welcome to hit module number 18 special platt edition that we don’t really
platt edition that we don’t really
platt edition that we don’t really coordinate what we’re going to wear that
coordinate what we’re going to wear that
coordinate what we’re going to wear that day but that’s fine alright so lots talk
day but that’s fine alright so lots talk
day but that’s fine alright so lots talk about CT all right you want to dive in I
about CT all right you want to dive in I
about CT all right you want to dive in I have a question for you ash um greed is
have a question for you ash um greed is
have a question for you ash um greed is greed good you know I’m really like a
greed good you know I’m really like a
greed good you know I’m really like a softy because my answer to everything is
softy because my answer to everything is
softy because my answer to everything is it depends and I think if ever we both
it depends and I think if ever we both
it depends and I think if ever we both do that yeah but but I think if ever
do that yeah but but I think if ever
do that yeah but but I think if ever there’s an answer that is it depends
there’s an answer that is it depends
there’s an answer that is it depends it’s for this one because yes greed is
it’s for this one because yes greed is
it’s for this one because yes greed is good sometimes I think if you have you
good sometimes I think if you have you
good sometimes I think if you have you know profit as some kind of yardstick to
know profit as some kind of yardstick to
know profit as some kind of yardstick to see whether or not the business you’re
see whether or not the business you’re
see whether or not the business you’re running or the project you’re running
running or the project you’re running
running or the project you’re running should be a project should be you know a
should be a project should be you know a
should be a project should be you know a going concern I think in that sense it’s
going concern I think in that sense it’s
going concern I think in that sense it’s a very fair way to measure success I
a very fair way to measure success I
a very fair way to measure success I think the problem is when you put profit
think the problem is when you put profit
think the problem is when you put profit a not the profit when you put profit in
a not the profit when you put profit in
a not the profit when you put profit in ahead of people ahead of quality ahead
ahead of people ahead of quality ahead
ahead of people ahead of quality ahead of service you know Alec Baldwin goes
of service you know Alec Baldwin goes
of service you know Alec Baldwin goes crazy right or wrong he does make I
crazy right or wrong he does make I
crazy right or wrong he does make I can’t believe I’m going to say this but
can’t believe I’m going to say this but
can’t believe I’m going to say this but then he goes on Huffington Post to
then he goes on Huffington Post to
then he goes on Huffington Post to complain about the service she got
complain about the service she got
complain about the service she got basically getting kicked out of American
basically getting kicked out of American
basically getting kicked out of American Airlines for you know being on his phone
Airlines for you know being on his phone
Airlines for you know being on his phone after the gate was closed he’s wrong
after the gate was closed he’s wrong
after the gate was closed he’s wrong about that he should have been off but
about that he should have been off but
about that he should have been off but he did make a point he’s like look at
he did make a point he’s like look at
he did make a point he’s like look at the difference between American it not
the difference between American it not
the difference between American it not literally American Airlines the company
literally American Airlines the company
literally American Airlines the company but us-based carriers and airlines and
but us-based carriers and airlines and
but us-based carriers and airlines and European airlines he’s like why is it
European airlines he’s like why is it
European airlines he’s like why is it that in the u.s. it’s like we use 911 as
that in the u.s. it’s like we use 911 as
that in the u.s. it’s like we use 911 as an excuse to basically just cut out
an excuse to basically just cut out
an excuse to basically just cut out every level of service and basically
every level of service and basically
every level of service and basically make the service so crappy that you feel
make the service so crappy that you feel
make the service so crappy that you feel you’re an animal but over in Europe and
you’re an animal but over in Europe and
you’re an animal but over in Europe and in Asia the carriers in the same
in Asia the carriers in the same
in Asia the carriers in the same business still give you a certain level
business still give you a certain level
business still give you a certain level of service I think that’s just because
of service I think that’s just because
of service I think that’s just because in north america and the u.s. in
in north america and the u.s. in
in north america and the u.s. in particular profit is so paramount that
particular profit is so paramount that
particular profit is so paramount that yeah it basically just destroys any
yeah it basically just destroys any
yeah it basically just destroys any sense of reality and you get shoddy
sense of reality and you get shoddy
sense of reality and you get shoddy products you get crappy service and
products you get crappy service and
