Facebook hires former BuzzFeed, Pinterest executives for video content

(Reuters) – Facebook Inc hired the former head of BuzzFeed Studios to lead its global video content and a former Pinterest executive as in charge of its video content platform Facebook Watch, they said in separate social media posts on Monday.

A Facebook sign is displayed at the Conservative Political Action Conference (CPAC) at National Harbor, Maryland, U.S., February 23, 2018. REUTERS/Joshua Roberts

The appointments come after the social media giant expanded video offerings in August last year to compete in the television market.

BuzzFeed Studios former head Matthew Henick will lead Facebook’s global video content strategy and planning, he said in a Facebook post on Monday.

Mike Bidgoli, who worked at image-based searching and sharing website Pinterest for nearly two years, will lead the Facebook Watch product team, he said in a blog post on Medium. bit.ly/2HbdJ15

Facebook Watch was made available initially to a limited group in the United States on the company’s mobile app, website and television apps, the company said in August last year.

The programming ranges from professional women’s basketball to a safari show and a parenting program.

The Menlo Park, California-based company faces a crowded video content market, where traditional television networks compete with newer players such as Netflix Inc, Amazon.com Inc’s Prime Video and Alphabet Inc’s YouTube alongside Twitter Inc and Snap Inc.

Facebook had signed deals last year with millennial-focused news and entertainment creators Vox Media, BuzzFeed, ATTN, Group Nine Media and others to make shows for its video service as part of its efforts to buy and license original content.

Reporting by Philip George in Bengaluru; Editing by Amrutha Gayathri

Citigroup, Zurich Insurance consortium to develop cyber security norms: FT

(Reuters) – A consortium led by Citigroup Inc (C.N), Zurich Insurance Group AG (ZURN.S) and Depository Trust & Clearing Corp (DTCC) will develop a set of cyber security standards that fintech companies can sign up to, the Financial Times reported on Tuesday.

FILE PHOTO – The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren

The group was formed as a result of a meeting held by the World Economic Forum last year to promote cooperation between the public and private sectors, the FT said. on.ft.com/2FqDLzX

Founding members of the grouping, which include Hewlett Packard Enterprise Co (HPE.N) and U.S.-based online lender Kabbage, and participants say they aim to produce a set of standards within the next six to 12 months, according to FT.

Citi, Zurich Insurance and DTCC were not immediately available for comment outside regular business hours.

Last month, the U.S. Securities and Exchange Commission called for “clearer” cyber risk disclosure and asked companies to adopt specific policies restricting executive trading in shares while a hack was being investigated.

Reporting by Mekhla Raina in Bengaluru; Editing by Gopakumar Warrier

Chinese Startups See Latin America as a Land of Opportunity

Two years ago, Tang Xin had never set foot in Mexico and didn’t know a word of Spanish. While his grasp of the language hasn’t improved much since then, he has built one of the country’s hottest apps.

Noticias Aguila, which translates as News Eagle, now has 20 million users and became the No. 1 news app in Google Play’s Mexico store late last year, according to App Annie. That has come as Tang and his development team remain based in Shenzhen, the Chinese technology hub just across the border from Hong Kong.

Tang, who worked for Tencent Holdings (tctzf) before striking out on his own, is among an emerging group of Chinese developers and investors betting the next technology gold rush will come from Latin America and its 600 million-plus people. Fueled by deep-pocketed mainland venture capitalists and success at home, the 40-year-old and his peers are exporting a formula honed in China of pursuing rapid expansion over profitability.

Chinese venture capital investment in Latin America jumped to $1 billion since the start of 2017, compared with about $30 million in 2015, according to data collected by Preqin.

“China used to copy from overseas, but now we see more opportunities by helping replicate business models that’ve taken off and exporting them,” said Tang, who now spends a quarter of his time in Mexico. “Competition is so fierce in China that smaller companies feel it makes sense to look for opportunities elsewhere.”

