Reuters blog archive
from The Great Debate:
Ron Conway, an angel investor in some of the most successful startups of the past decade, from Google to Twitter, was holding a Christmas party in his San Francisco apartment overlooking the Golden Gate Bridge on Dec. 14. One of his guests that evening was former Congresswoman Gabby Giffords.
What was supposed to be a festive occasion turned solemn as Conway convened a prayer for the families of Newtown, CT and exhorted the leading lights of technology and venture capital gathered in his home to ingeniously help tackle the problem of gun violence.
There may be a lot of problems that deep pockets and tech startup ingenuity can’t help solve, but the epidemic of senseless mass shootings needn’t be one of them.
When Apple introduced its latest iPhone in September, the company added a fingerprint identity sensor. The new feature, called Touch ID, makes it virtually impossible for a child to pick up a parent’s iPhone 5S and dial random contacts, play Minecraft or surf the treacherous shoals of the Internet. Imagine what this technology could do for the most lethal consumer products ever known to mankind: firearms.
from Reihan Salam:
In 1890, two of America’s leading legal minds, Louis Brandeis and Samuel Warren, published an article called “The Right to Privacy” in the Harvard Law Review. Scandalized by the rise of a gossip-mongering press that intruded on the lives of prominent citizens, they called upon the courts to recognize a “right to privacy.” Their fear was that new technological and commercial innovations -- in this case photography and the mass-circulation gossip rag -- would cause the rich and famous untold mental pain and distress. As Stewart Baker observes in his provocative book Skating on Stilts, the substance of Brandeis and Warren’s argument now seems rather quaint, as a gossipy news media has become a central part of our public life. In Baker’s telling, “the right to privacy was born as a reactionary defense of the status quo.” And even now, he argues, privacy campaigners often overreact against new technologies they fear but do not understand.
Baker’s argument has been panned in civil libertarian circles. When he suggests that societies eventually adapt to new technologies -- that “the raw spot grows callous” as we grow accustomed to invasions of privacy -- privacy campaigners reply that it is Baker who has grown callous to the harms in question. Baker’s central goal is to convince Americans to accept that government must use new technological tools, like the data mining programs used by the National Security Agency, to combat mass-casualty terrorism. His critics maintain that he is far too glib about the potential that government might abuse these new tools, and indeed too dismissive of the notion that it has already done so.
from Felix Salmon:
Something of a milestone was reached very early in the morning of Friday, November 29, a time when most Americans were either sleeping off their Thanksgiving excesses or out seeking Black Friday bargains. At the end of Wednesday, the price of gold, on Comex, had closed at $1,240 per ounce; that market would not reopen until Friday morning. And then at about 1am Friday, EST, there was a trade on Mt Gox, the largest bitcoin exchange, which valued each coin at $1,242. If only briefly and theoretically, at that point in time a bitcoin was worth more than an ounce of gold.
Bitcoin, by its nature, is a highly volatile asset, which is prone to astonishing run-ups in price. Check out these three one-year charts of the bitcoin price:
from Felix Salmon:
If you google "disrupt the pink aisle”, you’ll get 36,800 results, all of which concern a San Francisco-based toy company named GoldieBlox. The company first came to public attention in September of last year, when it launched a highly-successful Kickstarter campaign which ultimately raised $285,881. Like all successful Kickstarter campaigns, there was a viral video; this one featured a highly-photogenic CEO called Debbie, a recent graduate of — you probably don’t need me to tell you this — Stanford University. And yes, before the Kickstarter campaign, there was “a seed round from friends, family and angel investors”. When the viral video kept on generating pre-orders even after the Kickstarter campaign ended, GoldieBlox looked like a classic Silicon Valley startup: young, exciting, fast-growing, and — of course — disruptive.
Not wanting to mess with a proven formula, GoldieBlox kept on producing those viral videos: “GoldieBlox Breaks into Toys R Us” was based on Queen’s “We Are The Champions”, and got over a million views. But that was nothing compared to their latest video, uploaded only a week ago, and already well on its way to getting ten times that figure. This one was based on an early Beastie Boys song, “Girls”, and deliciously subverted it to turn it into an empowering anthem.
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from The Edgy Optimist:
Twitter’s initial public offering last week was everything that Facebook’s botched offering a year and a half ago was not: the stock was reasonably priced; management wooed investors; and the company neither promised the moon nor the stars, and was rewarded with a substantial amount of cash raised, a stock that went up more than 75 percent, and a valuation of $25 billion.
Though shares pulled back sharply -- and predictably -- the day after its IPO, Twitter has now joined the pantheon of leading social media companies. It has yet to make a profit, but unlike the 1990s Internet comets it is routinely compared to, it is making substantial revenue (on pace for just under $600 million this year). That is substantially less than Facebook was making when it went public ($3.7 billion), but more than LinkedIn was generating when it went public in 2011 (estimated at $220 million).
from Lawrence Summers:
As the president has recognized, the failure of his administration to deliver a functioning website that Americans can use to enroll in Obamacare represents an inexcusable error. Having succeeded after more than a century of failed efforts in achieving the progressive dream goal of legislating universal health insurance in America, it is tragic to be falling short on the mundane task of allowing Americans to actually enroll in the healthcare exchanges. Even if the goal of getting the health insurance exchanges working by November 30 is achieved, and this cannot be regarded by objective observers as a certainty, a shadow has been cast on the core competence of the federal government.
What should be learned from this episode? It is too soon to know with confidence, but worth reaching some preliminary judgments while the issue is front of mind.
from The Human Impact:
There has been much fanfare over the launch of India's first rocket to Mars - a mission which, if successful, will position the Asian nation as a major player in the global space race.
For days last week, local television news channels broadcast constant updates as the Indian Space Research Organisation readied to send "Mangalyaan" – the “Mars-craft” – to the red planet.
from Felix Salmon:
Twitter is about to raise more than $2 billion, on a valuation of more than $18 billion, in its IPO. At some point on Thursday morning, an opening price for the stock will be set — a price which will almost certainly be north of the official IPO price of $26 per share — and after that, it’s off to the races. Will Twitter stock go up? Will it go down? Is it a buy? Is it a sell? Is the company worth what the market says it’s worth? It’s a pretty silly game to play, at heart, since no one has a clue what the answers are, not even Twitter’s underwriters, who had to raise the valuation of the company twice.
Still, silly games are often the most fun, so, go knock yourself out with the official Breakingviews Twitter valuation calculator! Or, you can use Lex’s version, which is a relatively pure discounted cash flow model, not dissimilar to the back-of-the-envelope calculations by which the Economist managed to come to a “reasonable" valuation of $18 per share. Anything north of that level, intones the venerable weekly, constitutes “a poor long-term investment”.
from Felix Salmon:
Duff McDonald has a wonderful review of Brad Stone's new book on Amazon in the NYT; he's a fantastic nonfiction book reviewer. There is one part of the review, however, which could do with a bit more explanation:
Bezos does appear to revel in outwitting even his best partners. The publishing industry, for example, still doesn’t quite know how it willingly gave him the sword with which he would slice off its head...