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Updated: 8 years 10 months ago

Tales from the Borderlands – Episode Three review: Tame jokes, lacklustre action, the worst Telltale episode yet

The strength of Telltale Games’ episodic Tales from the Borderlands series lays entirely within its wacky yet weirdly digestible humour.

Its heroes are often daft, but also familiar and even loveable. Its violence is frequently gruesome, but in unexpected, giggle-inducing ways. It’s like watching our friends playing sci-fi shoot-em-up.

However, as the sci-fi series crosses the midseason hump it’s losing some of this charm.

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Our protagonists – middle manager Rhys (a cyborg carrying the electronic ghost of his former boss) and his geeky buddy Vaughn, along with soft-hearted hustler Fiona and her sister Sasha, all still trying to lay their mitts on the alien riches of one of planet Pandora’s famed Vaults – remain likeable, but are strangely static in development and surprisingly short on wit.

The third episode sees this unlikely quartet making its way to a domed biological facility to find something called an Energy Chassis (the latest in a series of uninspired McGuffins) for Gortys, a new robot companion now leading them to the Vault.

Unfortunately, little else of consequence happens this two-hour adventure, save – should the player choose via the dialogue tree – a hint of romantic development between two main characters. And there aren’t even many laughs to carry us through the slow spells.

The problem is that our heroes are a little too earnest this time out, more interested in exploring who they are and respecting each other’s feelings than cracking jokes at one another’s expense. For the first hour or so Vaughn endures an admittedly laugh-aloud predicament quite fitting of the Borderlands milieu, but once it’s resolved I’m not sure I did much more than smirk at any of the company’s disappointingly mild barbs and quips.

What’s more, the writers seem lost as to what to do with the format they established in the first two episodes, whereby the bulk of the adventure is related by Fiona and Rhys as flashbacks from their personal (and often conflicting) perspectives. The duo only significantly disagree once regarding the circumstances of recalled events. The format is almost completely forgotten for much of the final half of the episode, during which we switch between controlling Fiona and Rhys regularly without jumping back to the present to change the teller of the tale.

Then there are the action sequences, which, as usual, rely heavily upon onscreen cues and quick-time taps. Telltale’s designers have managed, if only sporadically, to make this interface fit the Borderlands vibe in previous episodes – like the hilarious stun baton sequence in Episode One – but not this time. The action is mostly lifeless and, worse, frequently frustrating.

[youtube=http://www.youtube.com/watch?v=MwiEKpLuCbU&w=640&h=390]

Within minutes of the intro players find themselves following Fiona and Rhys in a hallway guarded by sentry turrets that will instantly and repeatedly kill those of us whose quick-time skills have rusted over since the last episode. Later, a climb up collapsing scaffolding is made needlessly complex via a bizarre mix of button inputs that are both unintuitive and needlessly confusing.

The episode’s big and lengthy finale is, thankfully, less annoying. But it’s also – save for a fun little scene that involves controlling the movements of a character suspended upside down with feet bound – mightily uninspired.

The imaginative, over-the-top nature of the violence of previous episodes is simply missing. Anything resembling the brilliant Loader Bot battle of the first episode is nowhere to be seen. In its place we’re given run-of-the-mill firefights that require dodges and a bit of quick targeting and not much more. The introduction of a wonderfully intimidating looking but not particularly potent new villain named Vallory just feels like a tease.

To top it all off, Catch a Ride feels like one of the most unpolished episodes in any series Telltale Games has yet released. I encountered overly long loading screens. A character who spoke without moving her lips. Discrepancies in volume when switching between characters and scenes. At a crucial point a (very predictably timed) Xbox Achievement notification popped up and pretty much completely obscured a timed dialogue decision at the beginning of a new scene, forcing me to choose an option at random.

And remember that Telltale is taking its time delivering Tales from the Borderlands. We’ve seen an average of about three-and-a-half months separating each episode so far. You’d expect something a little more release-worthy, given all those weeks.

Tales from the Borderlands: Episode Three – Catch a Ride isn’t without moments of mirth and fun, but by and large it’s a pretty big disappointment. The series hasn’t lost my interest quite yet – I’m still hoping Loader Bot has at least one more outrageous save-the-day moment in him – but its penultimate episode has some damage to repair.

Bell goes ‘where puck is going’ with fibre optic gigabit build-out

TORONTO — BCE Inc.’s Bell Canada plans to spend $1.14 billion through the end of 2017 to upgrade and build out its fibre optic cable network in the country’s largest city, providing the necessary railway to power its new broadband service that is promising to deliver the fastest Internet speeds available today.

Sometime this summer, users in roughly 50,000 homes and businesses in unspecified areas across Toronto will be connected to the network infrastructure required to access a new product called Gigabit Fibe, which Bell says can deliver download speeds of as much as a gigabit, or 1,ooo megabits, per second. Bell expects it will have a footprint of 1.1 million premises in the city by the end of the project, which the telco described in a release Thursday as its “single largest infrastructure expansion project” in its history.