Chinese startups pushing into the region include Hangzhou-based Tian Ge Interactive Holdings, which wants to build an internet finance platform in Mexico. Phonemaker Transsion Holdings is preparing to set up operations in Colombia. China Mobile Games & Entertainment Group plans to distribute mobile games in Mexico. Ofo, the Beijing-based bicycle sharing service, is preparing to make its first Latin America foray by entering Mexico, said Chris Taylor, who runs its U.S. operations.

The push by the tech sector piggybacks on years of state-driven Chinese investments in infrastructure in Latin America, with a pool of 2,000 companies pouring more than $200 billion in the region as of January.

When the startups arrive in Latin America they don’t exactly have the place to themselves. MercadoLibre and Despegar.com, both of which are based in Buenos Aires, have become major players in e-commerce and online travel respectively.

For more on Chinese startups, watch Fortune’s video:

Like China’s infrastructure investments in the region, there’s the possibility of pushback from locals. The road to Latin America has also been littered with cautionary tales of crippled projects. China’s automakers have struggled to establish themselves in countries such as Brazil even after building local plants.

“It’s risky and these companies will need to localize their products,” said Tang Jun, a deputy director at the Institute of Latin American Studies at Zhejiang International Studies University. “There will be political environment risk, as many parts of Latin America often go through quick cycles and turbulence.”

That hasn’t stifled investment interest. Alibaba Group Holding and Tencent are scouring for projects, while Didi’s acquisition of Brazil 99 showed deals can get done quickly, unlike the political opposition Chinese companies face in the U.S.

The trend has captured the attention of investors like Santiago-based Nathan Lustig who joined forces with a Beijing-based partner. Together they want to bridge Chinese investors with projects focusing on Latin America. Lustig’s goal is to scoop them up cheaper and earlier.

“We think Chinese acquisitions will be an important exit strategy for startup investors in Latin America,” said Lustig, managing partner of Magma Partners. “This will be a major theme over the next five years.”

Noticias Aguila’s Tang, whose company is formally known as Shenzhen Inveno Innovation Technology Co., doesn’t just want to sell out. His goal is to become the biggest internet company in the region. The company got its start by scraping news sites, mostly independent outlets and social media because it didn’t have the rights to larger publications. It hired locals to help with translation and build partnerships while the team back in Shenzhen developed algorithms to aggregate and sort the news for users.

It took the company about two months to be able to aggregate as least 100,000 articles a day. The next step was signing up media partnerships and now it has distribution deals with seven of the 10 largest publications in Mexico, including El Universal and Publimetro.

Unlike traditional publications that decide what users get to read based on editor recommendations — Tang’s company aggregates, labels and matches content to user preferences. It’s an approach that has found success in China, with the owner of Jinri Toutiao valued at $11 billion, according to CB Insights.

“It all comes down to how accurate you label items,” Tang said by phone from Shenzhen. “The more accurate and detailed the label, the more accurate you can target and push the content that the users want.”

In keeping with the Chinese model of spending to win over users, irrespective of profits, Tang has bought at least $2 million of advertising on Facebook to reach potential customers, even though the U.S. social networking giant is a competitor with its news feed. The app sat at No. 2 among news apps in Mexico in February, a notch down since November, according to App Annie. That’s part of the reason why this year Tang plans to quintuple spending on promotions and work with phone carriers and makers to pre-install its app.

“Organic growth is picking up but we rely on promotions mostly, because we need to expand fast,” Tang said. “That is key.”

This Business Charged White People More Than Twice As Much As Minorities. Here's How Customers Reacted

Absurdly Driven looks at the world of business with a skeptical eye and a firmly rooted tongue in cheek. 

Many businesses are being drawn into socio-politics.

Some have been there for a while but always wanting to operate behind the scenes. (Translation: buying politicians.)

Recently, though, public neutrality has been hard to achieve. 

