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Showing posts with label 19. Show all posts
Showing posts with label 19. Show all posts

Wednesday, February 26, 2014

Think you should do better in life? Blame your great, great, great grandfather

LONDON: Miffed that you didn't get into Oxford University? Cross because you can't afford that three-bed in the town centre? Not got one non-executive directorship to your single-barrelled name? There is only one person to blame: your great, great, great, great, great, great grandfather. 

According to a new book, " 
The Son Also Rises", by academic Gregory Clark, our chances of getting on in life are largely down to what our family did 300 years ago. Contrary to brighter estimates, which suggest that past prosperity or poverty can be erased in three to four generations, Clark reckons it takes 10 to 15. 

So, those who feel held back by their modest beginnings shouldn't look to their parents' salary for an explanation: that accounts for a mere 10 per cent variation in a person's status, whereas our long-term lineage accounts for a variance of between 50 and 60 per cent. 

What that means, in effect, is that if your family were shopkeepers 200 years ago, the likelihood is you may be, too. 

Clark arrived at his conclusion by using surnames to track changes in familial fortune. He picked out the family names that dominated elite positions in historical records like the Doomsday Book and the Royal Society records and then tracked how long it took for those surnames to lose their wealth-predicting ability. 

Was Clark surprised at his findings, implying as they do that capitalism has not led to a rapid, persistent mobility? "Very surprised; astonished," he says. "It took us considerable time to realise that surnames were revealing a surprising persistence in social life that conventional methods fail to detect." 

Clark suggests that mobility in feudal England was not vastly different to today. Upwardly mobile artisans working in the 12th century took eight generations to be absorbed into the educated elite of the 16th century. 

Conversely, despite the introduction of inheritance tax and rapid industrialization, the 21st-century descendant of the 1 per centers of mid-Victorian England are likely to be three times as wealthy as the average man or woman on the bus. 

What is perhaps the most surprising feature of the research, though, is that the ancestral shadow appears to hang over all the countries surveyed, without exception. 

"Social mobility rates are similar across societies that vary dramatically in their institutions and income levels. Cradle-to-grave socialist Sweden and dog-eat-dog, free-to-lose America have similar rates. Communist China and capitalist Taiwan have similar rates. Homogenous Japan and the ethnically fractured US also have similar rates," he says. 

If proved correct, Clark's research would imply that attempts to invest society with even a ghost of social mobility have come to naught. As he says: "Only extreme, drastic and unacceptable state interventions have any hope of increasing social mobility." Not even the Communist Revolution in China in 1949 managed to have a lasting, pervasive effect on mobility, according to his study. 

While one might expect that the glacial pace of change comes as a result of the old boys' network, Clark contends that, actually, we inherit our "social competences". This conclusion has led some to suggest that he is a genetic determinist. In his own writing, it must be said, he points out that he is not saying that helping the disadvantaged doesn't produce "absolute, commendable benefits", merely that such action fails to boost social status. 

Still, though, it cuts both ways. As he says, the vast investments made by the super-rich in the education of their own kin eventually runs to nothing if their forefathers were not themselves wealthy. 

It seems then, that playing the lineage lottery is a lot like playing the real lottery — winners are few and far between.

Friday, February 21, 2014

Here's Why Facebook Acquired Messaging App WhatsApp For $19 Billion

Facebook announced that it is acquiring mobile messaging app WhatsApp for $19 billion, making it Facebook's largest acquisition to date.
In a statement, WhatsApp said that it will continue to operate independently and autonomously and will stick to its policy of not taking ads.
WhatsApp is the largest and fastest-growing mobile messaging app competing for revenue in the $100 billion-plus mobile messaging market, which was once dominated by mobile carriers and their SMS text services. Here's why it was an attractive target, even considering the big price-tag:
·         WhatsApp has more than 450 million monthly active users as of today, which is approximately 37% the size of Facebook's monthly active audience. 
      WhatsApp's closest competitor, WeChat, has approximately 320 million monthly active users as of Jan. 20, who are located primarily in China. WhatsApp has a much broader user base geographically.

·         In fact, it's extremely popular virtually everywhere: As recently as April 19 2013, it ranked as the number one top-selling paid iPhone app in 54 countries, and was in the number two spot in the United States, according to AppAnnie. It has shown persistence on the leader-boards. Today, it's number one in thirteen countries.

