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LinkedIn Gold Rush As Value Soars $8.5B. Is Dot Com 2.0 Here?

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Shares opened on its first day of trading yesterday at $83 – almost double its initial IPO price of $45.


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The market frenzy that ensued following opening of New York Stock Exchange, what the Wall Street Journal has called the “outsize demand” for a company which is now valued at, $85bn, despite making a modest profit of just over US$15 million (on $243 revenue) last year.

 In 2009, it made a loss of $4 million. But what a difference a year makes. By the time the NYSE closed at 4pm, shares were worth an eye watering $94.25 – a 109% lift – which must have made traders gasp into their PC screens as it means the company is now worth a phenomenal $8.9 billion.

This exceeded all expectations for Reid Hoffman 2002 online start up, which had been tipped to float for around US$3bn-$3.3bn value and initial prices were as low as $32-35 per share.

“If anybody thinks that the tech investing sector didn’t change today, they’re absolutely crazy,” Lee Simmons, editor of IPO research service Hoover’s told the Silicon Valley Times. “Today is going to be a benchmark of how these stocks enter the market in the future.”

However, another respected industry figure muttered the messianic share rise “is like a movie I’ve seen before,” referring to the previous dot com bubbles that crash landed.

 The Silicon Valley giant plans to sell 7.8m shares in total, although its chief isn’t getting too excited, attributing the rise to the vagaries of the market, rather than the kick off of dot com 2.0, which many analysts fear.

 

“This isn’t necessarily indicative of anything. The market will do what it will do,” said Jeff Weiner, LinkedIn CEO.

Many in Wall Street also believe the professional social network has benefitted from being the first of the online startups to hit the trading floor and had say Facebook gone first it would be a very different story.

It is the biggest market debut for a tech company since Google floated back in 2004 for $85 a share which then hit $100 soon after.

One of the oldest social networkers around, the company founded in 2002, has morphed into the biggest social network/ head hunting service for employers and recently began charging for some of its services with 100 million registered users.

It has also open the floodgates for its counterparts including the darling of social networks, Facebook, which has a currently value of $79 billion on private exchange SharesPost, and seven time the user numbers with 700 million and counting, to follow suit. 

Facebook chief Mark Zuckerberg will sleep soundly tonight.

Others like Twitter and even Groupon (which Google bid $6bn last year) may also go public and this enthusiastic response from Wall Street is giving them a strong indication of what’s to come. 

 

So who were the big winners? Reid Hoffman who still retains over one fifth of the company (20.1 per cent) as wel as current CEO and employees as well as several venture capital outfit. 

Reports: LA Noire Freeze X Box 360 & Playstation 3

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Released here today, it’s one of the most long awaited games in history and received rave reviews.


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However, it now seems just crime thriller LA Noire, hitting Aussie shores today,  is causing more than just thrills – it appears to be freezing and shutting down some gaming consoles.

This follows complaints from several US gamers this week, the first to get their mitts on the much hyped game last Tuesday.

LA Noire makers Rockstar confirmed the game was causing issues with Playstation 3 but initially denied it was affecting non Sony devices, and blamed a 3.61 firmware patch for PS3, part of Sony’s update to its Playstation network following the hacking crisis.

“We have received some reports of PS3s overheating while playing L.A. Noire or beeping three times before shutting down/turning themselves off, mostly on older 60GB and 80GB fat models,” it said on a blog in reply to a customer query.

“Primary reports seem to be that updating to firmware 3.61 will cause PlayStations to overheat. There have been various reports of this on a few different games now, all reporting their PS3s turning off or ‘Red Lighting’ after having installed 3.61,” Rockstar said.

“This can range from games randomly freezing to PS3s turning off anywhere between 30 mins use to 2 hours.”

However, it also pointed out many other gaming titles have been affected, insisted the issue was not just confined to its newest release.  “Multiple games (Rockstar and non-Rockstar) overheat or freeze only when 3.61 is installed.”

However, this appears not to be the case, with Sony denying culpability from its firmware update.

 

“As with the release of any System Update, we will invariably see a very small number of users whose console has failed following updating their console, which is an unfortunate coincidence,” Sony told Edge publication.

Rockstar have now since backtracked and admitted LA Noire is to blame and have updated the FAQs, confirming the freezing is affecting non Sony consoles.

Microsoft Xbox 360 users have also reported freezing issues although the number of consoles affected are said to be relatively minor.

“Rockstar have now updated their FAQ on the matter, have admitted that it is a fault with their latest title LA Noire and have offered a workaround,” claimed the Sony rep.

“I find it hard to call it great if i can’t play it. Very disappointed right now. People are reporting frequent freezes on both platforms so its not just an xbox issue,” one gamer said on XBox blog.