Just ask Delta Air Lines.

A business in New Orleans, however, took its public stance on socio-politics one step further.

The owner of Saartj, a food stall in New Orleans, decided to charge white people two-and-a-half times the amount he charged minorities.

Tunde Way explained to NPR that the price difference accurately reflected the income disparity between African-Americans and whites in the city.

It’s not as if Way just charges the disparate amounts and doesn’t say why.

There’s a board outside that raises the issue. 

Moreover, when people come up to his stall, Way engages them in conversation and explains why the requested price is $12 for minorities and $30 for those who identify as white.

The price for white people sn’t compulsory. Way explains that if they choose to pay it, he will redistribute the difference among the minorities who come to his stall.

Surely, though, he’s had to face outrage from white people who think this discrimination.

“Some of them are enthusiastic, some of them are bamboozled a bit by it. But the majority of white folks, nearly 80 percent, decided to pay,” he told NPR.

This wasn’t just Way’s way of seeing what would happen. 

His partner in the experiment was Anjali Prasertong, a graduate student in public health at Tulane University.

She said she was surprised at how people reacted and how many white people paid the inflated price.

And not just by how white people reacted.

The vast majority of the Latino, African-American and Asian people who were offered the redistributed money declined.

Prasertong suspects this is because most of the customers were from relatively higher income brackets.

The experiment does, though, underline how strongly some businesses might choose to respond to socio-political issues that they — or, perhaps more importantly — their customers and employees care deeply about. (Enormous legal issues notwithstanding, of course.)

Both customers and employees have come to increasingly examine companies’ ethical and social stances. 

Whether it be on the subject of climate change or racial and gender equality, they want to know what a company’s management believes and what they’re prepared to do about it.

In Way’s case, he was very upfront about what he wanted to do about it and at least some people understood and, it seems, even appreciated his stance.

It was just an experiment. 

But society is in something of an experimental phase these days. 

Old certainties are dissolving. New questions are being asked. 

How much this will change the way companies do business will be fascinating to watch.

After all, one of the main reasons they’re being dragged into these issues is that many have lost faith in governments. 

Some see corporations as harboring more social common sense than those who have been elected to do sensible things.

It’s quite a burden for managements whose heart has, for the longest time, just been in making as much money as they can. 

Two 11%+ Yielders To Buy After Earnings Reports (REITs/MLPs)

This research report was jointly produced with High Dividend Opportunities co-author Jussi Askola.

We are currently in a raging bull market, and since November 2016, “growth and momentum stocks” have strongly outperformed “value stocks”. Many high-yield sectors, notably Property REITs, BDCs, and Midstream MLPs, were out of favor and became value sectors.

There is plenty of good news that income investors should take into account:

  1. High Dividend Sectors are Cheap! The good news is that today, several high-yield sectors are trading at their lowest valuations in years and currently offer investors a unique entry point.

  2. Value Stocks outperform growth stocks over the long term: Investors should note that over the long term, “value stocks” tend to outperform “growth stocks”. Based on a study by Bank of America/Merrill Lynch over a 90-year period, growth stocks returned an average of 12.6% annually since 1926. At the same time, value stocks generated an average return of 17% per year over the same time frame. “Value has outperformed Growth in roughly three out of every five years over this period”.

  3. Downside Risk is Limited: In a world where equity markets keep trading at “all-time highs” and looking “expensive”, value dividend stocks, such as REITs, MLPs, and BDCs, still trade at very cheap valuations. Therefore, in case of any market turbulence or market correction, the downside potential should be very limited.

Currently, the high yield space is offering some unique buying opportunities. At “High Dividend Opportunities“, we focus on stocks trading at low valuations, or in other words “value stocks”. Today, we highlight two cheap stocks that investors should consider after they reported their 4th quarter earnings – with yields above 11%.

