InTheCapital

These two guys are having a hell of a morning! Julian Assange arrives today at the Supreme Court in London.  Mark Zuckerberg is releasing his S-1 to file for $5 Billion for an IPO this morning. What are your thoughts on this image? 

By Charlie Warzel / @cwarzel

Batten down the hatches, stuff your cash inside your mattresses and get ready to watch 276 hours of CNBC without blinking. Facebook may be close to filing for their record-breaking IPO. 

Rumors this afternoon are swirling around that Morgan Stanley is close to taking the lead in underwriting the monster initial public offering that stands to bring Facebook a valuation of between $75 and $100 billion. Yeah, you heard right. Billions. 

According to the Wall Street Journal:

Facebook could file papers for the IPO as early as this coming Wednesday, but that timing is still being discussed, said a person familiar with the matter. The company is currently looking at a valuation of $75 billion to $100 billion, this person said.

This is big news. So of course we did what we do and took to the Twitters. Here’s a few gems:

We thought the same thing! Just watch out for those underage coeds, Sean! (yeah, we saw The Social Network)

I’ve only heard  of the ‘octo-box’ in fables…is it real?! Will we see it?!

For $100 billion, Zuck can tattoo everyone in the city of Palo Alto head to toe. 300 times over (this is a rough estimate, and by that we mean we made it up).

More info as it comes, folks. 

Lead Image via [markwollacott.com]

By Charlie Warzel / @cwarzel

We may need to change the way we look at big tech companies. If you saw last year’s, The Social Network, it’s easy to imagine Facebook in the context of a Harvard dorm room startup but as we’re seeing those days are long gone. Zuck may not have traded in his hoodie for a fitted suit yet, but as the money shows, big tech companies like Facebook, Google, and Microsoft are making money like traditional media and trying to buy Washington influence to match.

Earlier this week, we looked at Facebook’s expanded lobbying efforts and took a couple grand looks at the future. Turns out we weren’t the only ones. The Wall Street Journal also dug into Tech’s newfound influence in Washington, unearthing some interesting facts.

Silicon Valley has also developed into a major source of political contributions for President Obama and other lawmakers, rivaling traditional media companies. In 2008, employees of Google and Microsoft Corp. were No. 4 and No. 5, respectively, as sources of campaign donations for Mr. Obama’s presidential campaign, giving a combined total of about $1.7 million, according to the nonpartisan Center for Responsive Politics. Time Warner Inc., the top media company, trailed behind, with its employees ranking as the No. 8 source of donations to the Obama campaign that year. 

 Through September 2011, Microsoft employees ranked as the top supporters of the president’s re-election campaign, and Google employees were No. 5. Time Warner employees had slipped to No. 10.

This might all sound very obvious to you all. Yes, Facebook and Google and Microsoft have lots of money, so what? But i’m not certain we all see it that way. Last week’s SOPA reaction was a decisive victory for the tech and internet communities. The fight pitted Big Tech as underdogs in the face of lobbying powerhouses like the Motion Picture Association of America. This was accurate as, by and large, the tech community is a disorganized body. We all love the internet and support a free internet, but a lot of the discussion surrounding SOPA painted giants like Google and Facebook like fledgling startups, oppressed by ‘the man’. We have to get past this line of thinking as it sets a dangerous precedent. 

So, what is a startup?

Glad you asked. We asked a few entrepreneurs ourselves to weigh in. Here is what we learned. Craig Dye, Director of University of Maryland’s VentureAccelerator, told us he subscribes to Steven Blank’s definition that, “A startup is an organization formed to search for a repeatable and scalable business model.”

From this definition, it is hard to judge exactly how Facebook and Google fit. Of course, they are always trying to replicate their initial success and expand to greater scale. Facebook is poised to have 1 billion users at some point this year, while the current figure hovers somewhere near the 800,000 range. But in terms of the word ‘search’, there is no question that the hard part has been done for Facebook. That, of course, being the construction of a powerful user network. Same with Google. To say that either company is still ‘searching’ for a scalable idea is patently untrue. 

Matt Fellowes, Founder and CEO of HelloWallet told us that, while he believes there are many internal, cultural components to a startup like, “a real hunger in the organization to grow fast” and “a culture wide commitment to be nimble,” some companies exceed the startup threshold. “once you pass a certain valuation marker…you’re not a startup anymore…I don’t know what that is, but when you’re in the 100s of millions, you’re probably not.”

