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Showing posts from December, 2018

Netflix Said To Hire Outgoing Activision CFO

Netflix CEO Reed Hastings (centre) image : Ryan Lash/TED Netflix is reportedly hiring Activision CFO Spencer Neumann who the company says it’s planning to let go of for unspecified reasons in an SEC filing . Reuters reports this hire citing a source familiar with the matter, stating Neumann who has been placed on paid leave at Activision will take helm as CFO at Netflix early 2019. According to Activision’s filing, It intends to terminate Neumann  “for cause unrelated to the company’s financial reporting or disclosure controls and procedures.”  A hire won’t come as a surprise as current Netflix CFO David Wells made known this August of his intention to step down after a long 14 years at the company. Netflix is expected to make an official announcement of this hire in the next few days, Reuters says, also noting that the company wants its next chief financial officer to be based in the Los Angeles area with a focus on production finance. Prior to Activision Blizzard, Neumann

IP Disputes Can Now Be Taken To The Chinese Supreme Court

(From Left to Right) Former UN Secretary-General Ban Ki-moon, President of the People's Republic of China Xi Jinping and Former U.S. President Barrack Obama image : United Nations Intellectual property cases can now be taken to the Chinese Supreme Court, the government said this Saturday, marking a step to strengthen protection of IP amid complaints from U.S. along with the European Union of low enforcement of intellectual property rights in the country. With China and the U.S. in talks to come to terms on a trade dispute which has led to tariffs placed on imported goods from both sides, This move likely counts as one related to this as displaying seriousness about U.S. concerns count as a step towards this. U.S. President Donald John Trump image : Gage Skidmore Even with this, Deputy chief justice Luo Dongchuan has dismissed suggestions that this move was influenced by the U.S. side. “China has for many years followed international regulations and internation

Epic Games Said To Have Banked $3 Billion Profit This Year

image : Epic Games/Hasbro Fortnite developer Epic Games made $3 Billion in profit this year according to TechCrunch which cites a source with knowledge of its business. If this stands true, it'll mark a very successful year even more than previously estimated for the Fortnite maker. Several analyst predictions estimated the company was in line to make $2 Billion in gross profits for 2018. Epic Games CEO Tim Sweeney image : Game Developers Conference  Fortnite has proved to be a money making machine with its 125 million players spending lots of cash on in-game items for the free to play title. Epic has not released any revenue statistics for any of its games, In addition to Fortnite, it also makes money from other games like Battle Breakers, Robot Recall, Spyjinx and game development platform Unreal Engine.

Dell Returns To Public Markets After 5 Years In Private Hands

Dell CEO Michael Dell image : Dell Dell has begun trading on the public stock market after listing on the NYSE this Friday under the symbol 'DELL', a move achieved through a buyback of shares that tracked financial performance of VMware, a firm it holds a majority stake in. The buyback deal involved cash and stock, worth nearly $24 billion and allowed it to sidestep a traditional listing process which would likely have seen scrutiny from investors concerning Dell's debt pile. Dell has been leveling down its debt, majority of which was issued for its 2015 $67 billion purchase of EMC. image : Dell Dell is trading at around $45 (as of writing) on the New York Stock Exchange, It opened at $46 and hit a low of $44.77 during trading today. According to the Wall Street Journal , Silver Lake Partners, a key backer in Dell's 2013 buyout is retaining its 24% stake in the company.

