Dropbox IPOs. Its Founders Are Now Billionaires ( 58

Yesterday Dropbox finally launched its stock on NASDAQ. Reuters reports: Dropbox Inc's shares closed at $28.42, up more than 35 percent in their first day of trading on Friday, as investors rushed to buy into the biggest technology initial public offering in more than a year even as the wider sector languished... At the stock's opening price, Dropbox had a market valuation of $12.67 billion, well above the $10 billion valuation it had in its last private funding round... It has yet to turn a profit, which is common for startups that invest heavily in growth. As a public company Dropbox will be under pressure to quickly trim its losses. The 11-year old company reported revenue of $1.11 billion in 2017, up from $844.8 million a year earlier. Its net loss nearly halved from $210.2 million in 2016.
CNBC reports that Y Combinator almost passed on a chance to invest in Dropbox -- which became its first IPO ever -- "because it had misgivings about bringing on a solo entrepreneur." After Drew Houston, the creator of Dropbox, scrambled to find a co-founder in time for his in-person interview, the company was admitted into YC in 2007. Four years later, venture capitalists poured money into Dropbox at a $4 billion valuation. YC has since become a power player in Silicon Valley, helping spawn numerous companies valued at over $1 billion today including Stripe, Airbnb, Instacart and Coinbase. It also backed Twitch, which Amazon acquired in 2014 for about $970 million, and the self-driving tech start-up Cruise, which GM bought in 2016 for over $1 billion. But in its 13-year history, YC had yet to see any of its companies go public until Dropbox's stock market debut on Friday...

Houston is now worth over $3 billion and co-founder Arash Ferdowsi owns shares valued at more than $1 billion.

Dropbox's Twitter feed posted a video from their NASDAQ debut, adding "We're so thankful for the 500 million registered users who helped us get here."
Social Networks

My Cow Game Extracted Your Facebook Data ( 53

Ian Bogost, writing for The Atlantic: Already in 2010, it felt like a malicious attention market where people treated friends as latent resources to be optimized. Compulsion rather than choice devoured people's time. Apps like FarmVille sold relief for the artificial inconveniences they themselves had imposed. In response, I made a satirical social game called Cow Clicker. Players clicked a cute cow, which mooed and scored a "click." Six hours later, they could do so again. They could also invite friends' cows to their pasture, buy virtual cows with real money, compete for status, click to send a real cow to the developing world from Oxfam, outsource clicks to their toddlers with a mobile app, and much more. It became strangely popular, until eventually, I shut the whole thing down in a bovine rapture -- the "cowpocalypse." It's kind of a complicated story.

But one worth revisiting today, in the context of the scandal over Facebook's sanctioning of user-data exfiltration via its application platform. It's not just that abusing the Facebook platform for deliberately nefarious ends was easy to do (it was). But worse, in those days, it was hard to avoid extracting private data, for years even, without even trying. I did it with a silly cow game. Cow Clicker is not an impressive work of software. After all, it was a game whose sole activity was clicking on cows. I wrote the principal code in three days, much of it hunched on a friend's couch in Greenpoint, Brooklyn. I had no idea anyone would play it, although over 180,000 people did, eventually. And yet, if you played Cow Clicker, even just once, I got enough of your personal data that, for years, I could have assembled a reasonably sophisticated profile of your interests and behavior. I might still be able to; all the data is still there, stored on my private server, where Cow Clicker is still running, allowing players to keep clicking where a cow once stood, before my caprice raptured them into the digital void.


Mozilla Pulls Advertising from Facebook ( 81

An anonymous reader shares a report: Mozilla is not happy with Facebook. Not happy at all. Having already started a petition to try to force the social network to do more about user privacy, the company has now decided to withdraw its advertising from the platform. The organization is voting with its money following the misuse of user data by Cambridge Analytica, as it tries to force Facebook into taking privacy more seriously. Mozilla says that it is not happy to financially support a platform that does not do enough to protect user privacy. But the company is not severing ties completely. It says that advertising is being "paused" and that if the right steps are taken by Facebook "we'll consider returning."

Mark Zuckerberg Apologizes For the Cambridge Analytica Scandal, Says He Isn't Opposed To Regulation ( 179

An anonymous reader quotes a report from The Verge: Mark Zuckerberg apologized on Wednesday evening for his company's handling of the Cambridge Analytica privacy scandal. "This was a major breach of trust and I'm really sorry this happened," he said in an interview on CNN. "Our responsibility now is to make sure this doesn't happen again." Zuckerberg's comments reflected the first time he apologized following an uproar over how Facebook allowed third-party developers to access user data. Earlier in the day, Zuckerberg wrote a Facebook post in which he said the company had made mistakes in its handling of the Cambridge Analytica data revelations. The company laid out a multipart plan designed to reduce the amount of data shared by users with outside developers, and said it would audit some developers who had access to large troves of data before earlier restrictions were implemented in 2014. Zuckerberg also told CNN that he is not totally opposed to regulation. "I'm not sure we shouldn't be regulated," he said. "There are things like ad transparency regulation that I would love to see."

