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Twitter Inc’s Dick Costolo stepping down, Jack Dorsey to return as interim CEO

Twitter Inc said Dick Costolo is stepping down after almost five years as chief executive and will be replaced by co-founder Jack Dorsey on an interim basis.

The company’s shares rose 7.7 per cent to US$38.60 in after-market trading on Thursday.

Costolo, who will step down on July 1, will continue to serve on the board, the company said in a regulatory filing.

Costolo has agreed to cancel all of his remaining unvested equity in Twitter after July 1.

Dorsey, who will continue to serve as CEO of Square Inc, has served as Twitter’s president and CEO from May 2007 to October 2008. The San Francisco company says Dorsey, 38, will be interim CEO while it looks for a replacement.

Twitter announced the move in a press release Thursday and Costolo also tweeted the news through his own account.

Costolo, 51, will stay on Twitter’s board of directors. He has been a director since September 2009 and became CEO in October 2010.

Our CEO, @dickc, will step down as CEO, and we’ll welcome @jack as Interim CEO on July 1 #TWTRannouncement: http://t.co/q8Ygg91jzc

— Twitter (@twitter) June 11, 2015

Welcome back, @jack !! https://t.co/3papmyUKg0

— dick costolo (@dickc) June 11, 2015

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© Thomson Reuters 2015, with files from The Associated Press

Facebook Inc-owned VR headset Oculus Rift will ship with an Xbox One controller, thanks to new Microsoft Corp partnership

Microsoft Corp. has announced a partnership with Oculus that will ensure every Oculus Rift virtual reality headset comes with an Xbox One gamepad.

Facebook Inc., which purchased Oculus for $US2 billion last March, plans to launch the Oculus Rift during the first quarter of 2016, and intends to focus the headset on both gaming and communication.

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“We believe we’ll be able to create state of the art virtual reality experiences with the Oculus Rift on top of Windows,” said Microsoft’s head of Xbox, Phil Spencer, during a pre-E3 Oculus press conference on Thursday.

Oculus Rift is set to work natively with Windows 10 and will allow users to stream Xbox One games directly to the headset. Microsoft making the decision to back Oculus has been seen as a strange by some because the company is preparing to release an augmented reality headset dubbed HoloLens.

However, HoloLen’s focus on augmented reality experiences is decidedly different from the direction Facebook is taking Oculus, and Microsoft’s Xbox One does not have a traditional virtual reality headset being developed for it like Sony’s Project Morpheus.

A wireless controller adapter that allows users to use the Xbox One’s gamepad with a PC, is expected to launch later this year.

With files from Bloomberg.

Inside the Toronto headquarters of 500px: Open spaces, a photo studio, puppies and more

The Financial Post tours the offices of tech companies for a behind-the-scenes look into Canada’s startup scene.

Company: 500px

Location: Toronto, Ont.

Founded: 2009

Number of employees: 50

Other offices: New York, San Francisco

Their office design: “By breaking the barriers and keeping an open concept space for both employees and executives, we want the team to have random interactions — a key to sparking new ideas.” — Evgeny Tchebotarev, co-founder and chief photography officer

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Massive Chalice review: Heroes die. Deal with it.

About 50 years into Double Fine’s Massive Chalice, a centuries-spanning game of fantasy-themed turn-based tactics, I realized that I was going to need to learn to let go.

That’s because of its clever take on the concept of “permadeath”; a game mechanic that makes most characters – even heroes – mortal. When they die they’re gone forever.

It’s far from the first game to implement the idea, but most others – especially in the turn-based strategy camp – make it possible (and even sometimes easy) to shepherd your favourite characters through the game from start to finish, either by reloading saves when they die or by keeping them out of the most dangerous situations.

Massive Chalice offers similar freedoms, but they make little difference in terms of keeping your battlers alive. That’s because they’re human and have a human lifespan. No matter how protective you are of your favourite warriors, they will eventually die of natural causes, anywhere from the age of around 40 to – if they’re really lucky – somewhere up in their mid-80s.

It’s a wonderfully sly way to move players away from the practice of saving every few minutes and reloading whenever things take a turn for the worse. It still sucks when powerful warriors die on the battlefield, but hey, they were going to go anyway. Better a quick, honourable death than one of sickness in bed, no?

