welcome back to this week’s edition of
lightning round and the email of the
week let’s get crackin first question
Google Wallet launches does this thing
have a shot in hell of surviving and
becoming something relevant I I think it
does first off I’d like to say this is
the kind of thing that would justify the
Android operating system plain and
simple yeah google launched Google+
they’re not going to compete with
Facebook they’re not going to kill them
I think they’re aware of that I think
they just had to do it for vanity
reasons and offer their users similar
functionality but this is what’s going
to make Android move the fact that I can
pick up a phone that is not only open
source and is cost effective but I can
pay with and there’s already a market
for this they’re doing it with RFID
chips in Asia people pay for things all
the time by just swiping their phone the
I guess the the point-of-sale behavior
is coming it’s a logical thing so
Google’s just looking at something
that’s an alternative to rfid which i
think will appeal to a lot of people
yeah briefly before going to question 2
I think you know when they launched
Google+ they’re clearly trying to catch
up the facebook which is already massive
but I think something like Google Wallet
the time is right before apple owns that
market somehow because they have all
these iPads and iPhones so I think this
is an area where even if it could come
across as a me to product which it’s not
I think this makes sense because we’re
sort of striking before Apple I think
that’s why it’s promising it’s one of
the first thing google has done in a
while that hasn’t been a me to product
yeah and that’s tends to be where they
do well Netflix spins off the
traditional DVD business the business
that made them what they are today like
a 12 13 billion dollar company they
basically spun it off that old business
is called quick stir and Netflix is now
actually internet flicks basically
streaming business what do you think of
this is this foolish is this insanity um
well you know we’ll have to see how well
they execute but i think the move in
general makes a lot of sense well you
know the CEO said in this blog post
netflix will become the streaming thing
because that’s videos from the network
quicks there will be our DVD thing now
of course Netflix started off as a place
to rent movies online but DVDs are going
the way of the dinosaur exactly how
we’re going to consume video online i’m
not sure but it’s definitely going to be
online no one’s there’s going to be no
physical storage device going back and
forth so i think it’s smart that they
split the two and that way they can
really
only focus on the DVD component as much
as there’s a market justification for it
and they can really maintain a strong
streaming bread I think it’s a sign of
confidence in the strategy which i think
is actually right because they want to
avoid like what happened to blockbuster
what they did to blockbuster they want
to avoid somebody doing that to them and
you see amazon’s sorry amazon but also
Walmart’s voodoo I mean these are all
things that I think could come back and
hurt Netflix if they don’t say hey treat
the two businesses separately judge us
fairly because if we keep the two we’re
going to make we’re going to have two
constituencies users and investors not
really understand what we’re doing so
it’s bold it’s courageous but i think
it’s the way to go all right and so
huffington post is laundering huffpo
high school and they’re going to not
only be not paying their bloggers again
but now they’re bloggers are going to be
kids what do you think the right move
yeah so kids meaning more than 13 I mean
this does sound like a sweatshop thing
which is what the critiques are saying
and I mean you know where’s Charles
Dickens when you need him listen I think
the bottom line is this right Huffington
Post is going to be walking around with
a big bullseye on its back the way that
demand media was for a while it’s very
easy to criticize them for everything at
the end of the day kids are creating
content everywhere whether it’s on
message boards whether it’s on facebook
whether it’s you know on Google+
wherever so that I think if you’re going
to sort of blah and guess what all those
companies also make money right so the
fact here is it what is the issue is
that that kids are creating content and
you know that somebody’s making money
well guess what Google makes money when
they write something on a random message
board and casebook makes money when the
guy you know comes home from a bar and
he’s 16 or 18 or whatever or so and
carriers make a lot of money when they
send you know SMS messages and some so
my point is if you need to start getting
over the lat / Huffington Post let’s
bash demand media you could pick on them
all night and all day I I don’t mind
when when kids are writing you know I
don’t think it’s a bad thing when kids
are reading these days so I think let’s
take a step back let’s cool it unless
move you know what it’s not even a new
thing there’s there’s plenty of
magazines they’re more regionally space
but they they model themselves as
magazines for kids by kids and all their
contributors are unpaid high schools
high school students it’s a really
established business model
huffpost is the first big online name to
do it and I think it could be if the
community is properly curated it could
be a great opportunity for some high
school kids who want to get their names
out there is you know knowledgeable or
influential in some kind of community
yeah she’s not selling cigarettes to
these kids she’s basically just creating
a platform which will help her make
money that’s capitalism you know I think
we should move on okay um and also so we
were talking about carol bartz last week
quite a bit oh we’re going to talk about
cow Bart’s again movie shelves so she
gets she gets severance pay of 14
million what do you think about that
okay well again let’s be fair you could
bash Carol are you want a lot of
insiders at Yahoo actually like her and
I probably shouldn’t say this but the
consensus was she got stuff done she
came on as an Operations person not as a