We’re inclined to agree with Fellowes on that last point. While startup culture can continue to pervade in companies that have been around decades, there comes a time when your influence and bottom lines say more than your jeans and hoodies. The Wall Street Journal reported that, “Eric Schmidt, and a Facebook representative were among those given the chance to make their case to White House Chief of Staff William Daley in December, helping to prompt the recent White House statement nodding to Google’s concerns about excessive regulation of the Internet,” which is proof enough that Google and Facebook matter in the same way that Exxon and Bank of America matter. 

image via WSJ

Google and Facebook, along with other tech companies aren’t quite at the stratospheric level of lobbying contributions as traditional media, but they are getting there. Their influence is also arguably far greater, as politicians and organizations and individuals integrate social media and technology into their campaigns and infrastructures. Tech doesn’t have as big of a lobby, but technology makes Washington run, connects us globally, and disseminates the information and data that powers democracy.

Companies like Google are under increasing scrutiny (especially as of late) for the amount of private data they own and can access. Products from companies like Apple are ubiquitous in countries around the world, and Facebook boasts more users than all countries in the world but two. These guys are not startups anymore. They are extremely powerful, driven corporations with great access. We do not aim to say in any capacity that they are using their power for evil…in fact, we believe that much of their innovation can change the world in a positive way.

What we do wish to impart, however, is that the Facebooks and Googles of the world are aware of their status and influence in the world and they want a seat at the table in Washington. As citizens, we need to monitor this vigilantly and understand the implications of big tech in government. We believe that the integration could ultimately be positive for democracy in the United States and abroad, but like always, it pays to stay informed.

[Lead image via soshable.com]

It is safe to say that President Obama has the full support of Silicon Valley and the giants of tech. The proof is in the monster announcement today for Technology for Obama, which is affectionately abbreviated as ‘T4O’. This group is a powerhouse of tech giants and founders who are banding together to raise campaign cash and, most likely, assist with creating a formidable digital campaign structure and proprietary code. The group of co-chairs includes Sean Parker, of Napster and Facebook fame, Reid Hoffman co-founder of LinkedIn, Jeremy Stoppelman from Yelp, Craigslist namesake and founder, Craig Newmark, and Marc Benioff  of Salesforce.com.

Did your eyes just roll back into your head a little bit? Perhaps your jaw hit the floor? This is a mammoth development from the campaign as this group of committee co-chairs has loads of money, even more influence, and a LOT of access to top development talent. 

Here’s a little on the net worth of some of the co-chairs:

Reid Hoffman - $1.5 billion

Sean Parker - $2.1 billion

Marc Benioff - $1.9 billion

Craig Newmark - $400 million

Jeremy Stoppelman - $222 million

That’s a lot of cash.

Here’s a bit from the Obama Campaign’s website:

Technology for Obama (T4O) seeks to activate an influential fundraising and operational group from the broad technology community. Through national, regional, and online activities,T4O will work to rally the tech community to endorse, and to commit time and talent to the campaign. T4Owill supply participants with information, contacts and inspiration for further involvement and to provide significant financial support for the re-election of President Barack Obama. If you work, support, or identify with technology then you should join T4O!

If you also have a ton of cash and an interest in helping the Obama campaign’s tech strategy, you can donate as well. There will also be ameeting in San Francisco tonight, where the big dogs will talk on a panel and explain how they are banding together to create a tech infrastructure and cash pool the likes of which have never been seen before.

[Lead Image via USA Today]

By Charlie Warzel / @cwarzel

It’s still David versus Goliath, but maybe not for too long. The tech industry may be getting a seat at the table in the coming years…and believe me, they’re paying for it. According to government records recently released, Facebook is projected to have spent well over $1 million in lobbying dollars.  Here is a short wrap from AllFacebook:

While the 2011 lobbying figures will be reported later this month, estimates put the last year’s lobbying budget at $1.35 million.

Papers filed with the U.S. government Friday reveal that Facebook spent $440,000 on lobbying in the last quarter of 2011, up 30 percent from the same period a year ago and a whopping 85 percent increase over the $38,117 spent in 2009.

It certainly would seem like tech companies are trying to buy their way into the conversation in DC—Google is reported to have spent $3.76 million in the last quarter of 2011 alone.

But don’t get too excited. Here’s a quote from a great TheVerge.com article on SOPA that explains the power of certain lobbies in Washington like, oh, say the MPAA: 

Chris Dodd, who served as a senator for thirty years, is now the Chairman and CEO of the MPAA. As a senator, Dodd swore he’d never take money from lobbyists, but he now reaps a $1.5 million base salary and a $100 million lobbying budget. Lobbying is one art form the entertainment industry doesn’t mind investing heavily in: SOPA’s 32 co-sponsors received four times more in campaign contributions from the entertainment industry than from the tech industry.

