FLICKR … End of the Road? … as Verizon buys parent YAHOO for $4.8 Billion

Captain Rick: Having loved photography my entire life, an awarded Webshots photographer in the early 2000s, I became a Flickr PRO member shortly after its acquisition by Yahoo in 2005.

Flickr grew to become the one of the largest and best quality photo sites on the internet with over 12 billion photos and 100 million dedicated users.

The telecommunications giant Verizon announced that it will spend $4.8 billion to acquire Yahoo’s operating business, including popular online content such as Yahoo, Flickr and Tumblr.

Verizon hopes that by pairing Yahoo with AOL, which Verizon bought in May 2015 for $4.4 billion, that the result will be a digital media unit that could compete with Google and Facebook. Having followed so many of these wild internet company purchases during the past decade or so, I have serious doubts that Verizon will be able to make that happen.

Yahoo CEO Marissa Mayer, a former Google exec, was hired in 2012 to turn things around at financially struggling Yahoo. Flickr’s core users were hopeful that it might get the attention it deserved. She allowed Yahoo to loose focus on Flickr, allowing the top site for photographers to slip in quality and innovation. Yahoo was desperately trying to appeal to the Instagram generation, and in doing so started to alienate Flickr’s core users, many of whom were professional photographers. As a Flickr Pro member, I often gave feedback … but it felt like no one was listening. Things would break and it would take eight to 10 months before someone would respond. We were members paying money for a service that wasn’t working. It was insulting to me and other photographers who had been using Flickr so actively for so many years. We were clearly not the target audience any more.

Marissa Mayer generated controversy in 2013 for saying “there’s really no such thing as professional photographers anymore,” when explaining why Flickr was phasing out its Pro membership at the time. As a Flickr Pro member for a decade, I protested loudly as did millions of other Pro members. She quickly apologized for the statement. Us Flickr Pro members saw it as extreme ignorance on her part. Flickr drew more flack the following year by putting 50 million Creative Commons licensed photos by users up for sale through its new Wall Art service. Although it was within its rights to do based on the licensing, the move left a bad taste in photographers’ mouths, and Flickr pulled the plug on the arrangement the next month.

Amid dwindling share of only 1.3% of a growing $187 billion global digital market, the best she was able to do is put Yahoo up for sale. Mayer will help in the transition, but it is not known if she will remain as a Verizon employee. I think that in view of her high salary and lack-luster performance of Yahoo and neglect of Flickr, it would be in Verizon’s best interest to let her go.

Yahoo, Flickr and Tumblr are set to officially become Verizon properties when the deal closes in early 2017, assuming anticipated government approvals occur.

My fear is that Verizon, being a giant in the mobile phone market, cares little about quality photography and photographers. I think Verizon will sell Flickr or perhaps just let it die as an expense it can write off. As a Flickr Pro member who has invested many hundreds of hours into building and supporting my Flickr Photostream and several high quality photo groups, I am deeply saddened by that thought. On the other hand, it is my hope that Verizon will realize the great photographic jewel that it will possess in Flickr and find a way to breathe new life back into it. If executed with excellence, Flickr will remain the top site for quality among serious photographers … like me.

JPMorgan’s $13 billion fine: Payoff, not extortion

Captain Rick finds this to be a credible and important addition to ATRIDIM NEWS JOURNAL

Mr. President …… I suggest we hire Walmart to fix our broken programs and economy

Captain Rick: Walmart, the world’s largest corporation turns everything it touches into gold, whereas  the U.S. government has succeeded in breaking almost every good program created … and the U.S. economy.

I suggest we hire Walmart to fix the mess that our President and Legislature have demonstrated they are totally incapable of accomplishing.