Tesla Adds Larry Ellison And Walgreens Executive Kathleen Wilson-Thompson To Board

Oracle's Larry Ellison image : Oracle Tesla has made two new additions to its board with the appointment of Oracle chairman Larry Ellison and Walgreens Executive Vice President and Global Chief Human Resources Officer Kathleen Wilson-Thompson as independent directors. This appointment took effect as of December 27 2018. Tesla's board, led by its Nominating and Corporate Governance Committee made this appointment after conducting "a thorough, expansive process in searching for its new independent directors, considering candidates with a wide range of skill sets from across the globe who also hold a strong personal belief in Tesla’s mission of accelerating the world’s transition to sustainable energy." The company said in its statement. Kathleen Wilson-Thompson image : Walgreens “In conducting a widespread search over the last few months, we sought to add independent directors with skills that would complement the current board’s experience. In L

Apple Will Reportedly Start Assembling Top-End iPhone Models In India Next Year

image : Apple According to a Reuters  report , Apple supplier Foxconn will begin assembling high-end iPhone models in India, potentially taking its business in the country to a higher level and likely as a way to sidestep tariffs that may arise from a U.S.-China trade war. The report says work will begin at Foxconn’s plant in the town of Sriperumbudur with a 25 billion Indian rupees ($356 million) investment set for expansion of the manufacturing facility. This may create as much as 25,000 jobs in the Indian market, it added. Model Nyle DiMaxrco (2nd from left) and Apple CEO Tim Cook (next) react to a robot dance sequence created on Swift Playgrounds (An Apple app that teaches how to code in its Swift programming language) image : Apple  A move like this makes much sense for Apple as in addition to avoiding potential tariffs from the Chinese side where it assembles the bulk of its products, India has also placed high tariffs on imported smartphones in recent years, maki

Amazon And Walmart Face Tough Rules In Indian Market

Walmart CEO Doug McMillon (left) and Flipkart co-founder Binny Bansal image : Walmart E-commerce leaders Amazon and Flipkart are facing tough rules from the Indian government aimed at preventing predatory pricing and deep discounts that pose threat to its local retail market. The rule, effective from the 1st of February require that all vendors be treated equally on the same terms and that cash back provided must be fair and not affect the price of goods and services. The Indian government has also barred e-commerce services from coercing sellers to feature products exclusively on their platforms. E-commerce companies will have to present a certificate confirming compliance to these rules along with an auditor's note to the Reserve Bank of India by the 30th of September every year for the preceding financial year. image : Flipkart Highlights noted in the government's statement include : E-commerce companies no longer permitted to offer products made by co

White House Reportedly Mulling Executive Order To Ban Purchase Of Huawei And ZTE Equipment

U.S. President Donald John Trump image by Gage Skidmore According to Reuters , U.S. President Donald Trump is considering an executive order in the new year that will bar use of telecom equipment made by China's Huawei and ZTE for U.S. companies, a move that will mark the latest by the Trump Administration to cut Huawei and ZTE from the U.S. market following concerns its equipment could be used to spy on American citizens. Reuters says the executive order which has been in consideration for over 8 months could be issued next month and would direct the United States Department of Commerce to prevent U.S. companies from purchasing equipment from foreign manufacturers that pose national security risks. President of the People’s Republic of China, Xi Jinping, China and the U.S. are involved in a trade war which has led to tariffs placed on goods traded between both nations image : Beto Barata/PR The order might unlikely name Huawei and ZTE in a direct manner

Citron Predicts Facebook Stock Could Hit $160 Next Year

Instagram co-founder Kevin Systrom, Instagram stands as main business for Facebook with growth potential in the e-commerce sector, Systrom announced his resignation from Facebook this September Photograph by Kevin Moloney/Fortune Brainstorm TECH Activist short seller Citron Research has predicted Facebook, trading at around $134 (as of writing) may hit $160 next year as it maintains revenues and user base with little impact even in the midst of several data scandals and privacy issues. After years of growth, for the first time ever, Facebook is trading at a discount to the S&P and is at its lowest multiple ever, in part to data scandals including a most recent issue involving sharing of user data with several tech giants like Spotify, Apple, Microsoft and Yahoo, it defended itself arguing this only happened with user permission granted. Indian Prime Minister Narendra Modi (left) and Facebook's Mark Zuckerberg image : Facebook "Despite Facebook’s mass

Amazon Inks A Record Holiday Season With "More Items Ordered Worldwide Than Ever Before"