·         It boasts huge usage numbers, meaning it could be a valuable source of data for Facebook: WhatsApp users were sending 16 billion messages and 500 million images each day in December 2013. For comparison, Facebook users were sharing approximately 350 million images each day.

·         Facebook already has a messaging app with Facebook Messenger, but WhatsApp will bring a much larger footprint to the social network. For example, WhatsApp is used by 41% of Android smartphone users globally while Messenger is used by 16%. Moreover, Android smartphone users average 195 minutes each month using WhatsApp, while Messenger users average 21 minutes. That's roughly nine times more time-spend. It's evidence that WhatsApp oft-praised clean and fast user interface is very effective in keeping users glued to the app.
The acquisition of WhatsApp will also bolster Facebook's growing portfolio of stand-alone mobile apps that focus on different activities. Instagram is for photo and video-sharing, Paper is for consuming news, and WhatsApp is for messaging.
An interesting storyline that will emerge from this acquisition is how Facebook plans to make money from WhatsApp. Currently, WhatsApp is free to use for the first year and costs $0.99 each year thereafter. WhatsApp's founders have been extremely vocal about never showing ads on the app and even published a manifesto of sorts explaining why.
As we mentioned, WhatsApp CEO and co-founder Jan Koum said in announcing the deal that WhatsApp will not change that no-ads policy, and that "nothing" will change for users. Koum will have a seat on Facebook's board of directors, so there is evidence that he will have real clout.

However, Facebook generates revenues largely through advertising, and so it wasn't a surprise when it introduced ads to Instagram shortly after that acquisition. If WhatsApp really is to rely solely on subscription revenue, there might be pressure for WhatsApp to at least share user data with its data-hungry parent social network. In any case, it will be an interesting test case to watch in the context of mobile monetization.

Another Winner in Facebook-WhatsApp deal: Your wallet

Facebook's acquisition of WhatsApp for at least $16 billion has minted dozens of new millionaires and billionaires this week, but there was another big winner in the deal: Parents and their teenage children, who have most likely saved hundreds or even thousands of dollars in texting fees thanks to the hugely popular messaging app, and will continue to do so after the deal.

Before WhatsApp -- and Line, Viber, WeChat and a few other messaging apps now being hungrily adopted by young people and adults across the globe -- the main way to send a message from one phone to another was through SMS, a technology that routed the text through the same infrastructure that mobile carriers used to handle voice calls.

To the carriers, these texts are essentially free to provide. Each text occupies a minuscule amount of bandwidth on their airwaves, and it rides across the infrastructure that they have set up to provide voice calls.

But because there is little competition in SMS -- after you sign up for a carrier, you cannot send your SMS messages through any other provider -- carriers once charged exorbitant rates for texts, minting huge profits.

In the United States, until recently, Verizon charged 20 cents a text to customers who did not sign up for a messaging plan. Those who did -- at $5-$20 a month per phone -- could bring their costs down to as low as half a cent a message, although that was only if 5,000 messages were sent a month. AT&T's rates were similar, and so were those of many carriers around the world.

These prices proved enormously lucrative for carriers. Analysts' estimates put global SMS revenue at around $100 billion a year annually -- money that was essentially all profit for carriers.

WhatsApp did not start out as a messaging app. Its earliest version, introduced in 2009, was more of a mobile status-updating app - something closer to Twitter than SMS. But as Forbes reported in a detailed profile of the company, its founders quickly noticed that people began using the app for back-and-forth communication, a way to send texts without incurring SMS fees.

Technically, this was not totally free to users, but it was very close to free. WhatsApp routes its messages over the internet, so people had to have a mobile data plan to use it. They also had to have a smartphone. (SMS could work on more basic phones.) But after that cost, each message over WhatsApp required such a tiny slice of mobile bandwidth that it was basically free. If you paid AT&T $25 for a 2-gigabytes-a-month data plan, each WhatsApp message might cost about two ten-thousandths of a cent, according to Gizmodo's math.

