In addition to the social media bubble with companies such as Groupon backed by asset management giants such as Fidelity, T. Rowe Price, American Funds (Capital Group) and Morgan Stanley, The Wall Street Journal reports that Tumblr, a company that combines social media and blogging, is valued by venture capital financiers to be worth $800 million.
This is significantly insane. The company, which was founded in 2007 by David Karp, a high-school dropout who was 20 years old when he founded the site, has non existent revenue but has managed to raise roughly $85 million in investment capital.The company, which has only 50 employees, is a a darling to Wall Street West, the venture capital industry. According to the Journal, Greylock Partners, Insight Venture Partners, Spark Capital, Union Square and Sequoia Capital.
Chelsea Clinton will become a director for Barry Diller’s media giant IAC/Interactive Corp coming to that media company with virtually no experience in the media industry. Ms. Clinton, in addition to being a corporate director, will be working on her doctorated degree from Oxford, NYU and The Clinton Foundation. Much more will be written about the Clinton’s interconnection to the media business and Wall Street in the new “The Pirates of Manhattan II: Highway to Serfdom.”
Chelsea Clinton previously worked for Avenue Capital. Bill Clinton was a Pirate of Manhattan with Ron Burkle’s Yucaipa funds. Hillary Clinton’s largest donators come from Wall Street. Chelsea Clinton is married to a former investment banker from Goldman Sachs and 3G Capital.
Not too much encouragement from a federal watchdog overlooking the death of Freddie Mac. A report released by the Federal Housing Finance Authority suggest that Freddie Mac was more interested in preserving its business relationships with Bank of America, citing the authority has not been aggressive enough in reviewing its loans it took on. Freddie Mac and Fannie Mae are another Wall Street tool, when those two agencies were two of the biggest investors in Peter Cooper Village-Stuyvesant Village, the record New York City real estate flop which even took the Church of England out for $70 million.
More about this in The Pirates Manhattan II.