Other highlights of Zuckerberg's interviews:
-He told multiple outlets that he would be willing to testify before Congress.
-He said the company would notify everyone whose data was improperly used.
-He told the New York Times that Facebook would double its security force this year, adding: "We'll have more than 20,000 people working on security and community operations by the end of the year, I think we have about 15,000 now."
-He told the Times that Facebook would investigate "thousands" of apps to determine whether they had abused their access to user data.

Regarding moderation, Zuckerberg told Recode: "[The] thing is like, 'Where's the line on hate speech?' I mean, who chose me to be the person that did that?" Zuckerberg said. "I guess I have to, because of where we are now, but I'd rather not."

Twitter CEO Says Bitcoin Will Be the World's 'Single Currency' In 10 Years ( 254

In a recent interview with The Times, Twitter and Square CEO Jack Dorsey said he believes that bitcoin will become the world's single currency within 10 years. "The world ultimately will have a single currency, the internet will have a single currency," said Dorsey. "I personally believe that it will be bitcoin." Dorsey went on to say that the transition would happen "probably over ten years, but it could go faster." The Verge reports: That Dorsey is a fan of bitcoin isn't too surprising, though. In addition to serving as the CEO of Twitter, Dorsey is also the CEO of Square, which recently added the option to buy and sell Bitcoin directly from the Square Cash app. The company also released an illustrated children's story touting the benefits of the digital currency. As for Dorsey himself, he's gone on the record in an interview with The Verge's own Lauren Goode about the benefits of bitcoin as a currency, describing it as the "next big unlock" for the world of finance. (Dorsey owns an unspecified amount of the cryptocurrency.)

Google Is Buying Innovative Camera Startup Lytro For $40 Million ( 36

According to TechCrunch, Google is acquiring Lytro, the imaging startup that began as a ground-breaking camera company for consumers before pivoting to use its depth-data, light-field technology in VR. From the report: One source described the deal as an "asset sale" with Lytro going for no more than $40 million. Another source said the price was even lower: $25 million and that it was shopped around -- to Facebook, according to one source; and possibly to Apple, according to another. A separate person told us that not all employees are coming over with the company's technology: some have already received severance and parted ways with the company, and others have simply left. Assets would presumably also include Lytro's 59 patents related to light-field and other digital imaging technology. The sale would be far from a big win for Lytro and its backers. The startup has raised just over $200 million in funding and was valued at around $360 million after its last round in 2017, according to data from PitchBook. Its long list of investors include Andreessen Horowitz, Foxconn, GSV, Greylock, NEA, Qualcomm Ventures and many more. Rick Osterloh, SVP of hardware at Google, sits on Lytro's board. A pricetag of $40 million is not quite the exit that was envisioned for the company when it first launched its camera concept, and in the words of investor Ben Horowitz, "blew my brains to bits."

Russia Secretly Helped Venezuela Launch a Cryptocurrency To Evade US Sanctions ( 106

According to an exclusive report by Time, Russia helped Venezuelan officials create the world's first state-backed cryptocurrency to skirt U.S. sanctions. The cryptocurrency was launched in late February and was banned by the Trump administration earlier this week. From the report: The new cryptocurrency, a form of digital cash that is supposedly linked to the value of Venezuela's oil reserves, was launched on Feb. 20 during a ceremony in the presidential palace in Caracas. Nicolas Maduro, the socialist leader of Venezuela, declared that it would serve as a kind of "kryptonite" against the power of the U.S government, which he sarcastically referred to as "Superman." Sitting in the front row at that ceremony were two of Maduro's Russian advisers, Denis Druzhkov and Fyodor Bogorodsky, whom the President thanked for aiding his fight against American "imperialism." Both men have ties to major Russian banks and billionaires close to the Kremlin. But they were not the most senior Russians involved. According to an executive at a Russian state bank who deals with cryptocurrencies, senior advisers to the Kremlin have overseen the effort in Venezuela, and President Vladimir Putin signed off on it last year. "People close to Putin, they told him this is how to avoid the sanctions," says the executive, who spoke to TIME on condition of anonymity. "This is how the whole thing started."