My email to President Obama:

Mr. President,

I have concluded that you and the 535 members of our legislature are ineffective and incapable of fixing our economy and the many good programs that have been broken. I have a solution, but first I want to remind you of some facts which relate to the many failures of your administration and those that preceded:

a. The U.S. Postal Service was established in 1775. You have had 238 years to get it right and it is broke.

b. Social Security was established in 1935. You have had 78 years to get it right and it is broke.

c. Fannie Mae was established in 1938. You have had 75 years to get it right and it is broke.

d. War on Poverty started in 1964. You have had 49 years to get it right; $1 trillion of our money is confiscated each year and transferred to “the poor” and they only want more…and it is broke.

e. Medicare and Medicaid were established in 1965. You have had 48 years to get it right and they are broke.

f. Freddie Mac was established in 1970. You have had 43 years to get it right and it is broke.

g. The Department of Energy was created in 1977 to lessen our dependence on foreign oil. It has ballooned to 16,000 employees with a budget of $24 billion a year and we import more oil than ever before. You had 36 years to get it right and it is an abysmal failure…and it is broke.

You have failed to fix any of the many government service failures, while overspending our tax dollars to drive America $17 trillion into debt, an amount exceeding the combined debt of all other nations on earth.

AND YOU WANT AMERICANS TO BELIEVE YOU CAN BE TRUSTED WITH A GOVERNMENT-RUN HEALTH CARE SYSTEM?

Lets pause and examine an American corporation that has a track record of turning everything it touches into gold.

Photo above shows Walmart’s current logo used since 2008

Walmart was founded by Sam Walton in 1962…when I was in high school, just before the birth of Medicare and Medicaid. Since then the Walton family transformed it into the world’s largest corporation with $469 Billion in revenue, 8500 stores in 15 countries with 2,200,000 employees.

If Walmart were a country it would have the world’s 26th largest GDP…but more importantly, it would be the world’s most profitable country…unlike the U.S. which goes $1 Trillion farther into debt each year, with all of its programs on ‘death row’.

I love my country and hate to see you and our legislature destroying it. With all sincerity, I respectfully urge you to consider hiring Walmart to manage America’s failing economy and programs. But, I think that if that were to happen, the Walton’s would fire you and most of the legislature.

Captain Rick

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Associated ATRIDIM NEWS JOURNAL Report Categories:

Economy

U.S. Debt Crisis

Captain Rick’s Fiscal Cliff Course 101

President Obama

Obamacare

Entitlement Reform

Corporations

Mesa, Arizona: New biorubber research facility will perfect process to produce rubber from Arizona’s Guayule shrubs

Captain Rick: Bridgestone Corporation broke ground on a biorubber process research center in Mesa, Arizona. It will investigate innovative ways to better produce large quantities of natural rubber from a native southwestern shrub … the guayule. Latex from the guayule is hypoallergenic.

The site, which covers 10 acres, will include an 8,400-square-foot office and lab building, a four-platform, 3,500-square-foot shrub prep building and a 3,100-square-foot mechanical and electrical building. At completion, the center will have a staff of 40 researchers and technicians. The first rubber samples should be ready by mid-2015. Bridgestone has also begun construction on an agricultural facility in Eloy, Ariz., to grow the guayule for the Mesa research center.

 

What is Guayule?
Guayule (pronounced: gua-you-lay in Spanish), is a flowering shrub in the aster family, that is native to the southwestern United States and northern Mexico. (Photo above left).
Its bark and roots can be used as an alternate source of latex to make natural rubber.

Latex is used to make rubber. Where does it come from? Where is it used?
Latex is the milky fluid inside 10% of all flowering plants. (Photo above right).
Most of the 20,000 species of plants that produce latex are not suitable for commercial use.
The most common source of latex used for commercial rubber production is from the hevea (rubber tree).
Other sources are from the poppy, mulberry, fig and asteraceae plant families. The latter shows the most promise for an alternative supply for commercial scale production. Guayule is in the asteraceae family.
Latex can also be made synthetically from petroleum products, though products do not stretch as well as natural latex from plants.
Latex is used to make mattresses, gloves, swim caps, condoms, catheters and balloons.