products you get crappy service and consumers then we become conditioned
consumers then we become conditioned
consumers then we become conditioned like have login dogs that we take that
like have login dogs that we take that
like have login dogs that we take that as yeah it’s normal that you know we get
as yeah it’s normal that you know we get
as yeah it’s normal that you know we get no service and things that but but let’s
no service and things that but but let’s
no service and things that but but let’s good morning to you all let’s try to
good morning to you all let’s try to
good morning to you all let’s try to take this back to the whole world of
take this back to the whole world of
take this back to the whole world of tech i guess i should have qualified the
tech i guess i should have qualified the
tech i guess i should have qualified the question we’re talking specifically of
question we’re talking specifically of
question we’re talking specifically of like do you think
like do you think
like do you think greed is rewarded in the tech industry
greed is rewarded in the tech industry
greed is rewarded in the tech industry specifically in relation to IPOs and
specifically in relation to IPOs and
specifically in relation to IPOs and that kind of thing yeah I mean okay so
that kind of thing yeah I mean okay so
that kind of thing yeah I mean okay so you look at IPOs and the stock starts
you look at IPOs and the stock starts
you look at IPOs and the stock starts off in one place and it just goes down
off in one place and it just goes down
off in one place and it just goes down after that okay what I peels are
after that okay what I peels are
after that okay what I peels are separate from the question of does
separate from the question of does
separate from the question of does technology and investors on the market
technology and investors on the market
technology and investors on the market reward greed and more bad behavior I
reward greed and more bad behavior I
reward greed and more bad behavior I think the IPO the answer to both is yes
think the IPO the answer to both is yes
think the IPO the answer to both is yes but the IPOs are a bit different because
but the IPOs are a bit different because
but the IPOs are a bit different because is who is manifesting that greed let’s
is who is manifesting that greed let’s
is who is manifesting that greed let’s start off the article that I wrote on
start off the article that I wrote on
start off the article that I wrote on TechCrunch struck a nerve because the
TechCrunch struck a nerve because the
TechCrunch struck a nerve because the comments were like oh my god so what
comments were like oh my god so what
comments were like oh my god so what happened was during the week you know I
happened was during the week you know I
happened was during the week you know I mean basically a few come you know other
mean basically a few come you know other
mean basically a few come you know other CEOs that I talked to we always joke
CEOs that I talked to we always joke
CEOs that I talked to we always joke that I’m basically writing the same
that I’m basically writing the same
that I’m basically writing the same article just spitting it differently
article just spitting it differently
article just spitting it differently content is king but without distribution
content is king but without distribution
content is king but without distribution it’s not really all that work wow you
it’s not really all that work wow you
it’s not really all that work wow you know that’s usually the theme overriding
know that’s usually the theme overriding
know that’s usually the theme overriding of my article so I start covering other
of my article so I start covering other
of my article so I start covering other angles and in this article basically I
angles and in this article basically I
angles and in this article basically I saw facebook have its latest privacy
saw facebook have its latest privacy
saw facebook have its latest privacy issue I see Google having its latest
issue I see Google having its latest
issue I see Google having its latest issue we see you know Yelp doing
issue we see you know Yelp doing
issue we see you know Yelp doing whatever to piss people off we see other
whatever to piss people off we see other
whatever to piss people off we see other companies you know basically upsetting
companies you know basically upsetting
companies you know basically upsetting people pushing the envelope to maximize
people pushing the envelope to maximize
people pushing the envelope to maximize value to maximize profits so I just
value to maximize profits so I just
value to maximize profits so I just basically said you know it’s really
basically said you know it’s really
basically said you know it’s really funny that we’re basically coming on
funny that we’re basically coming on
funny that we’re basically coming on that not that we’re coming on we’re now
that not that we’re coming on we’re now
that not that we’re coming on we’re now we just celebrated the 20 year
we just celebrated the 20 year
we just celebrated the 20 year anniversary of the inventor of the world
anniversary of the inventor of the world
anniversary of the inventor of the world wide web Tim berners-lee not patenting
wide web Tim berners-lee not patenting
wide web Tim berners-lee not patenting his invention if he would have just made
his invention if he would have just made
his invention if he would have just made that decision on that morning you know
that decision on that morning you know