ETP Earnings Report: A Stellar Quarter – Yield 11.8%

Energy Transfer Partners (NYSE:ETP), a stock we recently covered on Seeking Alpha, reported its 4th quarter earnings, swinging to huge profits.

  • Revenue came in at $8.61 billion, up 32% year over year.
  • Adjusted EBITDA totaled $1.94 billion for the 4th quarter, up more than 30%.
  • Distributable cash flow increased by $240 million to $1.2 billion, or 25% higher compared to the same quarter a year ago.
  • The dividend coverage ratio soared to 130% for the quarter and 120% for the year.

In addition, the company raised nearly $2 billion in two transactions that significantly increased parent liquidity. These two transactions included the sale of Sunoco LP common units for $540 million and the sale of the compression business to USA Compression Partners LP (NYSE:USAC) for $1.7 billion (of which $1.3 billion was in cash and the rest in equity). In the meantime, these shares will demonstrate to the market that ETP, as the new partner, is aligned with the limited partner interests of USA Compression Partners LP.

Investors can look forward to more good news this year. Many capital projects have come on-line. That once-ambitious schedule of growth will now result in a lot of cash flow. The acquisition of the general partnership of USA Compression Partners by ETP’s parent company Energy Transfer Equity (NYSE:ETE) opens another avenue of growth. There is great chance that more good earning news is on the way this next fiscal year. ETP’s credit line with the banks now has about $4 billion unused. This could provide an excellent way to acquire more assets and grow in the future.


Source: Q4 ETP Presentation

In order to conduct an accurate valuation (using full-year numbers), it is best to back out any “distribution incentive rights” (including relinquishment) and any general partner interest from the “distributable cash flows” (“DCF”). DCF for the 12 months was at $3,494 million; less IDR relinquishment and GP interest of $672 million, we get $2,822 million in DCF.

At the most recent price of $19.21 per share, we get a valuation of 8.0 times DCF, which is a real bargain considering that ETP is one of the largest and fastest-growing midstream MLPs.

The outlook of the midstream sector seems to be solid, with many midstream MLPs having reported solid quarters, including Enterprise Products Partners (NYSE:EPD) and Buckeye Partners (BPL). This can be attributed to record crude oil and natural gas production in the United States.

The future looks bright for the midstream sector. At the current cheap price and yield of 11.8%, ETP is one of our favorite midstream MLPs to own for the year 2018.


WPG Earnings Report: Operational Resilience vs. Strategic Challenges – Yield 14.6%

Washington Prime Group (NYSE:WPG), a Retail Property REIT, reported its 4th-quarter and full-year 2017 results, and while the market keeps focusing on strategic challenges, we are encouraged to see continued resilience in operational figures.

To give a little bit of context here, we need to keep in mind that we are discussing about a firm that is trading at 4.0x its cash flow, which is extremely cheap in today’s market place. In this sense, the expectations of the market are very negative and the sentiment very low. WPG, just like CBL, is a class B mall owner, and as such, it is widely expected to eventually become obsolete due to the growth of e-commerce.

The perception is that no one goes to class B malls anymore; and yet, the NOI went down by just 1%, the average sales per square foot remains at close to all-time-highs, and the leasing performance suggests strong demand for space by retailers.

A 1% drop in NOI is really nothing for a firm selling at such a ridiculously low valuation, and shows once again that class B malls remain relevant even in today’s highly digitalized marketplace. What the market seems to ignore is that unlike CBL, WPG owns on average higher-quality properties. In fact, Tier One and Open Air properties accounted for as much as 81.2% of the NOI in 2017, and these properties even showed a 0.9% increase in NOI for the year! It is the remaining 18.8% which are causing the temporary dilution in FFO, but clearly, the large majority of the portfolio has great value which is highly sustainable.

This was the main news to us: Operationally, the great majority of the properties are performing just fine. Therefore, the reason why the FFO is dropping year over year is not due to problems at the property level, but rather, strategic decisions such as dispositions and continued deleveraging.