Facebook is becoming an increasingly political tool for lawmakers and candidates alike. Companies like Socialitical are helping candidates chart and utilize Facebook advertisements to reach optimal audiences and demographics. Similar services are in place for companies like Twitter and Google as well.  

Wait, maybe do get a little excited…maybe…

If the rumblings of a Facebook IPO this Spring are true and the projections aren’t totally off, Zuck and company could stand to raise $10 billion and have a staggering $100 billion valuation. Call us crazy, but we think that $100 billion wouldn’t just buy a seat at the table…it could buy the table itself, which it could then destroy and remake again…out of gold. 

Then again, it remains unclear how the last week’s SOPA drama will change the way the industry works with Washington. Will they try to simply utilize the grassroots power of the internet? Or will they try to buy their influence like the other juggernauts and make their mark as bloodthirsty digital powerjunkies? 

Times are a changing in Washington. It stands to be a slow burn, but this much is clear: we want a front row seat for this show.

By Charlie Warzel / @cwarzel

President Obama knows what the kids like. He fist-bumps, says things like, ‘nah, we straight’, and he loves him some internets. Obama has always jumped on the social media bandwagon to get his message out and connect with the voters and on Jan 30th he plans to take YouTube questions in a Google + hangout. That’s right, hangin’ loose with Barack. Video below:

Mashable first reported the news on the Executive hang:

People can submit questions about any topic via video or text using YouTube’s Moderator tool, and Obama will answer the top-voted ones. YouTube also will invite a select few to join the Google+ Hangout, which will come on the heels of Tuesday’s State of the Union address. Viewers can watch the Hangout on the White House’s website, Google+ page (which launched Jan. 20 and now has more than 17,000 followers) or YouTubechannel.

Obama’s online community events have done notoriously well. In 2011, Obama received 140,000 questions during a YouTube question session, His Twitter town hall this summer attracted over 90,000 tweets and 61,000 questions, too…which is…a lot. 

It’s important to note is how much the current administration is doubling down on social media initiatives in the past year. This is his first interaction with Google +, which he joined only recently, but he’s held events with Facebook, Twitter, and LinkedIn and even joined Instagram recently. Obama will definitely not be the only candidate to engage heavily on social media this year, but it appears he might be the first one to do it in new and interesting ways. 

By Charlie Warzel / @cwarzel

The whirling dervish that is the 2012 Republican nomination blew down the east cost from New Hampshire to South Carolina like a tornado. Not everyone survived. We lost two candidates in the process and what seemed like a sure thing for Mitt, is now in question after Gingrich’s decisive win in S.C. The whole thing took us by surprise, but the all-seeing eyes of Facebook saw it coming the whole time. Those sneaky bastards.

Thanks to the fine folks at the Alexandria-based OhMyGov, we can see exactly how momentum built for Gingrich as tracked by Facebook fans. Turns out that even after 245,563 debates, when the candidates speak, the people are still listening. Check out the following charts below.

Romney’s Facebook fans left him in DROVES after his January 16th debate. While he was in a Facebook freefall, Gingrich continued to creep up in the polls, finally rising sharply after lashing out at CNN’s John King, after his ex-wife’s ABC interview. We have the video of Newt’s corpulent ire right here…

Personally, we’re pretty surprised at how fickle Facebook ‘fans’ are—jumping ship on Mitt during and immediately after the debate. This falls pretty much in line though with the tepid response Republicans have had for this field of candidates this year. Voters are easily swayed, more likely to swing from candidate to candidate.

There is, of course, an exception to the rule—Ron Paul, who boasts an extremely devout following. 

We have to keep in mind that this is but one small metric to consider…it’s just Facebook, right? Well, yes and no. Sure, Facebook is one platform and anyone has access to be Mitt Romney’s fan on Facebook—not just legal voters or even US citizens. But it has been noted before that Facebook users don’t shy away from their true feelings on the social network. We might be seeing more and more that as Facebook users go, so goes the country. We’re not there yet, but there’s no question it is a trend to monitor.

(Screengrab of the USA Today Facebook Timeline App)

By Charlie Warzel / @cwarzel

McLean, Virginia based newspaper, USA Today launched their Facebook Timeline App today and we took it for a very quick test-drive. Here’s what the USA Today’s President and Publisher had to say (via Potomac Tech Wire)

 ”As more and more people turn to social sites and their peers’ recommendations as a means of determining which news and information they will consume, it is more important than ever to reach our audience wherever they choose to consume their news,” said Dave Hunke, the president and publisher of USA Today.