that decision on that morning you know what I’m going to patent this baby he
what I’m going to patent this baby he
what I’m going to patent this baby he would have owned the web maybe the web
would have owned the web maybe the web
would have owned the web maybe the web would have been very different maybe the
would have been very different maybe the
would have been very different maybe the web would have sucked and we would have
web would have sucked and we would have
web would have sucked and we would have had something totally different but the
had something totally different but the
had something totally different but the bottom line is the web started off
bottom line is the web started off
bottom line is the web started off because one guy decided to look at the
because one guy decided to look at the
because one guy decided to look at the bigger picture and not put greed ahead
bigger picture and not put greed ahead
bigger picture and not put greed ahead of you know the greater good as utopian
of you know the greater good as utopian
of you know the greater good as utopian and naive as that might sound it led to
and naive as that might sound it led to
and naive as that might sound it led to a lot of good things and it worked and
a lot of good things and it worked and
a lot of good things and it worked and it worked but then 20 years later and
it worked but then 20 years later and
it worked but then 20 years later and not even 20 years later ten years later
not even 20 years later ten years later
not even 20 years later ten years later you saw the first wave after the initial
you saw the first wave after the initial
you saw the first wave after the initial yahoo and ebay you really saw that the
yahoo and ebay you really saw that the
yahoo and ebay you really saw that the markets investors and public markets
markets investors and public markets
markets investors and public markets were really rewarding bad behavior and I
were really rewarding bad behavior and I
were really rewarding bad behavior and I start off by saying after the Nasdaq
start off by saying after the Nasdaq
start off by saying after the Nasdaq crash you saw these companies like Gator
crash you saw these companies like Gator
crash you saw these companies like Gator gain queria or when you which allegedly
gain queria or when you which allegedly
gain queria or when you which allegedly basically hijacked your computer ran ads
basically hijacked your computer ran ads
basically hijacked your computer ran ads r and pop-ups up the wazoo it was
r and pop-ups up the wazoo it was
r and pop-ups up the wazoo it was annoying as hell you know yet does this
annoying as hell you know yet does this
annoying as hell you know yet does this adware spyware kind of phenomenon and I
adware spyware kind of phenomenon and I
adware spyware kind of phenomenon and I said shockingly these companies were not
said shockingly these companies were not
said shockingly these companies were not the pariah they were actually rewarded
the pariah they were actually rewarded
the pariah they were actually rewarded through venture capital funding and all
through venture capital funding and all
through venture capital funding and all that and then I said even though those
that and then I said even though those
that and then I said even though those companies were doing bad things in a
companies were doing bad things in a
companies were doing bad things in a certain way if you fast-forward five ten
certain way if you fast-forward five ten
certain way if you fast-forward five ten years I’m not saying Microsoft I’m not
years I’m not saying Microsoft I’m not
years I’m not saying Microsoft I’m not saying Google doesn’t do any good
saying Google doesn’t do any good
saying Google doesn’t do any good Google’s done a lot of good and you know
Google’s done a lot of good and you know
Google’s done a lot of good and you know but Google is basically targeting you
but Google is basically targeting you
but Google is basically targeting you based on your behavior in your analysis
based on your behavior in your analysis
based on your behavior in your analysis whereas the wave found a way to do it
whereas the wave found a way to do it
whereas the wave found a way to do it without hijacking your computer exactly
without hijacking your computer exactly
without hijacking your computer exactly you know so I’m just saying obviously
you know so I’m just saying obviously
you know so I’m just saying obviously Google would not saying Google’s about
Google would not saying Google’s about
Google would not saying Google’s about company and I am saying Facebook’s a bad
company and I am saying Facebook’s a bad
company and I am saying Facebook’s a bad company these really are great companies
company these really are great companies
company these really are great companies that are doing great things but I’m like
that are doing great things but I’m like
that are doing great things but I’m like if you take a look at the macro level
if you take a look at the macro level
if you take a look at the macro level investors public markets are rewarding
investors public markets are rewarding
investors public markets are rewarding bad behavior they are rewarding greet
bad behavior they are rewarding greet
bad behavior they are rewarding greet and I’m just saying I’m drawing a
and I’m just saying I’m drawing a
and I’m just saying I’m drawing a parallel I’m not saying business is bad
parallel I’m not saying business is bad
parallel I’m not saying business is bad i’m a freaking entrepreneur I mean I’m a
i’m a freaking entrepreneur I mean I’m a
