This is one in a series of year-end stories that look back at the most memorable pieces KPCC reporters worked on in 2012 and look ahead at a key issue that will be the focus of coverage in the coming year.
How much happened in the Golden State in 2012 when it comes to business? Lots. Lots and lots. The DeBord Report covered most of it.
The slide show above serves up the business year in pictures for the state with the largest economy and two of America's most storied industries: Hollywood and high-tech.
And if you want to review the business year in links to the original posts...well, I've got that covered, too.
9. The long, long, LONG Tribune Co. bankruptcy comes to and end. So who will buy the Los Angeles Times?
Michael Buckner/Getty Images for Reality Rocks
Mark Cuban speaks in Los Angeles. He blogs about what he really thinks of Facebook.
Now Dallas Mavericks owner Mark Cuban has backed up that idea, at his blog, with a post titled "What I Really Think About Facebook." (Hey, don't hold back!) It's not clear, however, that he's keeping up with what's on Zuckerberg's mind:
[W]e spend more than 26 minutes per day on FB. As this study said, FB is an alternative to boredom. FB is far more like TV than it is Google Search
FB is what it is. It's a time waster. That’s not to say we don’t engage, we do. We click, share and comment because it’s mindless and easy. But for some reason FB doesn’t seem to want to accept that its best purpose in life is as a huge time suck platform that we use to keep up with friends, interests and stuff. I think that they are over-thinking what their network is all about .
Being a time suck that people enjoy is a good thing. There is a comfort in turning on the TV and having it work without any thought required. It’s easy. It is the best five-hour on average per day alternative to boredom.
Facebook has announced third quarter earnings, and they beat what Wall Street was expecting. Analysts were looking for 11 cents a share and they got 12. Jump back! That penny is adjusted to a 2-cent loss once proper accounting protocols are followed. But a beat is indeed a beat. And as you can see in the first chart in the slide show above, Facebook lost less - on a GAAP-adjusted basis, a lot less - than it did last quarter.
The next chart is even more interesting. As you can see, Facebook has acquired a billion users worldwide (not all of them active, however) with a headcount of just 4,331 employees. If you divide Facebook's quarterly revenue of $1.26 billion by total users, you get a per-user worth of $1.26.
Viewed another way, every employee at Facebook is worth 230,894 users — or $290,926 in revenue. Now, you could argue that a lot of Facebook employees are costing the company more than $291,926, because they're getting stock. But you also have to consider that although Facebook pays its well, not that many of them make nearly $300,000 per quarter, or $1.2 million per year.
Tyler Winklevoss and Cameron Winklevoss at the start of the men's pair final during the 2008 Beijing Olympic Games in Beijing. The twins have started a venture capital fund and are looking to establish an office in L.A.
Cameron and Tyler Winklevoss — the Harvard-grad Olympic-rowing twins who infamously jousted in court with Mark Zuckerberg over who really had the core idea for Facebook — have begun the post-Facebook lives. Sort of. Their post-Facebook lives are being funded by an estimated $65-million cash-and-stock settlement the received from suing Zuckerberg and Facebook.
With that dough, they're started a venture-capital fund, Winklevoss Capital, and as the Wall Street Journal reports, joined forces with their old Harvard classmate Divya Narendra on an initial $1-million investment in an semi-exclusive stock research site called SumZero.
But they might also be spending some time apart. The Winklevii just bought a house in Hollywood last month for $18 million, reported Canyon News:
Tyler Winklevoss will remain in the 8,000 square foot home as they launch the West Wing of their venture capital company.... Cameron will remain mainly in New York City, where they have signed a five-year lease for their company's office.
The two-story modern home with a jetliner view of Los Angeles was recently constructed as the house that had been on the lot before was bulldozed and modified. It is reported that the Winklevoss twins are in Los Angeles because they believe it is currently a great place for techies instead of Silicon Valley, where many firms are located.
BuzzFeed is buying Kingfish Labs, for its ability to use data to make better Facebook ads.
TechCrunch is reporting that BuzzFeed is buying Kingfish Labs, for an as-yet undisclosed sum. It's the first acquisition for the meme-making-machine that BuzzFeed, founded in 2006, has become. But more importantly, it shows how a startup can "pivot," in the language of tech entrepreneurship, from one business model to... a completely different model.
In a conversation I conducted this morning at the Drucker Business Forum — held at KPCC's Crawford Family Forum — Allen Moore of Idealab's New Ventures Group and I briefly delved into this phenomenon. Pivoting is something that the founders of startups need to be prepared to do. As Allen put it, they need to be able to drive full speed ahead, with one foot pushing the pedal to the metal — while still keeping one foot hovering above the brake.