Plus, your best warriors can bequeath powerful personal relics to their surviving family members, which means some of their power lives on after they die. Nothing like a little tangible legacy to brighten the mood at a vigil.

Double Fine Productions

Of course, this novel system also has its downsides.

Unlike other games in which permadeath plays a role – like, say, Intelligent System’s terrific Fire Emblem series – the heroes in Massive Chalice haven’t really any personality. They just aren’t around long enough. That makes caring for or taking an interest in them for any reason other than their battle prowess pretty unlikely.

Rather than hone in on individual heroes, Double Fine places the narrative focus on a nameless, faceless immortal commander inhabited by the player. The story – a pretty standard bit of fantasy fare about an encroaching evil called the Cadence that nips at the borders of a small continent – sees this commander summoned by the game’s titular enormous goblet. The chalice is set in the realm’s primary palace and is the place from which two voices, male and female, emanate to provide explanations, guidance, and the occasional joke. They serve as your only constant companions throughout the game.

Perhaps sensing a lack of satisfying exposition and character development, the writers have tossed in the occasional choose-your-own-adventure style twist wherein one of your heroes approaches with an issue that requires executive action. One might be interested in joining a 12-year-long tournament that would remove him or her from your retinue and could possibly result in death. Another might present you with a device he or she’s invented, the purpose of which is unknown. You must decide whether to destroy it, turn it on, or toss it into the magical chalice and see what happens (I strongly recommend that last option, by the way).

These quick little episodes make for engaging distractions and help make heroes into something more than names and ages. I wish there were more of them.

Double Fine Productions

Between battles – which happen every decade or so – a metered timeline scrolls across the screen marking off various events, including the deaths of old characters, births of new ones, and the completion of years-long armour and weapon research efforts and ambitious construction projects.

Indeed, a key part of the experience is managing all of these non-combat activities – especially your kingdom’s various families.

If you build a keep on a new parcel of land you need to withdraw one of your warriors from active duty and make him or her the regent, then choose another to marry him or her so they can produce babies.

It’s a surprisingly complex undertaking that involves analyzing not only the potential mates’ ages and fertility (you can, by the way, install same-sex couples as region rulers, though they won’t produce any offspring), but also the personal traits they might pass on and their battle disciplines and how they combine. This determines the sorts of warriors the keep will produce.

Fail to pay adequate attention to these details and you may find within a few short decades that you aren’t producing enough heroes to fill all available posts (other buildings besides keeps, such as the research-speeding Sagewright Guild, require heroes, too); that you haven’t enough warriors to take into battle when the Cadence attacks; or that all of your warriors are close-quarter fighters rather than a proper mix of ranged and melee combatants, which will make battles a lot harder.

Double Fine Productions

And that finally brings us to combat, the thing that, in most turn-based strategy games, makes or breaks the experience, but which plays a slightly less important role here given all the novel stuff Double Fine has us getting up to on the world screen.

And that’s good, because while Massive Chalice‘s combat is competent, it’s also kind of uneven.

Battles begin with an alarm alerting players that the Cadence is invading two or more borders. Players can pick which attack to repel based on the type of enemies spotted, the potential reward for victory, and how badly that particular bit of their empire needs protecting. Choose not to defend one area a few times in a row and it will be swallowed by evil.

Then you need to choose five heroes – assuming you have at least five available – and make sure they’re properly outfitted with the right armour and weapons for the job, plus spend earned skill points on special abilities, like an arrow shot that clears the fog of war. Once chosen they’ll all hop into the chalice and get zapped to the battlefront where the fighting begins.

The combat interface is a snap to learn: pick a hero, select a tile to move to, and choose to attack an enemy if you can. Each turn consists of two actions – movement and attack (or item use) – though you’ll lose the second action if you opt to travel beyond the orange zone defining your attack area.

All of this should prove pretty familiar for anyone who’s played these games before. It’s straightforward, rewards strategic planning, and is nicely executed.

Except when it’s not.

Double Fine Productions

Double Fine chose to procedurally generate battlefield maps, which makes for some puzzling layouts that can result in players randomly spawning near a huge horde of enemies or, conversely, make it a chore to find stragglers roaming around in the fog of war near the end of a match.