Amazon Echo Buttons image : Amazon Amazon has announced it had a record holiday season with customers purchasing millions more Amazon Devices this season compared to last year, best-selling devices for this period include the new Echo Dot smart speaker, The Echo and the Fire TV Stick 4K with Alexa Voice Remote. The company also said "tens of millions of people" globally began trials or paid memberships for its Amazon Prime subscription bundle, with over a billion items shipped for free this holiday in the U.S. Its Ring and Blink product lines also had more sales this holiday season than ever before, as per its statement . Amazon retail chief Jeff Wilke, Wilke is CEO, Worldwide Consumer at Amazon Photograph by Stuart Isett/Fortune Brainstorm Tech Other highlights noted by the company for this holiday season include : Customers requesting nearly 3x as many recipes on Alexa than normal. Alexa setting over 100 million timers. Customers requesting Alexa t

Despite Turbulence, Huawei Sold Over 200 Million Smartphones This Year

Huawei has announced that it exceeded 200 million sold smartphones this year despite turbulence relating to bans of its telecom equipment and the recent arrest of its CFO Meng Wanzhou who is currently on bail in Canada. The 200 million sales came about with strengthened sales of the Honor 10, P20 and Mate 20 models which account for a significant percentage of this figure. According to Huawei, within two months of release, The Mate 20 series had shipped over 5 million units while the popular Huawei nova series sold over 65 million units units year. Huawei CEO and founder Ren Zhengfei (left) image : HM Treasury on Flickr 8 years ago, Huawei inked a little 3 million annual sales, now growing to over 200 million in 8 years, indicating high growth for the Chinese company. It says its smartphones are being used by more than 500 million countries in over 170 countries as of current. "Looking to the future, Huawei's consumer business will focus on the core concept

Here Are All The Retail Locations Apple Opened This Year

The Apple Champs-Élysées in Paris   image : Apple Beginning January this year, Apple launched new retail spots across the globe, spanning countries from Japan to Thailand, France and others. On the 26th of January, it opened its first official store in South Korea featuring 140 employees including 18 Koreans who worked in stores around the world before heading home. Here are all the stores the company launched around the globe throughout this year: Apple Garosugil in Seoul, South Korea - The company launched its first ever store in the country on the 26th of January to thousands of customers who braved sub-freezing temperatures to witness the event attended by Apple's senior vice president of Retail Angela Ahrendts. Apple Garosugil in Seoul, South Korea image : Apple Apple’s senior vice president of Retail Angela Ahrendts, welcomes customers to Apple Garosugil. image : Apple Apple Kärntner Straße in Austria - Shortly after a South Korea lau

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Deal: Mindbody Buys Fitness Startup ClassPass

Mindbody , a leading maker of software for managing gyms and fitness studios, is buying one of the hot startups in its industry. It's buying ClassPass , a popular subscription platform for widespread gym access and online fitness classes. Mindbody will buy Classpass for an undisclosed amount . The company, owned by private equity firm Vista, also announced a strategic $500mn investment along with its ClassPass deal. The acquisition was all with privately held shares, Mindbody said. ClassPass is a celebrated startup in the fitness space. It began as a simple website to book fitness classes with registered studios but morphed into a subscription platform for access to such studios and their fitness classes, with many users paying recurring fees as a steady revenue source.  ClassPass was valued at $1bn from a funding round last year. Given the acquisition's pricing terms weren't disclosed, we can't say for sure if it was higher or lower than the $1bn mark, but for a hint,

Tether Fined $41M For Lying About Fiat Reserves

Tether Limited , the organization behind the eponymous Tether (USDT) stablecoin, has been fined a substantial sum for lying about the fiat reserves backing its stablecoin. It was fined $41mn by the US Commodity Futures Trading Commission (CFTC). According to the CFTC's press release , Tether lied to customers that it had sufficient dollar reserves to back every issued USDT token whereas it did not for a long period of time. Over a 26-month sample period from 2016 through 2018, the CFTC said Tether only had sufficient dollar reserves for all its tokens 28% of the time, whereas it lied that it was "fully-backed" all the time. Also, the CFTC said Tether failed to disclose to customers that it had unsecured receivables and non-fiat assets in its supposed cash reserves. The organization further lied to customers that it would undergo routine, professional audits of its reserves but has failed to do any, the CFTC said. For its violations, the CFTC fined ordered Tether to pay a