Rockstar and Sony release this joint statement just hours ago:

“We have received a very small number of customer support questions about PS3’s overheating or shutting down while playing L.A. Noire.  At this time, Rockstar Games and Sony can confirm that neither L.A. Noire or firmware update 3.61 are causing the PS3 hardware to overheat.  

We are both committed to working hard to find solutions to this and any issues that may arise.   If you are experiencing any issues with L.A. Noire or your PS3 hardware, please contact technical support using any of the means provided below:”

Rockstar Support: www.rockstargames.com/support/ Rockstar Support on Twitter: twitter.com/RockstarSupport

PlayStation 3 Support: us.playstation.com/support/PlayStation 3 Support EU: www.eu.playstation.com

The life sized game, developed by Team Bondi set in post World War II allows game enter the murky world of veteran turned LAPD detective Cole Phelps as he attempts to unravel the truth behind a conspiracies and brutal murders.

It features “groundbreaking” motionscan animation technology that mimicks real life facial expressions.

 

“Search for clues, chase down suspects and interrogate witnesses as you struggle to find the truth in a city where everyone has something to hide,” the trailer says.

Well, maybe Cole Phelps can crack the console freezing case.

Pirated.com Take CoverAs Hollywood Begins Internet Streaming

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Online video streamer Youku purchases film rights from Warner Bros.This will allow the Chinese based video provider to show the Leonardo Di Caprio hit move ‘Inception’ one of the highest grossing movies of 2010, for five yuan (75 cents) on Youku Premium service, according to an AFP report.

The premium service allows viewers access to the latest films, TV series and concerts but without the nuisance of ads in between, as shown for free on their mainstream site.

Youku.com, which was founded in 2006, have also licensed content from other broadcasting houses, seeking to differentiate themselves from illegitimate content providers in a nation renowned for its thriving piracy industry.  

“Through building long-term partnerships with copyright holders and communicating with our media partners, Youku Premium is creating a whole new way for people to find and watch the content they want, when they want it,” Youku founder and chief executive, Victor Koo, said.

The Chinese company made its debut US stock market last month and was the strongest New York Stock Exchange Initial Public Offering in more than five years, according to AFP report, highlighting the lucrative industry on-demand content has now become.

 

“Since we launched the paid service last year we’ve discovered there was plenty of demand from our customers for movie content but there was a bottleneck in the payment solutions.  Now we’ve sorted that out and hope that this is a beginning for something new and exciting,” Koo told The Hollywood Reporter.

This deal is the latest move by Hollywood to get in on the online video streaming act, as viewers increasingly turn to online to view content.

No details of the value of the deal for Warnes Bros have been released.

According to Beijing based iResearch, the streaming site accounted for 259 million visitors and held a 40 percent share of all online videos viewed by its Chinese audience in September last.

Listen Up Gerry: Minister Offers Lessons In E-tailing

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Harvey Norman to go back to school as Google, eBay give lessons on online savvyness.

Communications Minister Stephen Conroy is to give a seminar later this month on internet know how – with the help of Google,eBay and PayPal – as the online crisis retailers are facing fails to go away, he has announced. 

The Online Retail Forum aims “to encourage and support Australian retailers to explore online business options,” according to the statement.  

The internet lessons looks to be Conroy’s latest attempt to quell the commotion made by a list of retailing giants including Harvey Norman, Myer and Solomon Lew’s owned Just Group about the lack of GST on  foreign goods bought online, which they said is eating into their business. 

Following intense pressure from retailers on GST, the government responded by setting up the Productivity Commission to examine the retail sector in Australia last year. 

However, in its 2011 forecast, analysts Morgan Stanley predicted the Commission investigation into the retail landscape was likely to find that it is ‘uncompetitive,’ despite claims by CEOs that GST was making it more difficult to do business here.    
 
 “Providing an online information and sales channel is clearly an important part of any discussion about the future of Australian retail,” Senator Conroy said.

However, the Minister who is responsible for the Digital Economy might not be telling the retailers what they want to hear, hinting they may have to lower prices and vastly improve their product offering if they wish to get serious about online.  

 Lectures are to be given from internet powerhouses including the likes of Google, eBay, PayPal, Shoes of Prey, Gray’s Online, as well as Australia Post, Temando, DHL,  and the ACCC.

 

“Shopping online can also deliver benefits to consumers in the form of greater customer satisfaction, better product information and, in some instances, lower prices,” he said.

Online purchasing is enjoying a booming trade at the moment and was cited in several retailers in their end of year results as a threat to future sales growth. 

By 2015, it is forecast to account for 22 percent of all purchases.
 
The forum is due to take place in Sydney on 18 February next.
 

New Tabs On The Way… Netbooks Over, Says Acer

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It’s bye bye netbooks, hello tabs, says the laptop kings.