You have to go where the puck is going to go

Internet service providers are in a high-stakes race to satisfy consumers’ increasingly insatiable demand for constant connectivity, faster download speeds and more reliability. Thursday’s news offers BCE investors a window into how the company plans to use the $20 billion it has allocated to improving its broadband and cellular networks – plus how it will tackle one of the country’s fiercest battlegrounds for the telcos.

When asked why the company embarked on such an ambitious project, BCE Chief Executive George Cope borrowed the spirit of a famous Wayne Gretzky quote, responding: “You have to go where the puck is going to go,” not where it has been. He has little choice since users are expecting more. “When we get out two, three, four years from now, we’re going to have to have this type of technology.”

In neighbourhoods where Bell’s fibre optic cables are connected straight to a building, data can travel both to and from the location at a speed of up to 175 megabits per second. Rival Rogers Communications Inc. says it can achieve download speeds in its cable wires of up to 250 megabits per second.

Bell field crews will install more than 90,000 kilometres of new fibre cables, of which an estimated 70 per cent will pass through 80,000 utility poles and the rest via approximately 10,000 manholes. Bell says it has agreements in place with Toronto Hydro to share the utility poles, which “should help lower deployment costs and speed up deployment,” RBC Capital Markets analyst Drew McReynolds said in a note to clients. Generally, it is faster and less costly to place wiring in the air than in the ground.

The funds to fully finance this initiative are built into BCE’s current capital structure, Cope said. Bell will rely heavily on the continued cooperation of the City of Toronto to ensure work is completed without delay or issue. Toronto Mayor John Tory, who spoke at Bell’s press conference, said city staff “have been working on this project for several months, trying to streamline the process, trying to make sure this happened.”

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“I’ve talked a lot about the culture of ‘no’ that seemed to be prevalent at City Hall, where when people came to talk about innovation and doing things better, it is easier to say no,” Tory added. “In this case, from the beginning of our knowledge of this file, we tried to say yes.”

At a technical briefing after Thursday’s press conference, a Bell technician said some of the underground conduits he had been working with a few weeks ago in Toronto’s downtown core were “easily 60-70 years old” and the fibre cables that were running through them were roughly 30 years old. The speed at which new cables can be installed will vary by neighbourhood and depend on if there is a clear path in the duct.

Over the next year, Bell will offer Gigabit Fibe in other cities across Ontario, Quebec and Atlantic Canada.

Canadians favour SaskTel, Videotron for fast, reliable Internet: studies

Fast and reliable connectivity to the Internet is what drives customer satisfaction these days at a time when almost everything at home is connected to the Internet.

This is according to two studies from J.D. Power — the Canadian Television Provider Customer Satisfaction Study and Canadian Internet Service Provider Customer Satisfaction Study.

They noted that consumers have been relying on their Internet connectivity at home to keep up with a digital lifestyle.

“Behaviours have changed the demand for Internet service with the use of on-demand streaming services, controlling household devices such as thermostats remotely, or connecting smart appliances,” said Adrian Chung, account director, J.D. Power.

To support this converged lifestyle, consumers prefer service providers who can deliver performance and reliability.

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SaskTel and Videotron are the Canadian service providers that are on top of the list of favourites of customers, according to the studies.

Customers said they want to switch to fibre optic-based connections — as opposed to cable modem and DSL — because they have experienced fewer connection errors with fibre optic.

Eighteen per cent of customers have fibre optic in 2015, up from 15 per cent in 2014.

Videotron ranked highest in both TV and Internet services customer satisfaction among providers in the East region while SaskTel ranked highest for both services in the West.

Price is the top reason why customers change cable or Internet service providers, the studies also noted.

The TV study was based on responses from more than 3,400 customers in the West region and more than 6,100 in the East. The Internet study involved more than 3,700 Internet customers in the West and more than 5,900 in the East. Both studies were fielded in November 2014 and April 2015.

How to make travelling less painful with the help of technology

There’s no such thing as easy travel these days. With tight security, airlines shrinking planes to cram more bodies in, and luggage rules designed to torture business travellers, the best we can hope for is a more tolerable travel.

Sometimes that simply means finding the right gear to tuck into a carry-on – and having the right carry-on to begin with. As the miles add up, honing your travel arsenal can cut down on the weight while providing the best possible experience in what are often the worst possible conditions.

First, let’s look at the bag. After years of using version 1 of the excellent MobileEdge ScanFast checkpoint-friendly backpack (US$99.99), I recently acquired a Dell Premier Backpack (M) (regular price $119.99, though it’s currently on sale). Both have separate laptop compartments and unzip to lie flat on the x-ray belt at the airport; the U.S. TSA (and some other jurisdictions, but not Canada) lets laptops stay in approved bags like this going through security.

