Modern day monopoly
Story by Melissa Keane
Feudal or counter capitalism.
This is the notion of having a single entity propped up to gain market control, restrict resources and monopolise gains to the benefit of investors.
How it works? Every so often major capitals and banks would select an emerging market whether it be oil, manufacturing (in the past) and now tech etc. They then select the company they believe has the best model and likelihood of success and pump copious amounts of capital into it. These initial investors are often prepared for delayed gratification and ofcourse not all funds come from legitimate sources.
As this one business now has capital and resources it can engage in extreme practices whether these be buying out competitors, real estate blocking, licensing, marketing or simply price wars that smaller companies cannot compete with.
The business gains control and eventually can be worth billions. It can then go public allowing ita initial investors to now realise the benefits of their investment. Previously this took 15 to 20 years or more.
However, in a digital age with amazon, google and tech giants leading the charge of the wealthy. This time period can be circumvented. But there are major drawbacks as softbank recently realised with wework and uber. Both these companies received millions in funding from softbank. Uber’s IPO was hardly encouraging whilst wework postponed their own, removed their co founder and ceo, Adam Neumann and are basically both bleeding cash.
Investors have realised that the online and tech world means fast money but unless there is someway to foster longevity as with google and amazon they would lose momentum for one simple reason…hype never lasts.
Oracle ceo has described both wework and uber as nothing but glorified shells of what was already existing…co working spaces and taxi services. This isnt gold or property and wont always be here or be able to survive competition.
Its possibly why many tech billionaires now have serious investments in real estate, gold and other business.
Ali Baba’s Chairman Jack Ma, retires
story by: Jason Scott Makedavis 10/09/2019
Jack Ma, Alibab’s Chairman announced his retirement on Tuesday 9th September, 2019. He indicated in a public press conference that he would be dedicating his time to philantrophy and rural education.
Jack Ma grew up poor in communist China, failed his university-entrance exam twice, and was rejected from dozens of jobs, including one at KFC, before finding success with his third internet company, Alibaba.
Today AliBaba is a successful e-commerce venture with suppliers and sellers plying their trade to an ever-growing customer base. The business has a networth of over USD400 billion dollars.
But this isn’t the end
- It is likely that Ma will continue to play a pivotal role in the business future. Ma remains a founding partner and one of several others responsible for controlling the licenses which govern the business operations;
- Alipay faces certain fierce competition and it is likely it will continue to do so especially if its competitors smell a drop in leadership. Ma will likely continue in his role with Alipay which governs most of the site digital payment systems.
- It is noteworthy that Ma (born 1964) is still relatively young and will likely be spending his time in other business ventures as well. The general ethos is that he is unlikely to be considered out of the game.
Jawdropworthy attempted to contact a representative of Alipay for comment on the business future and competitor ‘wechat’ but have thus far been unable to acquire comment on the issue.
1/2 BILLION pharmaceutical abatement plan
story by: Jason Scott Makidevis
Purdue Pharma LP, Cephalon INC, Johnson and Johnson, Janssen Pharmaceutica Inc are among the company names listed in a case brought by the State of Okhlahoma.
- State claims public nuisance by entities in relation to rising sales and statistics in opioid drug us
- Defendants ordered to implement an nuisance abatement plan for one year at an estimated cost of over 1/2 billion dollars.
- The companies did not issue any counter-claims but sought to argue that the State failed to meet its burden of proof.
On August 26, 2019, an Okhlahoma Judge issued judgment in a matter subsequent to a jury trial that lasted over 33 days.
The State of Okhlahoma brought a case against several pharmaceutical entites accusing them of being the significant contributors and therefore the ones who have created a “public nuisance” in the form of rising opioid drug use.
In summary, the State provided direct witness testimony and statistics to show the growing scourge of opioid use. The State directly accused the entities of utilizing false marketing and advertising techniques to promote the sale and use of opioids.
The Judge found that the Defendants have in fact committed these acts and that the said acts have caused harm to the populace of Okhlahoma
Jawdropworthy news attempted to contact several of these entites for questions on whether they thought the judgment was fair but all have thus far declined to comment.
“Roku” to overturn Netflix’s lead?
- Roku has been one of the most successful streaming sites as of 2019 with an over 370% aggregate growth
- Roku is growing at a faster rate than Netflix did during this stage of their respective development
Roku’s streaming business is growing faster than Netflix was at a similar stage in the company’s life, according to analysts at William Blair.
The firm said it expects Roku to reach 80 million active accounts by 2025.
“In our view, Roku will experience similar phased stages of international growth as Netflix did during its international expansion,” analyst Ralph Schackart said in a note to clients Tuesday.
Shares of Roku, which sells its own streaming devices with thousands of channels and also provides an operating system for smart TVs, have been on a tear this year, climbing nearly 370% since January.
Earlier this month, Roku topped expectations on its second-quarter earnings and said it reached 30.5 million active users during the quarter, up 39% from the same period last year and 1.4 million more than it had in the prior period. Schackart said Roku’s active account growth is tracking ahead of Netflix at parallel stage.