Felix Salmon

Mark Zuckerberg, the Warren Buffett of technology?

By Felix Salmon
March 26, 2014

What does Mark Zuckerberg think he’s doing, spending $2 billion on Oculus? You could take him at his word — that he sees virtual reality as “a new communication platform” where “truly present” people “can share unbounded spaces and experiences”. Basically, virtual is the new mobile, and Zuckerberg wants to get in on the game early.

The rational Candy Crush IPO

By Felix Salmon
March 10, 2014

Jim Surowiecki is absolutely right about the IPO of King Digital Entertainment, the makers of Candy Crush Saga. The point of an IPO is to raise permanent capital for a company which intends to exist in perpetuity, while King will realistically last only as long as the Candy Crush fad. King will probably never again make the kind of money ($568 million) it made last year, and yet it issued options in January at a crazy $9.4 billion valuation.

Satoshi: Why Newsweek isn’t convincing

By Felix Salmon
March 10, 2014

The Satoshi Paradox

By Felix Salmon
March 7, 2014

Newsweek wanted a scoop for its relaunch cover story, and boy did it deliver: it uncovered the identity of Satoshi Nakamoto, the inventor of bitcoin. Who then promptly came out and denied everything. Which means that one of the two is wrong: either Nakamoto is lying through his teeth, or Newsweek has made what is probably the biggest and most embarrassing blunder in its 81-year history.

Facebook’s horrible, stroke-of-genius IPO

By Felix Salmon
February 20, 2014

Two years ago, before Facebook went public, I wrote a feature for Wired with the title “For High Tech Companies, Going Public Sucks”. It was illustrated with this Mark Zuckerberg sadface:

When disruption meets regulation

By Felix Salmon
January 30, 2014

How Tumblr and GitHub could be the future of education

By Felix Salmon
January 21, 2014

I’m at DLD, in Munich, where on Monday I moderated an enjoyable discussion with Georg Petschnigg, the co-founder of FiftyThree, and David Karp, the founder of Tumblr. FiftyThree is the company which makes Paper, Apple’s iPad App of the Year in 2012, and also Pencil, the beautifully-weighted stylus which makes Paper even more of a pleasure to use. Tumblr is deeply embedded into Paper; it’s more or less the default way in which people using Paper share their creations.

How companies should take advantage of markets

By Felix Salmon
December 20, 2013

I like Matt Levine’s dry take on Facebook’s secondary offering: “Whatever else you think of Facebook,” he writes, “it is unusual among public companies in its desire and ability to sell stock at local maximums.” And really, he’s right: it makes perfect sense for a company (and its controlling shareholder) to sell stock when demand is greatest and the price is at its highest. After all, share sales are a simple transaction: you give me a one-off slug of cash today, and in return I’ll give you ownership rights in perpetuity. Anybody engaging in such a deal should at least want to maximize the amount of cash they’re getting, which is another way of saying that you should only sell stock if you think it’s overvalued.

Waiting for bitcoin to get boring

By Felix Salmon
November 30, 2013

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.