 

Why use Guayule to make rubber? One huge reason…its hypoallergenic!
While Hevea-derived rubber contains proteins that can cause severe allergic reactions in a few people, guayule does not.
With the AIDS crisis of the 1980s, the surge in rubber glove usage revealed how many people were allergic to latex (about 10% of health care workers, according to OSHA), and thereby created a niche market for guayule.
There are synthetic alternatives for medical device products, but they are not as stretchable as natural rubber.
Guayule performs like Hevea but contains none of the proteins that cause latex allergies.

History of Guayule used as a commercial rubber latex source
In the 1920s, the shrub saw a brief and intense amount of agricultural research when a rubber company in California
produced 1400 tons of rubber after leaf blight decimated the Brazilian rubber industry.
Guayule again become a replacement for Hevea tree-produced latex during World War II when Japan cut off America’s Malaysian latex resources.
The war ended before large-scale farming of the guayule plant began, and the project was scrapped, as it was cheaper to import tree-derived latex than to crush the shrubs for a smaller amount of latex.
That scrapped vision from decades ago is coming to life today in Arizona.

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Associated ATRIDIM NEWS JOURNAL Report Categories:

Technology: https://atridim.wordpress.com/category/technology/

Arizona: https://atridim.wordpress.com/category/arizona/

Corporations: https://atridim.wordpress.com/category/corporations/

Dell going private for $24.4 B … Michael Dell to control with Microsoft providing $2 B loan … would be one of 10 largest LBOs of all time

Captain Rick: Dell Inc. announced that it agreed to be acquired for $24.4 billion by a purchasing group that includes company founder and CEO Michael Dell, a private equity firm Silver Lake Partners and a $2 billion loan from Microsoft. If completed, Dell would become the largest leveraged buyout since the financial crisis, and one of the ten largest LBOs of all time.

This deal has massive financing backing, which was largely enabled by Dell’s massive cash stockpile that could be used as collateral incase the stock price offer of $13.65 per share (about 25% above current price) becomes an issue due to future market changes before the deal is finalized. It also helped ‘seal the deal’ with the giant tech incumbent with loads of cash … Microsoft … with its $2 billion loan. A broader debt financing package, believed to be worth around $15 billion, was committed by BofA, Merrill Lynch, Barclays, Credit Suisse and RBC Capital Markets. It also is worth noting that this isn’t the first time Microsoft has worked with Silver Lake Partners, the private equity firm leading Dell’s acquisition. In 2011, Silver Lake sold Skype to Microsoft for $8.5 billion.

Why is Microsoft providing a $2 billion loan, instead of seeking equity?
 
In a statement, the software giant said: "Microsoft has provided a $2 billion loan to the group that has proposed to take Dell private. Microsoft is committed to the long term success of the entire PC ecosystem and invests heavily in a variety of ways to build that ecosystem for the future. We’re in an industry that is constantly evolving. As always, we will continue to look for opportunities to support partners who are committed to innovating and driving business for their devices and services built on the Microsoft platform."

Captain Rick’s Vision … This deal has significant meaning!

As an engineer…I have followed Microsoft since its beginnings way back in 1975 when founded by Bill Gates and Paul Allen. Since then Microsoft has grown to become the world’s giant of PC operating system software. Microsoft Windows operates the majority of the worlds computers. In recent years Microsoft has come under attack form Apple, which has become the world’s mobile leader. Microsoft understands the diminishing role of the PC. Hewlett Packard, the largest producer of PCs came close to abandoning PC production a while back, but has reckoned its course since. I believe Microsoft is looking to shore up its future by supporting Dell, the world’s second largest PC manufacturer…to keep it afloat. By making loan to Dell, in stead of an equity investment, Microsoft will not offend Hewlett Packard. Microsoft’s loan to Dell will most likely guide Dell’s future PC design so that it truly supports Microsoft’s future vision of the Windows operating systems that support not only PCs, but mobile devices as well. Windows 8 is a good start, but I suspect Microsoft has much greater things in mind with proper support from PC manufacturers. I believe their goal is to not only maintain their leadership with PCs but also gain leadership in the mobile world. We can expect a war between Microsoft and Apple in the coming years. Microsoft, with its multi billions of cash is no where near the condition of accepting second place. I see lots at stake in this deal. While this is not a ‘done deal’, it looks very promising to me.

