Vice Media, the digital company once valued at nearly $6 billion, filed for Chapter 11 bankruptcy Monday. After launching as a magazine 29 years ago in Montreal, the startup expanded, launching a flagship website and acquiring the Virtue ad agency, Pulse Films and the women-focused Refinery29. Vice’s businesses will continue operations throughout the bankruptcy process, which includes a sale to take place within 55 days. Vice lenders including Fortress Investment Group and Soros Fund Management have joined forces to acquire the company, submitting a bid of $225 million and agreeing to assume “substantial debt.” Continue reading Vice Media Files Chapter 11 with Sale Set for Within 55 Days

Meta Platforms’ revenue dropped 1 percent in the second quarter, totaling $28.8 billion, just missing Wall Street’s expectation. It was the first year-over-year revenue drop since the company went public 10 years ago. Meta logged $6.69 billion in Q2 profit, down 36 percent over the same period in 2021. Costs increased by 22 percent, largely due to ongoing heavy investment in the metaverse, where the company’s ambitions took a hit Wednesday when the Federal Trade Commission filed a lawsuit to prevent Meta from buying Los Angeles-based virtual reality firm Within. Continue reading Profits Down as FTC Sues Meta to Block Purchase of Within

Following a decade-long boom, funding for startups is in decline, according to PitchBook, which says investments in fledgling U.S. tech firms has dropped by 23 percent in Q2 to $62.3 billion, the biggest fall since 2019. In another dire indicator, startup sales and IPOs have fallen to $49 billion the first six months of 2022, plunging 88 percent compared to the same period in 2021. The slump comes amidst an overall stock market downturn that has seen the technology sector take a particularly brutal hit that appears to have affected private startup valuations. Continue reading Funding for Startups Faces Downturn After 10-Year Bull Run

Rumblings are surfacing about the impact to Meta Platforms advertising on Facebook and Instagram due to increased costs resulting from the new user privacy policy introduced by Apple last summer. Meta expects to take a hit of as much as $10 billion to this year’s revenue as a result of the change, which requires users to grant permission to apps to track their activity for advertising purposes. Meta’s market value dropped by roughly $300 billion in the wake of that forecast. In light of Google’s discussion this month of implementing privacy changes of its own, it remains to be seen whether the changes are triggering a digital advertising transition or crash. Continue reading Apple Privacy Changes Hurt Meta, Help Google, Pundits Say

Nasdaq says it will in 2022 begin migrating its North American markets to Amazon Web Services in a phased approach starting with the Nasdaq MRX U.S. options market. Nasdaq AWS will use a new edge computing solution the companies designed for market infrastructure that will be made available to other entities as well as leveraged across Nasdaq’s anti-financial crime, data and analytics, and market infrastructure software programs. The announcement was issued the same day Goldman Sachs said it was teaming with AWS on a suite of cloud-based solutions for financial institutions. Continue reading Nasdaq, Goldman Sachs Announce Migration to AWS Cloud

Amazon chief executive Jeff Bezos is stepping down from the role he has held since he started the Big Tech company 26 years ago and will assume the role of executive chairman. Amazon Web Services head Andy Jassy will replace Bezos as Amazon’s new chief executive. Bezos hands over the reins during a time in which COVID-19 has helped the company achieve record-breaking sales, while it also faces regulatory and legal investigations. Personally, he vies with Tesla chief executive Elon Musk as the world’s wealthiest person. Continue reading Amazon’s Jeff Bezos Steps Down After 26 Years at the Helm

Cryptocurrency Bitcoin is on a roll, rising to a record high since the advent of the global coronavirus pandemic. In March it had skidded to below $4,000. This time, however, its growth is not being driven by the same speculative forces that led to its peak of $19,783 in 2017. Instead, American companies and other traditional investors are gravitating to Bitcoin as an alternative asset, similar to gold, that enables them to place part of their financial portfolio outside the influence of governments and the traditional financial systems. Continue reading Investments in Bitcoin Increase During the COVID Pandemic

