Reem With A View

"Names and attributes must be accommodated to the essence of things, and not the essence to the names, since things come first and names afterwards." – Galileo

This one chart explains why Facebook bought WhatsApp

WhatsApp user growth

Why Facebook bought Whatsapp for $19 Billion in Cash and Stock

Filed under: News, Business & Current Affairs, , ,

Why did George Lucas sell Lucasfilm including STAR WARS franchise to Disney?

Yes, all Star Wars Fans are puzzled  (note the F in fans is in capital. This is deliberate as Star Wars Fans are almost like religious believers!)

Why did George Lucas suddenly sell away all rights to  Star Wars to DISNEY? And too add,  Indiana Jones?  And also my favorite visual effects company: Industrial Light and Magic (ILM) ? Just $4 Billion? Sounds small?

Not quite.

Being a cash plus  stock combo sale, Lucas has become the second largest independent shareholder of Disney, holding more than 2% equity. So ALL future profits of Disney from  Star Wars, Indy Jones series will CONTINUE to add to Lucas’ fat wallet, as Disney will make multiple reboots and sequels.

In addition, the sale was a master move by George Lucas in inheritance and estate planning according to experts:

Since none of Lucas’s three adopted children plan to take over his film empire, financial advisers say the strategy will save his heirs the the responsibility of managing their inheritance – and potentially going through the often long and fraught process of dividing it. “Mr. Lucas has obviously surrounded himself for years with world class legal, estate and tax advisers,” Wade Westhoff, a financial adviser based in Danville, Calif., says of the Disney deal. “This is a textbook example of exit planning for a private business owner.” (Lucas and a spokesman for LucasFilm were not immediately available for comment)

That Lucas struck a deal in 2012 may be no accident either, advisers say. Long-term capital gains tax from the sale of assets held more than one year are taxed at a rate of 15% for investors in the 25% income tax bracket or above (Lucas’s level), and zero for investors in the 10% or 15% bracket. Those rates are set to jump to 20% and 10%, respectively in January. “He probably wanted to take advantage of the lower rate on long-term capital gain while it’s certain,” says Bill Smith, managing director at CBIZ MHM, a national accounting and professional services provider.

Source:  Jedi Estate Planning

The Force… is pretty strong in George Lucas!

Filed under: Media & Entertainment, News, Business & Current Affairs, , , , , , , ,

Can Marissa Mayer rescue Yahoo?

 marissa mayer

marissa mayer

Yahoo is still a profitable company that has a market cap of around $20 Billion, with $5 Billion annual revenues and huge traffic (more than 184 Million people globally visit a Yahoo! page every day). So despite losing relevance in the Google vs Apple vs Facebook vs Microsoft world, she will still have command over decent sized resources to do a massive turnaround.  At the least, with her $300 Million+ net worth, she has nothing to lose, and can only benefit from any upside from Yahoo. Plus, she is one of the smartest people on the planet and more intelligent than any former Yahoo CEO. So if anyone can turnaround Yahoo, it’s Marissa.

Filed under: News, Business & Current Affairs, , , , , , ,

R.I.P. Steve Jobs (1955 – 2011)

A true visionary… he will truly be missed. Where would we all be in the Internet industry without the desktop revolution he unleashed?

Steve Jobs (from Apple Home Page on 6th October 2011)

RIP Steve Jobs

 

Filed under: News, Business & Current Affairs, , , , , , , , , ,

Warren Buffett on the “value of Gold”

Warren Buffett on Gold:

It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.

You could take all the gold that’s ever been mined, and it would fill a cube 67 feet in each direction. For what that’s worth at current gold prices, you could buy all — not some — all of the farmland in the United States. Plus, you could buy 10 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?

Source:

http://money.cnn.com/2010/10/18/pf/investing/buffett_ben_stein.fortune/index.htm

http://en.wikipedia.org/wiki/Warren_Buffett#Dollar_and_gold

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