WhatsApp Co-Founder Tells Everyone To Delete Facebook, Further Fueling the #DeleteFacebook Movement ( 306

"In 2014, Facebook bought WhatsApp for $16 billion, making its co-founders -- Jan Koum and Brian Acton -- very wealthy men," reports The Verge. "Koum continues to lead the company, but Acton quit earlier this year to start his own foundation." Today, Acton told his followers on Twitter to delete Facebook. From the report: "It is time," Acton wrote, adding the hashtag #deletefacebook. Acton, who is worth $6.5 billion, did not immediately respond to a request for comment. Nor did Facebook and WhatsApp. It was unclear whether Acton's feelings about Facebook extend to his own app. But last month, Acton invested $50 million into Signal, an independent alternative to WhatsApp. The tweet came after a bruising five-day period for Facebook that has seen regulators swarm and its stock price plunge following concerns over data privacy in the wake of revelations about Cambridge Analytica's misuse of user data. Acton isn't the only one taking to Twitter to announce their breakup with Facebook. The #DeleteFacebook movement is gaining steam following the New York Times' report about how the data of 50 million users had been unknowingly leaked and purchased to aid President Trump's successful 2016 bid for the presidency. For many users, the news "highlighted the danger of Facebook housing the personal information of billions of users," reports SFGate. "And even before the Cambridge Analytica news, Facebook has been grappling with its waning popularity in the U.S. The company lost 1 million domestic users last quarter -- its first quarterly drop in daily users."

Chinese Companies Are Buying Up Cash-Strapped US Colleges ( 205

An anonymous reader quotes a report from Bloomberg: Chinese companies are taking advantage of America's financially strapped higher-education system to buy schools, and the latest deal for a classical music conservatory in Princeton, New Jersey, is striking chords of dissonance on campus. Beijing Kaiwen Education Technology Co. agreed in February to pay $40 million for Westminster Choir College, an affiliate of Rider University that trains students for careers as singers, conductors and music teachers. The announcement came just weeks after the government-controlled Chinese company changed its name from Jiangsu Zhongtai Bridge Steel Structure Co. The pending purchase rankles some Westminster faculty and alumni, who question what a longtime maker of steel spans knows about running an elite school whose choirs sang with maestros Leonard Bernstein, Arturo Toscanini and Seiji Ozawa. Alumni are among those suing in New York federal court to block the sale, saying it violates Westminster's 1991 merger agreement with Rider and will trigger the choir college's demise.
The Almighty Buck

Did Stephen Hawking Owe a Nobel Physicist a Subscription To a Softcore Porn Magazine? ( 105

dmoberhaus writes: In 1974, Stephen Hawking made a bet with Nobel Prize-winning cosmologist Kip Thorne about a black hole. The wager was a subscription to the softcore porn magazine Penthouse for Thorne or a subscription to "Private Eye" (basically the British equivalent of The Onion) for Hawking. Hawking ultimately lost the bet, but did he ever pay up? Motherboard dug around to find out if Hawking settled this infamous bet.

Motherboard's Daniel Oberhaus wasn't able to get ahold of Thorne, but did manage to track down a copy of the obscure 1997 straight-to-VHS documentary called Black Holes, which is the only evidence that the wager even happened. "In 1990, Stephen Hawking happened to be visiting Los Angeles and he broke into my office and thumb printed off on this bet," Thorne recalls in the video. Oberhaus writes: "Although the status of Cygnus X-1 was an open question in the 70s, by the 90s mounting evidence had forced Hawking to concede the wager. The bet was recorded in a handwritten note scrawled on a piece of card which is shown in the film. It read: 'Whereas Stephen Hawking has a large investment in general relativity and black holes and desires an insurance policy, and whereas Kip Thorne likes to live dangerously without an insurance policy, therefore be it resolved that Stephen Hawking bets 1 year's subscription to 'Penthouse' as against Kip Thorne's wager of a 4-year subscription to 'Private Eye,' that Cygnus X-1 does not contain a black hole of mass above the Chandrasekhar limit.' 'I had given Thorne a subscription to Penthouse, much to his wife's disgust,' a smiling Hawking says in the film."