I actually encountered one map that seemed all but unwinnable. It was keep battle, in which the Cadence tries to kill off the local regent and destroy the castle and any trainees within. My cadre of seasoned, well-equipped heroes spawned on the opposite side of the map from the keep’s two masters, and no matter what I did (this was one of few battles I felt the need to keep restarting to see if I could figure out how to avoid disaster) I couldn’t get to them before multiple hordes of foes descended upon and murdered them.

This sort of unintentional misbalancing pops up in other places, too. For example, things start of kind of hard due to the immediate introduction of some admittedly cool and imaginative but surprisingly challenging enemies that do things like explode and damage all nearby characters.

Then, once you make it past the first few battles and into the middle part of the game where you can really begin building up your kingdom, things start to become weirdly easy for maybe 150 years or so. Some powerful enemies show up – including one that ages your characters with each hit (a wonderfully clever idea for an attack, given the game’s theme) – but you ought to be well equipped to handle them, as well as easily replace any lost heroes.

It’s not until the final act that things seem to become properly and fairly challenging. I’ll admit I played on Normal, and that harder difficulties could result in a better balanced experience, but I was nonetheless a little disappointed that combat didn’t remain consistently engaging from start to finish.

Double Fine Productions

The thing you can always count on with Double Fine is a game that defies expectations. Regardless of genre, the American indie studio’s designers always find ways to meaningfully shake things up in terms of both action and narrative, and this unusual generational take on turn-based strategy is no exception.

More than that, the developer is refreshingly and reliably egalitarian in all its work. Its library of games contains little in the way any sort of gender, race, or age bias – a true rarity within the medium. And Massive Chalice – with its dual-gendered cup, regents of all ages and both sexes, and heroes with a variety of skin tones – is perhaps the studio’s best example of diversity and representation yet. It’s welcomes all players.

All of this should be more than enough reason for strategy fans to give Massive Chalice a go. I’ve had a fine time with it.

But I can’t help but think of the game it could have been with just a little more sanding applied to its rougher edges.

Rupert Murdoch to step down as 21st Century Fox CEO, son James will take over, source says

Rupert Murdoch is preparing to step down as chief executive officer of 21st Century Fox Inc. and will hand the CEO title to his son James, according to a person familiar with the matter.

While it’s unclear whether a reorganization would happen this year or at the start of 2016, Murdoch would stay as chairman, CNBC said earlier, citing unidentified sources close to the family. An announcement is expected in the near-term, the cable channel said.

“The matter of succession is on the agenda at our upcoming, regularly scheduled board meeting,” Fox said in a statement, without elaborating.

–With assistance from Rob Golum in Los Angeles.

Bloomberg.com

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Microsoft Corp reveals gigantic US$20,000 84-inch Surface Hub

Revealing its price tag for the first time, Microsoft Corp. will sell a bigger version of its new, wall-mounted video-conferencing and digital whiteboard device for US$20,000, making it the most expensive product in its hardware line-up, the software company said on Wednesday.

Orders start July 1 for the Surface Hub, which Microsoft hopes will become a fixture in meeting rooms around the world. It will run a custom version of Windows 10, Microsoft’s new operating system due out in late July. Deliveries will start in September.

Despite the hefty price tag, Microsoft is betting that the Surface Hub will appeal to businesses that are used to spending multiples of that amount on conference room facilities.

“The theoretical market may be much bigger than the actual market,” said JP Gownder, an analyst at tech research firm Forrester. He said the device likely will not be an instant hit with businesses, but should appeal to companies where collaborative work is important, such as product design or marketing and advertising.

Integrating video-calling and note-taking onto a touch screen, the Surface Hub traces its roots back to products made by Perceptive Pixel, an Oregon-based company Microsoft bought in 2012. Microsoft unveiled a prototype of the new device in January.

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It is the latest step in Microsoft’s foray into high-tech hardware, starting with the launch of the Surface tablet in 2012 and the purchase of Nokia’s handset business last year.

An 84-inch screen version will sell for US$20,000. A smaller 55-inch version will sell for $7,000.

The Surface Hub will “pay for itself and make money” said Mike Angiulo, who runs Microsoft’s devices group.

Angiulo would not reveal how many Surface Hubs are being produced, but said there was a large potential market of millions of conference rooms used by organizations worldwide.