Long awaited Acer tabs range to “phase out” netbooks, the Taiwanese giant says.

The tablets which will see the light of day for the first time in Australia most likely in Q2 will push Acer’s well-respected netbooks out in the cold, according to its Sales manager Lu Bing-hsian.

Acer ‘s Tablet OS devices will include a 7-inch and 10.1 model running Android and using Intel’s Sandy Bridge processor.

A Windows 7 model could pre-empt the Android version, although this has yet to be confirmed.

Acer chief Gianfranco Lanci said late last year that he anticipates that Acer will get between 10 to 20 percent of the Tablet market with 12 months and will take the lead from the iPad later on.

The tabs look set to hit the market retailing between $299 to $699.

“They are aimed at phasing out netbooks. That’s the direction of the market,” said Acer’s Lu Bing-hsian.
   

GST Probes Big Retail In Wake Of Borders, Colorado Collapse

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GST investigation has now opened a bag of worms, including the fact retailers here enjoy far higher profits than foreign rivals. The government investigation into retailers GST claims has led them to look at some other major including the growth of retail giants including Officeworks.
Although the retailers campaign is the main focus of the investigation, other issues that have come to the fore now includes the growth of ‘big box’ retailers like Costco and Bunnings and how they are affecting the sector.

The campaign led by industry stalwarts including Solomon Lew, Myers’ Bernie Brooks and Gerry Harvey sought to put pressure on Canberra to introduce a 10 percent GST on all goods purchased from overseas web sites and launched a series of full page ads on Boxing Day to that effect.

The productivity commission have also been asked to look at another important issue of the role of private investors in retail, which is particularly apt given the collapse of two major retailers in the Australian landscape in recent weeks.

Just last week, Colorado Group, which boasted some major high end brands like JAG, Diana Ferrari, Mathers and Williams was put into receivership owing $396 million.

Retail magnate Solomon Lew, owner of Just Group, and one of the ringleaders in the GST campaign, is said to be eyeing up the entire group for purchase.

In effect this investigation could open up a whole new bag of worms for retailers.

The Commission has found  “the profitability of some large retailers in Australia significantly exceeds the industry average,” and many of the big players “enjoy higher profit margins than their overseas peers,” according to its latest  paper released last week. .

And the original purpose of the probe – to look at retailers claim that GST loophole could be dead in the water. 

 

“Based on the preliminary evidence available to date, it appears that even a large reduction in the threshold may not necessarily have a significant impact on the number of parcels not subject to GST and duty,” the Commission said in its latest findings.

And it seems most of the goods bought online from foreign retailers are worth under the $100 mark anyway, according to Customs data.

“The debate has moved on,” a spokesperson from Assistant Treasurer Bill Shorten’s office said.

Commissioners Philip Weickhardt and Louise Sylvan are charged with leading the investigation, entitled Economic Structure aad Performance of Australian Retail.’ A draft report will be out in August.

Breaking News: Telstra Fastest Oz Wi Fi Here This Month

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Elite by name and elite by nature. Telstra new high-speed mobile Wi-Fi hotspot will be the fastest in the country and will allows users to connect multiple mobile devices on the go.

Download speeds will range from 550kbps to 8Mbps and uploads of 300kbps to 3Mbps, the telco said today.


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It comes as the latest upgrade to its mobile internet network and will now provide almost double the speed of its Turbo device.

And it could be a favourite with business customers allowing use of a tablet and smartphone simultaneously.

More than four million Australians use mobile broadband services.

“Our customers tell us they love the speed and reliability of Next G mobile broadband but they’ve said they’d like an easier way to share it with a greater range of Wi-Fi enabled devices including smartphones, tablets, cameras, laptops and portable games consoles,” says Warwick Bray, Executive Director Telstra Mobility.

Elite’s speed is up to twice as fast as 3G rivals in the capitals and some regional areas. However, if multiple users are on the device it may affect speeds.

The high speed Wi-Fi 802.11b/g enabled device will be available on Telstra pre-paid on Tuesday next and has no contract or fixed term requirement.

Business customers can purchase it for $0 upfront on a standard plan for 24 months for $29 per month with 1GB included data.

It has a battery life of up to four hours, Telstra claims, but can be charged via a bundled USB cable connected to a laptop or AC charger. It also supports MicroSD cards up to 32 GB it comes with 5GB of data to use within 90 days. However, this is for use in Australia only.

1.9 m Broadband Connections Roll Out in 2011

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Full steam ahead for mass internet connectivity as 2011 plans are announced.Plans for the provision of fibre infrastructure in new sites will take effect from January 1st as the National Broadband Network (NBN) estimates 1.9 million new premises will be connected to the fibre as they are built.