There Are Still 100,000 Pay Phones In the US ( 97

According to the FCC, there are only about 100,000 phone booths left in the United States, and about a fifth of those are in New York. The number has decreased rapidly over the last couple decades as cellphones have been adopted by 95% of Americans. CNN reports of how these remaining pay phones still remain a steady business for some of the 1,100 companies operating them across the country: Pay phone providers reported $286 million in revenue in 2015, according to the most recent FCC report. They can still be profitable, particularly in places where there isn't cell phone or landline coverage, said Tom Keane, president of Pacific Telemanagement Services. Keane's company operates 20,000 pay phones around the country. "We have phones in Yosemite Valley that are extremely busy when there's not snow on the ground," he said. Victor Rollo said he is still making money off his 170 phones in the San Diego area. Rollo declined to say how much, but he believes pay phones are a lifeline for people who don't have other options and are valuable during emergencies or natural disasters. Rollo says he evaluates how many calls are made on the phones every month, how far away they are from each other, and how much his expenses are per month to determine whether to keep them in the ground. Phones in hospitals and along the border, where cell coverage is weak, are some of his most profitable ones.

Amazon Considers Buying Some Toys R Us Stores ( 61

According to Bloomberg, Amazon has looked at the possibility of expanding its retail footprint by acquiring some locations from bankrupt Toys R Us. "The online giant isn't interested in maintaining the Toys R Us brand, but has considered using the soon-to-be-vacant spaces for its own purposes," reports Bloomberg. From the report: Such a move would let Amazon quickly expand its brick-and-mortar presence, coming on the heels of buying Whole Foods and its more than 450 locations last year. The Seattle-based company also has opened its own line of bookstores and a convenience-store concept. Additional stores would give Amazon space to showcase its popular Echo line of devices, which run on the Alexa voice-activated platform. Amazon sees voice as the next interface for people to access technology -- supplanting computer mouses and touch screens -- and the benefits may be easier to demonstrate in a real-world setting. A bigger network of stores would put inventory closer to where shoppers live, potentially enabling quick delivery to e-commerce customers. The space could also serve as a staging ground for grocery delivery from Whole Foods stores. Amazon is already planning to roll out free two-hour service to Whole Foods customers in four cities, including Dallas and Cincinnati.

Amazon Passes Alphabet To Become the World's Second Most Valuable Company ( 33

Amazon has passed Alphabet to become the second most valuable company in the world. Apple remains the only other company more valuable than Amazon. CNBC reports: The e-commerce giant rose 2.7 percent on Tuesday lifting its stock market value to $768 billion. Alphabet, the parent of Google, fell 0.4 percent and is now valued at $762.5 billion. While the U.S. tech mega-caps have rallied in the past year, Amazon's performance has dwarfed them all, with the stock surging 85 percent over the past 12 months, including 35 percent to start 2018. Investors have been piling into Amazon, betting that the company's growing and very profitable cloud computing business will provide the cash needed for investments in original content, physical stores and continuing to build data centers and warehouses.

Mark Zuckerberg AWOL From Facebook's Data Leak Damage Control Session ( 165

An anonymous reader writes: It's not just that he's silent in public. Facebook CEO and co-founder Mark Zuckerberg declined to face his employees on Tuesday to explain the company's role in a widening international scandal over the 2016 election. Facebook employees on Tuesday got the opportunity for an internal briefing and question-and-answer session about Facebook's role with the Trump-aligned data firm Cambridge Analytica. It was the first the company held to brief and reassure employees after, ahead of damaging news reports, Facebook abruptly suspended Cambridge Analytica. But Zuckerberg himself wasn't there, The Daily Beast has learned. Instead, the session was conducted by a Facebook attorney, Paul Grewal, according to a source familiar with the meeting. That was the same approach the company used on Capitol Hill this past fall, when it sent its top attorney, Colin Stretch, to brief Congress about the prevalence of Russian propaganda, to include paid ads and inauthentic accounts, on its platform. Further reading: Where in the world is Mark Zuckerberg? Frustrated Facebook execs are asking.

African Manufacturing Jobs Could be Threatened by US Based Robots, Report Says ( 90

Within less than two decades it will be cheaper to operate robots in US factories than hire workers in Africa, a new report warns. From the report: Falling automation costs are predicted to cause job losses as manufacturers return to richer economies. Some analysts say poorer countries could be less impacted by this trend, however the Overseas Development Institute (ODI) suggests otherwise. But its report adds African nations have time to prepare for the change. "African countries must not shy away from manufacturing, but instead prepare by increasing access to internet, investing in technical skills and promoting technological innovation," said Karishma Banga a senior research officer at ODI. "If done well, automation can present important opportunities for African countries by improving labour productivity in manufacturing," she said. It has been suggested that poorer countries will not as be affected by automation because they have less money to invest in it.

Google Launches a News Initiative To Fight False News and Help Publishers Make Money ( 103

Google is launching the Google News Initiative, a journalism-focused program that will help publishers earn revenue and combat fake news. From a report: The initiative, announced Tuesday, will offer publications another monetization model online called Subscribe with Google, as well as work with established universities and groups to combat misinformation. It will also introduce an open-source tool called Outline, which will make it easier for news organizations to set up secure access to the internet for their journalists. Google said it was committing $300 million over the next three years to the project, though it did not elaborate on how the resources would be spent.