There is no clear market segment for the Surface Hub, which blends elements of video conferencing systems such as those made by Cisco Systems Inc and digital whiteboards made by Panasonic Corp and others. The only directly comparable product is the Mondopad, made by InFocus, which is priced slightly lower than Microsoft’s offering.

The larger Surface Hub model, which is just over 4 inches (10 cm) thick and weighs 127 kg (280 lbs), features the biggest single piece of glass for an electronic product in production, Angiulo said. Microsoft makes the devices in Wilsonville, Oregon.

© Thomson Reuters 2015

Making it pay: Can Pinterest, Instagram and Snapchat convert followers to buyers?

It’s a balance few social media companies, even the kingpins, manage to achieve.

After building loyalty by offering users free services, social media companies eventually have to show investors they’re serious about making money. “You have to convert that audience into sustainable revenue,” says Carmi Levy, an independent tech analyst based in London, Ont.

That conversion will be a balancing act for Pinterest, Instagram and Snapchat, which have just come move forward with new business models. “On the one hand, you want to generate as much revenue as possible from existing online activities,” says Levy. “On the other hand, you don’t want to change the user experience so radically that you drive people away.”

Twitter, LinkedIn and Yelp have seen year-over-year quarterly revenue increase by between 55 and 72 per cent. Yet, just last month, shares fell 20 per cent for each company after they reported net losses. Twitter reported a loss of US$162 million, LinkedIn US$43 million and Yelp US$1.3 million. None of the companies was profitable and only Yelp was able to narrow its net loss.

We look at whether Pinterest, Instagram and Snapchat can generate real income without losing their near 500 million collective users.

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Snapchat

In January, the video-sharing app that allows users to post seconds-long clips that disappear after being viewed, invited advertisers to do the same. Last week, the company’s 24-year-old co-founder and CEO, Evan Spiegel, revealed the strategy behind the ads, as it seeks more deals.

Because Snapchat doesn’t store information from posts, it can’t deploy targeted marketing. Instead, advertisers create commercials, or “stories,” that are shot vertically to fit a smartphone screen. Recent advertisers posting “stories,” include Maybelline New York, and Warner Bros. Pictures promoting its earthquake disaster film “San Andreas.”

While shooting ads for one platform may deter some agencies, people are nine times more likely to watch the entire ad if they don’t have to turn their phone, according to Snapchat.

The company, worth US$16 billion, has raised US$538 million from investors since mid-February while preparing to cash in on its young audience, which includes 60 per cent of all smartphone users between the ages 13 and 34 in the United States. In total, Snapchat can deliver 100 million active users to advertisers.

However, because there is no archived data, advertisers can’t gauge who’s viewing their commercials, losing a valuable analytics measure. Dr. Anatoliy Gruzd, director of the Social Media Lab at Ryerson University, predicts the company’s ad strategy will be less successful than Instagram or Pinterest. “I think (Snapchat) needs to be creative in terms of how they make revenue,” he says, suggesting a subscription-based service may be a better option.

Instagram

Instagram, bought by Facebook for US$1 billion in 2012, announced Tuesday that it’s opening the floodgates to marketers with its “Shop Now” buttons and more ads. Advertisers will target consumers based on search history and demographic factors. The company will also test ads with click-to-buy features.

While the mobile photo-sharing site has remained largely ad-free since its launch in 2010, it did test a small number of big-brand ads in 2013. The trial, which featured companies like Disney, Ben and Jerry’s and The Gap, prompted an angry response from users, some of whom threatened to delete their accounts.

Gruzd says the reaction was no surprise. “When we’re using Instagram, we’re not there to buy something. We’re there to socialize, to share our experiences. It’s difficult for companies to turn that into a purchasing experience.”

However, user numbers grew steadily and Facebook’s stock rose. Based on the apparent success of that trial, RBC Capital Markets estimates the company could bring in an additional US$1.3 billion to US$2.1 billion in revenue in a single year, assuming the new ad strategy is implemented soon.

Facebook intends to generate big money from Instagram. The under-34 group among the 300 million users frequenting the site is attractive to apparel, entertainment and media brands. Facebook’s stock rose US$79.19 to US$82.44 from May 2 to June, during the period Instagram announced its monetization strategy.

