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Alibaba IPO may raise as much as $24 billion

Written By limadu on Minggu, 07 September 2014 | 14.44

NEW YORK (CNNMoney)

The Chinese e-commerce giant, which will begin trading under the ticker BABA later this month, submitted a regulatory filing Friday that says it plans to price its shares between $60 and $66. If its underwriters claim their shares, the company could raise $24.3 billion, which would be the biggest stock debut in history.

The range Alibaba offered would value it somewhere between $148 billion and $163 billion.

Related: Who the heck is Jack Ma? Meet the man who built Alibaba

Even if Alibaba skews toward the conservative end of that range, it would raise $22.1 billion, eclipsing the largest American IPO to date: Visa (V), which raised $17.9 billion and beating global record holder Industrial & Commercial Bank of China (IDCBY), which raised about $21 billion in 2006.

Related: Meet the four kings of Alibaba's online retail empire

Yahoo (YHOO, Tech30), which is the second-largest holder of Alibaba equity, will cut its stake to 16.3% from 22.4%, the filing notes. Japanese bank SoftBank will cut its stake to 32.4% from 34.1%. Alibaba founder and CEO Jack Ma will cut a percentage point off his 8.8% stake.

First Published: September 5, 2014: 5:16 PM ET


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Vice's quest for "total media domination" continues

vice media apps

NEW YORK (CNNMoney)

That goal, espoused by chief executive Shane Smith, seems a little more attainable now that it's received twin investments of $250 million each from A&E Networks and the Silicon Valley investment firm Technology Crossover Ventures.

The cash infusions, announced this week, value the firebrand Brooklyn-based news agency at more than $2.5 billion. They'll help Vice expand on multiple platforms, including television, while maintaining independence and the edgy qualities that have made it a popular news and entertainment source among millennials.

Why is 10 percent of Vice worth $250 million? "They're probably the best positioned company to take advantage of all those trends," TCV general partner Woody Marshall said in a telephone interview. "That's a big prize."

With the deal Smith and Vice Media can now allocate funds to the digital side of the site strengthening their online experience for users.

For Vice this means greater growth in mobile and online distribution.

"I hope Shane is able to accomplish his goal, his quest for media domination," Marshall added. "This will be the most important media company in the next decade."

Bold words -- but then again, Smith has frequently spoke of wanting to be the "next CNN" and "next MTV."

CNN's parent company Time Warner was in talks about a potential deal with Vice earlier this summer. But the talks dissolved last week, reportedly because the two sides could not agree on a valuation of the company.

While the A&E partnership will likely focus on programming -- Smith has made no secret of the fact that he wants a 24-hour cable channel for Vice -- the TCV deal will help Vice keep growing its digital content production.

"We had the meeting of the minds... and believed in what their vision was," Marshall said. "It came together quite quickly."

TCV has other investments in other major media companies -- Netflix, Facebook and Spotify to name a few -- and believes that Vice, like the others, can cover the full media spectrum.

Smith sounded appropriately ambitious in a press release about the new two investors: "We believe that these new partnerships position us at the forefront of the coming convergence of media and technology, while preserving and protecting our independence."

First Published: September 5, 2014: 4:52 PM ET


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Ultimate office decoration: Stock certificates

Disney stock certificate A Disney stock certificate signed by Michael Eisner.

NEW YORK (CNNMoney)

In nice frames, the president of Chase Investment Counsel displays stock certificates from PlanetRx and ValueAmerica.

Remember those? They were Internet stocks that took off in the late 1990s -- PlanetRx traded close to $200 a share at one point. Today, they're worthless because the companies went bankrupt.

Beneath the ornate certificates, Tuz has charts that display the massive rise and fall of these two stocks during the Dot Com bubble.

"I just like to look at that," Tuz told CNNMoney. "It's a good way to point out to visitors here -- be careful what you buy in an IPO."

He's glad he never actually owned those stocks. He just purchased the "worthless" paper as a collector's item for a very reasonable cost.

Up until the past few years, investors would get stock certificates when they purchased shares of a company -- it was expected, like the toy that comes with a McDonald (MCD)'s Happy Meal. But as trades moved online, the process of waiting for a certificate to arrive in the mail and getting it notarized for a sale became cumbersome.

Companies are no longer required to issue paper stock certificates. But it's big business to re-sell historical ones. It's become a hobby akin to collecting baseball cards or art.

It's a big market: Type in the words "stock certificate" on eBay (EBAY, Tech30), and over 16,000 active listings come up in the U.S. alone.

"A lot of times people get certificates just as art work. You hope over time that it will appreciate, but you get it to put on your wall. It's a conversation starter," says Bob Kerstein, founder and CEO of Scripophily.com, a leading website that sells and values old stock and bond certificates.