Wall Street terminates 18,000 jobs: Citigroup: 11,000 … American Express: 5,400 Morgan Stanley: 1,600

Captain Rick: The Wall Street ‘chopping block’ has been in ‘full swing’ as large financial corporations cut 18 thousand jobs in recent weeks. Its more of the same story that is sweeping our world as businesses strive to ‘shore up’ their ‘bottom line’ in an economy that is as fragile as ‘thin ice’. 

Citigroup announced it will cut 11,000 jobs as part of plan to trim costs. Citigroup has already begun making the layoffs, but expects them to continue throughout 2013. Layoffs are nothing new at Citi. Since November 2008, the bank has slashed about 25% of its staff. The 11,000 job cuts that were announced Wednesday amount to 4% of Citigroup’s current workforce, which stood at 261,000 full-time employees at the end of September.

American Express announced Thursday that it was cutting 5,400 jobs, becoming the latest large financial firm to reduce its headcount. American Express said it expects to see its current work force of 63,500 reduced by between 4% and 6% by the end of the year.

Morgan Stanley is expected to cut 6% of its workforce (1,600 jobs) in the coming weeks, due to "market conditions." Morgan Stanley, which currently employs nearly 58,000, has been trimming its workforce over the past couple of years. With this round of cuts, Morgan Stanley’s total headcount will have been reduce by 10% since September 2011, to roughly 56,000.

U.K. Tesco gives up of U.S. grocery business . . puts Fresh & Easy up for sale

Captain Rick: The Fresh & Easy store chain has been put up for sale by U.K. retail giant Tesco, admitting defeat in an attempt to take on U.S. supermarket chains in the southwest like Fry’s, Albertsons, Safeway and Wal-Mart.

Tesco launched Fresh & Easy in California in 2007. A short time later several stores opened in Arizona. I visited one in Gilbert as soon as it opened. My first reaction was … “The prices are high. The selection is poor. The atmosphere is cold. I don’t give this chain much time before it goes under”. To my surprise, Fresh & Easy lasted five years, but I never spend a dollar there. I think Tesco underestimated the strong faithfulness that southwestern grocery shoppers have for their stores, especially here in Arizona where Fry’s is king. It has been my favorite grocery store for over 15 years. Fry’s, a subsidiary of Kroger, is neat, clean, modern with a warm and welcome feel. The selection is great. The prices are also, especially if you use your VIP card. Fry’s specials always beat out Wal-mart. The first Wednesday of the month is Senior Citizen day at Fry’s. It’s the day I stock up for the month at a great 10% discount. Fry’s rewards it’s customers with credits to save up to $2 per gallon of gas at Fry’s gas stations.

My ‘word to the wise’ for those who want to open a grocery chain in the U.S. southwest, especially Arizona … learn the ‘lay of the land’ first. This is the desert. It’s a warm place with lots of warm people who cherish our favorites. It will take a mountain to change our minds from the places we faithfully shop.

Fresh & Easy’s woes have added to the problems Tesco faces in the U.K and other international markets. Third-quarter sales at stores open a year or more fell company-wide by 1.3%, as depressed consumer spending in the U.K. and Europe outweighed an improvement in Asia. Tesco’s share of the U.K. market is also declining.

Wal-Mart workers plan Black Friday Strike Captain Rick to Wal-Mart: Fire all of them! Unions are destroying America!

Captain Rick: Wal-Mart, the world’s largest store, with 1.3 million workers, fights back as workers are preparing for a Black Friday walkout. Wal-Mart has filed a complaint with a federal agency accusing one of America’s largest labor unions of unlawfully organizing picket lines, in-store “flash mobs” and other demonstrations. Unions and union backed groups are calling for America’s largest employer to end what they call retaliation against employees who speak out for better pay, fair schedules and affordable health care.