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The Dell backpack also has a padded compartment for a tablet, as well as plenty of room for accessories and a pocket for an external battery pack such as the Dell Power Companion, with a pass-through for the charging cable. It has a luggage handle pass-through on the back so it doesn’t flop off your wheeled bag as you scurry to make a connection (MobileEdge does not). The Dell holds laptops up to 15.6 inches, and the MobileEdge can carry the heftier 17 inch models. MobileEdge is heavier and bulkier, with more padding, but the Dell seems just as sturdy and its lighter weight is welcome.

The contents of the backpack, aside from my laptop, are relatively static. I have a pouch for the power adapters for my laptop and phone, plus a USB cable, to keep the wires corralled and untangled, another pouch containing the journalist’s best friend, a digital recorder with spare batteries and accessories, and the travel pouch for my noise-cancelling headphones (a must on long flights, especially redeyes).

An external mouse tucks neatly into a pocket in the front compartment, while other pockets hold a mini surge-suppressing power bar, Ethernet dongle and cable. Phones would easily fit too.

There are snacks, of course, a pen or two, something to write on, any necessary files (there’s a pocket for them in the middle compartment), and a rather clever contraption called the Vector Cup Holder. It clamps onto airplane trays, edges of desks, or tables at Starbucks, keeping cups, soft drink cans, and glasses contained and spill-free.

When you’re ready to move on, just tug out and twist the cup holder and the unit flattens for easy transport. It only weighs 3.5 oz, and is made of aluminum, so it will survive many trips. It is pricey, at US$50, but a frequent traveller could find it amazingly useful.

It’s always nice to have something to read when you decide to take a rest from work. The Kobo Glo HD ($129.99) e-reader is a great way to carry a substantial library without a lot of weight. It has a 6 inch Carta e-Ink touchscreen with 1448 x 1072 resolution (300 pixels per inch, vs the high-resolution Kindle’s 212 ppi), and weighs a scant 180 g. It can hold up to 3000 e-books in its 4GB onboard memory, and the battery can last up to two months. A built-in front light lets you read in the dark.

The Glo, like other Kobos, lets you choose font and text size as you read, and supports 15 file formats, including PDF, ePub and ePub3. One thing I particularly love is the ability to borrow and load library books onto the device. You can also sideload documents from work, or load free e-books from sites like Project Gutenberg; I use a free program called calibre to manage those.

E-ink is much easier on the eyes than a standard laptop or tablet display, so reading on the Glo for hours is no more tiring than reading a hard copy – and the Glo is a lot lighter. If there’s a downside, it’s that e-ink is black and white only.

Shaw Communications Inc loses customers, profit falls 8% in Q3

TORONTO — Canadian cable television provider Shaw Communications Inc reported an 8 per cent fall in third-quarter profit on Thursday and said it would likely reach the lower end of its full-year operating income target.

Calgary-based Shaw, which competes with Telus Corp for customers in Canada’s West, said it lost more than 27,000 television subscribers across cable and satellite and almost 21,000 landline telephone accounts. It added around 7,200 new Internet customers.

“We view these results as neutral-to-slightly negative for the shares,” RBC Capital Markets analyst Drew McReynolds wrote in a note, pointing to the weak subscriber metrics.

Shaw decided several years ago against building a wireless business to go with its landline phone, Internet and television products, which hurt the company as mobile data use exploded.

On Wednesday a multicompany deal was announced, with Shaw receiving $100 million for its wireless airwaves.

Chief Executive Officer Brad Shaw said the company should hit its full-year targets, with operating income before restructuring costs and amortization expected at the lower end of its 5 per cent to 7 per cent forecast and free cash flow expected to exceed $650 million.

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Shaw’s net income slipped to $209 million, or 42 cents per share, from $228 million, or 47 cents per share, a year earlier.

Revenue rose almost 6 per cent to $1.42 billion, which the company ascribed mostly to its new business services division.

Analysts, on average, expected profit of 50 cents a share on revenue of $1.42 billion, according to Thomson Reuters I/B/E/S.

Revenue for consumer services slipped as the company offered more promotions but also lost customers, while its media unit suffered from a weak advertising market and the sale of two channels earlier in the year.

Shaw wrote down $55 million for an Internet-based TV platform it has abandoned. It has since decided on a trial of a cloud-based platform from Comcast Corp.

© Thomson Reuters 2015

Rogers Communications Inc gets green lights on Mobilicity deal

TORONTO — Rogers Communications Inc. was given the green lights  it needs Wednesday for its takeover of the struggling small wireless carrier Mobilicity that is valued at up to $465 million, presumably leaving just one more obstacle before Mobilicity’s stakeholders finally close the book on what has ended up being a bitter and exhaustive bankruptcy dispute.