In Washington DC, as Facebook chief operating officer Sheryl Sandberg and Twitter chief executive Jack Dorsey were concluding testimony on efforts to repel foreign interference ahead of the midterm elections, Attorney General Jeff Sessions dropped a bombshell. He stated plans to convene state attorneys general on September 25 to look at what the Justice Department said is the intentional “stifling [of] the free exchange of ideas on their platforms.” Google, which had been invited to testify, did not send a representative. Continue reading Facebook and Twitter Execs Answer Questions on Capitol Hill

According to sources, Amazon is developing a TiVo-like device, dubbed “Frank,” that records live TV. The sources added that the DVR device, which includes physical storage, connects to the company’s Fire TV box using the same wireless technology as the Echo. The Frank DVR also has the ability to record live TV and stream the video to a smartphone for later viewing, but Amazon, said the sources, isn’t certain it will debut the DVR with that feature, which is offered by TiVo and Dish Network’s Slingbox. Continue reading Amazon Is Reportedly Developing Live TV DVR to Rival TiVo

The myth that the stock of the tech behemoths will only increase in value was shattered this last week when Facebook’s shares tumbled 19 percent, erasing about $120 billion in shareholder wealth. That loss represents among the largest one-day dip in market value that any company has suffered. Facebook’s loss began when it released disappointing Q2 earnings and warned investors of a “sharp slowdown in sales growth” in the next quarters as well as more spending for security and privacy. Continue reading Facebook Stock Plunge Proves Tech Firms Aren’t Bulletproof

Amazon, Berkshire Hathaway and JPMorgan Chase & Co. are partnering to find a way to reduce healthcare costs for their U.S. employees. The companies are motivated by rising healthcare costs in the U.S., and their joint new company will target technological solutions for a simpler and more economical healthcare solution. They did not reveal, however, how much money they have committed to the effort or whether it would expand to include employees outside the U.S., but did emphasize the effort would not be a profit-making venture. Continue reading Amazon, Berkshire Hathaway, JPMorgan Partner on Healthcare

Wixen Music Publishing filed a $1.6 billion copyright lawsuit in a California federal court against popular music streamer Spotify. Wixen claims that the Stockholm-based service used thousands of songs — including those by the Doors, Tom Petty and Neil Young — without a direct or compulsory license and without compensating the music publisher. According to Reuters: “Wixen also alleged that Spotify outsourced its work to a third party, licensing and royalty services provider the Harry Fox Agency, which was ‘ill-equipped to obtain all the necessary mechanical licenses.’” Spotify, which has grown in value to $19 billion, recently filed IPO documents with the SEC. Continue reading Music Publisher Files $1.6 Billion Copyright Suit Against Spotify

Video streaming device maker Roku begins trading today on Nasdaq, setting its IPO price at $14 per share, which would give it a $1.3 billion stock market value. The 15-year-old company is competing with the likes of Amazon, Apple and Google that all offer streaming video boxes featuring popular apps such as Netflix and Hulu. Roku’s devices provide access to Amazon, Netflix, YouTube and dozens of online channels, but competition is a major consideration with today’s tech investors. Snap Inc., for example, the year’s biggest tech IPO, has watched its shares plummet in value as Facebook’s Instagram rolled out Snapchat-like functionality. Continue reading Roku Goes Public Today, Sets its IPO Price at $14 per Share

The Nasdaq Stock Market is lending assistance to NYIAX (New York Interactive Advertising Exchange), a startup that is trying to stop phony publishers in the digital ad market. That’s because, according to ad verification company Adloox, these con artists divert one-fifth of annual ad spending, which equals an estimated $16 billion this year. With its blockchain-enabled platform, NYIAX hopes to put an end to the lack of transparency that leads to this significant loss. These scams have become a problem due to the rise of automated ad exchanges that instantly match advertisers with publishers. Continue reading Startup NYIAX Partners with Nasdaq to End Digital Ad Fraud

Snapchat parent company Snap Inc. has confidentially filed for its IPO, according to sources familiar with the matter. The four-year old messaging app could go public as early as March 2017, in what is expected to be one of the highest-profile stock debuts in years, and one that could potentially convince other tech startups to test public markets. The Venice, California-based company is looking to raise as much as $4 billion, with a valuation in the $25 billion range, which could make it the largest U.S.-listed tech offering since Chinese e-commerce giant Alibaba went public in 2014. Continue reading High Profile Snap IPO Could Push Other Startups to Go Public