China Wants To Buy A Big Piece Of Facebook

China wants to buy a huge chunk of Facebook, a source at a fund that buys stock from former Facebook employees tells us.

This source learned of China's interest when it approached him to see if he could help put together a stake large enough "to matter."

Seperately, a source close to Facebook employees tells us there is a rumor going around the company that Citibank is at this very moment trying to acquire as much as $1.2 billion worth of Facebook stock on behalf of two sovereign wealth funds –  China's and another from the Middle East.  Another source from an investment bank that is very influential in Silicon Valley says he's also heard a rumor about Citibank's interest on behalf of China.

Representatives from Facebook and Citibank declined to comment on this story. We reached out to China's investment group, but haven't heard back.

Word that China, a state that actively combats privacy online, wants to buy a big stake in Facebook is bound to provoke some concern amongst the 700 million or so people who trust the site with their photos and online activity.

There's little need for such concern. For one, even a billion dollar stake isn't a very big stake in Facebook, these days. The company is expected to IPO at a $100 billion valuation. For another, China would be buying non-voting stock and would have no say in Facebok's operations. And finally, it's not like shareholders in Facebook have some special privilege that allows them to see what users are doing or saying.

Importantly, sovereign wealth funds are pretty distinct from their governments.

Because it's a private company, Facebook will have to approve any sale of its stock to China. We imagine it will. It's been reported that Mark Zuckerberg would like Facebook to move into China. One big reason American firms stumble in China is that the government tends to favor locals when it comes to regulation. One way to make sure that doesn't happen is to allow the governement to own a stake.

Related: 10 Ways Google+ Just Copied Facebook

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See Also:

• This Company Will Expose All Your Most Embarrassing Online Moments
• GOOGLE: We Made + Because People Hate Facebook
• Facebook Knew About Google Circles Last Year, And Beat It To Market With Groups

China Wants To Buy A Big Piece Of Facebook

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Groupon in China: Ebay all over again?

Just because it works in the United States, doesn't mean it will work in China. It's a lesson some of our biggest tech brands have learned the hard way. And as Groupon attempts expands east, critics say its already making the same mistakes.

Groupon in China: Ebay all over again?

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THE APPLE INVESTOR: China Is Key To Apple's Future Growth (AAPL)

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AAPL Down Against The Tide 

Stocks are heading higher following confirmation that Al Qaeda leader Osama bin Laden was killed by U.S. special forces. Shares of AAPL are off nearly $1 versus a positive tech market. Upcoming catalysts include Steve Jobs' healthy return; the WWDC starting June 6; iPad 2 supply stabilization; the iPhone 5 launch this summer / fall; smartphone push into China and emerging markets; iTunes in the cloud; the continued evolution and adoption of Apple TV; and new initiatives such as video platforms, books / publishing and social (Ping). Shares of Apple trade at 12x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).

China Key To Apple's Future Growth (MacObserver)
According to analyst Brian White of Ticonderoga Securities, "Apple fever" is spreading across China. The white iPhone 4 had “quickly” sold out in all four of Apple’s flagship Apple Store locations in Beijing and Shanghai, and pre-orders for iPad 2 in Hong Kong had also sold out. Brian believes China will be one of the most important drivers of the company’s growth over the next decade.

Apple Should Use Intel For Smartphone And Tablet Chips (Barron's)
Piper Jaffray semiconductor analyst Gus Richard believes that since “Intel has no market share in the next wave of computing,” the company should consider becoming the foundry to manufacture the custom microprocessors that Apple designs into its iPhones, iPods and iPads. Right now that belongs to Samsung, however the two companies are locked in lawsuits which could provide Intel an opening.

Is Apple Building Two Versions Of The iPhone 5? (The iPhone Download Blog)
According to an employee of an Apple part supplier, the company may be building two different iPhone 5 models for release this fall; a normal and pro model. Apple may just be testing different components for reliability and quality before final production of one device.

iMacs Rumored To Launch This Week (Apple Insider)
Apple is to launch new iMacs tomorrow according to the latest barrage of rumors online over the weekend. The new iMacs will have Sandy Bridge and come with the company's new Thurderbolt technology even though there is still only a handful of drives available for the technology. Read more at Business Insider.

Apple Still Expanding The Company, Doesn't Need To Offer A Dividend (Seeking Alpha)
Apple has one of the largest cash inventories in the world at about $65.8 billion. But why does Apple not offer a dividend to investors? The answer is not easy, but one theory is that Apple has not finished expanding the company to their satisfaction. Therefore the cash flow that is considered a "surplus" is actually money that will be reinvested back into the company to continually innovate and create new products. Simple.

Profit From Various Option Strategies This Week (Seeking Alpha)
Investors looking at the big picture could execute a buy-write on AAPL May 6 355s. This is the best strategy due to the risk-return profile. If that is an uncomfortable level of risk, utilize the 350s. An alternative strategy is to sell out-of-the-money puts and collect the premium without having to purchase the stock outright; the 340s and 345s are attractive for this purpose.

