Category: Fortune

If there’s one thing that has been driving Twitter’s share price over the past year or so, it’s the repeated rumors that the company is going to be acquired. With every new rumor or speculation, the share price sees a little spike, as weary investors hope for the best.

But is an acquisition likely? And if so, who might buy it, and for how much? Those are the multibillion-dollar questions that crop up every time there is a new report about a bid.

According to a report at Recode, the company is going to consider the possibility of a sale at a board meeting later this week—although as many observers pointed out, such things are often discussed at meetings even when there is no offer on the table. Nevertheless, that report also pushed the stock up.

Unfortunately for long-time Twitter investors, the ones who have been stuck with it ever since it hit $70 in the weeks following its IPO, these rumors and the spikes they create ironically make the problem worse.

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Here’s the one thing that’s holding up a potential Twitter acquisition”

A decade is a long time even in the real world, and on the Internet it is more like a century, especially in the life of a startup. But that’s how long it has been since Facebook launched the real-time news feed that has become the core of the service for more than 1.5 billion people.

It’s hard to even imagine the social network now without this essential feature, as early Facebook staffer Andrew “Boz” Bosworth recalled during a discussion with CEO Mark Zuckerberg and three other members of the original news-feed team on Tuesday (hosted via Facebook’s live-streaming video service, of course).

At that time, the site “was just a page with a big finger pointing at the number of new posts you had,” Boz said. Users had to click on the profiles of each of the people they were friends with, and then try to remember what their last post was, and whether anything had changed.

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “How Facebook’s news feed went from being its most hated feature to the future of the company”

During a discussion in Rome recently, Facebook CEO Mark Zuckerberg denied that his company is a media entity. “No, we are a tech company, not a media company,” he said. But is that description accurate? Not really.

Zuckerberg may not want to admit it, but Facebook is one of the largest and most powerful media companies in the world, and getting larger.

The Facebook co-founder told his Italian audience that the social network isn’t a media company because “we do not produce any content.” Instead, Facebook just builds tools that allow users to interact with each other, which includes sharing news, he said.

But is creating content the only way to define whether a company is a media company? No. To take just one recent example, The Huffington Post didn’t create much of its own content in the early days, before it hired a reporting staff. Users created blog posts and HuffPo distributed and monetized them.

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Sorry Mark, but Facebook is definitely a media company”

Gawker Media founder Nick Denton said goodbye to his former company this week, after broadcaster Univision agreed to acquire the publisher of popular websites such as Gizmodo and Jezebel for $135 million, as part of a court-ordered bankruptcy auction.

Univision has agreed to hire 95% of the company’s former employees, but Denton isn’t among them. However, the Gawker founder does get a consolation prize: According to the acquisition documents, he is to be paid $16,666 a month for the next two years as part of a non-compete clause.

The agreement, which Univision reportedly insisted on as part of the acquisition, says that Denton agrees not to “associate with any business enterprise” that is engaged in the same business as Gawker in either the U.S., Puerto Rico or Hungary, without getting permission from Univision first.

Although most of the content for Gawker Media’s websites was created in New York, where the company recently leased an office near Union Square, much of the web development and technical work behind the sites was done by a separate subsidiary based in Hungary. According to the Wall Street Journal, Denton was paid $500,000 a year by Gawker.

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Here’s how much Gawker’s Nick Denton will be paid not to work”

The court-ordered bankruptcy auction of Gawker Media approached its final conclusion on Thursday, with most of company’s assets set to be acquired by Univision for $135 million. But one thing that isn’t part of the deal is Gawker.com—the website that launched an alternative blogging empire almost 14 years ago.

In other words, while some of Gawker will continue to live on, as Univision absorbs existing verticals like Gizmodo and Jezebel, what many saw as the heart and soul of the company (to the extent it had either one of those things) will no longer exist. Staff were notified by founder Nick Denton on Thursday afternoon.

In the original offer from Ziff-Davis that Gawker announced when it filed for bankruptcy, it looked as though a window had been left open that might have allowed Denton take over ownership of the main site, but that window appears to have closed. The Univision offer reportedly includes a clause that prevents him from competing with the new owner of his former company.

Univision hasn’t disclosed why it didn’t want to acquire Gawker.com, but it’s likely the reputation of the site (not to mention a conspicuous lack of advertising on that particular vertical) convinced the company not to include it in the deal.

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Why the death of Gawker isn’t something to celebrate”

If there’s one macro trend almost every publisher is struggling with, it’s the increasing distribution power of platforms like Facebook, and how that is disrupting traditional media business models. Where they once controlled the entire process from creation to consumption, media companies now see their power over almost all the elements of that value chain ebbing rapidly.

