Reelist: 500 Million Facebook Friends

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social_networkSony Pictures keeps on improving its marketing game online. With the upcoming “Facebook” film, The Social Network, directed by David Fincher, Sony’s domain choice in 500millionfriends.com is inspired branding.

Compared to all of the usual/uninspired studio domains, e.g., blankmovie.com, blankthemovie.com, blank-movie.com, blank-thefilm.com and the random .net absurdity, 500MillionFriends is welcome creativity/cleverness from a major studio.

The teaser below explores the hyperbolic yet real-life world of Facebook’s origins, with lines like: “Your best friend [Eduardo Severin] is suing you for $600 million dollars…” With a majority of Americans using Facebook (okay, 3-4 out of 5 Americans), how do the filmmakers take an everyday utility like Facebook, and market (then tell) a story that captures a blockbuster audience?

 

Digital Sky Technologies Aims $1B Digital War Chest at Asia, Australia and UK

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dst-logoYuri Milner, Digital Sky Technologies’ CEO, continues to raise successive funds around digital investments, following money into Facebook, Groupon, Zygna and the recent April acquisition of AOL’s ICQ. With a new $1B war chest - or warhead - as its next stage of funding, DST will likely be adding $10-$100M+ to digital companies that do not have the same media cache as digital brands in the States.

Strong in the social space already, expect DST to pursue digital companies who are already profitable, partner well with the Facebook mothership, and scale very well.  

Vicious Capital: 15 Snap-On, Start-Up Acquisitions by Big Tech Firms Last Week

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mergeracqThe thrust of new acquisitions has been increasing interest in what many believe is a next wave of tech acquisitions - primarily around cloud computing and mobile, some might argue - yet as this trends, it promotes another wave of utility offerings.

With FourSquare walking away from Yahoo (or the converse), Zynga walking away from Facebook and other start-ups looking at sales instead of IPOs, it appears a good time to look at the big tech players and see where there is complementary utility or opportunity.

I.e., if Cisco can go after ad-based social networks (Eos) and flash video devices (Flip cams) and HP can go after mobile handsets (Palm), what does this portend for other big tech players looking to diversify their tech offerings?

Per GigaOmTechnology companies over the last few years cut costs to the point that they now have cash surpluses — which they haven’t been shy about spending to acquire venture-backed startups. The Wall Street Journal has picked up on this trend with a story this morning that cites data from Venture Source showing that 15 startups were acquired in the last week alone, and another 14 have gone public in the last year.

If the era of select IPOs - with musings on Facebook, Demand Media, Groupon or Zynga - creates volition for a round of quick M&A sales, all the better for the industry. As we’ll report, venture capitalists (like big tech co’s) are feeling the heat of not making investments in new companies over the past two years.

Now that LPs are putting pressure on VCs to show some ROI, it will be interesting to watch the force of M&A that feeds the “vicious capital” cycle.

Venture Capitalists and their LPs will push for a lot of M&A sales which will ultimately feed the bigger tech companies need for snap/strap-on investments and company growth. Consolidation, M&A and diversification will service all parties.  

The Ten Spot: Apr 26, 2010

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blippy2Back to the basics of the the Ten Spot - quick, relevant New Medici reads with an exact dose of interpretation.

1. For Web’s New Wave, Sharing Details Is the Point - NYT DealBook

The transparency brought about by Google search and Facebook community/beacon/(end of) privacy has created a slew of startups who cater to ripping open the social graph and letting everyone peek in, follow and link to your daily activities and habits.

From the likes of DailyBooth.com, Blippy.com and Groupon.com, the concept of “socially challenging” others to share interests in online creation and consumption is trending. The next logical step will be a return to a new and improved Facebook Beacon that extends the group mentality while providing multi-level marketing incentives to the individuals who create interest in new items, i.e., transactions (think ThisNext.com meets Groupon). This allows group rewards and either revshare or ranking points for the individual curators or arbiters of taste.

Blippy, which opened last fall, was the first site to introduce the notion of publishing credit card and other purchases. Last month it attracted around 125,000 visitors and closed an investment round of $11 million from venture capitalists. It hopes to one day to make money by, among other things, taking a commission when people are inspired to imitate their friends’ purchases posted on the site.