product guru so I think you know maybe
it was time for her to leave but she
should get credit for at least cleaning
up the company to some extent okay you
asked me a question let’s get back to
that question sorry she was expected to
make ten million dollars she did I
believe allegedly disparaged the board
she did have a non-disparagement clause
so the board could have said we’re going
to fight you on this but she was still a
board member right so I think at the end
of the day it’s like okay you were
entitled to ten you’re on the board you
said something that we don’t like so we
could say you’re not going to get the
ten but then you’re going to sue us and
stay on the board and be a thorn in our
side so what’s the price to pay you to
make up for the 10 million you were owed
and to get you to just leave and maybe
going forward not calling us doofuses
she might have written down 20 million
15 million whatever it was negotiation
you don’t get what you deserve in life
you get what you negotiate and they
basically roll down 14 million and
that’s what agreed is it unfair that she
makes 14 and she’s already made all this
money and people are not eating at night
or whatever yes but the you shouldn’t
bash Carol Bartz for that if you’re
unhappy with capitalism that’s another
situation here she was kicked off what
was she gonna do say I’m all of a sudden
gonna become a charity she got what she
could get as she left that position so
fair or unfair is not the issue its
reality all right question of the week
question of the week comes from here in
Canada Chris from Toronto wants to know
what drives evaluation in mergers and
acquisitions ash great question cover
this quite a bit a lot of variables
financials is one the
p if you have any intellectual property
and assets is another the team in the
industry i think the macro factor though
is the lead thing when when it’s giddy
times and the markets doing well and
there’s a lot of interest in your
industry you’re going to ride the wave i
think ultimately though and this is
number one everyone who’s smarter than
me on this matter says the same thing
it’s a process so you need to get a lot
of buyers interested in you and what you
have in your company if you really
really don’t have to sell and you only
have one company interested in you
here’s my little memo to don’t sell
because at that point the company buying
you is just going to make a puny offer
and keep driving the price down what you
need is to get a few buyers interested
and then basically i’m not saying play
one off the other it could be candid in
saying if you’re interested in one or
you’re not in it for maximizing the sale
price and going for fit or whatever but
make sure you got a lot of interested
parties and that’s really the only way
that you could get a reasonable price so
what drives valuation is market demand
market the man always everything boils
down to the man in supply capitalism 101
a lot of capitalism on this on the show
alright it’s been shown number 74 hit
mojo for CT more I masculine carbon
swoosh and see you next week
lightning round and the email of the
week let’s get crackin first question
Google Wallet launches does this thing
have a shot in hell of surviving and
becoming something relevant I I think it
does first off I’d like to say this is
the kind of thing that would justify the
Android operating system plain and
simple yeah google launched Google+
they’re not going to compete with
Facebook they’re not going to kill them
I think they’re aware of that I think
they just had to do it for vanity
reasons and offer their users similar
functionality but this is what’s going
to make Android move the fact that I can
pick up a phone that is not only open
source and is cost effective but I can
pay with and there’s already a market
for this they’re doing it with RFID
chips in Asia people pay for things all
the time by just swiping their phone the
I guess the the point-of-sale behavior
is coming it’s a logical thing so
Google’s just looking at something
that’s an alternative to rfid which i
think will appeal to a lot of people
yeah briefly before going to question 2
I think you know when they launched
Google+ they’re clearly trying to catch
up the facebook which is already massive
but I think something like Google Wallet
the time is right before apple owns that
market somehow because they have all
these iPads and iPhones so I think this
is an area where even if it could come
across as a me to product which it’s not
I think this makes sense because we’re
sort of striking before Apple I think
that’s why it’s promising it’s one of
the first thing google has done in a
while that hasn’t been a me to product
yeah and that’s tends to be where they
do well Netflix spins off the
traditional DVD business the business
that made them what they are today like
a 12 13 billion dollar company they
basically spun it off that old business
is called quick stir and Netflix is now
actually internet flicks basically
streaming business what do you think of
this is this foolish is this insanity um
well you know we’ll have to see how well
they execute but i think the move in
general makes a lot of sense well you
know the CEO said in this blog post
netflix will become the streaming thing
because that’s videos from the network
quicks there will be our DVD thing now
of course Netflix started off as a place
to rent movies online but DVDs are going
the way of the dinosaur exactly how
we’re going to consume video online i’m
not sure but it’s definitely going to be
online no one’s there’s going to be no
physical storage device going back and
forth so i think it’s smart that they
split the two and that way they can
really
only focus on the DVD component as much
as there’s a market justification for it
and they can really maintain a strong
streaming bread I think it’s a sign of
confidence in the strategy which i think
is actually right because they want to
avoid like what happened to blockbuster
what they did to blockbuster they want
to avoid somebody doing that to them and
you see amazon’s sorry amazon but also
Walmart’s voodoo I mean these are all
things that I think could come back and