The layout, we noticed, is aesthetically pretty nice, but there doesn’t seem to be too much the user can do to uniquely customize their experience…at all. The press release from the newspaper says that, “Users can customize the visual layout of USA TODAY + Me, choosing between a dynamic grid design or traditional list view” but we don’t believe this is much to write home about…in fact, it feels downright lazy to call that ‘custom’ in this day and age.

What is significant is the ability for USA Today to curate content for their Facebook app users based on information that the users share and even the information that friends are sharing with the user. This type of integration and targeting allows for Newspapers, which often struggle to retain readership these days, to throw pointed information toward their audience and thus, engage them. This doesn’t change the age old saying that, ‘content is king’…bad content won’t get read or shared. But this app could be instant marketing and focus-grouping for content distribution and that, if executed right, is pretty special.

By Charlie Warzel / @cwarzel

BuzzFeed (which finds just about the best stuff this side of the interwebs) noticed that there are quite a few people, presumably the elderly and those with AOL email accounts and Netscape Navigator 3.2 as their browser, who seem to think that Google’s Facebook fan page is some sort of a search engine. Frankly, I’m surprised we haven’t found a Congressperson in here. Here are just some of the gems:

THE EMBARRASSING PORN SEEKERS: Shame. Regret. Morons. If you’re using the internet to look at porn, you gotta at least kinda/sorta know how the internet works, right? Wrong.

my personal favorite…

THE CONFUSED: Poor Shirley just wants some medical advice…could somebody please get her to a medical health professional, please?!

THE WTF: Seriously…like whaaaa?

check out the full list here at BuzzFeed

THE BUZZKILL: To jump on our serious pedestal for a moment: We freakish and hermetic denizens of the internet forget all too often that there are a bunch of people out there without broadband access and who just don’t understand/want/need to care about how the internet works. We obviously have no problem with that…it’s just terrifying when those people happen to be members of congress. 

We’d also like to note that InTheCapital loves and enjoys support from all age groups. In fact, some of our favorite people are in their golden years. We’re looking at you, Grams.

[Lead Image By georgieflower.wordpress.com]

By Charlie Warzel / @cwarzel

A lot happened yesterday on the ole world wide web. We’ve personally posted thousands of words and read hundreds articles on the subject and, let’s be real, here, some of this stuff isn’t exactly riveting. We get it. There’s no denying though that yesterday was a remarkable day not just for opponents of SOPA, but for the internet and advocacy in general. Yesterday, ladies and gentlemen, we saw the raw, ultimate power of the internet rear it’s binary head. People stepped up. Minds were changed. And all of it cost barely a dime. Here’s what happened yesterday.

2.4+ million SOPA-related Tweets from 12am-4pm ET today. Top 5 terms: SOPA, Stop SOPA, PIPA, Tell Congress,#factswithoutwikipedia

— Twitter (@twitter) January 19, 2012

• 25,000 blogs blacked out their content yesterday.
• 12,500 sites added banners opposing SOPA/PIPA
• Congress was receiving 2000 calls per second.
• 90 million users came to Wikipedia yesterday.
  
• 4 million people used Wikipedia to lookup contact info for their congressperson.
• Over 500 people emailed Wikipedia
• Zuckerberg’s Facebook Post on SOPA got 200,000 likes in 1 hour.
• “210,000 people signed the  Progress for Change Campaign Committee’s Petition to stop SOPA.”
  
• “30,000 Craiglist members had used the PCCC’s site to contact Congress.”
• “SOPA-related Twitter posts were popping off at a rate of a quarter-million every hour”
  (don’t believe me? check out the video I took: )
• “the hashtag topic #wikipediablackout “at one point…constituted 1% of all tweets”
• By Wednesday afternoon, 4.5 million people signed Google’s anti-SOPA petition.
• 1000 protesters joined NYC Tech Meetup Outside NY senators’ offices in NYC.
• As BostInno reported, at least 7 representatives changed their position on annonuced SOPA. And the NYTimes announced this morning that, “at least 10 senators and nearly twice that many House members their opposition.”

Even Jon Stewart chose to weigh in on the debate, absolutely skewering lawmakers for their ignorance as to how the internet works, and their for choosing to refer to tech experts as “nerds”. This is required watching.

Lastly, here is Google’s SOPA infographic. It shows just how vocal the internet community has been since SOPA/PIPA’s introduction to congress.

 We at InTheCapital and BostInno would like to tip our cap to everyone who stood up yesterday and continues to stand up for a free internet. The fight is in no way over, but the people have been heard and that’s a rare thing these days in Washington.

Sources:

Twitter

Time’s Techland

New York Times

[Lead Image via Michael Appleton, New York Times]