In a Toronto courtroom Wednesday, Ontario Superior Court Justice Frank Newbould gave his blessing to the deal, which will see Rogers, the carrier with the most subscribers in Canada, acquire Mobilicity for a purchase price of $440 million and assume liabilities of up to $25 million.

Industry Canada also gave the transaction its stamp of approval, after having blocked previous takeover attempts of Vaughan, Ont.-based Mobilicity, which has been operating under court-supervised creditor protection since September 2013.

The final hurdle, the assent of the Competition Bureau, came late Wednesday, a Rogers spokesman said.

“We’ve now received all required regulatory approvals,” said Kevin Spafford, Senior Manager, Public Affairs, for Rogers.

Mobilicity’s chief restructuring officer Bill Aziz told reporters that discussions involving competition issues are at an “advanced” stage. “I expect they will receive (approval) shortly,” said Aziz, president of ‎private advisory firm BlueTree Advisors II Inc., who has been overseeing Mobilicity’s restructuring and sale efforts.

Mobilicity’s creditors will be returning to court Monday to obtain an order that would outline how the money will be distributed amongst the group secured creditors.

Court filings state a portion of the purchase price will be loaned by Rogers to Mobilicity to repay, in full, the company’s secured creditors, with the exception of the secured obligations held by Toronto-based private equity firm Catalyst Capital Group Inc. Rogers said it and Catalyst reached an agreement outside of the court process to buy the Catalyst debt. Rogers recognized Catalyst’s efforts in its release, saying the deal “is supported and was facilitated by Catalyst.”

The federal government had blocked a purchase of Mobilicity by Telus Corp. three times in 2013 and 2014, arguing that such a deal would result in an undue concentration of coveted telecommunications spectrum with the incumbent. The string of recent auctions for airwaves — and the subsequent evolution of the competitive landscape – has spurred the change of heart in Ottawa, a Mobilicity court filing states.

Creditors backed Rogers’ offer, which will see Rogers dip into a regular line of credit to finance, even though Telus was also putting out another bid for Mobilicity, which was worth more than $50 million than what Rogers was offering, sources have told the Financial Post. One reason for doing so appears to have been based on the belief that the federal government would be more likely to approve a Rogers takeover than another Telus bid.

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The agreement will see Rogers acquire 100 per cent ownership of Mobilicity and its 155,000 active clients. Rogers said its acquisition brings “certainty” to subscribers, who can expect a “continuity of service.”

But the transaction is about more than just subscribers, especially since Mobilicity’s customers tend to pay much less than a typical Rogers subscriber. There are a few other facets in play such as tax losses, spectrum gains and the sheer elimination of competition in the marketplace.

Rogers said it expects to acquire $175 million in tax losses, which can be claimed this fiscal year and offsets the price tag for Mobilicity. According to court filings, the book value of Mobilicity’s assets as of May 31 is valued at roughly $317.9 million. The Vaughan, Ont.-based company has an estimated non-capital loss carry forward of $665.3 million, which expires between 2029 and 2032.

Rogers will also be exercising its outstanding option to acquire the unused spectrum of Calgary-based Shaw Communications Inc., which purchased airwaves in 2008, but has made no secret that it has no intentions of pursuing a strategy in wireless market. It will pay an additional $100 million to acquire these airwaves. It submitted a $200 million deposit and paid $50 million to purchase the option when the license transfer was first announced in 2013. The option was said to expire this week, which put pressure on Mobilicity’s stakeholders to hastily come to agreement. It is expected to close by the end of the month.

We’ve now received all required regulatory approvals

Mobilicity’s chief rival, Wind Mobile Corp., which operates in Ontario, Alberta and British Columbia, will receive licences of AWS-1 spectrum in five provinces, of which some belonged to Shaw and others to Mobilicity. Wind also received licences in Manitoba and Saskatchewan. It doesn’t offer services in these regions but can try to sell them in a spectrum transfer. To facilitate the transfer of ownership rights, the upstart paid just $1 per spectrum license, said Wind’s chief executive Alek Krstajic.

This mass injection of spectrum for almost no cost is expected to more than double Wind’s network capacity and help the carrier offer better, faster and more reliable service to its more than 800,000 subscribers, the company said. Still, Krstajic said he remains interested in also acquiring Videotron’s unused spectrum licences, which are located outside Quebecor Inc.’s home province of Quebec.

As a part of the transaction, Rogers and Wind will swap AWS-1 licences in the hotly contested southern Ontario region so Rogers can create “contiguous spectrum,” which is when bands of licensed airwaves are located adjacent to one another. Blocks of spectrum function more efficiently together than apart.

Before endorsing Wednesday’s motion, Justice Newbould congratulated all the parties for “finally getting the cup to the lip” after the long journey, adding “no one’s more pleased than I seeing this transaction.”