Deal: Scopely Buys Sony's GSN Games For $1B

Scopely , a top-ranking mobile gaming startup, is expanding its business with a new major acquisition. It's buying GSN Games , a mobile gaming division of entertainment giant Sony, for the sum of $1bn. GSN Games makes popular social casino games such as Bingo Bash and  Solitaire TriPeaks . Social casino games are a genre where gaming studios can extract much revenue if they do it right, and GSN is one of the top contenders in the genre. Scopely will pay $1bn for GSN Games, half of it with cash and the other half with its shares, making Sony a minority shareholder in the mobile gaming company. It's said that Scopely's valuation has climbed to $5.4bn taking into account the shares it'll hand over to Sony as payment. That compares to a $3.3bn valuation when the company raised funding last year.  With GSN, Scopely is stepping up its business substantially by the way of a strategic acquisition. It's a strategy the mobile gaming startup is used to, having made 5 acqui

Microsoft CEO, Other Execs Bag Annual Pay Raises

Microsoft (NASDAQ: MSFT) has raised the annual pay package of its Chief Executive Officer, Satya Nadella , the company's latest proxy statement reveals. Nadella enjoyed a substantial pay raise along with several other Microsoft executives. For the fiscal year ended June 30, 2021, Nadella's compensation was $50mn , up 13% compared to the previous year. The lucrative pay package was split into a $2.5mn base salary, $33mn of stock awards, a $14mn cash bonus, and $110k in "other" compensation. Nadella's pay raise was in line with other Microsoft executives, including President Brad Smith and CFO Amy Hood. They each got annual pay raises in the 20% ballpark compared to 2020. The reported pay packages of Microsoft's top executives for the fiscal year is as follows; Satya Nadella (CEO) - $50mn. Amy Hood (CFO) - $23.5mn Brad Smith (President and Chief Legal Officer) - $20.5mn Jean-Philippe Courtois (Executive Vice President) - $17mn Christopher Young (Executive Vice

Deal: Instacart Pays $350M For A Smart Grocery Cart Startup

In a bid to expand, grocery delivery giant Instacart is making its biggest acquisition yet. It'll buy   Caper AI , a New York-based startup that makes smart grocery carts and cashier-less payments tech that complement them. Instacart will pay $350mn for the startup in a combination of cash and shares. Caper AI is a startup working on exciting stuff; smart shopping carts to make the grocery buying process at brick-and-mortar stores easier and faster. Its smart carts can recognize items placed in them with the help of cameras and weight sensors, then calculate their total cost without the need for barcodes as used in most grocery stores. Payment at the counter is then made quickly with Caper's own payments platform. Caper's "AI Cart". credit: Caper Also, Caper sells what's called a "Caper Counter," a checkout system for convenience stores that uses cameras and weight-based sensors instead of barcodes to sum the total cost of items. Caper Counter. cre

Apple Unveils New MacBook Pros, AirPods

Tech giant Apple has added a new set of products to its roster, including new MacBook Pro laptops and AirPods unveiled at a Tuesday online event.  Apple also unveiled new chipsets for the new MacBook Pros, the M1 Pro and M1 Max . MacBook Pros Apple unveiled two MacBook Pros, a 14-inch and 16-inch model. Both will come with the first chipsets designed by Apple specifically for a MacBook Pro, delivering high performance, expectedly.  Apple has brought back the HDMI port and SD card reader to the new MacBook Pro, in addition to three Thunderbolt 4 ports to connect peripherals. Removing the HDMI port and SD card reader in MacBooks had generated significant complaints by some Apple users, but it appears they'll be pleased again if they get the new MacBook Pros. Other shared features of the new MacBook Pros include; A 1080p front camera. MagSafe magnetic chargers. Six-speaker sound system. Fast charging - 50% charge in 30 minutes, Apple claims. Touch bar replaced by function keys. One

