A LinkedIn exec explains how the company will hit $2 billion in ad revenue this year, and why it's betting big on video
- LinkedIn announced that it has 590 million members, more than 30 million Company Pages, and generates more than 2 million pieces of content in its newsfeed every day.
- During a press event on Tuesday, Tomer Cohen, VP of product at LinkedIn Marketing Services, said that LinkedIn's media business that sells advertising will hit $2 billion in revenue this year.
- Business Insider talked with Cohen about LinkedIn's ad business and how the company sees brands using its platform.
- LinkedIn You're seeing an increase in sessions, close to up to 60% year-over-year on mobile — that leads to more people coming back to the newsfeed and consuming more.
- Our members are coming to Linkedin more frequently right now and are looking to engage with businesses on LinkedIn. Businesses want to connect with those communities — whether it's for hiring purposes, for selling purposes, for partnering purposes [or] to excite and their own employee base.
General Electric spikes after announcing plans to speed up the sale of some of its $4 billion stake in oilfield-services provider Baker Hughes
- General Electric jumped as much as 8% Tuesday after the company announced plans to slash its stake in the oilfield-services provider Baker Hughes.
- Based on Baker Hughes' Monday closing price of $23.64, the total sale would raise $4 billion.
- After the result, GE will retain about half of the Houston-based company.
- Larry Culp, who was appointed as GE's new CEO on October 1, is speeding up efforts to raise cash and reduce debt to increase investor confidence.
- On Monday, Culp told CNBC that his company has "no higher priority right now than bringing those leverage levels down," and that he will do so by selling assets.
- GE shares have been under pressures recently, trading at post-financial crisis lows after the conglomerate reported disappointing quarterly results, slashed its dividend to a penny, and said that a recent $22 billion write-down of its struggling power business was being investigated by federal regulators.
Digital ad spending grew to $49.5B in the first half of 2018, according to IAB
- The online advertising business continues to grow at double-digit rates, according to the latest report from the Interactive Advertising Bureau (a trade group for online advertisers and publishers).
- According to the report, which was prepared for the IAB by PricewaterhouseCoopers, digital ad revenue in the U.S. reached $49.5 billion in the first half of 2018, up 23 percent year-over-year.
- And more of those ad dollars are shifting to mobile, which accounted for 63 percent of the total, compared to 54 percent during the same period last year.
- Meanwhile, video advertising is up 35 percent to $7 billion, with mobile video accounting for 60 percent of the total.
- Digital audio ad revenue is up 31 percent to $935 million, and social media revenue is up 38 percent, to $13.1 billion.
Movile raises $400 million for its iFood delivery business
- The Brazilian technology conglomerate Movile has just raised one of the largest rounds ever recorded for a Latin American startup, pulling in an additional $400 million for its iFood subsidiary from existing investors including Naspers and Innova Capital.
- iFood alone recorded 10.4 million delivery orders for the month of October and the growth of the business is nothing short of explosive.
- In an interview onstage at TechCrunch’s Startup Battlefield Latin America event last week, Bloisi attributed the company’s success to its aggressive mergers and acquisitions strategy across the region and an ability to rapidly spin up and shut down business units as it experimented with what could work for Latin American consumers.
- To continue financing its growth through acquisitions, Movile raised another $55 million from Innova Capital, Jorge Paulo Lemann and FINEP in its Series D round in 2014.
WeWork picks up ANOTHER $3B from SoftBank
- WeWork has picked up another $3 billion in financing from SoftBank Corp, not to be confused with SoftBank Vision Fund.
- The deal comes in the form of a warrant, allowing SoftBank to pay $3 billion for the opportunity to buy shares before September 2019 at a price of $110 or higher, ultimately valuing WeWork at $42 billion minimum.
- In August, SoftBank Corp invested $1 billion in WeWork in the form of a convertible note.
- According to the Financial Times, SoftBank will pay WeWork $1.5 billion on January 15, 2019 and another $1.5 billion on April 15.
- SoftBank is far and away WeWork’s biggest investor, with SoftBank Vision Fund having poured $4.4 billion into the company just last year.