As the CEO notes:

“Very simply, the $0.12 of annual dilution was attributable to our unsecured notes offering, the second joint venture with O’Connor Capital Partners and the disposition of six noncore assets. As the result was an overall reduction in indebtedness of approximately $400 million, it’s silly to question the prudency of such actions.”

Put in other words, the company is improving its portfolio and balance sheet quality to lower its risk profile at the expense of some short-term dilution in FFO figures. Short term-oriented investors may not like it, but this is the best approach to maximize and sustain long-term value. Eventually, as WPG ends its disposition and deleveraging plan, the FFO will stabilize and the market will realize the progress made and reward the firm with a higher FFO multiple. Given that it stands currently at 4.0 times FFO (using 12-month adjusted FFO of $1.63), even a small bump would result in material upside.

Other relevant highlights

  • WPG is making a new acquisition, which was rather unexpected! It suggests that we are approaching the end of the deleveraging plan. Moreover, the property appears to be an attractive investment as a dominant hybrid format retail venue situated in Missoula, Montana. The asset features a Lucky’s Market and a nine-screen dine-in AMC Theater – both newly built – and yields about 10%.
  • The dividend is maintained and remains well-covered.
  • Redevelopments continue, with 36 projects underway ranging between $1 million and $60 million with an average estimated yield of 10%.
  • Property NOI is expected to continue show resilience in 2018.

Bottom Line

Overall, we are happy with the news and glad that the market seems to, for once, agree with us – rewarding WPG with a huge bump after earnings. This is the story of short-term dilution versus long-term potential reward to patient investors. Just like in the case of CBL, we remain optimistic long-term holders and are happy to keep cashing a yield of 14.6% while we wait for upside to materialize.

If you enjoyed this article and wish to receive updates on our latest research, click “Follow” next to my name at the top of this article.

Disclosure: I am/we are long ETP, WPG, CBL, EPD, BPL.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Here's the Story of the Stanford PhD Who Allegedly Gamed the Texas Lottery (and Won $20 Million)

I wrote recently about the husband and wife team out of Michigan who figured out how to game the lottery, and walked away with almost $27 million over the course of nine years.

But it turns out there’s a greater mystery in the world of lottery watchers. 

Her name is Joan Ginther, and she won the Texas Lottery at least four times in 10 years, while apparently buying thousands if not millions of dollars wroth of tickets.

Oh, did we mention she has a Stanford PhD in statistics, lives in Las Vegas, and yet repeatedly made the trip to a single store in rural Texas to make many of her purchases?

Yes, the plot thickens. And so far at least, nobody knows exactly how she did it.

There are several differences between Ginther’s lucrative story in Texas and that of Marge and Jerry Selbee in Michigan and Massachusetts.

For starters, there’s the fact that while the Selbees are now very upfront about how they made their millions, and were the subject of a very well written report recently on HuffPost, Ginther apparently went underground.

At last report, she lives in Las Vegas, but I can’t find that she’s ever given an interview. My attempts to track her down for this story amounted to nothing.

So, we’re left with reverse-engineering and speculation. 

By far the best attempt to decipher her strategy that I can find came from the work of Peter Murca, a reporter with Philly.com, who wrote about her at length in 2014.

As Murca tells the story, Ginther likely won her first jackpot in Texas the traditional way: blind, dumb luck, walking away with a $5.4 million jackpot in 1993, payable in annual installments over 20 years.

But Murca’s report suggests the experience led her to turn her Stanford training toward the goal of winning the lottery over and over.

And, after spending a considerable amount of time trying to unpack what she did, he comes to several conclusions.

First, he says, she figured out that while the lottery is ultimately a game of chance, logistics made it possible to ease the odds.

In sum, the fact that the Texas lottery had to ship thousands of scratch off cards to stores all over the state, made it possible for people who pay close attention to track how many tickets had shipped, how many prizes were left, and in which stores the likely winners might wind up.