Pinterest

The virtual scrapbooking site that lets users create and share “pinboards” filled with items from DIY projects to home décor announced last week it’s adding a “buyable pin” feature. The new button will turn “pins” into potential sales by allowing users to purchase items directly from Pinterest.

The company says items from brands including Macy’s, Neiman Marcus, Nordstrom, Cole Haan, Michaels and thousands of Shopify stores will have the pins.

Pinterest ramped up for buyable pins with a round of funding early this year, which pushed the company’s value to US$11 billion, up from US$5 billion a year ago.

The company, whose site attracts more than 70 million monthly users in the United States, seems the safest bet for investors under its new business model since, as Levy points out, “it won’t fundamentally change how you’ve been using Pinterest all along.”

Since Pinterest was founded in 2010, users have pinned a whopping 50 billion of their favourite things from the site, a 66 per cent increase since last April.

 

Spotify Ltd value tops US$8 billion as investors sink in another US$526 million in latest funding round

Spotify Ltd. received a valuation topping US$8 billion in its latest round of funding as the world’s largest subscription music-streaming service said its number of customers exceeded 75 million.

The company raised money from phone carrier TeliaSonera AB, which said Wednesday it paid US$115 million for a 1.4 per cent stake. Other investors in the US$526 million financing round include Goldman Sachs Group Inc. and Baillie Gifford & Co., the Wall Street Journal reported.

Spotify continues to amass funds as it tries to boost its subscription service before Apple Inc. gains more customers for its updated music offering, unveiled this week. Both Apple and Spotify give users access to more than 30 million songs, and each service costs US$9.99 a month.

“This is a field where you will see a lot of competition and where it’s very clear that Spotify has taken a lead,” TeliaSonera Chief Executive Officer Johan Dennelind said by phone. “We will see more and more shifting towards streaming in music and other things.”

With music purchases shrinking in stores and online, streaming has emerged as the industry’s primary source of growth. Record labels acknowledge its significance, while complaining streaming has failed to replace lost retail sales.

Spotify now has more than 20 million paying subscribers and more than 75 million active users, it said in a statement on its website Wednesday. The company said it has paid more than US$3 billion in royalties to artists and record labels since its start 6 1/2 ago.

Related Albums Pulled

CEO Daniel Ek has tackled criticism from artists who said payments from the music service aren’t trickling down into their pockets. Taylor Swift removed her music from Spotify last year just as her new album was released.

Though Apple remains the largest music retailer in the world, its place as an industry leader is being challenged. More than a quarter of Spotify’s users pay for the ad-free subscription at a time when the music industry’s revenue from streaming is on pace to exceed sales from downloads. Music is the most popular genre on Google Inc.’s YouTube’s video service, which attracts more than 1 billion users a month.

Pandora Media Inc., which runs an ad-supported Web radio, reported 79.2 million active listeners at the end of the first quarter. The company has a market value of US$3.6 billion.

Spotify had been in the process of raising new financing at a valuation of about $8 billion, twice what it was worth when it raised money at the end of 2013, Bloomberg reported April 11. A spokeswoman for Spotify wasn’t immediately available to comment on the most recent funding round.

Spotify is also expanding its partnership with TeliaSonera, working with the Swedish carrier on media distribution, customer and data analysis and advertising.

Ek said last month Spotify will add podcasts and video content to attract more advertising revenue and fend off competition from Apple and Google.

Bloomberg News

SpaceX founder Elon Musk files for permission to beam Internet service from space

Elon Musk’s space company has asked the federal government for permission to begin testing on an ambitious project to beam Internet service from space, a significant step forward for an initiative that could create another major competitor to Comcast, AT&T and other telecom companies.

The plan calls for launching a constellation of 4,000 small and cheap satellites that will beam high-speed Internet signals to all parts of the globe, including its most remote regions. Musk has said the effort “would be like rebuilding the Internet in space.”

If successful, the attempt could transform the L.A.-based SpaceX from a pure rocket company into a massive high-speed Internet provider that would take on major companies in the developed world but also make first-time customers out of the billions of people who are currently not online.

The idea of saturing Earth with Internet signals from space has long been the dream of prominent business tycoons, including Bill Gates in the 1990s. But many of these ventures have run into obstacles that Musk is working to avoid. Musk has his own rocket, and he has said his swarm of satellites will be more efficient and inexpensive than relying on a handful of big devices that are difficult to replace.