Deal: Australia's Aristocrat To Buy Playtech For $3.7B

The online gambling industry is hot this year, with billion-dollar deals now a frequent occurrence. The latest billion-dollar deal is Playtech , a London-listed online gambling company, selling to Aristocrat Leisure , an Australian gambling machine manufacturer. Playtech was founded in 1999 by Israeli entrepreneur Teddy Sagi . However, he sold off all his shares  in the company in 2018 and won't profit from this deal. Don't cry for him though, he made other shrewd investments that bestowed him with a net worth nearing $6bn ( Forbes estimate ). Aristocrat (ASX: ALL) has agreed to buy Playtech (LON: PTEC) in a deal worth £2.7bn ($3.7bn). The Australian firm will pay $2.9bn to buy all outstanding Playtech shares and assume $800mn of the firm's debt. It's paying 680 pence in cash per Playtech share, a 58% premium to the company's share price before the announcement. Following the announcement, Playtech's share price jerked up, expectedly. It rose 57% on Monday to

Fast Fashion E-Tailer Lulu's Files For IPO

Lulu's , an online retailer of women's apparel, is headed towards the public markets. It's filed an S-1 document for an initial public offering (IPO), showing its intent to list on the Nasdaq exchange. As expected from S-1 filings, Lulu's has provided great insights into its business, with information not publicly disclosed before. Something very noteworthy is that the online shopping boom of this year emanating from the Covid pandemic has largely favored the company. By The Numbers For its most recent fiscal quarter, the three months ended October 3, 2021, Lulu's brought in between $105mn to $106mn in revenue. Its net income for the same period was at the $3mn-$4mn mark. The estimations are because the final, audited results haven't yet been posted. For the fiscal year ended January 3, 2021, Lulu's posted $249mn in revenue and a net loss of $19mn. It shows that the company has swung from losses to profitability this year, with the net profit of between $3m

Antitrust: Facebook Fined $70M Over Giphy Takeover Probe

The UK's antitrust agency has levied a substantial fine on social media giant Facebook related to its acquisition of Giphy , the popular GIF website. It fined the company  £50.5mn ($69mn) for flouting an order requiring it to supply information related to the agency's investigation of the $400mn acquisition. The UK's  Competition and Markets Authority (CMA)  launched a  formal probe  of the Giphy deal last June. The antitrust agency challenged the deal  after probing it,  arguing that it gave Facebook an unfair advantage over rivals that also used Giphy's GIF database. It appears that Facebook failed to comply with demands from the agency's investigation and has been penalized for it. Apparently, the UK's antitrust agency required Facebook to suspend integrating its operations with Giphy's as the agency was investigating the acquisition, but Facebook had failed to indicate it did so despite multiple warnings. "This should serve as a warning to any com

Deal: Walgreens Invests $5.2B In VillageMD, Now Majority Owner

Walgreens Boots Alliance , the giant American pharmacy chain, is doubling down on its investment in one of its healthcare peers; the primary care chain VillageMD . After a previous investment last year, Walgreens is investing an additional sum in VillageMD that'll make it the primary care chain's majority owner. Walgreens has agreed to invest $5.2bn in VillageMD, upping its stake from 30% to 63%. It'll become the primary care chain's majority owner and guide it under its belt to open hundreds of primary care clinics co-located with Walgreens drugstores across the US. The investment is really strategic, giving Walgreens majority ownership in the firm that'll operate most of the primary care clinics attached to its stores. We can refer to it as "full-stack healthcare", where you visit a Walgreens-owned clinic and get prescriptions to buy drugs at a Walgreens pharmacy, though we're aware not everyone is comfortable with one company having that much cont