i’m a freaking entrepreneur I mean I’m a business person first and foremost and
business person first and foremost and
business person first and foremost and like if you look at all the things i do
like if you look at all the things i do
like if you look at all the things i do i’m not some kind of artsy fartsy
i’m not some kind of artsy fartsy
i’m not some kind of artsy fartsy academic who’s like oh my god you know
academic who’s like oh my god you know
academic who’s like oh my god you know agreed is bad but I’m just saying it’s
agreed is bad but I’m just saying it’s
agreed is bad but I’m just saying it’s very ironic that how much things have
very ironic that how much things have
very ironic that how much things have changed and then I was like we got a
changed and then I was like we got a
changed and then I was like we got a question regarding IPO so I said which
question regarding IPO so I said which
question regarding IPO so I said which we’ll cover in the email of the week but
we’ll cover in the email of the week but
we’ll cover in the email of the week but then I said well what’s happened with
then I said well what’s happened with
then I said well what’s happened with the IPOs this year and if you take a
the IPOs this year and if you take a
the IPOs this year and if you take a look LinkedIn’s traded at 84 when it
look LinkedIn’s traded at 84 when it
look LinkedIn’s traded at 84 when it filed when it went public it’s now at 74
filed when it went public it’s now at 74
filed when it went public it’s now at 74 demand media started 22 it’s now at
demand media started 22 it’s now at
demand media started 22 it’s now at seven groupon was a 26 it’s not a 21
seven groupon was a 26 it’s not a 21
seven groupon was a 26 it’s not a 21 Pandora was at 17 it’s now at eleven and
Pandora was at 17 it’s now at eleven and
Pandora was at 17 it’s now at eleven and zinc is going to go public December 16th
zinc is going to go public December 16th
zinc is going to go public December 16th so if you take a look at the four big I
so if you take a look at the four big I
so if you take a look at the four big I peels this year they all started hi
peels this year they all started hi
peels this year they all started hi there now trading low what does that say
there now trading low what does that say
there now trading low what does that say well it shows that there’s greed still
well it shows that there’s greed still
well it shows that there’s greed still in the market how much of that though it
in the market how much of that though it
in the market how much of that though it isn’t impossible that especially in the
isn’t impossible that especially in the
isn’t impossible that especially in the world of the web where technology is new
world of the web where technology is new
world of the web where technology is new and blah blah blah maybe people don’t
and blah blah blah maybe people don’t
and blah blah blah maybe people don’t actually know how to evaluate a certain
actually know how to evaluate a certain
actually know how to evaluate a certain company or product because it’s doing
company or product because it’s doing
company or product because it’s doing something that hasn’t really been done
something that hasn’t really been done
something that hasn’t really been done before like in the case of like LinkedIn
before like in the case of like LinkedIn
before like in the case of like LinkedIn I think it was a comfortable great
I think it was a comfortable great
I think it was a comfortable great service yeah I believe it was like
service yeah I believe it was like
service yeah I believe it was like probably the first social network to go
probably the first social network to go
probably the first social network to go public yep and and the most useful
public yep and and the most useful
public yep and and the most useful frankly I yeah and the most useful but
frankly I yeah and the most useful but
frankly I yeah and the most useful but how do we evaluate a social network of
how do we evaluate a social network of
how do we evaluate a social network of one has never gone public before okay so
one has never gone public before okay so
one has never gone public before okay so fair enough that’s good i mean when you
fair enough that’s good i mean when you
fair enough that’s good i mean when you go public that the main ways you look at
go public that the main ways you look at
go public that the main ways you look at comparables other companies in
comparables other companies in
comparables other companies in space either publicly traded or
space either publicly traded or
space either publicly traded or previously that went you know public and
previously that went you know public and
previously that went you know public and you sort of compare them now linkedin is
you sort of compare them now linkedin is
you sort of compare them now linkedin is actually a bit easier to value because
actually a bit easier to value because
actually a bit easier to value because linkedin still gets the majority of its
linkedin still gets the majority of its
linkedin still gets the majority of its revenue it’s recurring subscriptions so
revenue it’s recurring subscriptions so
revenue it’s recurring subscriptions so I actually think linkedin is the anomaly
I actually think linkedin is the anomaly
I actually think linkedin is the anomaly because it’s a company that actually
because it’s a company that actually
because it’s a company that actually makes money through charging people and
makes money through charging people and
