I like shoes, I will buy a new pair of Nike trainers and I’ll probably get a new computer, but at the moment I just want to save and bank it. I don’t have many living expenses.Summly founder Nick D’Aloisio • Discussing his plans for what to do with the money he’ll receive from Yahoo’s $30 million buyout of the company. By the way, he’s 17. Some are already calling the deal sort of crazy.
» That’s quite a deal for Kevin Systrom and company, considering the government will likely be monitoring a deal of this magnitude. According to an updated S-1 filing, Facebook has already paid $300 million to Instagram and agreed to pay a $200 million “termination fee” if any government agency blocks the planned buy-out. While it’s certainly not the same as a billion dollars, we imagine that the Instagram staff can sleep soundly knowing that they’ll all be millionaires no matter what. But, with that said, we’d be willing to bet that Facebook’s board of directors would have liked to have known about this little detail.
» Saddled with debt: The bidding group, led by former NBA star-turned-entrepreneur Magic Johnson, is about to set a record for the most expensive team purchase in history, topping a $1.1 billion 2008 buyout of the Miami Dolphins and a $1.47 billion buyout of Manchester United in 2005. (Well, a federal bankruptcy court still needs to approve the sale.) The team, currently owned by Frank McCourt, declared bankruptcy in June of last year after admitting the team has $600 million in outstanding debt. McCourt had to sell the franchise partly because of an expensive divorce, and was told by a court in December that he could not sell the team’s media rights, leading to his sale of the team. But he’s still making out like a bandit — even considering that he has to cover the debt on the team’s sale, he spent just $330 million to buy the team eight years ago, along with another $100 million to build the team’s current stadium.
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What if a little site you love doesn’t have a business model? Yell at the developers! Explain that you are tired of good projects folding and are willing to pay cash American dollar to prevent that from happening. It doesn’t take prohibitive per-user revenue to put a project in the black. It just requires a number greater than zero.Pinboard founder Maciej Ceglowski • Offering a rarely-heard take on the free-Web-app movement — that startups without business models are only hurting end-users, an argument that’s fresh in the minds of some after Gowalla’s staff got acquired by Facebook, but not its product. (This is a pain we know all too well, thanks to the pending death-by-acquisition of Apture and our scramble to replace it.) And in case you’re wondering, Ceglowski follows his own advice — he charges a one-time $9.55 fee to join his Delicious competitor. We’re with him (though we’re not opposed to the freemium idea that sites like Reddit use). We’ll gladly pay a $10 one-time fee to use a product if it means the product’s still going to exist in three years. source (via • follow)
» We don’t know how to feel about this: While we appreciate the fact that Google might make “The Daily Show” happen on YouTube with a buyout like this (though Viacom has pulled their shows from Hulu in the past), if it actually happens, it runs directly into a wall of regulatory scrutiny — as Google’s been feeling the heat lately. While YouTube and Hulu aren’t the only games in town (hi Netflix and Vimeo), together they’re big enough that it would deserve some regulatory scrutiny if it actually happens.
» A competitive deal? Dish Network, known mostly for its satellite dishes and for being the satellite company that isn’t DirecTV, will earn a competitive advantage by branching out with Blockbuster, which has a large infrastructure, if not money to pay for said infrastructure. For example, Dish Network could also offer Blockbuster’s Netflix-like DVD service on top of their already-robust satellite service. It’s synergy, folks! Another way to look at this: Blockbuster shares were delisted after trading for less than $1 for nearly a year. Netflix shares are trading around $250.