This means that someone who sent 5,000 messages over WhatsApp, a not unreasonable number for some overactive teenagers, would pay about a penny in data fees. If 5,000 SMS texts were sent at AT&T's nonplan rate of 20 cents a message, the sender would be out $1,000, which is 100,000 times WhatsApp's price.

But internet texting was not just cheaper, it was also better. In WhatsApp's early days, it was one of hundreds of apps trying to offer a replacement for SMS, so it was forced to create a better service to stand out. Among other features, it eschewed ads, while some competitors' apps were glutted with them, and per-message fees.

The company also focused on the service's functionality, making sure messages flew across the globe extremely quickly and efficiently, and that the app itself was well designed and easy to use.

Its founders were also determined to make the app work everywhere: They started on the iPhone, but quickly created versions for Android, BlackBerry, Symbian and Windows Phone. This gave WhatsApp a leg up over proprietary messaging systems like BlackBerry's BBM and Apple's iMessage, which worked only for messages between similar devices.

It is still unclear whether WhatsApp can make a lot of money providing very cheap texts. Today, it charges $1 for the app, and then, after one year of use, $1 per user per year. With 450 million users and growing, that could add up to a lot of money, but it is not obvious that the company is worth as much as $19 billion.


That is especially true when you consider that the service does not collect a lot of data about its users - data that the company's new owner might use for ad targeting - and that it has pledged to remain ad-free after the acquisition.

But to users, WhatsApp's fortunes are almost irrelevant now. In response to the rise of WhatsApp and other app-based messaging services, carriers have had to reduce their SMS prices. Both AT&T and Verizon now offer unlimited texting with their basic smartphone plans. Around the world, carriers' SMS revenues are now falling by tens of billions of dollars a year.

And even if 
Facebook fails to turn WhatsApp into a viable business, we are never going to return to the old pay-per-text days. Messaging is now on a one-way path toward its natural price, which is free.

There is a larger lesson in this story: When telecom companies control specific protocols on their lines -- whether it is texting, voice calls or even cable TV -- customers lose out. And as soon as our devices get access to the open internet, we have a bounty of competitive choices that reduce prices and improve service.

What happened to texts is likely to happen to voice calls, too, in a few years' time. Because of competition from FaceTime Audio, Google Hangouts, Skype and lots and lots of other internet-phone services, few of us will worry about voice minutes anymore; for some, that might even be true today.

And perhaps the SMS story will play out on TV, too. Cable is expensive and inflexible. Internet-based alternatives like Netflix and YouTube are cheap and available everywhere. In the long run, there is only one way that story ends.

Wonders of honey

Honey has been used for its numerous benefits since four thousand years. It's believed to have been used in pre-ancient Egyptian times, to treat wounds. Here are some other benefits of this wonder food...

-Experts say that 
honey is helpful in preventing acid reflux.

-It has anti-microbial and anti-fungal properties that act as a great moisturiser, making the skin elastic and supple. It keeps wrinkles, blemishes and dryness at bay.

-Apply it on your face overnight or use a moisturiser that has honey extracts.

-Give your immune system a boost by regularly having honey mixed in warm water. -Honey is packed with vitamins, minerals and enzymes that are known to protect your body from bacteria.

-Want to lose weight? Drinking warm water with a dash of lemon and honey when you wake up, is an ideal way to detox. Doing this daily will help cleanse your liver, and remove toxins and fat from the body. You can also have this every night before going to bed.

-Honey also contains antiseptic properties that help treat indigestion by relieving the acidity in the stomach. It also neutralises gas.

-Honey has natural sugars that provide you with a healthy source of calories and energy. So, the next time you're feeling tired or low on energy, have a tablespoon of organic honey instead of caffeine.

-Certain studies also say that honey, when mixed with cinnamon, revitalises the arteries and veins of the heart and reduces cholesterol in the blood by up to 10%.

Google wanted to buy WhatsApp for even more than $19 billion

Internet search titan Google reportedly went all out to thwart Facebook's acquisition of mobile messaging app WhatsApp. According to a report by TheInformation, Google CEO Larry Page went to meet WhatsApp chief Jan Koum last week in a desperate bid to prevent the deal from materializing.