Most certificates sell for $20 or less -- similar to buying a poster for your wall. But coveted ones can go for thousands of dollars. If you find some in an attic or old filing cabinet, it's worth checking to see if they can still be redeemed -- or sold as a piece of history.

The most popular ones: Much like art and baseball cards, the stock certificates that command top dollar are either extremely rare, very colorful and/or signed by someone well known.

Goldman Sachs IPO certificate A stock certificate from the 1998 Goldman Sachs IPO

Disney (DIS) is often in demand. The much beloved certificates have Mickey Mouse, Donald Duck, Tinkerbell, Winnie the Pooh and other famous cartoons on them.

In a blow to collectors, Disney stopped issuing paper certificates in October of 2013, joining the ranks of the 1,000 companies that no longer issue certificates, according to DTCC, a financial clearing and settling firm.

That's only added to the allure of the existing ones. On Scripophily.com, a Disney stock certificate signed by Michael Eisner when he was chairman is listed for $395.

Then there's the nude: Playboy also has special status as it was the only certificate bearing the image of a nude when the company went public in the early 1970s: a reclining Willy Rey, the magazine's Miss February 1971. It became such a novelty that there were about 14,000 people who bought just one share, according to a company spokesman.

Today collectors are drawn to tech names they recognize says Kerstein.

AOL (AOL, Tech30) certificates and Microsoft (MSFT, Tech30) ones signed by Bill Gates are also popular, as are the Goldman Sachs (GS) IPO notes.

Rockefeller stock rocks: The certificate that commands the most demand though is from a company that went defunct in 1911: Standard Oil. The reason is that one of America's most prominent businessmen -- John D. Rockefeller -- was the founder and chair of the company and signed the stock certificates.

Over a century later, people pay $2,000 or more for a piece of paper with his signature.

First Published: September 6, 2014: 7:43 AM ET


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Alibaba IPO may raise as much as $24 billion

Written By limadu on Sabtu, 06 September 2014 | 14.45

NEW YORK (CNNMoney)

The Chinese e-commerce giant, which will begin trading under the ticker BABA later this month, submitted a regulatory filing Friday that says it plans to price its shares between $60 and $66. If its underwriters claim their shares, the company could raise $24.3 billion, which would be the biggest stock debut in history.

The range Alibaba offered would value it somewhere between $148 billion and $163 billion.

Related: Who the heck is Jack Ma? Meet the man who built Alibaba

Even if Alibaba skews toward the conservative end of that range, it would raise $22.1 billion, eclipsing the largest American IPO to date: Visa (V), which raised $17.9 billion and beating global record holder Industrial & Commercial Bank of China (IDCBY), which raised about $21 billion in 2006.

Related: Meet the four kings of Alibaba's online retail empire

Yahoo (YHOO, Tech30), which is the second-largest holder of Alibaba equity, will cut its stake to 16.3% from 22.4%, the filing notes. Japanese bank SoftBank will cut its stake to 32.4% from 34.1%. Alibaba founder and CEO Jack Ma will cut a percentage point off his 8.8% stake.

First Published: September 5, 2014: 5:16 PM ET


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Americans air worries about age bias in jobs

NEW YORK (CNNMoney)

In a live chat on CNNMoney's Facebook page with U.S. Labor Secretary Tom Perez, hosted by CNN's Christine Romans, readers asked about age discrimination, raising the minimum wage, how to grow jobs, and more.

Their worries aren't unfounded. Job creation slowed in August to its lowest level this year, according to the government's report released Friday.

The economy added 142,000 jobs; it was the first time in six months that fewer than than 200,000 jobs were created.

Related story: Jobs: Signs of strength, pockets of gain

One reader asked a long-festering worry that older people are being discriminated against in the current job market.

"I have spoken to many long-term unemployed people who have expressed the strong belief that their age has been a barrier to reemployment," Perez said.

The number of people out of work for six months or more had spiked during the recession. At its worst, nearly 7 million people -- about half of the unemployed -- were in that situation.

That number has since fallen and now, less than one in three of the unemployed fall into this category. Still, it's not a small number -- 3 million people have been looking for a job for more 6 months.

With fast food protests picking up momentum again, another Facebook user Chuck Arnold asked: "Should we pay a burger flipper more than a cop?"

Perez didn't respond directly but advocated for raising the minimum wage. "Too many people are working full time and living in poverty," he said.

Questioner Sonya Denyse asked which industries are adding jobs.

Perez said that he expects more jobs to be created in manufacturing, health care and education. He also said that professional services, like architects, accountants and consultants, have been adding the most jobs over the past 12 months.

For more from the chat, visit CNNMoney's Facebook page.

First Published: September 5, 2014: 3:17 PM ET


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Vice's quest for "total media domination" continues

vice media apps

NEW YORK (CNNMoney)

That goal, espoused by chief executive Shane Smith, seems a little more attainable now that it's received twin investments of $250 million each from A&E Networks and the Silicon Valley investment firm Technology Crossover Ventures.