To Silicon Valley’s deep thinkers, this is all part of one big trend: People are becoming more relaxed about privacy, having come to recognize that publicizing little pieces of information about themselves can result in serendipitous conversations — and little jolts of ego gratification.

2. Mac & the iPad

Steve Jobs defies the odds (recovering Apple), the gods (surviving cancer) and yet his consumer design “sculpting” and management fearlessness are really the two definitions he will be known by. In this above must-read link, an insider opens up about the mindset and fearset of the leading Designer CEO out there.

From secrecy to ordering the best-of-the-brainstorms (in terms of his managed teams), Jobs is building a line of devices that separate the chaos, the noise and the hacks of more open systems to bring its users a little hardware clarity (and style)…  

Venture Capital Goes Super-Size to Outsize Competition

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supersizeIs super-sizing your funds a way to create venture runway to steer past or through the downturn and stay competitive in the global market? Many startups - like Mahalo, Ning and LinkedIn - pride themselves on raising enough funding to survive the nuclear winter of late 2008 and basically all of 2009. Facebook decided to add runway and incent its employees through a follow-on $100 million passive investment from DST, Russia’s Digital Sky Technologies group, who also put $180 million into Zynga in December.

Last Tuesday, Intel Capital and 24 VC firms set to put $3.5 billion over two years into US startups to bump up America’s competitive edge. Intel Capital is earmarking $200 million individually.

Via the NYT: in a program called the Invest in America Alliance, Cisco, Intel, Google and Microsoft, among other big tech employers, are hiring 10,500 US college tech grads to regain international ground lost. Per Intel’s Paul Otellini:

Unfortunately, long-term investments in education, research, digital technology and human capital have been steadily declining in the U.S. So, too, has the commitment to policies that made us such an entrepreneurial powerhouse for more than a century.

As many VCs raise more to create investment mines in nascent countries such as India and China, the market seems to be correcting in trending tides: first startups who squirreled away cash, Angel capital/investment groups who are finding High Wealth Individuals (HWIs) looking for early discounts, tech companies seeing their international talent and US competitive edges decreasing, and now VCs who see value in creating big funds.  

The Ten Spot: Oct 29, 2009

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revmostprofitablefilmsvia ‘Paranormal’ Now the Most Profitable Film Ever | The Wrap

“Blair Witch’s” $248.6 million worldwide haul a decade ago – juxtaposed against its $60,000 production costs – represented an almost unthinkable 414,233 percent return on investment. Doing the same basic ROI math on “Paranormal” (65.1 million minus 15,000 divided by 15,000 times 100) yields an equally unfathomable result of 433,900 percent.

via Jackson has earned $72 mil since death| THR

Even before the “This Is It” opening, Michael Jackson had earned $90 million in the past year, with most of it coming since his death five months ago. That sizable sum put him third on the Forbes list of dead celebrities making the most money.

via CBS Digital Exec Quincy Smith Eyes New Role in Investment Banking | AllThingsD

[Posted May 11, 2009] Quincy Smith, who guided CBS through a series of big transactions during the Web 2.0 era, is planning his next deal: a move to start his own boutique investment bank or consultancy. Smith is still running the CBS Interactive unit, a job he took in November 2006. But he has been telling associates recently that he plans to start his own company, possibly as soon as this summer.  

Banking the Unbankable, Coinstar Empowers Young Gamers

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proda1-04Truth be told I’ve known about this initiative by Coinstar for a little while now, mainly through following one of the companies (Rixty) listed in the release, so I was thrilled to see this news hit the wires yesterday because it’s a great example of a traditional brick-and-mortar based business finding creative ways to get in the new media world game. The basic premise is that Coinstar is allowing consumers (read: pre-teen and teen gamers with no access to credit cards as a way of paying for their digital entertainment addiction - I mean, hobby) to turn in their coins in exchange for pre-paid spending cards for onling games, virtual worlds and social networks.