- The biggest issue is whether or not WeWork can sustain its outrageous growth, which seems to have been the key to its soaring valuation.
SoftBank committed another $3 billion to WeWork, and the deal could value the office sharing firm at around $42 billion
- Office sharing firm WeWork has secured an additional $3 billion from Japanese tech giant SoftBank, bringing its total funding and commitments to $6.4 billion.
- The warrant automatically converts to stock in September at a price that gives WeWork a valuation of around $42 billion — provided the company doesn't go public or sell in the meantime.
- Business Insider first reported in June that WeWork was in talks with SoftBank to raise further funding at a $35 billion valuation.
- According to third-quarter financials seen by Business Insider, WeWork has substantially increased its revenue but its losses have more than tripled.
- The new funding from SoftBank comes after the firm invested in $1 billion in convertible debt in August.
- The company said it had seen improved occupancy rates, a key metric for investors worried about tenants leaving after a short period and saddling WeWork with expensive lease commitments.
Amazon Selects New York City and Arlington, Va., as Its HQ2 Cities
- Amazon announced it has selected New York City and Arlington, Virginia, as the locations for new headquarters, with hiring at both locations beginning in 2019.
- Amazon will invest $5 billion and create more than 50,000 jobs across the two new headquarters.
- In addition, it selects Nashville as new Operations Center of Excellence with more than 5,000 jobs.
- The new Washington, D.C., metro headquarters in Arlington will be located in National Landing.
- Amazon will receive performance-based direct incentives of $573 million based on the company creating 25,000 jobs with an average wage of over $150,000 in Arlington.
- The New York City headquarters will be located in the Long Island City neighborhood in Queens.
- Amazon will receive performance-based direct incentives of $1.525 billion based on the company creating 25,000 jobs in Long Island City.
New Yorkers are freaking out that Amazon's HQ2 could cripple the subway system, but the reality is more complicated
- Amazon has reportedly decided on two locations for its second headquarters: Long Island City, Queens, and Crystal City, Virginia.
- That would have brought 50,000 new jobs and add $50 billion to a city's economy.
- A $25 billion economic stimulus and 25,000 more workers could do wonders for Long Island City — an area that has only recently begun to attract a growing population.
- Before word surfaced about Amazon's choice, New York City had a plan for its deteriorating subway.
- In May, the Metropolitan Transit Authority revealed a $37 billion strategy to install a new signal system across multiple lines, add thousands of new subway cars, and renovate old cars.
- The plan also included an updated fare method and hundreds of new elevators at subway stations.
- A spokesperson for Gov. Andrew Cuomo told the New York Times the plan was "dead on arrival" without the city's investment.
Walmart’s Indian venture Flipkart loses CEO after misconduct probe
- Bansal has strongly denied the allegations, the company said in a statement.
- Bansal and his representatives could not be reached for comment.
- Kalyan Krishnamurthy, who heads the company’s main Flipkart e-commerce operation, would now act as chief executive for a broader group of businesses including apparel websites Myntra and Jabong, the company said.
- Walmart earlier this year agree to pay $16 billion for a roughly 77 percent stake in the Indian e-commerce firm, Amazon’s main rival for India’s 1.3 billion consumers.
- It was the U.S. retailer’s largest-ever deal and a major move in its efforts to oppose Amazon at home and abroad.
Exclusive: Cloud Securer Netskope Raises $170 Million, Sprouts 'Unicorn' Horn
- Netskope, a cybersecurity firm that specializes in “cloud” security, has raised $169 million in a new round of venture capital funding.
- Sanjay Beri, Netskope’s CEO and cofounder, and the company’s lead investor, Lightspeed Venture Partners, confirmed to Fortune that Netskope’s valuation now exceeds $1 billion, but they declined to reveal the exact figure.
- Lightspeed Venture Partners, an existing investor that controls two Netskope board seats, led Netskope’s latest round of funding.
- The firm continued to invest in subsequent rounds like Netskope’s $100 million raise last year, including as co-leader, along with venture capital firm Accel.
- The rest of Netskope’s existing investors re-upped their investments in the latest round of funding, including Accel, Geodesic Capital, Iconiq Capital, Sapphire Ventures, and Social Capital.