The cash infusions, announced this week, value the firebrand Brooklyn-based news agency at more than $2.5 billion. They'll help Vice expand on multiple platforms, including television, while maintaining independence and the edgy qualities that have made it a popular news and entertainment source among millennials.

Why is 10 percent of Vice worth $250 million? "They're probably the best positioned company to take advantage of all those trends," TCV general partner Woody Marshall said in a telephone interview. "That's a big prize."

With the deal Smith and Vice Media can now allocate funds to the digital side of the site strengthening their online experience for users.

For Vice this means greater growth in mobile and online distribution.

"I hope Shane is able to accomplish his goal, his quest for media domination," Marshall added. "This will be the most important media company in the next decade."

Bold words -- but then again, Smith has frequently spoke of wanting to be the "next CNN" and "next MTV."

CNN's parent company Time Warner was in talks about a potential deal with Vice earlier this summer. But the talks dissolved last week, reportedly because the two sides could not agree on a valuation of the company.

While the A&E partnership will likely focus on programming -- Smith has made no secret of the fact that he wants a 24-hour cable channel for Vice -- the TCV deal will help Vice keep growing its digital content production.

"We had the meeting of the minds... and believed in what their vision was," Marshall said. "It came together quite quickly."

TCV has other investments in other major media companies -- Netflix, Facebook and Spotify to name a few -- and believes that Vice, like the others, can cover the full media spectrum.

Smith sounded appropriately ambitious in a press release about the new two investors: "We believe that these new partnerships position us at the forefront of the coming convergence of media and technology, while preserving and protecting our independence."

First Published: September 5, 2014: 4:52 PM ET


14.45 | 0 komentar | Read More

Eric Cantor goes to Wall Street

Written By limadu on Selasa, 02 September 2014 | 14.45

eric cantor

HONG KONG (CNNMoney)

Cantor's move into the private sector was widely anticipated following his June electoral defeat at the hands of an unknown economics professor -- one of the biggest political upsets in recent memory.

Cantor then chose to resign from his position in the leadership rather than finish his term. The 7-term congressman's decision set off speculation about his next gig -- be it at a bank, lobby shop or law firm.

Moelis (MC) said that Cantor will work out of New York and a new office opening in D.C.

Since the firm went public in April, shares have risen by almost 40%. Moelis advises on mergers, acquisitions and risk.

"When I considered options for the next chapter of my career, I knew I wanted to join a firm with a great entrepreneurial spirit that focused on its clients," Cantor said in a statement.

Related: How close are you to the top 1%?

As a lawyer and former member of the House Financial Services Committee, Cantor has always found significant support on Wall Street.

During his most recent congressional campaign, Cantor raised $785,000 from the investment industry -- more than any other sector, according to the Center for Responsive Politics. His top single donor was Blackstone Group (BX).

Cantor's move to Wall Street is likely to inflame critics of the so-called revolving door in Washington. They say politicians are too often trading public service duties for lucrative private sector jobs.

Tom Davis, a former Virginia congressman, recently told the New York Times Magazine that Cantor was in a prime position.

"I think it would be easy for him to become Eric Cantor Inc. and make a few million dollars a year," Davis said.

First Published: September 2, 2014: 2:41 AM ET


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Fast-food workers plan nationwide protest Thursday

nancy salgado Nancy Salgado, a cashier at a Chicago McDonald's, plans to strike this Thursday. Union organizers say workers are prepared to be arrested if need be.

NEW YORK (CNNMoney)

Union organizers say workers will walk off their jobs Thursday in 150 cities nationwide. Restaurants that they say will be affected include McDonald's (MCD), Burger King (BKW) , Wendy's and KFC, which is owned by Yum Brands (YUM).

The action would be the latest in a two-year effort to get employers to pay them a minimum wage of $15 an hour and allow them to form unions without retaliation.

Nancy Salgado, a 27 year old single mother of a 3 year old boy and an 8 year old girl, plans to strike.

Salgado works at a McDonald's in the Logan Square area of Chicago earning $8.25 an hour, or about $600 a month take home pay.

After splitting rent and utilities with 3 roommates, and paying for child care, she's left with a little over $100 a month for food and everything else.

"If I have a dollar at the end of the month it's a miracle," Salgado said.

Related: I work in fast food and I'm not a teenager

Currently, the median pay for fast-food workers is just over $9 an hour, or about $18,500 a year. That's roughly $4,500 lower than the Census Bureau's poverty threshold level of $23,000 for a family of four.

Thursday's action would come more than a month after the National Labor Relations Board's general counsel ruled that McDonald's is a joint employer that exerts substantial power over working conditions at its franchisees. The ruling, if upheld, means McDonald's could be held liable for labor violations at its more than 12,000 franchisee-owned restaurants.

