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MultiChoice Bets $281 Million On Betting King BetKing To Upgrade To 49% Stake

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MultiChoice has gone betting and it likes what it sees. The media giant is increasing its stake from 20% to 49% in BetKing in a US$281 million deal: “MultiChoice will make a formal offer of around R4 billion (USD281.5m) to increase its stake in Blue Lake Ventures Limited (BetKing) from 20% to 49%, the company has announced.” This is strategic because there are many products within MultiChoice which will capture value via sports betting. 

The board approved the formal offer to acquire more of the sports betting company on 10 June 2021.

It said that the offer is subject to the substantive conditions being met and the transaction becoming effective.

The equity investment will also result in payment of the contingent consideration of USD31m (ZAR0.5bn) relating to the acquisition of the first 20% in BetKing.

This comes after MultiChoice announced in November last year that it had acquired a 20% stake in BetKing for approximately R1.8 billion.

“Sports betting is an interesting market that is aligned to our Pay-TV business,” MultiChoice Group CEO Calvo Mawela said at the time.

“We have a lot of sport on our platform, and many people that are betting watch more games.”

BetKing started in Nigeria and Mawela said that it has shown rapid growth over the past two and a half years.

“They plan to be pan-African and will be entering South Africa at some stage too,” Mawela said.

This will reverse the lost value where MultiChoice was creating value for betting websites. Now, it wants to keep the value in-house through BetKing. Indeed, MultiChoice/DStv was not capturing any of those massive betting revenues. During the last edition of BBNaija, many betting sites built products around BBNaija, and many of them made tons of money.

For DStv, buying a part of BetKing is to keep that value in house by now using the betting platform as its official partner. Possibly, through that, it would capture value. This is a good example of a Double Play Strategy: MultiChoice is going to capture tons of monetary value through BetKing with the show serving as the One Oasis.

Bitcoin’s Biggest Risk Is Now Ransomware

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Sudan’s  former ruler, Omar al-Bashir, won many fights for three decades. He mastered the politics of UN. He overcame America and South Sudan. He triumphed over IMF and World Bank. He fought rebels, friends and enemies – and won. But at the end, he fell because of BREAD. Yes, bread – so simple and harmless- brought down one of the last surviving yoyo men of Africa.

As you think of that, I bring what will destroy Bitcoin despite any optimistic exuberance pushed by its adherents. Simply, the cryptocurrency is developing a reputation as the currency for criminals to receive illegal payments for ransomware. So, if you extrapolate, even if Bitcoin itself is not directly affected by hacking and ransomware, the fact that many criminals have chosen it will likely push many countries to go hard on it.

The latest is that “meat supplier JBS USA Holdings has said it paid out an $11 million ransom in Bitcoin to cybercriminals.” Just a few weeks ago, Colonial Pipeline paid out millions of dollars  via Bitcoin to criminals – and thank goodness, the FBI was able to recover some of that back. Yes, “seizure of more than half of the company’s payment cuts against crypto’s reputation as an untraceable financial medium for hackers.”

So, if the world leaders see Bitcoin as the choice for criminals, expect them to open a new playbook on this currency. And that playbook may not be palatable for hodlers.

Shine your eyes.

Meat supplier JBS USA Holdings has said it paid out an $11 million ransom in Bitcoin to cybercriminals. The company’s chief executive told The Wall Street Journal that the recent ransomware attack temporarily knocked out plants which handle about one-fifth of the meat supply for the U.S. Based in Brazil, JBS Holdings is the world’s largest meat supplier by sales. Ransomware attacks have spiked; last month, Colonial Pipeline paid a total of $4.4 million in Bitcoin to resume its pipeline — of which the Justice Department managed to retrieve roughly $2.3 million of the ransom paid to the Russian hackers.

  • The FBI recovered roughly half of the ransom paid by the Colonial Pipeline by tracking a “publicly visible bitcoin ledger,” reports The Wall Street Journal, then pouncing when hackers performed a transfer to a virtual address the bureau had access to.