The report cites three sources claiming that Page reached out to Koum upon hearing of Zuckerberg's offer of giving him a seat on the board of directors of 
Facebook as part of the acquisition deal. One of the sources says that Page told Koum, "Stay independent as you've always planned. You're a big threat to Facebook. And joining Facebook would have a major impact on how things play out for years to come."

It goes on to say that Google was ready to outbid Facebook's $19 billion offer, but Koum reportedly felt that Facebook would give it more independence and the two share the view of bringing people closer.

One of the sources says that Google itself was not too happy about paying such a huge sum for the messaging app but was willing nevertheless in order to keep
it out of Facebook's hands.

This is not the first time Google has approached WhatsApp. Before WhatsApp agreed for Facebook's $19 billion deal, speculation was rife that Google also tried its luck at acquiring the popular messaging service.

A report by Fortune cites two separate sources to claim that Google offered to purchase WhatsApp for $10 billion, though it's unclear exactly when the search giant attempted to arrange a deal. The report stated that the bid came without a promise of a Google board seat, unlike Facebook's agreement.

Another report by The Information cites three unnamed sources as saying that Google was even willing to top Facebook's $19 billion offer. Google CEO Larry Page also assured WhatsApp co-founder Jan Koum that Google will allow the messaging startup to operate independently and compete with Facebook. However, WhatsApp founders rebuffed the offer as they reportedly felt the company was able to identify more with Facebook's philosophy.

It also mentions that Google had made an offer to WhatsApp wherein it would get the right to be notified in case WhatsApp entered acquisition talks, in exchange for a sum amounting to millions of dollars. WhatsApp did not accept the offer made a few months ago.

Following the deal with Facebook, Koum would take a place at Facebook's board and has assured that "nothing" would change for users immediately as Facebook plans to run WhatsApp independently, much like Instagram.

Facebook-Whatsapp Deal: Little Known Facts

In a landmark deal, Facebook is buying most popular mobile-messaging platform WhatsApp. The WhatsApp deal is worth more than what Facebook raised in its own IPO in 2012.
Here are some little-known facts about one of the largest tech acquisitions.

Facebook's largest acquisition ever

WhatsApp is Facebook's largest-ever acquisition. The social networking giant will pay $4 billion in cash and $12 billion worth of shares for WhatsApp. But the ultimate cost of the deal is $19 billion, with WhatsApp employees and founders receiving an additional $3 billion in restricted stock units of Facebook.

The acquisition dwarfs the $1 billion that Facebook paid for photo-sharing service Instagram. Several analysts had termed Instagram acquisition expensive. But now, Facebook is paying $42 per user with the deal. 

Deal bigger than any Microsoft, Google, Apple deal ever

The WhatsApp acquisition is one of the IT industry's biggest deals. It is larger than any that Google, Microsoft or Apple have ever done. Google's biggest deal was its $12.5 billion purchase of Motorola Mobility, while Microsoft's biggest acquisition deal was of Skype at $8.5 billion. Apple, on the other hand, has never cut a deal above $1 billion

Informal talks went for over two years

Surprisingly, informal discussions between the two companies had been going for two years. Facebook founder Mark Zuckerberg first reached out to WhatsApp co-founder Jan Koum in 2012. The two reportedly met at a coffee shop in California. However, the deal started shaping up earlier this month when Koum went to Zuckerberg’s house in Palo Alto for dinner.

According to reports, this is when the conversation about a possible deal became serious. Zuckerberg is said to have proposed that the two companies join together and Koum join Facebook's board.

Biggest-ever internet deal

According to Bloomberg data, the WhatsApp acquisition is one of the biggest internet deals since Time Warner's $124 billion merger with AOL in 2001.

Also, as per Dow Jones VentureSource, the deal is the largest acquisition ever of a venture capital-backed startup.

Google’s unusual offer to WhatsApp

Google’s unusual offer to WhatsApp Google’s unusual offer to WhatsApp

WhatsApp also reportedly received an unusual offer from Google that it is said to have turned down. Google reportedly offered to pay WhatsApp in exchange for the right to be notified if the messaging app ever entered into acquisition talks with another company. 

A report in Fortune claims that Google even offered to outrightly purchase WhatsApp for $10 billion. The offer is said to be sans the promise of a seat on Google's board for Koum, unlike the Facebook agreement.