BlackBerry Ltd CEO John Chen considering producing bacteria-free smartphone for hospitals

BlackBerry Ltd. may design a bacteria-free smartphone as it bids to become the secure mobile choice for the health-care industry, Chief Executive Officer John Chen said.

“Health-care workers have to be worried about one less thing to wipe down” with a bacteria-free handset, Chen told reporters Wednesday at a hospital north of Toronto where BlackBerry unveiled a clinical alerts pilot project. Chen said BlackBerry is not developing the clean phone yet.

The Canadian mobile manufacturer is partnering with ThoughtWire and Cisco Systems Inc. to provide nurses and doctors in a Mackenzie Richmond Hill Hospital unit with a portable messaging and alert system. BlackBerry will be providing the software and devices. It wouldn’t disclose how much it’s spending on the project.

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Transfer of infections and bacteria between patients in hospitals is a “huge issue,” said Dr. Aviv Gladman, chief medical information officer at Mackenzie Health. Medical equipment in patient rooms, including mobile phones, can carry bacteria through the hospital, he said.

Gladman said medical professionals are supposed to wipe their phone with alcohol before entering and exiting a patient’s room. A study published in the Journal of Applied Microbiology found that about 20 per cent to 30 per cent of germs transfer between a phone and a fingertip.

Hospitals don’t know how effective alcohol wipes are at removing bacteria from phones and medical professionals don’t always wipe, he said. Gladman said hospital-acquired infections are one of the top reasons patients die in hospital.

BlackBerry, based in Waterloo, Ontario, has switched its focus to high-security software as it has struggled to compete with Apple Inc. and Samsung Electronics Co. Ltd. as a device manufacturer.

Bloomberg News

Nintendo’s VP of sales explains why you should still buy a Wii U and discusses NX

Nintendo’s Wii U is struggling – a fact that’s impossible to ignore.

The console has shipped under 9 million units worldwide in slightly over two-and-a-half years. It’s a number that pales in comparison to the Xbox One’s and PlayStation 4’s approximately 12 million and 22 million — and those machines have been on store shelves a year less. Even Sega’s failed Dreamcast managed to ship approximately 8 million units before its untimely death.

The might of Nintendo’s core franchises such as Super Smash Bros., Mario Kart 8 and one of the most inventive and original titles of the year, a third-person shooter called Splatoon, have failed to help Nintendo sell the number of consoles the company likely hoped it would despite individually selling an impressive number of units. And beyond a handful of upcoming notable third-party developed titles such as Guitar Hero Live and Skylanders SuperChargers (on the 3DS), most developers have dropped support for the console.

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(Nintendo’s successful NFC-enabled amiibo toys have been a beacon of success for the company, which has shipped 10.8 million units of the extremely popular toys worldwide, though their success seems to have more to do with Nintendo’s cachet than something that translates into game sales.)

Despite the rampant gloom often associated with the company, and a lack of significant upcoming releases, even in the first-party developer space – (Star Fox Wii U, Super Mario MakerXenoblade Chronicles X and Yoshi’s Woolly World being the small number of exceptions) – during a recent conversation with the Post Arcade, Nintendo’s vice president of sales and marketing, Scott Moffitt, still feels Nintendo’s current-generation console has a significant amount to offer dedicated Nintendo fanatics as well as video game fans, particularly when it comes to quality over quantity.

“Our job and our goal is through our first-party games, to build the installed base up so that it makes it easy for third-party publisher to bring their third-party content to our systems,” said Moffitt, emphasizing that while the Wii U’s library is small in comparison to the Xbox One and PS4’s, its title’s are often rated much higher on aggregation video game review websites like Metacritic.

And while this might sound like marketing speak, Moffitt is actually correct. Many of the Wii U’s core titles have aggregated review and user review scores which often either match or exceed 85 per cent.

NintendoDespite its issues, Splatoon is one of the most different and inventive games Nintendo has released in years.

“If you look at just one indicator of game quality, which is Metacritic score and the user score, and what the gold standard we believe is an 85 Metacritic score and an 85 user score, meaning both critics and game fans alike thought the game was great. When you look at that standard measure there are more games to play on Wii U than there are on either of the two current generation platforms,” said Moffitt.

“As a measure of quality, there’s great quality to be enjoyed on Wii U. And that we think is maybe more important than just the number of games and where they come from (whether it’s first-party or third-party),” said Moffitt.

Moffitt also expanded on the thought process behind Nintendo it is already preparing to release a successor to their current home console so early into the Wii U’s life cycle, a move many industry analysts found strange. Moffitt says his company aimed to assure fans that they have no plans to exit the hardware industry by discussing NX during a recent investors call.

“Our first focus is maximize the sales potential of Wii U and 3DS and we have great content coming that we think will help us do that. But we also have an eye for the future. One of the reasons for mentioning NX in the financial announcement was linked to the reveal of our partnership with DeNA about the mobile gaming initiative,” said Moffitt.

