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Apple ebook trial against the DOJ is set to start 2013

Apple ebook trial against the DOJ is set to start 2013

The U.S. government said that Apple was being anti-competitive with it’s Book Store. They also said that Apple had a collision with book publishers jack up prices. The DOJ will take their case to court but not for a long time. This means Apple has almost a year to beef up their case.  The case will go to court on June 3, 2013. In an ironic twist Apple says  they’re trying to keep the eBook market free from Amazon dominance. Funny, last I looked Apple had a monopoly on digital music.  They don’t seem to have a problem with that dominance.

Amazon  was selling book at $9.99 which very cheap for books and led to Amazon having a big market share. Just like Apple charged 99 cents for songs and go a big market share. Only difference is that Apple did not have the market and went after it hard and illegally. Steve Jobs was stated as wanting to offer publishers a means to boost prices, and “create a real mainstream e-books market at $12.99 and $14.99.” Apple says it has not conspired to fix prices for e-books.  Apple must have a lot of Lawyers on retainer. It seems there are cases against them or by them weekly.… Read the rest

Should you buy Facebook IPO?

Should you buy Facebook IPO?

Facebook is set at $38 with a valuation of $104 billion.  I have been telling people to put a little money away every paycheck just so they can buy this stock. Yes, Facebook is not Google. In that it’s pretty money focused regardless how it affects it’s users. This thing is going to make money. The only question is how much money will it make.

Updates:

11:30am

Opens at $42 down to $39

Updates:

8:56am ET May 18, 2012 (Dow Jones)

Registration Effectiveness Orders Issued By The SEC
The following table includes registration statements and post-effective amendments that were declared effective by the Securities and Exchange Commission on the most recently completed business day.
The Securities Act of 1933 requires companies offering securities to file a registration statement with the SEC that discloses material facts for investors. The SEC staff reviews registration statements and declares them “effective” if companies satisfy the disclosure rules.REGISTRATIONS EFFECTIVE AS OF May 17, 2012IPO:
Facebook, Inc. (FB)
File Number: 333-179287
Date of Original Registration: 2/1/2012
Form Type: S-1
Securities Registered: $5,000,000,000 in Shares Of Common Stock
Selling Holder: Yes
Read the rest
Facebook IPO: “A million dollars isn’t cool. You know what’s cool? A billion dollars.”

Facebook IPO: “A million dollars isn’t cool. You know what’s cool? A billion dollars.”

Thursday Facebook will have a price for it’s long waited IPO.  The price could be anywhere from $34 to the $38 range. That price however will not be what you get it for unless you are a client of Morgan Stanley or one of the other key underwriters.  Some very lucky investors will get shares and by lucky I mean ridiculously wealthy.

Normal folks will be able to buy shares tomorrow between 10 or 11AM. The market opens before that at 9:30 am but it takes an hour or more to have the stock  make it to the 2nd market. The reason for the delay is that Facebook didn’t take the “Dutch auction” route that would have allowed direct bidding by investors. That is what Google did with their IPO; thus giving the everyman a fair chance.

Facebook understands that people want their stock and want it bad. So they will sell about 25% more shares than it had originally planned. That brings the total IPO offering to 421 million shares.   Facebook will raise about $16 billion in its IPO; making it the largest tech IPO in history.  Only Visa ($19.7 billion) and GM ($18.1 billion) had bigger IPO in the U.S.  Facebook could have a market capitalization of $81 to $108 billion on the very first day on the market if employees and executives exercise stock options. Mark Zuckerberg will sell 30.2 million shares in the IPO offering for a profit of $1 billion.… Read the rest

Facebook IPO: What is in the S-1 to convice you its a good buy?

Facebook IPO: What is in the S-1 to convice you its a good buy?

Facebook’s IPO is going to be as big if not bigger than Google was a few years ago. The S-1 filling document is a very lengthy dry read that most people will skip. We are not most people. The S1 was very insightful. For one thing we don’t have to wonder if Zuck would still be in charge. He will have the most votes based on his type of stock. The shares will be split into “A” and “B” shares, where the latter get 10 votes per share, and the former get one. Zuckerberg presently owns around 28.2% of the share capital.

Facebook had revenues of $3.7bn and had an operating income of $1.7bn.
They had 845 million active users and the numbers are still growing.

Saying Facebook depends on advertising is a common sense but what surprised us is that it only accounts for 85% of the revenue. The rest comes from in-app purchases.

Zynga is almost as important as Mark is for the company. In 2011, they were 12% of Facebook’s revenue. Facebook wrote in that “If the use of Zynga games on our Platform declines, if Zynga launches games on or migrates games to competing platforms, or if we fail to maintain good relations with Zynga, we may lose Zynga as a significant Platform developer and our financial results may be adversely affected.”

The mobile version of the site had 425 million monthly active users in December 2011.… Read the rest

IBM and HTC working together to take over enterprise market

IBM and HTC working together to take over enterprise market

 

 

IBM and HTC working together to take over enterprise market.  We should see IBM software running on HTC smartphones and tablets. Does anyone still use Lotus anything?   HTC’s executive director Global Enterprise and Services David Jaegar  said “It’s only been really relatively recently that HTC has broken into the enterprise space. We’re driving toward that magic 100-million device number globally. We see IBM as the gold standard for an enterprise partnership. We want to make sure if IBM is talking about Android or tablets, HTC is in the conversation.” I wonder who will break into the market by full force first, HTC/IBM or Apple? My money is on Apple after yesterdays earnings report.… Read the rest

Walmart set to take on Angry Birds? Not just yet but soon

Walmart set to take on Angry Birds? Not just yet but soon

20120105-071031.jpg

Wal-Mart has been taking over the world for a while. It seems the next step for them is the iOS marketplace. There acquisition of an iOS development company named Small Society is a big first step in that direction.

Small Society has worked on apps for various companies but notably Starbucks, ZipCar, and Whole Foods. Small Society will be integrated into WalmartLabs’ incubator division.… Read the rest

Who didn’t see that coming? AT&T swallows $4 Billion dollar pill, ends bid for T-Mobile.

Who didn’t see that coming? AT&T swallows $4 Billion dollar pill, ends bid for T-Mobile.

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AT&T has ended its $39 billion bid to acquire T-Mobile USA from Deutsche Telecom. There was very strong opposition from the Department of Justice, Sprint and other companies which rightly said that such a merger would have a negative impact on the U.S. wireless market. The DOJ saw through the ads and smoke about the merger creating more jobs.  AT&T will pay T-Mobile a $4 billion breakup fee as a result of its failed acquisition.