Tag: Mark Cuban

I’m Not Mark Cuban… But

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Mark Cuban, outspoken owner of the Dallas Mavericks, TV shark and luckiest Internet bubble buyout recipient ever made news with a tweet early this morning.

Cuban is talking about corporate inversions. That’s where a large company buys a smaller company then adopts its favorable headquarters location for tax purposes.

It doesn’t move. It just declares this new place its HQ. By virtue of this paper shuffling they stop paying most federal taxes!

Cuban will sell their stock.

I can’t do that. I own no common stock. However, I pledge to stop supporting businesses that do this.

I’m talking to you Walgreens!

From the Wall Street Journal:

Walgreen is currently thinking about leaving American shores, as part a plan to buy the rest of Alliance Boots GmbH, which operates a U.K. drugstore chain and is based in Switzerland. The move could help Walgreen lower its U.S. tax bill saving the company hundreds of millions of dollars a year—money that wouldn’t flow into the U.S. Treasury.

That’s my prescription bottle at the top of this entry. Walgreens–it will be my last and I’ll absolutely join the boycott of your stores which will surely follow.

I’m not concerned whether your move is legal. I just know it’s wrong.

The Physics Olympics

Working down the street from Yale University must be somewhat like living next door to Jessica Alba. It’s easy to see what’s so special. You’re seldom invited over.

An exception was made Saturday. Dr. Steve Girvin, the Eugene Higgins Professor of Physics and Applied Physics&#185, asked me if I’d like to attend the annual Yale Physics Olympics. How could I say no?

Students from high schools in Connecticut and nearby states sent teams to Yale to compete in fun, though intellectually challenging, physics based games.

They built bridges, redesigned electrical circuits and tried to predict movement in a virtual stock market. I’m sorry – did you mention what you did Saturday?

If your local school board ever asks for a new facility to further education, send them to Yale. Sloane Physics Lab, where the competition took place, is an ancient building. The lecture hall we occupied was probably outmoded 50 years ago. It is still a center of exceptional education.

Education is dependent on an open exchange of ideas and knowledge, not furniture.

The kids who gave up their Saturday afternoon are the smart kids. Their intellect probably makes them socially awkward now, but they’ll be the one’s we’re all working for later. Think Bill Gates, Steve Jobs, Jeff Bezos and Mark Cuban.

I did a lot of helping out Saturday. I’m not sure they really needed me, but I was thrilled to be a part of the action. I poured liquid nitrogen (somewhere around 325&#176 below zero Fahrenheit) into a Styrofoam vessel for a demonstration on electrical conductivity, rode a bicycle powered by CO2, and a hovercraft lifted by a very noisy leafblower (as immortalized in the attached youtube video).

As someone who works in TV news, where the easiest way for a teenager to make air is to kill or be killed, this Saturday afternoon was a breath of fresh air.

&#185 – My knowledge of academia is limited, but I do know an endowed chair is a big deal… even bigger at Yale. As it turns out, he’s a great guy and not at all pretentious about the fact he can think us all under the table.


Why All The Money?

It’s a good week to be Mark Zuckerberg. First, it’s always good to be 22 years old (or so I remember). Second, it’s nice to have a little nest egg to fall back on. In his case that’s Facebook.

If you don’t know what Facebook is, don’t worry. You’re probably not a college student and here in the 21st Century, hipness is on a need to know basis.

Briefly, Facebook is a social networking site, like MySpace. Actually, it doesn’t make any difference. It gets a lot of traffic from people advertisers want to reach. Currently, traffic = revenue.

From The New York Times:

When Viacom offered $750 million for Facebook in January, he asked for $2 billion and was rebuffed, according to a person involved in the negotiations. Now, he remains undecided about the latest offer, made in the last few weeks by Yahoo.

That latest offer is for around $900,000,000 (the numbers seem to have more impact fully written out).

I don’t get it. As with the last Internet bubble, the numbers just don’t add up.

Let’s say the software, hardware, infrastructure for Facebook is $10,000,000. Oh, what the hell – make it $50,000,000. That’s got to be way high… really, really way high, but it doesn’t make any difference.

With $900,000,000 you could set up an online competitor to Facebook and spend hundreds of millions of dollars to promote it. Give away bags of money if you want – real bags of money. Buy the user’s allegiance away from Facebook.

How can that not be cheaper than buying Facebook outright&#185?

What is the sense of buying a business that will bill under $50,000,000 this year for close to a $1,000,000,000?

Back before the Internet burst the first time, loads of companies where sold for immense sums. Broadcast.com went to Yahoo! for $5.7 billion. Click on Broadcast.com today – you just get Yahoo!

From Wikipedia:

In April 1999, Broadcast.com was acquired by Yahoo! for $5.7 billion in stock and became Yahoo! Broadcast Solutions. Over the next few years Yahoo! split the services previously offered by Broadcast.com into separate services, Yahoo! Launchcast for music and Yahoo! Platinum for video entertainment. Yahoo! Platinum has since been discontinued, its functionality being offered as part of two pay services, AT&T Yahoo! High Speed Internet and Yahoo! Plus.

As of 2006, neither broadcast.com nor broadcast.yahoo.com are distinct web addresses; both simply redirect to yahoo.com.

The Broadcast.com sale wasn’t a total loss… at least it wasn’t for Mark Cuban, now owner of the Dallas Mavericks and HDNet.

So, Yahoo!, bon chance on this one. They can’t all be overpriced bombs. Can they?

&#185 – This is by no means a rap on Facebook – a perfectly fine site. I’m kvetching about price, not content.