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Running Naked: Mark Cuban Just “Pulled Down the Shorts” of CDNs Everywhere January 28, 2009

Posted by John in social media, Technology.
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Mark Cuban just ran up behind the CDNs and pulled down their ‘shorts’ exposing a BIG problem. Video on the internet is far from democratized it’s a dictatorship.   For once we are not talking about the cable companies or service providers (although they have issues).

The Maverick strikes again.  Where Mark does not talk about in his post is the need for a viable P2P platform now!  The P4P standard group offers hope, but their motto is “No We Can’t”.

We need legit P2P standards now for a viable platform for online live and ondemand video.

The post is worth reading but here is my favorite part ..

Lets say you have your “Worlds Greatest Concert” that you are sure can draw 500k simultaneous streams (on demand or live) . Also planning to stream a large event, lets say the first broadcast of Dark Knight 2, which the producers will stream live at the same time, and oh my goodness, the remaining Beatles decide to have their final reunion with a single live concert at the exact same time. 3 Mega events, each with an expected draw of 500k simultaneous users. Who has the greatest opportunity and the most leverage ?

Thats easy. Its the CDNs. You have so few choices of vendors that the CDNs can charge whatever they want to handle the event. And thats for one single event. You dont want to know about costs for 24×7 streaming for viewership levels of even small cable networks.

The internet is not an open video platform. Video distribution of any scale places you  at the mercy of just a very few CDNs.  You literally have to compete for timeslots for very large events.  If you want an interesting excercise, call up a CDN and ask them how much it would cost to support an audience that is never smaller than 10k simultaneous viewers for a 1mbs stream, 24 hours a day, for 365 consecutive days. Then call up one of the satellite providers and ask how much they would charge you to deliver to 100pct of their customers, and then call up a cable company and ask the same question.  Total up the cable and satellite numbers and compare them to the internet costs. You may be surprised to see which is cheaper.

If you have dreams of competing with traditional TV network viewing numbers using the internet, dream on.  You cant afford it. You have been sucker punched  by the Great Internet Lie.

SEC Charges “Maverick” Mark Cuban With Insider Trading – No Way November 17, 2008

Posted by John in Technology.
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Update 2: Mark Cuban is taking this to the street. How bout some street ball SEC??

Update: Mark Cuban responds to the charge. Again I think this is BullShit with a capital BS.

Federal regulators have charged Dallas Mavericks owner Mark Cuban with insider trading for allegedly using confidential information on a stock sale to avoid more than $750,000 in losses.

The Securities and Exchange Commission filed a civil lawsuit against Cuban on Monday in federal court in Dallas. The agency says that in June 2004, Cuban was invited to get in on the coming stock offering by Mamma.com Inc. after he agreed to keep the information private.

The SEC says Cuban knew the shares would be sold below the current market price, and a few hours after receiving the information, told his broker to sell all shares in the search engine company.

I find that this is bullshit. I would be shocked to find that Mark Cuban was engaged with insider trading. Mark is the ultimate industry leader in opinion and knowledge. He is an insider and leading voice. Mark has also made tons of money so I’m surprised that he would do any insider trading.

Remember innocent until proven guilty. Mark is the wrong person to hang a political agenda around. He is certainly has an opinion about things but not a criminal.

Here is the text from the filing against Mark Cuban

FOR IMMEDIATE RELEASE
2008-273

Washington, D.C., Nov. 17, 2008 — The Securities and Exchange Commission today charged Dallas entrepreneur Mark Cuban with insider trading for selling 600,000 shares of the stock of an Internet search engine company on the basis of material, non-public information concerning an impending stock offering.

The Commission’s complaint, filed in the U.S. District Court for the Northern District of Texas, alleges that in June 2004, Mamma.com Inc. invited Cuban to participate in the stock offering after he agreed to keep the information confidential. The complaint further alleges that Cuban knew that the offering would be conducted at a discount to the prevailing market price and that it would be dilutive to existing shareholders.

Within hours of receiving this information, according to the complaint, Cuban called his broker and instructed him to sell Cuban’s entire position in the company. When the offering was publicly announced, Mamma.com’s stock price opened at $11.89, down $1.215 or 9.3 percent from the prior day’s closing price of $13.105. According to the complaint, Cuban avoided losses in excess of $750,000 by selling his stock prior to the public announcement of the offering.

“Insider trading cases are a high priority for the Commission. This case demonstrates yet again that the Commission will aggressively pursue illegal insider trading whenever it occurs,” said Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement.

Scott W. Friestad, Deputy Director of the SEC’s Division of Enforcement, said, “As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential. Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares. It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market.”

The complaint alleges that Cuban violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Commission’s complaint seeks to permanently enjoin Cuban from future violations of the federal securities laws, disgorgement (with prejudgment interest), and a financial penalty.

Yahoo’s New CEO Mark Cuban ? It Would Work – He’s a Maverick June 17, 2008

Posted by John in Technology.
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Kara Swisher has a post on the short list of CEO candidates for Yahoo. She is assuming that Jerry won’t make it. I think that he’ll last even though everyone wants his head.

That being said Kara brings up a great candidate that isn’t a wildcard in my mind – Mark Cuban. I’ve had the chance to get to know Mark over the past few years – we even did a podcast together way back when. He has the attitude to move Yahoo fast in a good direction. Translation: he isn’t afraid to say what is needed to say, do what is needed to do, and recruit the right team to dominate a market.

Forget his enterpreneurship background and his aggressive in your face personality (which I don’t mind at all), he has done something pretty amazing lately. He bought and turned around a NBA franchise in the Dallas Mavericks – and he did it fast.

What relevance does that have? Well pro athletes have huge egos, get paid big bucks, and are high maintence – but their good (hence called pros). The business deals in big swings and big money. All of this sound like Yahoo?

Plus what sweetness it would be for Mark to come back to Yahoo after his stint there post broadcast.com.

Mark: The question for you is… would you take it?

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