Second, she may have had help. As Murca wrote:

Anna Morales, a worker in the local water department, filed claims for 23 prizes worth $1,000 to $10,000 in seven games from 2009 through 2012 — about as many as Ginther claimed but in half the time. Another $1,000 ticket was cashed by Morales’ husband, Noe, in 2011.

Pure coincidence seems implausible.

Since neither woman consented to be interviewed, and records don’t show who physically bought each winning ticket, let alone whose money was used, explanations for both women claiming so many winners range from generosity to imitation to teamwork.

Third, she apparently played the game of large numbers.

Meaning that over time, Murca concludes she bought a total of $3.3 million worth of tickets in order to win her total $20 million in winnings.

To be clear, that’s an amazing margin, if she figured this out. But it suggests she had figured out a statistical truth that required scale to come to fruition.

And, Murca says, she likely bit hard into her cost of goods, because many of those $3.3 million worth of lottery tickets were winners– just not for the massive multimillion dollar prizes that make headlines.

A few dollars here, a few hundred there, even a few thousand now and again–and Murca concluded the $3.3 million in tickets might have cost her only about $1 million.

To be clear, we don’t know exactly what happened.

The frustrating part about Ginther’s story is that we can’t wrap it up with a nice bow the way we can with the Selbees, or with the MIT students who also figured out how to game the Massachusetts lottery.

Ginther apparently hasn’t given interviews. (If you change your mind, Ms. Ginther, contact me!)

But I think there’s a lesson, even if it’s one I’d never put into personally with something like the lottery.

In every successful business, the founders either have unique access to private information, or else a unique application that can be executed with public information.

The question for any of us in business is: which strategy works best for you?

Amazon's Move Into Digital Marketing: What You Need To Know!

We all knew Amazon was an online giant, but in 2017 the e-commerce behemoth sent shockwaves through the retail industry with its $13.7B acquisition of Whole Foods. It has been speculated that other traditional retailers like Nordstrom, Lowe’s, and Ulta may be next.
Big dollar acquisitions of well-known brands generate lots of headlines, but as Amazon shakes things up in the bricks-and-mortar world, it’s also taking steps toward disrupting the digital advertising industry, which is projected to grow to $355B by 2020. 

What are the steps Amazon is taking?

They are aggressively hiring.  

Amazon’s Advertising division has a new HQ in Manhattan as of late 2017. It leased 360,000 square feet and hired 2,000 people for its advertising, Amazon Fashion, and AWS teams. 

Releasing new product features on its advertising platforms. 

In January 2018 they released a long-awaited feature to generate date-range reports on its AMS platform. While Amazon’s self-serve ad technology is still far behind the feature set of the incumbents, it is continually releasing features to catch up and gain share.  

What trends are they taking advantage of?

Amazon already captures 43% of e-commerce sales in the US and accounts for almost 50% of all online product searches. Amazon is capitalizing on its existing strength as a search engine & fulfillment provider by selling advertising space to brands who want to catch consumers at the transactional end of the purchase lifecycle. 

Who does this matter to, and why?

Leaders, Marketers, and advertising professionals of consumer products brands who currently use digital advertising to reach their target customers. 

Because now there is another contender in the race. There is now another vehicle to reach their customer and to do this profitably and directly at the time the consumer is actually making a purchase decision – not just discovering or researching. 

Very large brands with significant media budgets will find there is another option for display advertising – their media buys can include Amazon’s web properties and devices like the Kindle. Even the Alexa voice assistant could support advertising one day.

For those it matters to, what can/should they do?

Leaders, Marketers, and advertising professionals of consumer products brands should be initiating their Amazon PPC strategies now. The more experience and time these campaigns have, the better they perform and the more data there is to interrogate. 