The company said it paid $12.6 billion to news organizations and drove 10 billion clicks a month to their websites for free last year. Subscribe with Google will make it easier for readers to pay for content from news organizations that have agreed to partner with the company., The Washington Post, and McClatchy Company publications including the Miami Herald are among the 17 launch partners.


New York Power Companies Can Now Charge Bitcoin Miners More ( 127

Last Wednesday, the New York State Public Service Commission (PSC) ruled that municipal power companies could charge higher electricity rates to cryptocurrency miners who try to benefit from the state's abundance of cheap hydroelectric power. Ars Technica reports: Over the years, Bitcoin's soaring price has drawn entrepreneurs to mining. Bitcoin mining enterprises have become massive endeavors, consuming megawatts of power on some grids. To minimize the cost of that considerable power draw, mining companies have tried to site their operations in towns with cheap electricity, both in the U.S. and around the world. In the U.S., regions with the cheapest energy tend to be small towns with hydroelectric power. But mining booms in small U.S. towns are not always met with approval. A group of 36 municipal power authorities in northern and western New York petitioned the PSC for permission to raise electricity rates for cryptocurrency miners because their excessive power use has been taxing very small local grids and causing rates to rise for other customers. The PSC responded on Wednesday that it would allow those local power companies to raise rates for cryptocurrency miners. The response noted that New York's local power companies, which are customer-owned and range in size from 1.5 MW to 122 MW, "acquire low-cost power, typically hydro, and distribute the power to customers at no profit." If a community consumes more than what has been acquired, cost increases are passed on to all customers. "In Plattsburgh, for example, monthly bills for average residential customers increased nearly $10 in January because of the two cryptocurrency companies operating there," the PSC document says. The city of Plattsburgh, New York has since imposed an 18-month moratorium on commercial cryptocurrency mining to "protect and enhance the city's natural, historic, cultural and electrical resources."
The Almighty Buck

Google Makes Push To Turn Product Searches Into Cash ( 66

Reuters reports of how Google is working to turn product searches into cash by partnering with some of the largest retailers in the United States: Under a new program, retailers can list their products on Google Search, as well as on the Google Express shopping service, and Google Assistant on mobile phones and voice devices. In exchange for Google listings and linking to retailer loyalty programs, the retailers pay Google a piece of each purchase, which is different from payments that retailers make to place ads on Google platforms. The listings will appear under sponsored shopping results and will not affect regular search results on Google, the company said. Google's pitch to retailers is a better chance to influence shoppers' purchasing decisions, a move that is likely to help them compete with rival Amazon. Google hopes the program helps retailers capture more purchases on desktop, cell phones and smart home devices with voice search -- the next frontier for e-commerce. The previously unreported initiative sprang from Google's observation that tens of millions of consumers were sending image searches of products, asking "Where can I buy this?" "Where can I find it?" "How can I buy it?" "How do I transact?" Daniel Alegre, Google's president for retail and shopping, told Reuters exclusively.
The Almighty Buck

Ask Slashdot: Should You Tell Your Coworkers How Much You Make? 353

An anonymous reader writes: Asking someone how much money they make is often -- if not always? -- considered impolite. But over the years, there has been a movement in toward more salary transparency. Some say salary transparency can make workplaces more equitable by helping to eliminate the gender and racial pay gaps. Even in companies that haven't decided to officially make all salaries open, some employees are taking matters into their own hands and sharing their pay rate with their coworkers. What's your take on this?

Trump Bans Venezuela's New National Cryptocurrency ( 170

An anonymous reader quotes a report from CNBC: President Donald Trump issued an executive order Monday banning any transactions within the United States involving any digital currency issued by, for, or on behalf of the Government of Venezuela. The order applies to U.S. citizens as well as anyone within the United States, and includes cryptocurrency issued on or after January 9. President Trump's order is in response to recent attempts by Venezuelan President Nicolas Maduro's regime to "circumvent U.S. sanctions by issuing a digital currency," the White House said in a statement. Venezuela launched its oil-backed cryptocurrency in February to help pull the country out of a continuing economic crisis. President Maduro said each petro token will be backed by one barrel of the state's national petroleum. Maduro also said roughly 100 million tokens would be issued -- estimated to be worth around $6 billion. Bitcoin prices dropped about $200 to around $8,388, according to Coinbase, following the order.

Slashdot Top Deals