Blue Origin Space Trip Boosted with $28m Seat Auction

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All is getting set for Blue Origin’s space trip that will have the world richest man, Jeff Bezos as passenger. An auction for the ride next month alongside Bezos and his brother ended with a winning $28 million bid Saturday. ABC has the report.

The Amazon founder’s rocket company, Blue Origin, did not disclose the winner’s name following the live online auction. The identity will be revealed in a couple weeks — closer to the brief up-and-down flight from West Texas on July 20, the 52nd anniversary of Neil Armstrong and Buzz Aldrin’s moon landing.

It will be the first launch of Blue Origin’s New Shepard rocket with people on board, kicking off the company’s space tourism business. Fifteen previous test flights of the reusable rocket and capsule since 2015 — short hops lasting about 10 minutes — were all successful.

Saturday’s auction followed more than a month of online bidding that reached $4.8 million by Friday. More than 7,500 people from 159 countries registered to bid, according to Blue Origin. More than 20 bidders — the high rollers — took part in Saturday’s auction.

Bezos announced Monday that he and his younger brother, Mark, would be on board New Shepard’s first crew flight; the news quickly boosted bidding. The winning amount is being donated to Blue Origin’s Club for the Future, an educational effort to promote science and tech among young people.

The completely automated capsule can carry up to six passengers, each with their own big window. Blue Origin’s top sales director, Ariane Cornell, said following the auction that the fourth and final seat on the debut crew flight will be announced soon.

While Blue Origin has yet to open ticket sales to the public or divulge prices, the success of this trip will mean wider opportunity for the public, wishing to have a taste of space travel.

Since the past 10 years, the goal of developing commercial space aircrafts has gained momentum, with many billionaires putting in resources to make it happen. Richard Branson, the founder of Virgin Atlantic is also planning on conducting flights to suborbital space for ultra-wealthy thrill seekers, putting up competition with Blue Origin and SpaceX. Like Bezos, the British billionaire said he would be among the first to ride on Virgin Galactic’s rocket-powered plane which is expected to fly later this year.

Blue Origin is a six-seater capsule and 59-foot rocket, it’s crew will tear the rocket toward the edge of space on a 11-minute flight that’ll reach more than 60 miles above Earth.

Understand Marginal Cost for Your Online Business

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Marginal cost

In a perfect internet market, the marginal cost of a digital product is zero. But no market is perfect, so, what we have in reality is that the marginal cost tends towards near-zero. What that means is that the transaction and distribution costs stay low even as output increases. Whenever you attain that positioning, your unit economics improves since you are essentially having accelerating returns which keep compounding.

In theory, you can just keep growing, unlimited by the typical industrial age marginal cost which begins to go low, but quickly ramps up with output (recall your average fixed cost shape in secondary school economics) thereby restricting growth.

If you do not understand how marginal cost affects your business, you cannot drive growth in that business. Make time and study marginal costs. It is the most important cost you must understand if you want to develop a growth playbook.

Yes, before you launch that online business, I want you to understand Marginal Cost. Watch the videos.

 

https://youtu.be/P75hzh3e190

The Mastery of Marginal Cost is the Mastery of Digital Business Growth

 

Why I Support The Twitter Ban – Hilary Unachukwu

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On the Friday 4th, 2021, the Federal government with the auspices of the Federal Ministry of Information and Culture put out a memo that directed telecom companies and ISPs to block access to the website and mobile app, Twitter. This caused a huge furor not just nationally but also internationally. The ambassadors of US, UK, and Canada were called up and the whole nation was stirred up by the move. The move was in response to the tweet of the President Buhari being taken down because of its incitive tone and message. While, I think the tweet was repugnant and abhorrent. I fully support the ban of Twitter’s operation in Nigeria.