Advertisers should be using Amazon for end-of-funnel paid search campaigns, but not at the expense of abandoning their Facebook and Google ad campaigns. Those platforms are still powerful at awareness marketing and earlier in the consumer purchase lifecycle. 

Will Amazon’s display advertising fit that gap eventually? 

Potentially, but currently it is built for very large brands with a reported $100K minimum spend. Amazon is disrupting the digital advertising landscape. 

Here’s what you need to know.

Brands want to shift ad spend to Amazon for a variety of reasons. One equity analyst predicts Amazon will quadruple their advertising revenue by 2020. This would take Amazon’s estimated share of the digital advertising industry spend from around 3.5 percent in 2016 to over 10 percent by 2020 based on eMarketer estimates.

Over 50% of all product searches start on Amazon, and many consumers choose Amazon as their first website to scan for any purchase. 

Amazon offers advertisers cheap, and efficient ad spend. In many instances, consumer product brands find their Return On Advertising Spend (ROAS) to be lower than on other paid search channels like Google and Facebook. Kiri Masters founder and CEO of Bobsled Marketing, says that “several of our clients have shifted significant advertising budget to Amazon due to the strong double-digit conversion rates their products experience on Amazon when compared to the lower single digit rates they get from Adwords, Google Shopping.”

Amazon is at the transactional end of the consumer purchase funnel. Once a customer knows what they want to buy, Amazon helps consumers to validate their decision through product detail content and user reviews. 

Amazon further removes friction from the purchasing stage through their inbuilt fulfillment offer: free and fast shipping and easy returns. By saving people effort and time and essentially guaranteeing a good experience, Amazon’s creates a fast path to purchase for brands. 

Kiri Masters says “With relatively little ad spend, brands can get fast sales. “

Why Waiting on Money Will Block Your True Success

Lists ranking the world’s wealthiest people are delusional. At best, they provide estimates of financial net worth. At worst, they don’t provide the proper framework to understand wealth.

True wealth isn’t just based on dollar amount. It is based on the resources necessary to make things happen.

Money is only one dimension

Financial wealth is a source of power, but only one of many – something that is terribly important to remember as you bootstrap companies, deal with bank and VC rejections and sacrifice money opportunities for future growth. I shared some of these ideas in a recent keynote at the American Society of Journalists and Authors conference in Austin, Texas.

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For instance, socialite Kylie Jenner’s one brief social media post criticizing Snapchat’s new design sent Snap’s stock down 6 percent. Her infamous family may have money, but what people often marvel at is their social wealth. It is an entirely different kind of strength.

In another example, Black Girls Code is creating a pipeline of young women able to imagine, found and, yes, program their own future startups. They are building the wealth of independence. It is a generation that won’t have to be dependent on outside (and often overpriced) coders to make their entrepreneurial dreams real.

Figure out your wealth areas

As you take your business to the next phase, let go of the financial wealth you may lack and focus on the other wealth you already have on hand. Is it a powerful network? A variety of skills? A unique background?

Money provides only one dimension of power. The wealth you already have, the one you take for granted, should be where you plant your foundation. Then the money will come.

Ready to take your ideas to the next level? Join Damon’s priority-empowering discussions at JoinDamon.me and get free, exclusive business guides and access to the big idea boot camp.

Elon Musk Is Putting Wireless Service on the Moon (So If You Go There, You Can Watch Netflix)

It’s been 50 years since humans first landed on the Moon and we haven’t done much there since. But Elon Musk is hoping that will change very soon. He already believes there should be a base on the Moon to fire up public interest in space exploration. Then in December, President Donald Trump announced that he wanted to send astronauts back to the moon as a first step toward more distant objectives, such as Mars, where Musk is already planning to land humans sometime within the coming decade.

Musk has also said that his company SpaceX would not build a moon base although it might ferry people and materials there from Earth. But it apparently is ready to help with something else every lunar visitor needs: a way to contact people at home, communicate with other lunar visitors–and watch Netflix during off hours.