hurt Netflix if they don’t say hey treat
the two businesses separately judge us
fairly because if we keep the two we’re
going to make we’re going to have two
constituencies users and investors not
really understand what we’re doing so
it’s bold it’s courageous but i think
it’s the way to go all right and so
huffington post is laundering huffpo
high school and they’re going to not
only be not paying their bloggers again
but now they’re bloggers are going to be
kids what do you think the right move
yeah so kids meaning more than 13 I mean
this does sound like a sweatshop thing
which is what the critiques are saying
and I mean you know where’s Charles
Dickens when you need him listen I think
the bottom line is this right Huffington
Post is going to be walking around with
a big bullseye on its back the way that
demand media was for a while it’s very
easy to criticize them for everything at
the end of the day kids are creating
content everywhere whether it’s on
message boards whether it’s on facebook
whether it’s you know on Google+
wherever so that I think if you’re going
to sort of blah and guess what all those
companies also make money right so the
fact here is it what is the issue is
that that kids are creating content and
you know that somebody’s making money
well guess what Google makes money when
they write something on a random message
board and casebook makes money when the
guy you know comes home from a bar and
he’s 16 or 18 or whatever or so and
carriers make a lot of money when they
send you know SMS messages and some so
my point is if you need to start getting
over the lat / Huffington Post let’s
bash demand media you could pick on them
all night and all day I I don’t mind
when when kids are writing you know I
don’t think it’s a bad thing when kids
are reading these days so I think let’s
take a step back let’s cool it unless
move you know what it’s not even a new
thing there’s there’s plenty of
magazines they’re more regionally space
but they they model themselves as
magazines for kids by kids and all their
contributors are unpaid high schools
high school students it’s a really
established business model
huffpost is the first big online name to
do it and I think it could be if the
community is properly curated it could
be a great opportunity for some high
school kids who want to get their names
out there is you know knowledgeable or
influential in some kind of community
yeah she’s not selling cigarettes to
these kids she’s basically just creating
a platform which will help her make
money that’s capitalism you know I think
we should move on okay um and also so we
were talking about carol bartz last week
quite a bit oh we’re going to talk about
cow Bart’s again movie shelves so she
gets she gets severance pay of 14
million what do you think about that
okay well again let’s be fair you could
bash Carol are you want a lot of
insiders at Yahoo actually like her and
I probably shouldn’t say this but the
consensus was she got stuff done she
came on as an Operations person not as a
product guru so I think you know maybe
it was time for her to leave but she
should get credit for at least cleaning
up the company to some extent okay you
asked me a question let’s get back to
that question sorry she was expected to
make ten million dollars she did I
believe allegedly disparaged the board
she did have a non-disparagement clause
so the board could have said we’re going
to fight you on this but she was still a
board member right so I think at the end
of the day it’s like okay you were
entitled to ten you’re on the board you
said something that we don’t like so we
could say you’re not going to get the
ten but then you’re going to sue us and
stay on the board and be a thorn in our
side so what’s the price to pay you to
make up for the 10 million you were owed
and to get you to just leave and maybe
going forward not calling us doofuses
she might have written down 20 million
15 million whatever it was negotiation
you don’t get what you deserve in life
you get what you negotiate and they
basically roll down 14 million and
that’s what agreed is it unfair that she
makes 14 and she’s already made all this
money and people are not eating at night
or whatever yes but the you shouldn’t
bash Carol Bartz for that if you’re
unhappy with capitalism that’s another
situation here she was kicked off what
was she gonna do say I’m all of a sudden
gonna become a charity she got what she
could get as she left that position so
fair or unfair is not the issue its
reality all right question of the week
question of the week comes from here in
Canada Chris from Toronto wants to know
what drives evaluation in mergers and
acquisitions ash great question cover
this quite a bit a lot of variables
financials is one the
p if you have any intellectual property
and assets is another the team in the
industry i think the macro factor though
is the lead thing when when it’s giddy
times and the markets doing well and
there’s a lot of interest in your
industry you’re going to ride the wave i
think ultimately though and this is
number one everyone who’s smarter than
me on this matter says the same thing
it’s a process so you need to get a lot
of buyers interested in you and what you
have in your company if you really
really don’t have to sell and you only
have one company interested in you
here’s my little memo to don’t sell
because at that point the company buying
you is just going to make a puny offer
and keep driving the price down what you
need is to get a few buyers interested
and then basically i’m not saying play
one off the other it could be candid in
saying if you’re interested in one or
you’re not in it for maximizing the sale
price and going for fit or whatever but
make sure you got a lot of interested
parties and that’s really the only way
that you could get a reasonable price so
what drives valuation is market demand
market the man always everything boils
down to the man in supply capitalism 101
a lot of capitalism on this on the show
alright it’s been shown number 74 hit
mojo for CT more I masculine carbon
swoosh and see you next week
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