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See Also:

• THE APPLE INVESTOR: The Verizon iPhone Caused Android To Slip In Sales Share
• iPad 2 Design Leaks Leads To Arrests Of Foxconn Workers
• Get Ready For New iMacs, Coming This Week

THE APPLE INVESTOR: China Is Key To Apple's Future Growth (AAPL)

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THE GOOGLE INVESTOR: Android Winning In The U.S. But Google Getting Beat At Its Own Game In China (GOOG)

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GOOG Down With Tech 

Stocks are mixed after reports of rising initial jobless claims and a slower GDP growth. Shares of Google are down marginally with the rest of the tech tape, while the Dow Jones Industrial Average is slightly up. Upcoming catalysts include continued Android momentum; regaining ground in China and pushing into other emerging markets; updated software, adoption and media partners for Google TV; and progress in other newer initiatives (+1, location-based services, music-service, mapping, gaming, etc.). The stock trades at approximately 12x Enterprise Value / EBIT, inexpensive relative to peers and historical trading levels.

Android Market Share Growth Accelerating At RIM's Expense (Nielsen)
Google's Android operating system rose to 37% U.S. market share compared with 27% for Apple's iPhone through March, according to Nielsen. Nielsen also detected a preferential shift that reflects Android's ascension, which has happened rapidly in the last six months. All of that came from RIM supporters defecting to the platform, as BlackBerry use fell five points to 22%. More evidence that Android is clobbering everyone and Apple is dead in the water according to Henry Blodget at Business Insider.

Baidu Squeezing Out Google Search In China Handset Market (The Next Web)
The general manager of Baidu's wireless unit claims that 80% of Android-based handsets in China will soon have Baidu as default search engine. Baidu more than doubled its profit in the first quarter and forecast stronger-than-expected revenue for the second quarter, betting on strong online advertising demand among China's businesses. Whereas the free and "open" Android platform has been a boon to Google in most places around the globe, in China the story is apparently different. Read more at Business Insider.

Facebook Launches Groupon Killer, Takes On Google Offers As Well (Various via techDygest)
Facebook launched a new local deals service (aptly called "Deals") that allows users to get special offers and discounts directly through the home page as well as email and notifications. Sound familiar? The social networking is taking on Groupon and LivingSocial with offers intended to get people to socialize. After talks broke down surrounding the purchase of Groupon earlier last year, Google launched Google Offers. With Facebook now in the mix, Google's offering will continue to struggle. Read more at Business Insider.

Google Will Continue To Add To The $350 Million Invested In Renewables (Reuters)
Google has not given up on its goal of making renewable energy cheaper than coal for consumers but it is not predicting victory soon, according to Rick Needham, director of green business operations. Google believes it can eventually help reduce the costs of renewables by spurring innovation and by showing other companies that renewables can be a good business opportunity. The company is exploring more opportunities in renewables, including enhanced geothermal.

For the latest tech news, visit SAI: Silicon Alley Insider. Follow us on Twitter and Facebook.

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See Also:

• How Baidu Is Using Google's Android To Crush Google
• CHART OF THE DAY: Android's App Store Will Be The Same Size As Apple's This July
• THE APPLE INVESTOR: Apple Could Survive On Its Current Cash Until 2018 Without Generating Any Revenue

THE GOOGLE INVESTOR: Android Winning In The U.S. But Google Getting Beat At Its Own Game In China (GOOG)

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Groupon: “Getting It In The Ass” In China

A Global Mobile Internet Conference kicked off last night in Beijing. The opening event was an on-stage interview with John Liu, head of Google's China operations, followed by a panel discussion with several entrepreneurs and executives from MSN and Zynga. The interview was titled "How foreign companies can succeed in China", a rather amusing title considering that no foreign Internet company has ever achieved a dominant position in the People's Republic.

Groupon: “Getting It In The Ass” In China

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Groupon: “Getting It in the Ass” in China

A Global Mobile Internet Conference kicked off last night in Beijing. The opening event was an on-stage interview with John Liu, head of Google's China operations, followed by a panel discussion with several entrepreneurs and executives from MSN and Zynga. The interview was titled "How foreign companies can succeed in China", a rather amusing title considering that no foreign Internet company has ever achieved a dominant position in the People's Republic.

Groupon: “Getting It in the Ass” in China

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Groupon Launches China Affiliate With Huge Local Investors

Groupon has launched GaoPeng.com, a China affiliate, the company has announced. The company is funded by Groupon, Tencent Collaboration and a fund co-owned by Alibaba founder Jack Ma.

This is potentially absolutely huge. Groupon's international expansion has been the most aggressive of any tech company we can think of, and they've been grasping for a China strategy for a while, from buying up local competitors, which didn't really work, to opening their fully-owned local site, which never works.

And of course, meanwhile, Groupon clones have been exploding all over China -- imagine the heat of Groupon clones plus the heat of China. Groupon have got the best partners in this deal: Tencent is China's largest social network (and one of the world's most valuable companies) and Jack Ma is the founder of Alibaba, the e-commerce leader in China.

Foreign companies never succeed in China without a local partner, and the world's biggest social commerce company found as partners the biggest social network and biggest commerce entrepreneur. Maybe Groupon will crack the code of winning in China.

Don't Miss: 10 Asian Tech Companies That Are Putting American Ones To Shame →

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Groupon Launches China Affiliate With Huge Local Investors

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