So SpaceX, along with mobile network company Vodafone, Nokia, and Audi, will be building a 4G network on the moon in 2019. Even though 5G networks are being built here on Earth, the partners chose 4G because its technology is both more stable and more able to withstand space travel. 

OK, but why build a wireless network on the Moon so soon, when nobody lives there? It’s true that Musk has said he would take space tourists to the moon in late 2018, and indeed had already collected large deposits from two wealthy individuals for the first such trip. But the planned trip is only a Moon fly-by with no landing, so the lunar tourists won’t get much of a chance to use the Moon’s wireless network. And they won’t need it, having the ship’s communication system at their’ disposal. Besides, the pricey lunar fly-by was meant to take place using a Crew Dragon capsule carried by a Falcon Heavy rocket, the same rocket that spectacularly took off earlier this month with a red Tesla Roadster and mannequin dubbed “Starman.” But Musk has said SpaceX is now focusing its attention on its BFR Rocket (for Big Fucking Rocket) and he indicated it may not do much more testing on the Falcon Heavy after all, possibly leaving Moon tourism in limbo. 

According to one report, the purpose of lunar 4G would be to support future lunar missions. Without it, humans and vehicles (such as the lunar rovers Audi is building) could only communicate by beaming signals down to the Earth and back up again. The fact that the planned network will have enough bandwidth to support video streaming raises the appealing prospect of a lunar webcam all of us could watch over the Internet. 

And of course, it’ll come in very handy for space tourists visiting the lunar surface or astronauts working to build a Moon base or on other projects. Maybe someday soon.

China startup Nio hires eight banks for up to $2 billion U.S. IPO: sources

HONG KONG (Reuters) – Chinese electric vehicle startup Nio has hired eight banks including Morgan Stanley (MS.N) and Goldman Sachs (GS.N) to work on a planned U.S. stock market listing this year worth up to $2 billion, people with knowledge of the matter told Reuters.

Other banks are Bank of America Merrill Lynch (BAC.N), Credit Suisse (CSGN.S), Citigroup (C.N), Deutsche Bank (DBKGn.DE), JPMorgan (JPM.N) and UBS (UBSG.S), said the people, declining to be identified as the deal details are not public.

Nio’s proposed IPO of $1 billion-$2 billion comes as the firm, founded by Chinese internet entrepreneur William Li in 2014, seeks fresh capital to finance its expansion and investments in areas including autonomous driving and battery technologies, one of them said.

At the top end of the potential offering size, Nio’s IPO would become the biggest Chinese listing in America since the $25 billion public float of e-commerce giant Alibaba Group Holding Ltd (BABA.N) in 2014. In October 2016, Chinese logistics company ZTO Express raised $1.41 billion from an IPO in New York.

FILE PHOTO: The logo of electric car startup NIO is seen at a new NIO House “brand-experience” store, in Beijing, China November 25, 2017. REUTERS/Norihiko Shirouzu/File Photo

Nio declined to comment on its IPO plans. UBS, Citigroup and Goldman declined comment while the other banks did not immediately respond to Reuters emailed request for comment.

Shanghai-based Nio, formerly known as NextEV, is among the first of a raft of Chinese electric vehicle firms to launch a production vehicle, with many so far only showing concept cars.

It launched sales of its first mass production car – the ES8 pure-electric, seven-seat sport-utility vehicle in December, at about half the price of American peer Tesla’s Model X. It has also vowed to bring an autonomous electric car to the U.S. market by 2020.

Nio counts Asian tech behemoth Tencent Holdings Ltd (0700.HK) as its main backer alongside investment firms Hillhouse Capital Group and Sequoia Capital.

Last November, the firm raised more than $1 billion in its latest fundraising round, led by existing investor Tencent, valuing the firm at about $5 billion.

Reporting by Fiona Lau of IFR and Julie Zhu; Editing by Sumeet Chatterjee and Stephen Coates