A Wal-Mart spokesman said: Black Friday is the “Superbowl” for retailers and that Wal-Mart is ready. If employees are scheduled for work, we expect them to show up and do their job. If the don’t, there could be consequences. While Wal-Mart respects its workers federally-protected right to express concerns, it will act to protect its stores and customers from illegal and unprotected conduct that threatens the safety of our business operations… such as protestors trespassing on Wal-Mart grounds and interfering with business.

OURWalmart, one of the main union groups says it has 1000 events planned this week. It has a Facebook page with 28,000 likes and  YouTube video with over 103,000 views. I have viewed both and do not find them worthy to pass on.

Captain Rick’s thoughts: I feel for those who work for Wal-Mart and don’t feel they make enough money or receive enough medical benefits. Keep in mind, you always have the option to find employment somewhere else. Where? Wal-Mart or no other company has an obligation to better yourself. Only you can do that. Stop whining and take control of your own destiny. Don’t rely on the unions and associated groups to save you. They have only one goal in mind… to make themselves rich… and destroy America as a by product. History shows that unions have played a huge role in the destruction of entire American industries. They are directly responsible for the execution of thousands of high paying jobs in America…jobs that are now being fulfilled overseas at much lower costs. The only sector that the unions have not killed in America is the service sector…jobs like those in retail sales…like Wal-Mart. With stupid efforts like this, it wont be long before unions destroy it too.

Another example is civic government. This is perhaps the worst of all sectors for unions to attack and kill…it’s the last American stronghold, one that is protected by our ‘warped’ government laws. In the private sector, unions can cause companies to fail. In the public sector, failure is not possible…so unions have free rain to pillage them to an endless extreme with the total cost transferred to the tax payer. America’s laws are reckless in this regard and are in serious need of change…hopefully before the unions are finally allowed to totally destroy America.

DuPont to cut 1,500 jobs worldwide, 2% of its workforce … signaling another blow to the global economy

Captain Rick: DuPont, one of the world’s largest chemical companies that invented Nylon, Neoprene, Corian, Teflon, Mylar, Kevlar, Freon and much more issued a wake up call to the world today as it announced a cut of 1,500 jobs worldwide, about 2% of its global workforce. It also lowered earnings guidance for this year.

DuPont, headquartered in Wilmington, Delaware, had 70,000 employees worldwide at the end of last year. A component of the Dow Jones, DuPont’s stock fell 9% today, helping send the Dow into a nose dive today, loosing nearly 2% of its value.

Dow Dives 243 points, 1.82% … following slew of disappointing earnings … igniting fear that the global economy is on shakier ground than previously expected

Captain Rick: Big sell off on Wall Street as a result of three major U.S. industrial companies filing disappointing earnings reports, igniting fears that the global economy is on shakier ground than previously expected. DuPont, a Dow component fell 9% after reporting weaker-than-expected quarterly earnings and announced plans to cut 1500 jobs worldwide. United Technologies lowered its forecast and 3M missed revenue estimates. Continuing uncertainty about economic health in Europe and China contributed. This was the biggest Dow dive since June.

In September, 2012, the Dow came within 4% of the all time Dow high of 14164.53 reached before the 2008 market crash. This correction knocks it back to –7.5% from the all time high. The Dow is still up 7.24% for 2012.

I see lots of uncertainty lying ahead with the U.S. facing the “Fiscal Cliff” in January, the fiscal problems in Europe and the degrading effect that all of it is having on the economy of China, which are all working in unison as ingredients brewing a very volatile global fiscal and economic storm. I will do my best to report the important elements.

Cummins to cut 1,500 jobs by end of 2012 due to weakening global economy

Captain Rick: Cummins, the world’s largest producer of diesel technology with $1.85 billion in 2011 sales,  announced that it will cut as many as 1,500 jobs by the end of 2012 because of uncertainty regarding the direction of the global economy. Cummins employs about 44,000 people worldwide. Based in Indiana, it also has factories in Minnesota, New Mexico, North Carolina and several overseas. It instituted a global hiring freeze after a recent drop in sales in North America, China and Brazil.