Our first focus is maximize the sales potential of Wii U and 3DS and we have great content coming that we think will help us do that

“We wanted to ensure that our game fans know that Nintendo remains very committed to the dedicated game device business. While we recognize the appeal of the mobile gaming space and the broad number of units that are out there, and that we wanted to develop content for smart devices, at the same time we want to remind fans that we remain committed to a dedicated gaming platform.”

@Patrick_ORourke

Mobilicity accepts Rogers Communications Inc’s $465 million takeover deal, seeks court approval

Rogers Communications Inc., Canada’s largest wireless carrier by subscribers, will pay $465 million to buy all of the shares of Vaughan, Ont.-based upstart Mobilicity, court filings posted online Wednesday confirm.

 

As Mobilicity has been operating under court-supervised creditor protection for 21 months, counsel for the parties must seek an order from a judge that would approve the transaction. Mobilicity is scheduled to appear in a Toronto court on Wednesday at 10 a.m. ET., a digital copy of the prepared motion states.

Spokespeople from Rogers and Mobilicity declined to comment on the court documents early Wednesday, but sources say an official announcement of the sale is expected before the stock market opens in Toronto.

Mobilicity is a provider of low-cost cellular services to 155,000 active subscribers in five urban markets in Canada: Toronto, Ottawa, Calgary, Edmonton and Vancouver. It has been actively pursuing a variety of sale, financing and restructuring alternatives. The sale to Rogers has the full support of “substantially all” of Mobilicity’s secured creditors and its “known affected” unsecured creditors, court documents say.

A portion of the $465 million will be loaned by Rogers to Mobilicity to repay, in full, its secure creditors, with the exception of secured funds held by Catalyst Capital Group, the Bay Street private equity firm run by Newton Glassman. The remaining funds will be paid out to the unsecured creditors on a pro rata basis.

As of May 31, the book value of Mobilicity’s assets valued at roughly $317.9 million. The company has an estimated non-capital loss carry forward of $665.3 million, which expires between 2029 and 2032.

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For the past two weeks, Mobilicity has been in “continuous discussions” to consider multiple offers and counteroffers from Rogers and another party. A spokesman for Telus Corp. confirmed late Friday that the other interested buyer was the Vancouver-based incumbent, which had offered to purchase Mobilicity three times in 2013 and 2014 for as much as $380 million. Industry Canada blocked every transaction, arguing that a marriage of the carriers would hurt wireless competition and choice for consumers.

Rogers and Telus submitted their final offers to Mobilicity for consideration on Monday at 10:30 p.m. ET, and negotiations continued Tuesday with Rogers. The takeover talks have come down to the wire, as the filings reveal Rogers must be granted court approval by Wednesday “given other related dealings it had.”

A source familiar with the deal noted that a loose end Ottawa needed to tie up is Rogers’ option to buy unused wireless spectrum from Shaw Communications Inc., which is said to expire this week. Shaw spokesman Chethan Lakshman did not immediately respond to a request for comment early Wednesday.

Rogers announced in 2013 it had entered into an agreement with Shaw to purchase the Calgary-based company’s wireless airwaves after a federal moratorium on transfers of set-aside spectrum was expected to be lifted in 2014. Ottawa extended the ban indefinitely. Rogers paid $50 million for an option to acquire the assets, plus submitted a $200 million refundable deposit that will be put towards the sale if and when it is completed, according to Shaw’s 2013 annual report. A regulatory decision was expected in fiscal 2015.

In a report dated June 23, court-appointed monitor Ernst & Young said that Rogers’ $465-million bid was the highest price ever offered for Mobilicity and a deal worth accepting.

“The Monitor is of the view that the sale agreement is the most advantageous sale transaction available for the Mobilicity stakeholders,” the report says. “In is in an amount that far exceeds any prior offer received in respect of the Applicants’ assets, prior to or during the CCAA proceeding.”

A source close to the talks says Telus offered at least $50-million more than Rogers did, but Mobilicity’s creditors backed the Rogers deal because they believe it will get the required green light from Ottawa. It is understood that Telus may contest the arrangement because its latest offer was superior, yet unsuccessful.

Financial Post
cpellegrini@nationalpost.com

Rogers Communications Inc has the makings of a deal to buy Mobilicity but it could be contested in court, sources say

Rogers Communications Inc. has the makings of a deal to acquire small Canadian wireless carrier Mobilicity, but sources say a court battle could be shaping up because Telus Corp. is willing to pay “significantly” more than its telco rival for Mobilicity.

A group of creditors and directors of Mobilicity met over the weekend to assess bids from Rogers and Telus.

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Both offers were said at that time to exceed $350 million, the price Telus offered in a failed bid last year. A source close to the negotiations said even though Telus is willing to pay at least $50 million more than the latest Rogers bid this week, bondholders are backing the Rogers deal.