Dish Network and DirecTV, for instance, have for years relied on a few older satellites that are cast much farther into space and can only serve specific regions such as the United States. SpaceX’s web of satellites, would wrap around Earth in low orbit, handing off Internet signals to each other to make connections more reliable and to reach more areas.

The filing, made with the Federal Communications Commission late last month, is the first public glimpse into how Musk will move ahead with the project.

Musk isn’t the only billionaire entrepreneur who is pursuing such an idea. Virgin’s Richard Branson has partnered with a company with similar ambitions. Both ventures would have to succeed where many have failed.

Facebook recently abandoned its plan to build a US$500-million satellite that would provide Internet service across the globe, according to tech site the Information.

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And a previous effort by a firm called LightSquared to use satellites to provide wireless service fell apart three years ago, despite initial backing from the FCC. Military officials complained at the time that the technology interfered with the radar used by planes — a problem that shouldn’t hinder Musk’s effort, industry officials said.

Musk’s FCC filing proposes tests starting next year. If all goes well, the service could be up and running in about five years.

The satellites would be deployed from one of SpaceX’s rockets, the Falcon 9. Once in orbit, the satellites will connect to ground stations located at three West Coast facilities. The purpose of the tests is to see if the antenna technology used on the satellites will be able to deliver high-speed Internet to the ground without hiccups.

Despite a history of failed satellite ventures, wealthy individuals and companies are pouring fresh funds into exploring satellite-based communications. Google and Fidelity recently invested US$1 billion into SpaceX, in part to support the satellite broadband Internet project.

A company called OneWeb, backed by Virgin’s Branson and founded by Greg Wyler, has similar ambitions: “OneWeb’s mission is to bring the entire world online to improve quality of life and spur economic and national development where it’s needed most,” Wyler has said.

Wyler was also involved in launching O3b Networks, which already has 12 satellites in space, providing Internet to 40 customers, including Royal Caribbean International, the Republic of Congo and the Papua New Guinea University of Technology, an O3b spokeswoman said.

Some analysts say that while the technology appears promising, the basic logistics are difficult to overcome. In the mid-1990s, Teledesic, a company funded by Bill Gates, legendary wireless executive Craig McCaw and a Saudi prince, tried to employ a similar plan to use low-Earth orbiting satellites to provide Internet access. But costs ballooned to more than US$9 billion, and the venture ultimately collapsed.

The new space entrepreneurs are proposing technology that is smaller, built in-house and therefore cheaper to operate, industry officials say.

“Some people might say the idea of satellite broadband has come and gone. But the cost structure of the business is so much better than when Bill Gates tried it,” said Paul Gallant, analyst at Guggenheim Partners, an investment firm. “I think Musk’s track record of disruptive innovation would make this a really attractive business for the. . . FCC to support.”

SpaceX declined to comment for this article beyond the public document of its plans. The FCC declined to comment, saying the application is currently under review.

Musk’s track record of disruptive innovation would make this a really attractive business for the. . . FCC to support

In January, at a private event to recruit engineers to work at a new satellite design and manufacturing plant in Redmond, Washington, Musk predicted that SpaceX’s system would reach remote regions and handle up to 10 per cent of Internet traffic in urban and suburban regions, “where people are stuck with TimeWarner or Comcast.” His remarks were videotaped by someone in the audience and posted on YouTube.

It would also be a “real enabler for people in poorer regions of the world,” Musk said, though he later conceded that SpaceX would need permission from countries to operate the service, a process that could be difficult, if not impossible.

Over the last several years, SpaceX has moved from a spunky startup with a seemingly outlandish goal of colonizing Mars to disruptive competitor that has remade the rocket launch business. It became the first commercial space company to fly supplies to the International Space Station. Last year, it won a separate contract to fly astronauts there by 2017. And the Pentagon recently qualified the company to compete for lucrative missions to launch national security satellites into orbit.

SpaceX’s main goal remains flying people to Mars, because in order to survive, Musk thinks, humans must become a “multi-planetary species.”

“Mars is going to need a global communications system, too,” he said in his January remarks. “A lot of what we do developing Earth-based communications can be leveraged for Mars, as well, as crazy as that may sound.”

The Washington Post

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