This is an example of where corporate entities especially big tech companies insert themselves in the affairs and the governance of a sovereign nation. It is a very serious situation when a private company interferes with the communication of a nation state. This is something that would not be a very good decision and would probably affect the operations of social media giants in future.

Nigeria is not the first country to ban or limit Twitter. Several countries such as Tanzania in Africa have done the same thing. My main problem is that Twitter should not be interfering with the communication of the Head of State in Nigeria. The President is the head of security of Nigeria and is the Commander-in-Chief of the Armed Forces. So, Twitter controlling and censoring his speech is not something that should be accepted by any government. I can fully condemn and repudiate the tweet made by President Buhari. But a foreign company meddling directly in the affairs of our country should give one pause. This brazen move by the corporation that does not pay taxes to Nigeria is something I think is an overreach. The actions of this American company should not be taken lightly at all.

The main pretext is that Twitter has its T&Cs so anyone that violates it would see judgement as Twitter deems fit is laughable. There are innumerable instances of how Twitter uses double standards when it comes to communications and messages sent out by people. It’s safe to say that Twitter leans heavily left and aligns with the politically liberal. So, when there are riots, Twitter would support and promote them as “peaceful protests.” However, there is some about-face on Twitter’s part as when there are some demonstrations in Nigeria, Twitter tends to suppress the chatter and make sure the trends are not dominating the website. To be clear, Twitter tries to be politically expedient to certain factions in society at large. However, to state that they are standing by their T & Cs is a very lame defense of their actions towards the Nigerian Government.

I really think businesses should not be in control of public discourse. The business model of Twitter and other social media platforms involves aggregation. Aggregation is where they can get many users on a platform. The number gives the platform standing and the network effect increases the value of the platform exponentially. To protect such platforms and their aggregation of comments and interactions, there is legislation called Section 230 that identifies and protects these platforms from litigation since they are not publishers. They do not take responsibility on what is published on their platform. However, big tech platforms for years have expanded their hold on public discourse by suppressing and censoring people and information. This goes beyond even the business practices allowed in America.

Many people bring up that the President of America, Donald J. Trump was banned not only from Twitter but also other social media platforms. This brings me back to the other points of Twitter’s political bias and its adherence to its own T & Cs. Even during the Senate trial, the exact reading of Trump’s statement shown proved no incitement of violence or any ominous threat. But since there is a concerted effort to censor not only Trump but millions of his supporters, this was made to go through. Trump probably handled the social media giants very badly from the start. Refusing to assess the expanding power and desire to censor Americans and control the messaging of American discourse but that was a grave mistake that hurts not only him for the entire America “Overton window.” Now not only is information suppressed, but also people really are believing in propaganda since the sources of media are controlled are biased towards a certain ideology.

A very curious example of Twitter’s bias. Is Nick Sandmann of Covington Catholic High School. His class went on a field trip and they wore “MAGA” caps. There was a situation where a man walked up to them and started drumming in their faces. It was interpreted all over Twitter as the 15-year-old, at the time, being racist and disrespectful to an elderly Native American veteran. All over Twitter was hateful comments and threat towards the Nick Sandmann, the students, the school, and his family. Nick Sandmann and his family sued the offenders and the media that published the false stories in court. The courts easily found evidence, just like any resourceful person could, about the incident. The media houses such as CNN has to settle in court. But, many of the people that made threatening comments including then death threats still had their tweets on the site and no sanctions were made against them. Twitter did nothing despite its own T & Cs.

I think that there is an opportunity for the government to not only bring the social media giant in line but it can also start reviewing how it contributed to the country in the way of taxes and other means. Since, they may not be interested in building facilities in Nigeria, maybe them paying taxes would be something that would add to our economy. Many businesses used Twitter for their advertisements and Nigeria is still has a large population what would make a huge difference in any business environment. I think the Federal Government should have stiff sanctions with the social media giant but still leave roam for indulgences.