Birth of the Frankenfirm

I think the Frankenfirms trend will not affect the Big Tech (FAMGA) that are already too big to have UE or US (perhaps only China can…) impose anything major that will cause a real dent in their market positions.

It’s easier to attack TikToks or impose things to companies like ARM in a M&A scenario, than to split Amazon or impose change to Google or Facebook.

We are going perhaps to see an economic cold war between China and US but these Big Tech are meta-state companies. It’s going to affect a lot more the rest of the pack… I believe.

Great article from The Economist:

Will TikTok survive?

The contortions at TikTok and Arm are an unfortunate sign of things to come

On august 6th, when the White House told TikTok that it had 45 days to shut down or find an American buyer, there was a risk that the Chinese-owned video app would disappear from America, infuriating its 100m users there and destroying billions of dollars of investors’ wealth. Now a last-minute fudge seems to have been found. TikTok has said it will enter a complex partnership with Oracle, an American tech giant, that is designed to show it is more under American sway. The day before Nvidia, an American semiconductor company, bid $40bn for Arm Holdings, a British-based chip-design firm, triggering a storm in Britain about how to stop its tech champion from being dragged into America’s trade war. Far from being oddities, the two episodes offer a preview of how the new age of nationalism will change the way multinational firms are run—for the worse.

Both companies straddle geopolitical divides and are at the heart of the digital economy (see article). TikTok is owned by ByteDance, a Chinese tech star. The White House says it fears that users’ data are being sent to China, where Big Brother can spy on them, and that the algorithm which selects videos is vulnerable to Chinese manipulation. Arm’s designs are used worldwide, not least in America and China, its two largest markets. Britain’s government worries that a takeover will see key activity shifted abroad (in 2016 Arm was bought by SoftBank, a Japanese firm, which promised to keep the firm’s base in Britain until 2021). A further concern is that, under American ownership, Arm will no longer be a “neutral” supplier, instead becoming an instrument of Uncle Sam’s expanding sanctions regime.

Throughout history companies have adapted to geopolitics. In the freewheeling era of globalisation that began in the 1980s, the idea took hold around the world that all firms should be treated equally, regardless of their nationality. That made it efficient to operate as a global firm with a unitary management, capital structure and system of production. By contrast the 1930s and 1940s were plagued by wars and protectionism. Businesses such as General Motors responded by allowing their foreign operations to become semi-autonomous. Rather than merge, many firms co-operated across borders through alliances and cartels.

The proposed TikTok deal shows how business is heading in a 1930s direction. Although the details are not yet public, the firm’s ownership will probably change, with American shareholders, including Oracle, and possibly Walmart, holding a large minority stake, perhaps with rights to veto some decisions. The location of key assets will shift, with the headquarters moving to America and Oracle managing the data-storage there (and monitoring the algorithm). Arm, meanwhile, has already contorted its structure once to deal with geopolitics: in 2018 it sold a 51% stake in its China operation to mainly Chinese investors, including state-backed funds. Now it may face a new metamorphosis. The British government, for example, may demand further legal guarantees that it is run autonomously in Britain. That would be part of a push to bolster the country’s industrial base, which has triggered a row with the European Union (see article).

Continue reading “Birth of the Frankenfirm”

EV 100x sales – why not?

The company logo for Snowflake Inc. is displayed on a banner to celebrate the company’s IPO at the New York Stock Exchange (NYSE) in New York, U.S., September 16, 2020. REUTERS/Brendan McDermid

 

Snowflakes in the sky

Snowflakes in the public eye

Valuations of the roof

Warren Buffet entering in the tech loop

Interesting stories of people becoming billionaires

Snowflake and their impressive IPO!

 

learn how to sleep

Sleep is the most powerful learning tool!

Sleeping 7-8 hours per night has an enormous impact on your ability to learn. Cutting sleep, even for as little as one night, can have irreversible impacts on what you learn both before and after, in your fatigued state.

Pulling all-nighters should be banned from your life as a valid tool to cram information. The costs are simply too high.

Even if you’re not staying up for days on end trying to learn, few of us get the sleep we need to learn at our best.

What You’re Doing When Sleeping

Sleep is not a passive activity. Although it seems like you’re doing nothing but resting, the mind is highly active during your moments of slumber.

Sleep is broken into different discrete phases, mostly falling into two catagories of REM (rapid eye-movement, aka dreaming) and NREM (non-REM, which includes deep sleep).

While your head is on the pillow, your brain is engaging in very important work. This includes:

One of the first studies to demonstrate the importance of sleep to memory was the 1924 study by John Jenkins and Karl Dallenbach. In it, they compared rates of forgetting over the same time period when subjects were awake and asleep. The results are quite dramatic:

NREM sleep plays a particularly important role, with sleep researcher Matthew Walker explains:

“Indeed, if you were a participant in such a study [on sleep and memory], and the only information I had was the amount of deep NREM sleep you had obtained that night, I could predict with high accuracy how much you would remember in the upcoming memory test upon awakening, even before you took it.”

read full article

Rejoice

Lia reaching her sweet thirteen !
listen and Rejoice

It’s tight
The more convict
The crime
Tears are not needed
Did you have your lot today?
Of guilt and sorrow
Secrets have taught you
Live life with joy
Go on and just do it
Why won’t you come and take it?
Go on and just do it
Why won’t you come and take it?
Slave to the darkest hour
We’re longing for the light
Rejoice from this very day
Rejoice every situation
Rejoice from this very day
Rejoice, don’t let life pass you by
Rejoice from this very day
Rejoice every situation
Rejoice from this very day
Rejoice, don’t let life pass you by
You crave focus with no meaning
You pray again to the heroine
You keep on looking for
Something to get on over
But the journey meaning and rule your life
Go on and just do it
Why won’t you come and take it?
Go on and just do it
Why won’t you come and take it?
Slave to the darkest hour
We’re longing for the light
Rejoice from this very day
Rejoice every situation
Rejoice from this very day
Rejoice, don’t let life pass you by
Rejoice from this very day
Rejoice every situation
Rejoice from this very day
Rejoice, don’t let life pass you by
Go on and just do it
Ooooh go on
Go on and just do it
Come and take it
Take it
Take it
Take it
Take it
Take it
Take it
Take it
Come and take it