As Facebook tries to get publishers to host all of their content on its platform with features like Instant Articles, which provides faster-loading mobile pages, Google has been trying to offer an alternative that it says is more open and more flexible—a feature known as AMP, which is short for Accelerated Mobile Pages.

In its pitch for AMP, which officially launched in February, Google has stressed that it is trying to help strengthen the open web because it wants to blunt the force of walled gardens like Facebook [fortune-stock symbol=”FB”]. Unlike Instant Articles, the AMP standard is an open-source project, one which any publisher can contribute to. As Google’s head of news, Richard Gingras, put it earlier this year:

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Google says it is trying to help publishers, but some remain skeptical”

As Gawker Media prepares for a court-ordered bankruptcy auction to sell off its assets to the highest bidder, the billionaire venture capitalist who helped drive the company under wrote in a New York Times opinion piece that he is happy to have played a role in its failure, and that he would happily do so again if necessary.

Peter Thiel, a Silicon Valley VC who helped create the online payment company PayPal and was also one of the earliest investors in Facebook, was revealed as the financial backer of former wrestler Hulk Hogan after Hogan won an unprecedented $140-million Florida court judgement against Gawker in March.

Unable to pay such a massive penalty—which amounts to almost three times its annual revenues—Gawker was forced to seek bankruptcy protection and is now engaged in an auction to sell the company’s assets, an auction that began today with bids from multiple companies (there’s a list here of the most likely bidders).

In his New York Times essay, Thiel said that he was “proud to have contributed financial support” to Hogan’s case, which involved a video clip that Gawker published from a sex tape the wrestler made with a friend’s wife. Thiel went on to say that he will continue supporting Hogan, since Gawker has said it intends to appeal, and that he would “gladly support someone else in the same position.”

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Billionaire who helped bankrupt Gawker says he would do it again”

After its dramatic loss to former wrestler Hulk Hogan in a landmark privacy trial, New York-based publisher Gawker Media is being auctioned off to the highest bidder this week, in order to try and pay the $140-million penalty in the case. All bids are due by the end of business on Monday.

Dozens of publishing companies and other media-industry players have expressed interest in potentially making an acquisition offer for the company over the past few months, according to sources with knowledge of the auction. But in many cases these are competitors who are just looking for more information about Gawker’s revenues, etc. and aren’t seriously thinking about acquiring the company.

At the top of the list of companies who are expected to make a bid is long-time magazine publisher Ziff-Davis, which has already signed an offer to buy the company for $90 million.

That deal was announced at the same time Gawker filed for court protection. Bankruptcy auctions typically involve such a “stalking-horse bid,” which is used to set a floor for potential acquisition offers, but other bidders could come in with higher offers.

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Here are the most likely bidders in Gawker Media’s bankruptcy auction”

Media companies that rely on so-called “clickbait” headlines or similar tricks to try and get users to click on their posts might want to rethink that strategy. Facebook said on Thursday that it has tweaked its all-powerful news-feed filtering algorithm to reduce the prominence of this kind of content, because it says readers want to see more “genuine” posts.

And how does Facebook define what constitutes clickbait vs. a genuine post? In a post on the site describing the new algorithm changes, data scientist Alex Peysakhovich and user-experience researcher Kristin Hendrix said that a team at the social network looked at thousands of headlines and came up with a few rules.

“We categorized tens of thousands of headlines as clickbait by considering two key points,” the blog post says. “(1) if the headline withholds information required to understand what the content of the article is; and (2) if the headline exaggerates the article to create misleading expectations for the reader.”

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “You’ll never guess what Facebook is doing to reduce clickbait”

Twitter has spent much of its life promoting itself as a haven for free speech—the “free-speech wing of the free-speech party,” as a number of senior executives have described it. But that commitment is proving to be a lot more complicated than Twitter probably hoped it would be, as it tries to figure out how to cope with systemic harassment and abuse.

The latest flashpoint in this ongoing battle came on Tuesday, when the account of notorious troll Milo Yiannopolous—also known as Nero—was permanently banned by Twitter, following a torrent of racist and sexist abuse directed at comedian Leslie Jones that she says has forced her to leave the service completely.

Somewhere in between those two sentences is the line that Twitter is trying to find, and is being forced to draw: When does expressing an opinion, or engaging in an argument or debate, turn into orchestrated or targeted abuse and harassment?