makes money through charging people and businesses for a membership so it’s an
businesses for a membership so it’s an
businesses for a membership so it’s an annuity it’s very easy to evaluate
annuity it’s very easy to evaluate
annuity it’s very easy to evaluate annuity revenue stream gives of the
annuity revenue stream gives of the
annuity revenue stream gives of the advertising which goes up and down but I
advertising which goes up and down but I
advertising which goes up and down but I hear your point that you know if if you
hear your point that you know if if you
hear your point that you know if if you take a look at what you know when
take a look at what you know when
take a look at what you know when Facebook goes IPO next year in April
Facebook goes IPO next year in April
Facebook goes IPO next year in April 2012 you could say well what was
2012 you could say well what was
2012 you could say well what was linkedin worth and what did Pandora go
linkedin worth and what did Pandora go
linkedin worth and what did Pandora go public at etc etc listen valuations are
public at etc etc listen valuations are
public at etc etc listen valuations are always you know it’s a racket
always you know it’s a racket
always you know it’s a racket historically what happens is the bankers
historically what happens is the bankers
historically what happens is the bankers god bless them they tell the
god bless them they tell the
god bless them they tell the entrepreneur the founder the management
entrepreneur the founder the management
entrepreneur the founder the management team in the investors you guys maybe
team in the investors you guys maybe
team in the investors you guys maybe should go at a five billion valuation
should go at a five billion valuation
should go at a five billion valuation which implies whatever let’s say twenty
which implies whatever let’s say twenty
which implies whatever let’s say twenty dollars per share but if that’s the fair
dollars per share but if that’s the fair
dollars per share but if that’s the fair value the stock won’t pop the stock will
value the stock won’t pop the stock will
value the stock won’t pop the stock will stay at twenty and that’s not good for
stay at twenty and that’s not good for
stay at twenty and that’s not good for PR so why don’t you price it add ten
PR so why don’t you price it add ten
PR so why don’t you price it add ten dollars and then doubles but what
dollars and then doubles but what
dollars and then doubles but what happens is then the the founders and the
happens is then the the founders and the
happens is then the the founders and the management team miss out that difference
management team miss out that difference
management team miss out that difference between 10 and 20 so they leave money on
between 10 and 20 so they leave money on
between 10 and 20 so they leave money on the table the investors get it so at the
the table the investors get it so at the
the table the investors get it so at the end of the day you know business is a
end of the day you know business is a
end of the day you know business is a racket the same way that war is a racket
racket the same way that war is a racket
racket the same way that war is a racket I’m just saying you know sometimes you
I’m just saying you know sometimes you
I’m just saying you know sometimes you do want to go home and take a shower
do want to go home and take a shower
do want to go home and take a shower after you realize you’re in business but
after you realize you’re in business but
after you realize you’re in business but the overriding conclusion was I guess
the overriding conclusion was I guess
the overriding conclusion was I guess the web is no different than business
the web is no different than business
the web is no different than business the same way that business is driven by
the same way that business is driven by
the same way that business is driven by you know greed and profit and stuff like
you know greed and profit and stuff like
you know greed and profit and stuff like that you know the web is fundamentally
that you know the web is fundamentally
that you know the web is fundamentally despite its initial very utopian you
despite its initial very utopian you
despite its initial very utopian you know idealistic birth is become just as
know idealistic birth is become just as
know idealistic birth is become just as normalized as the web now as business
normalized as the web now as business
normalized as the web now as business now I do think though that you know is
now I do think though that you know is
now I do think though that you know is there a case like companies that put
there a case like companies that put
there a case like companies that put when you look at the stakeholders do
when you look at the stakeholders do
when you look at the stakeholders do companies and this is maybe a theme
companies and this is maybe a theme
companies and this is maybe a theme theme for a follow-up segment some other
theme for a follow-up segment some other
theme for a follow-up segment some other show it’s worth asking do companies that
show it’s worth asking do companies that
show it’s worth asking do companies that put the stakeholders such as clients and
put the stakeholders such as clients and
put the stakeholders such as clients and employees ahead of let’s say
employees ahead of let’s say
employees ahead of let’s say shareholders or managers or whatever do
shareholders or managers or whatever do
shareholders or managers or whatever do those companies go on to be successful
