.) The nut graf:

Challenges are par for the course at Lazada Indonesia, founded in Jakarta in 2012 and partly funded by Rocket Internet AG, a Berlin-based tech incubator that went public last month. Indonesia’s e-commerce market is still small, and Lazada had to build a lot of what it needed from scratch. But the company is plowing ahead so it can get a head start in the country over international giants like Amazon.com Inc., Alibaba Group Holding Ltd. and eBay Inc.

Lazada already gets more visitors than any other business-to-consumer site in Indonesia, according to data from research firm SimilarWeb. Lazada’s site saw 6.6 million visitors a month, compared with 3.9 million for Alibaba’s marketplace website AliExpress.com and 2.2 million for eBay, according to the most recent data available from brokerage UBS.

 

By Me and a Colleague Yesterday: Blackstone Buying HP Enterprise’s Stake in Indian Outsourcing Firm Mphasis for $825 million

The story begins:

Hewlett Packard Enterprise Co. said on Monday it planned to sell its majority stake in Indian outsourcing firm Mphasis Ltd. for about $825 million to Blackstone Group LP, as the U.S. technology company seeks to shore up capital following a recent decline in revenue.

Blackstone will purchase at least 84% of HP Enterprise’s majority stake in Mphasis for 430 rupees ($6.49) a share, showing the private-equity firm’s optimism in Mphasis’s prospects even as the industry faces technological challenges.

Besides buying HP Enterprise’s stake, Blackstone said Indian takeover laws require it to buy 26% of Mphasis’s shares via a mandatory tender offer to the company’s public shareholders. Depending on the demand for that offer, the private-equity firm said it could end up spending as much as $1.1 billion on its investments in Mphasis.

HP Enterprise said its decision to sell its position in Bangalore, India-based Mphasis aligns with the company’s capital allocation priorities, which it has said include directing investments toward developing new products and services. The company also has said it would pursue more mergers and acquisitions.

By Me Last Week: Tech Talent is Returning to India

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I had a story Wednesday on the front page of our Business & Tech section. You can see it in this image, under the headline “India Welcomes Home Tech Talent.”

It’s about Indian-born entreprenuers who are increasingly returning to their home country to build startups.

The piece, available online here, begins:

BANGALORE, India—Last year, Abhinandan Balasubramanian quit his job at a London-based financial-technology company. The startup scene in his native India was booming, and he wanted in.

The 25-year-old Mr. Balasubramanian moved to Mumbai and in December launched his own business there: Altflo, a global online marketplace for assets such as real estate and shares in investment funds.

Basing Altflo in India was an easy decision, Mr. Balasubramanian said. “The cost of scaling the company is much lower in India,” he said. Office space and talent are “multiples cheaper than in the U.K.”

Lured by a flood of venture-capital funding, relatively inexpensive labor and the size of the potential market in the world’s second-most-populous country, entrepreneurs and technology workers with Indian roots have been coming home in increasing numbers.

My Recent A-hed on James McGowan, the Globe-Trotting McDonald’s Obsessive

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Those of you who follow me on Twitter and/or subscribe to my email newsletter know that the week before last, my first A-hed* ran on the front page of The WSJ.

(In the image above, showing the paper, below the fold, it’s on the bottom right.)

The story — accessible to all online here — is about James McGowan, a guy in Bangkok whose passion is traveling the world, sampling and blogging about regional variations of McDonald’s items. It begins:

SINGAPORE—When James McGowan walked into a McDonald’s Corp. restaurant in downtown Singapore one recent evening, he wasn’t interested in a Big Mac. Instead, he placed an order for a limited-edition hamburger with caramelized onions and cheddar cheese, truffle-flavored french fries and a special red velvet McFlurry frozen drink.

On a scale of one to five, “I’ll probably give a 3 for the burger,” said Mr. McGowan, noting that it lacked sufficient onions. “The fries are better than I expected. They might be a 3.5 or 4.”

Mr. McGowan may well be the chain’s toughest customer. For the past four years, the 28-year-old has crisscrossed the globe to indulge his passion: Sampling and blogging about the various national iterations of McDonald’s dishes. Thus far, he says he has visited about 53 countries, penning 340 detailed reviews.

The story generated a lot of traffic on our site, which I expected. But I was not prepared, I must say, for McGowan to become a global sensation.

After our story ran, his quest was picked up by outlets as wide ranging as Business Insider, The Straits Times, the Toronto Sun, TODAY.com, and Slate in French.

Papers in the UK, especially, gobbled up the story: The Independent, The Mirror, and even The Daily Mail wrote about McGowan.

Other corporate and tech-focused stories I’ve written have been picked up far and wide before, but this was the first time a feature of this kind has received so much attention. Fun stuff, indeed.

*A-heds are WSJ the often humorous, off-beat stories that run at the bottom of our front pages. Here’s more on the history of A-heds; there’s even a book about them.