McDonald's has contended that franchisees operate as independent businesses and that, therefore, it's not liable.

In March, McDonald's workers filed seven class-action lawsuits in New York, California and Michigan over wage theft violations. The suits allege that McDonald's has forced employees to work off the clock, not paid them overtime and struck hours off their time cards.

McDonald's did not respond to a request for comment on the status of the class action suits or the preliminary ruling by the National Labor Relations Board.

Related: "My boss doesn't rule my destiny"

Union organizers say the movement has elevated the debate about inequality in the U.S. and helped raise the minimum wage in some states, including Connecticut and New Jersey.

Public policy group Demos says CEO compensation in the industry since 2000 quadrupled to $24 million, while the average fast-food worker's wage only increased 0.3%. Fast-food CEOs make 1,000 times more than the average worker in the industry, according to Demos.

U.S. census data show that the face of the fast-food worker has changed dramatically over the years. Workers over the age of 20 now make up 70% of the workforce and nearly 40% have children. A third of them have spent some time in college.

Salgado, who didn't finish high school, said she'll do whatever she has to to win the fight for a $15 minimum wage and a union.

"My 8 year old daughter tells me 'Everything is OK mommy,' and I tell her, 'yes,'" said Salgado. "But when she goes to sleep I know it's not OK."

First Published: September 1, 2014: 9:30 PM ET


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The cult of Xiaomi seeks world domination

hugo barra Xiaomi founder Lei Jun and former Google exec Hugo Barra.

HONG KONG (CNNMoney)

While still several notches below Beatlemania, the Hong Kong fan fest hosted Saturday by the Chinese smartphone maker didn't feel like a typical tech event. One lucky fan got a free television. A few others won shiny new smartphones. The enthusiasm was palpable.

Barra, the former head of product management at Google's android unit, said that Xiaomi's fan events can feel "like a rock concert."

"The atmosphere is that of a Justin Bieber concert," Barra told CNN. "We cater these events to our loyal fans. These are the people who have been following our brand for a long time. They have all the devices. They read everything about us."

The events seem to be working. Xiaomi, founded just four years ago by Lei Jun, was crowned king of the Chinese smartphone market in the second quarter, with a 14% share. They sold more phones than any other company -- even Apple (AAPL, Tech30) and Samsung (SSNLF).

"That obviously happened much faster than we thought," Barra said. "We're building the best possible products we can. And we've managed to accelerate the rate with which we've been introducing new products into the Chinese market."

Related: Xiaomi is China's new smartphone king

The privately-owned company is known in China for its cheap phones and skillful marketing. The devices -- which some critics deride as Apple knockoffs -- typically cost around $130, little more than the parts and labor. Xiaomi makes money on all the extras.

"You can say that we're an Internet platform company before we're a smartphone vendor," Barra said. "The phones are actually the delivery vehicle for the software."

Xiaomi poached Barra from Google last year to help it become a global player. Indonesia, Mexico, Russia, Thailand and Turkey are all target markets. Barra is now living in Bangalore and preparing to launch the company in India. He is going to Brazil next.

Related: China's Xiaomi poaches top Google exec

If consumers in those markets are as receptive as audiences in China, Xiaomi might be hard to stop.

One fan at the Hong Kong event told CNN he had already bought three Xiaomi phones -- plus a few TV accessories.

"They're selling a dream," he said. "The products are cheaper. They sell at a price where you can't find phones. Not a good one at least."

Yet even as Xiaomi expands, the company faces accusations that it is copying Apple's products, marketing and style.

"What [critics] don't realize is that little-known Xiaomi has actually been the source of ideas that have been used around the world ... by others," Barra said, citing a design feature of the operating system that creates a blurry background.

While Xiaomi will eventually offer its phones in tier one markets, it's not a priority. Asked if Xiaomi even needed to sell in the U.S., Barra said no.

"Frankly, we don't." he said. "It's important for us to be there, but we're not in a rush."

-- CNN's Ravi Hiranand contributed reporting.

First Published: September 2, 2014: 2:53 AM ET


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Friday Links

Written By limadu on Minggu, 31 Agustus 2014 | 14.44

082914 - friday links

NEW YORK (CNNMoney)

A weekly collection of design, data and interactive links.

Design/Data viz
Forms of color | Vintage illustrations exploring color systems
Police Punishment: CCRB vs NYPD | Interactive analyzing NYPD complaint data
Futuristic UI | Video and stills from the short SIMIAN

Photo/video
Serendipity | Every second, a few people hit "play" on the same track at the same time
Zaha Hadid | Zaha Hadid's Wangjing Soho complex nears completion in Beijing
Instagram programming | A look at what goes on behind the scenes at Instagram

See last week's links

Have a nice weekend!
@dubly and @talyellin

First Published: August 29, 2014: 7:08 PM ET


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