 

Social Farming, think Gold Farming with Social Identities

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twitlinkedinbookThe business of Gold Farming - where paid gamers amass gold to sell to less-experienced users to game the MMOGs (Massively Multiplayer Online Games like WOW (”World of Warcraft”) is a well known practice. In a parallel world of connections, perhaps equivalent to “gold” in terms of business leads or viral marketing armies to launch brands, one could imagine a new kind of innovative farming for profit around social media relationships. Think “Twitter sweatshops,” “Facebook factories,” “Diggsourcing” and “LinkedIn (Assembly) Lines.” After the jump, a metaphorical goldmine…

 

MySpace Facelift, New CEO Owen Van Natta

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myspace_facebookMySpace’s “loss of face” to Facebook, a rough and tumble economy and a pivotal change of company seats, i.e., Peter Chernin, at News Corp (and MySpace’s own COO and senior technical team’s exodus) has contributed to a major executive facelift of MySpace. While their track record of change with Jeff Berman as President of Sales and Marketing and pitch towards being framed as a “social portal” has helped, the inability to keep up with Facebook’s growth rate and product innovation has forced change at MySpace. With the forthcoming announcement (today) by new CDO Jon Miller of former Facebook COO, Owen Van Natta, to the CEO spot, Fox and Murdoch are betting on social competitiveness to regain position. After the jump, we’ll look at Van Natta, and outside choice, Jason Calacanis’ recommendations.  

TwitLit, Twitter’s First Multi-Book Deal for Gary Vaynerchuk

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lwineguy_07091Call it “Micro Diaries of a Mad Twitterer,” but early 30s Gary Vaynerchuk has amassed a meta-canon of video blogs (aka vlogs) and Twitter-Facebook updates. Specifically, these are not normal ‘human’ numbers of vlogs or Twitter updates - GaryVee (GV), as he goes by, has 208,000+ Twitter followers and upwards of 20,000 once-counted Facebook fans. He’s creating a legacy of video bloggers - Samantha Ettus at Obsessedtv.com - to build on his “personal branding” meets “social business” platform. And the recent non-digital coup: a book deal with HarperStudio - 10 social branding books for a 7-figure deal. A breakdown of the deal, the frequency dilemma for GV, and his growing personal brand network - after the jump…  

The Launch of Twitterbook

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Much of the social media news in the past couple of weeks has focused on Facebook’s release of a number of new features. Some of the features have been welcomed, while one in particular has garnered most of the attention and criticism.

 

Twitter Vanity and Twitter Squatters

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whale1How much is your Twitter account name worth (not your Twitter following or value of Twits) to you? As an individual, a personality/ celeb or a real brand? I recently took a drive through the oh-so-simple registration, and there’s still a lot of top level twits (TLTs?) available. Remember all of those domain names you couldn’t buy because domain squatters were holding them ransom? Well, my prediction is that the great land grab - this time around a kind of Twitfest Destiny - is back. The year of the Twitter squatters (”Twatters”) is upon us.  

What’s the “Thread Count” of Your Friend Count?

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I had coffee with a longtime investor colleague who threw a nice metaphor in my direction: “thread count” as it related to the depth of your friendships. As we all initiate, accept or add new digital relationships into our lives (yes, I did get ’social’ with LinkedIn back in its early years with 1,500 linkedins; more recently with ~650 Facebook friends), how do we measure the relative quality of the quantity of friends we connect to? Do we connect to add relative quality value to our own persona, or is it done merely to create a personal, i.e., quantitative, fan club of sorts?  

Social Media vs. Privacy on the Web

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I’ll admit it. I’m a social media junkie. And it’s not difficult to satisfy my addiction, considering the large number of social media sites that are quickly popping up as of late. But it has also got me thinking – considering the popularity of social media sites these days, should we be more concerned about our privacy? 5 years ago, it was only the early adopters who were on sites like MySpace and Friendster and most people were weary of sharing too much on the internet. These days Facebook has well over 100 million registered users, and over 222 million visitors per month. After the jump, a list of some of latest and greatest social media sites, along with ways you can ensure that the whole world knows everything about you…  

Has MySpace become “MySpaced”?

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On reading Techcrunch’s advance review of a WSJ reporter’s new tell-all book on MySpace, I updated my Facebook status with bewilderment that MySpace passed on buying Facebook for $75M in 2004. And I made a Freudian typo…  

Social Networks as Tech Challenge

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CES 2009 Panel: Social Networks & User Generated Media as a Technology Challenge: The Platform, the Content & the Network. Amid 150″ HD television announcements, this past Saturday I paneled a CES/Digital Hollywood discussion on the start-up requirements of social networks - what the technology challenges were, new ways to acquire users and monetize during recession.