those companies go on to be successful
those companies go on to be successful Southwest historically has always put
Southwest historically has always put
Southwest historically has always put clients and employees ahead of let’s say
clients and employees ahead of let’s say
clients and employees ahead of let’s say shareholders and it’s a great company
shareholders and it’s a great company
shareholders and it’s a great company because of that but you know better
because of that but you know better
because of that but you know better you know it just to go back quickly to
you know it just to go back quickly to
you know it just to go back quickly to the web and putting clients first ahead
the web and putting clients first ahead
the web and putting clients first ahead of shareholders I think and you’re going
of shareholders I think and you’re going
of shareholders I think and you’re going to hate me for this i think part of that
to hate me for this i think part of that
to hate me for this i think part of that is putting the product first of the
is putting the product first of the
is putting the product first of the products which goes to your customers or
products which goes to your customers or
products which goes to your customers or clients there’s countless examples of
clients there’s countless examples of
clients there’s countless examples of companies as they grow they actually
companies as they grow they actually
companies as they grow they actually start getting really bad at what they
start getting really bad at what they
start getting really bad at what they started off doing but they’re their
started off doing but they’re their
started off doing but they’re their money rich so their new CEO comes in and
money rich so their new CEO comes in and
money rich so their new CEO comes in and his plan is his or her plan is to go
his plan is his or her plan is to go
his plan is his or her plan is to go around and just buy up other companies
around and just buy up other companies
around and just buy up other companies and he’s rewarded for this kind of greed
and he’s rewarded for this kind of greed
and he’s rewarded for this kind of greed going around buying up a bunch of things
going around buying up a bunch of things
going around buying up a bunch of things in an industry that you know the company
in an industry that you know the company
in an industry that you know the company has no experience in and then what
has no experience in and then what
has no experience in and then what happens a couple of years down the line
happens a couple of years down the line
happens a couple of years down the line they end up stretched too thin they’re
they end up stretched too thin they’re
they end up stretched too thin they’re too much in debt and they start selling
too much in debt and they start selling
too much in debt and they start selling off these companies and the company’s
off these companies and the company’s
off these companies and the company’s original stock is in the tank because
original stock is in the tank because
original stock is in the tank because instead of focusing on doing what the
instead of focusing on doing what the
instead of focusing on doing what the company was supposed to do they decided
company was supposed to do they decided
company was supposed to do they decided to become nothing more than a glorified
to become nothing more than a glorified
to become nothing more than a glorified investment portfolio and that’s what
investment portfolio and that’s what
investment portfolio and that’s what their CEO was it was he was a portfolio
their CEO was it was he was a portfolio
their CEO was it was he was a portfolio manager but all too often boards you
manager but all too often boards you
manager but all too often boards you know like to appoint CEOs that do that
know like to appoint CEOs that do that
know like to appoint CEOs that do that kind of thing yeah the irony of that is
kind of thing yeah the irony of that is
kind of thing yeah the irony of that is and closed off on this and move to
and closed off on this and move to
and closed off on this and move to segment to the irony is you see it’s
segment to the irony is you see it’s
segment to the irony is you see it’s very cyclical you go through a period
very cyclical you go through a period
very cyclical you go through a period where it’s all about acquisitions buy
where it’s all about acquisitions buy
where it’s all about acquisitions buy buy buy buy buy and then you then see
buy buy buy buy and then you then see
buy buy buy buy and then you then see the reverse happening which is like oh
the reverse happening which is like oh
the reverse happening which is like oh my god you got to spin this off you
my god you got to spin this off you
my god you got to spin this off you gotta spin that off we’re going to focus
gotta spin that off we’re going to focus
gotta spin that off we’re going to focus on this and that our core competency it
on this and that our core competency it
on this and that our core competency it is what it is okay we’re going to take a
is what it is okay we’re going to take a
is what it is okay we’re going to take a short break and come back and discuss
short break and come back and discuss
short break and come back and discuss the wonderful world of print and their
the wonderful world of print and their
the wonderful world of print and their follies and adventures we’ll be right
follies and adventures we’ll be right
follies and adventures we’ll be right back
”
Be First to Comment