At the heart of the problem is the fact that Twitter has spent so much time touting itself as a protecter and defender of free speech, unlike other more restrictive platforms such as Facebook (FB). Co-founder and former CEO (and current board member) Evan Williams and others have written a number of times about how “the tweets must flow” in response to demands for censorship from various governments.

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Twitter tries to find a balance between promoting free speech and curbing abuse”

Gawker Media founder Nick Denton has a lot of things on his mind right now, not the least of which is the future of his company as it goes through a court-ordered bankruptcy auction—a process sparked by a $140-million court award in the Hulk Hogan case for publishing a sex video.

But that’s not what Denton wants to talk about this morning. After a recent piece written by the New York Times‘ new public editor on the value of reader engagement, he wants to talk about why he sees a future in allowing reader comments when almost every other media organization seems to have given up on them or is at least thinking about doing so.

Is the enigmatic multimillionaire looking for a distraction from the events of the past few months? Perhaps. But interaction with readers is also something that he fervently believes in, and you can tell that not just by what he says, but the fact that Gawker has spent significant amounts of money on it. The company has even integrated its comments into the stories it distributes through Facebook’s Instant Articles service.

Long before the Hogan trial took center stage, Gawker Media invested millions (Denton won’t say how much exactly) in building a commenting and reader-blogging system it called Kinja, which Denton described as nothing less than an attempt to turn the publishing world on its head—to put readers on the same level with journalists and publishers. As he put it at the time:

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Nick Denton says giving up on reader comments is a big mistake”

The new public editor at the New York Times has only been in that position for about a month, and already a media mob seems to be gathering with pitchforks and torches. And what is Elizabeth Spayd’s heinous transgression? Did she admit that the Times doesn’t care about poor people, or that the Iraq War was justified? No, she defended the value of engaging with readers, and specifically reader comments.

In case you haven’t been following this topic over the past little while, it has become so contentious that it approaches “third rail” status in some media circles. Even mentioning it can spark heated debates and get you criticized and/or unfollowed by prominent figures in the industry (and I speak from experience).

Spayd’s column, entitled “Want to Attract More Readers? Try Listening to Them,” drew a stinging rebuke from former New Republic executive editor Isaac Chotiner at Slate, who wrote a response in which he called it “terrible advice for the paper.” USA Today media critic Michael Wolff said on Twitter that the column was “drivel,” and MIT Technology Review editor Jason Pontin called it “disastrous.”

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “The NYT’s new public editor is right about comments, and here’s why”

There have been plenty of newsworthy incidents in the past that were caught on video by a bystander and streamed live on a social network or through an app. But it’s hard to remember a week like this one, with so many terrible reminders that we live in an era of always-on, real-time media—and just how chaotic and complicated and disturbing that can be.

The upside of a world in which everyone has a camera, and can perform essentially the same function as a journalist, is that we can see events unfolding in an uncensored and unfiltered way. That can bring with it a kind of horrible truth, but it can also create a fog of uncertainty.

What responsibilities do these companies have as the new gatekeepers for news? And what responsibility, if any, do we have as users when it comes to sharing that content?

The week began with the death of Alton Sterling, a 37-year-old black man who was shot multiple times by police in Baton Rouge, Louisiana as he lay on the ground outside a convenience store. Police described it as a reasonable use of force, but videos shot by witnesses painted a very different picture of a man already subdued, with no gun in sight.

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Facebook Live and Twitter make us all eyewitnesses now”

It’s easy to get frustrated with social media sometimes—the endless inane Twitter fights, the shallow selfies and food porn on Instagram, videos of exploding watermelons and other ephemera on Facebook. But every now and then, something happens that reminds us of how powerful these platforms can truly be, especially when traditional media either isn’t available or fails to do its job properly.

The sit-in on Wednesday in the House of Representatives is just one recent example. In case you missed the whole thing, a group of Democratic members led by Rep. John Lewis of Georgia decided to protest the lack of a vote on proposed gun-control legislation. In the Senate, the group would have been able to filibuster to show their displeasure, but that isn’t allowed in the House—so they staged a sit-in.

In the not-so-distant past, that would have been the end of it. Without cameras broadcasting the event, reports may have filtered out gradually via other means, but there would have been no real-time visual evidence. But now, everyone with a smartphone is effectively their own media company, a reporter and broadcaster all in one, thanks to Twitter and Facebook and their live-streaming tools. In other words, media has been almost completely democratized, for better or worse.

Note: This was originally published at Fortune, where I was a senior writer from 2015 to 2017

Continue reading “Love them or hate them, Twitter and Facebook have democratized media”