“Yes, it’s Rogers, yes it’s over $450 million, but Telus bid at least $50 million more than that,” said the source, speaking on condition of anonymity.

Mobilicity was put into play again two or three weeks ago, with the two telecom incumbents Rogers and Telus battling for the financially struggling upstart’s spectrum and tax losses.

Yes, it’s Rogers, yes it’s over $450 million, but Telus bid at least $50 million more than that

Any transfer of wireless spectrum cannot be made without approval from Industry Canada. Court approval is also required for the sale of Mobilicity because the fledgling wireless carrier sought protection from its creditors under the Companies’ Creditors Arrangement Act.

Rogers is expected to appear in court Wednesday to seek approval to buy Mobilicity, which has been under CCAA protection since late 2013, but it is understood Telus might contest the arrangement because its latest offer was superior.

A source familiar with the proposed Mobilicity deal noted that Rogers also has an option to buy unused wireless spectrum from Shaw.

Mobilicity acquired its spectrum through licenses set aside in 2008 specifically for bidders that qualified as smaller new entrants.

Data & Audio-Visual Enterprises Wireless Inc., which has operated under the Mobilicity brand since 2010, paid $243.2 million for 10 such licenses to coveted AWS spectrum covering areas in Ontario, Alberta and B.C.

Devices today are compatible with AWS spectrum, while there is no device ecosystem for the AWS-3 spectrum auctioned this past March with buyers including Telus. Telus acquired 15 licenses to the spectrum across six provinces for more than $1.5 billion. Rogers did not acquire any spectrum in that auction.

The federal government has gone to great lengths to encourage competition in the wireless market, and sources have told the Financial Post that any deal for Mobilicity will have to take this into account.

As a result, if the Rogers-Mobilicity transaction is allowed to proceed, rival small wireless carrier Wind Mobile Corp. is expected to be the beneficiary of an unspecified spectrum license transfer.

“A potential acquisition of Mobilicity whereby Wind acquires Mobilicity spectrum would be consistent with our working assumption that a stronger recapitalized fourth national wireless player is likely to emerge in 2015/2016 in some shape or form,” RBC Capital Markets analyst Drew McReynolds wrote in a weekend note to clients.

“While directionally negative for the incumbents, we continue to believe the competitive impact should be manageable provided that regulators remain balanced.”

Rogers’ spokesperson Aaron Lazarus did not immediately return a phone call requesting comment.

BlackBerry Ltd’s ‘lumpy’ licensing business throws investors for a loop

On a day that saw BlackBerry Ltd. shares whipsawed to their lowest level in almost two months, Chief Executive Officer John Chen was in no mood to feed the takeover speculation that’s constantly swirling around his company.

“Oh, no. Oh, no, no, no. Not at this price,” Chen told a group of reporters following the company’s annual meeting in Waterloo, Ont., responding to a question from the Financial Post about whether a sale of the battered company has been on his mind. “No, I think we’ve put in a lot of hard work and put ourselves, in my opinion, in a position to fight and we’re not done yet by any of the stretch of the imagination.”

Chen promised he’d see through the turnaround he was hired 19 months ago to lead, adding that he signed a five-year employment agreement with BlackBerry. With his first full fiscal year under his belt, the comeback artist is turning his attention to the software business to stabilize a revenue figure that won’t stop falling and trying to find reprieve in the process for shareholders who’ve stuck through the turmoil.

Fresh off posting first-quarter results that showed an impressive dose of growth in the nascent software unit, shares of BlackBerry surged over 8 per cent Tuesday in New York pre-market trading — despite falling short of estimates with US$658 million in total revenue and an adjusted loss of US$0.05 per share. Then Chen fielded questions during a conference call and self-admittedly stumbled over growth estimates for the crucial software segment, prompting the market to look more closely behind the numbers. The share price soon plunged, wiping out early gains to eventually settle at US$8.83.

An undisclosed slice of software sales in the quarter was attributed to two long-term patent cross-licensing deals, one with Cisco Systems Inc. and another with an unnamed firm. The terms of the agreements are private, but chief financial officer James Yersh said the Cisco I.P. deal would be classified as revenue in the North American region, which saw a significant US$80-million boost compared to the previous quarter.

The company’s release touted that BlackBerry recorded US$137 million in software and technology licensing revenues, a 150 per cent increase compared to the same three-month period in the last fiscal year. But this inclusion of I.P. licensing leaves people wondering how much demand there really is for BlackBerry’s latest version of enterprise software, BES12. Wells Fargo analysts estimate the two I.P. agreements contributed roughly US$55 million of the total US$137 million generated in the quarter by the software division.

Neither the Street nor BlackBerry itself is confident about what software sales will be in the near-term.