There will be no additional costs to consumers for the installation of broadband, with the NBN funding the provision of fibre and backhaul to new housing estates, said the Minister for Broadband, Senator Stephen Conroy.

Sub-contracting is also set to begin in the new year and build-operate-transfer arrangements who will install fibre on its behalf.

For infill developments of less than 100 premises, Telstra will continue to be responsible for delivering infrastructure and services.

The telco will largely be using copper infrastructure to provide interim solutions in these developments, pending the NBN rolling out its network.

Developers will be able to select a provider at their own discretion and these arrangements will be subject to existing contracts between providers and developers.

“From 1 January 2011, NBN Co will be responsible for the installation of fibre in all broadacre developments, all infill developments where it has fibre that is ready for service and capable of connection, and newly approved infill developments of 100 or more premises,” said Senator Conroy.

The plans will speed up access to fibre-based broadband services and provide the clarity people have been seeking, and “is a great outcome for new home buyers and Australia’s fibre future,” he declared.

Residential Development Council Executive Director, Caryn Kakas NBN’s announcement is a win for common sense and ensures that new communities can participate fully in the benefits broadband brings.

“This means that homeowners on the urban fringe won’t be hit with a $3000 charge nor will regional Australians face a cost of up to $5000 to pay for the delivery of the National Broadband Network to their communities,” she said in a statement.

“The Government, NBN Co and Telstra will now work closely with stakeholders to communicate and implement the changes,’ the Minister concluded.  

Amaysim: Online Good But Retail Still King

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Newest Telco arrival is ‘surprised ‘ at its retail success.

And online only goes so far, says Amaysim.

The newest mobile carrier to hit the market, Amaysim, has said they are ‘surprised’ at their take up in the retail channel, with strong take-up from some of the big names including Harvey Norman, Dick Smith and Woolworths, according to a current.com report.      

“I think we have even more of a chance to build a real integrated, multi-channel distribution here with the combination of online and retail, and that’s a positive surprise we have had,” said one of its founders and CEO Rolf Hansen.

He also said he was in talks with other major names in retailing but refused to get into specifics, although currently available in 2,000 stores. 

However, the market here is unlike others in that it is nuanced towards retail, says its boss, with two thirds of its activity confined to bricks and mortar as opposed to online clicks.

“From all the markets we’ve been into, and we see the same trend here, once you achieve mass market distribution, which I think in Australia you would talk about 4,000 or 5,000 points of sale, it’s skewed towards retail.”

“No matter how good you are at online, and I think our website is a state of the art e-commerce website, you only reach roughly one-third of the population you would like to target, and the other two-thirds obviously are not online savvy and would rather buy the product in retail.”  

The no frills service, which is like the Jetstar of the mobile industry, refutes consumer lock in contracts, offering no fees and low rate deals with post paid and pre paid handsets, offering sim cards for as little as $5.      

 

 

The US backed company unique offering has certainly put it up against the big carriers such as Optus and Telstra although no numbers are yet available on the up-take of the service, which was launched last November.   

“The simple fact is that Australians are paying far too much for their mobile phone bills, largely due to the lack of competition amongst existing providers and a failure to treat customers fairly,” the company declared at the launch. 

Amaysim is a market leader in Germany, Spain and the Netherlands, according to its website.

Internode Speeds Up Tas Connections Ahead of NBN

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Upload speed now 25 megabits per second.

In a move that aligns broadband speeds in Tasmania with the rest of mainland Australia, Internode’s has improved its service there to an “upload speed of a 25 megabits per second (Mbps) service automatically increases from 2 Mbps to 5  Mbps,” the company said in a statement.

The 50 Mbps service upload speed is five times faster jumping 4 to 20 Mbps as is 100 Mbps, upgraded from 8 to 40 Mbps.  

The new speeds will facilitate improved use of business applications including videoconferencing and facilitate cloud computing when the NBN arrives, say Internode, and is the latest move by Australia’s second largest broadband provider to get up to speed with the national broadband rollout, which is gaining pace.

“A key benefit of these faster upload speeds is that they better support new and emerging applications, such as high definition IP videoconferencing,” says Internode’s Jim Kellett.

“Faster upload speeds also improve the performance of telecommuting via Internet virtual private networks, and support emerging business demands for cloud computing and networked data storage. Even general Internet usage like file downloads may be improved by faster upload speeds.”

In December, Internode’s MD, Simon Hackett voiced strong criticism against the NBN plan, claiming its high density interconnection model, amounted to a cartel between the government, Optus and Telstra.

108-130 points of interconnection (POI) will be established on the NBN in mainland cities and 81 POIs in regional Australia and six in Tasmania, it was announced in December.

The upgrades, which commenced January 8 are to be up and running within the end of this week, say the company.