“The licensing business is lumpy,” Chen told analysts, who’ve repeatedly asked for more data for modelling. “I think our core software will continue to grow, I just can’t predict whether some of the I.P. (Intellectual Property) pipeline will come in on Q2, Q3 or Q4. I feel comfortable with them coming in this fiscal year.”

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Chen said he isn’t certain when every i will be dotted and t crossed in a licensing agreement, meaning he can’t accurately forecast when any sale is expected to meet BlackBerry’s accounting policies for revenue recognition. This adds instability to its shares because financials are reported on a quarterly basis, not annually — pushing investors who would prefer to be more informed to bow out on the stock or move to the sidelines.

Chen affirmed his $500-million target for software sales in fiscal 2016, with the year being back-end heavy. He did say revenue from BBM services will not meet his $100-million annual target because the platform is taking longer-than-expected to monetize. And, he is still on the prowl for companies to acquire to support his security focus.

In the quarter ahead, analysts will likely seek clearer data to feed their statistical models.

“You guys really want all the numbers,” Chen said near the end of the hour-long analyst call. “I got to be really careful in the future how I break that down.”

Financial Post
cpellegrini@nationalpost.com

Interim CEO of Jay Z’s Tidal music streaming service, Peter Tonstad, leaves company

Jay Z’s music-streaming company Tidal said interim Chief Executive Officer Peter Tonstad is no longer with the company, making him the second CEO to depart since April.

“Current executives in New York and Oslo will continue to lead our rapidly developing innovation and content initiatives until our new CEO is in place,” Tidal said Tuesday in a statement.

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Tonstad was appointed in mid-April when CEO Andy Chen left. Jay Z and more than a dozen fellow musicians acquired Tidal in January to give artists more control over streaming, leaping into a field that includes Spotify, Pandora Media Inc. and now Apple Music. The March relaunch of the service drew criticism from music bloggers and other performers for its emphasis on the most financially successful artists.

Artists have complained they aren’t paid enough when music is streamed – a gripe that Jay Z, whose real name is Shawn Carter, tried to address by offering higher royalties.

On Sunday, Taylor Swift sent an open letter to Apple Inc. criticizing the company for offering a 90-day free trial for its streaming service without compensating artists. Apple has since backed down and said it will pay musicians during the trial period.

Bloomberg.com

Google Inc launches free, ad-supported version of Google Play Music as Apple Music launch nears

Google Inc.’s music service will now include free Web-radio stations, seeking to lure users days before Apple Inc. debuts its streaming feature.

Google Play Music, a streaming and storage service, will roll out ad-supported radio, beginning in the U.S., said Zahavah Levine, vice president of partnerships, Google Play. The new feature will provide stations based on songs that users like – or from Google’s Songza, which curates songs based on factors such as moods, activities and favorite decades.

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The Mountain View, California-based company is stepping up investments in music as it prepares for digital-song pioneer Apple to push its monthly song service to hundreds of millions of iTunes users on June 30. Already, Apple offers online radio – and is rolling out a 24-hour station “dedicated entirely to music and music culture” that will be broadcast to more than 100 countries.

Google Play Music, which has more than doubled its user base in the past year, is trying to capture more of the millions of consumers who open the application preloaded on smartphones around the world, Levine said. Many just close the program because they are initially prompted for payment.

“We think that by giving users a taste of Google Play Music, through the ad-supported tier, more users will ultimately become paying subscribers,” Levine said. “Until now, this was a lost opportunity – to bring more people into Google Play Music.”

[youtube=http://www.youtube.com/watch?v=PfnxgN_hztg&w=640&h=390]

The new service’s ads initially will include video and banners, Levine said, noting it will be a new revenue stream for artists.

The free version of Google Play Music is currently only available in the United States.

Montreal’s Ormuco Inc aims to bridge the cloud computing gap

Managed services provider Ormuco Inc. is spreading its wings with its newly announced hybrid cloud offering, the Connected Cloud. Aimed at the middle market and the enterprise, it was developed to provide seamless migration between public and private cloud environments, and enhanced portability of workloads.

The Connected Cloud allows customers such as developers, enterprise organizations, resellers, and independent software vendors to quickly initiate a hybrid cloud environment that easily transitions from a private to a public cloud on a pay-as-you-go basis.

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Montreal-based Ormuco currently has three data centers of its own in Dallas, Texas; Sunnyvale, California; and Montreal, providing geographic dispersion for full data center redundancy across North America. Expansion to other regions is planned later this year. As a member of the HP Helion Network, Ormuco also provides users of the Connected Cloud with access to workload portability through data centers managed by ecosystem members around the world.

“There are other providers that just offer cloud services for companies to consume,” noted Ormuco CEO Orlando Bayter, “but they don’t allow organizations to be service providers for their own enterprises.” Ormuco’s management portal allows CIOs to track usage and spend, and gives them the ability to charge back to departments.

Customers can manage their services from a single browser-based portal, logging in once to create or access any instance worldwide through a simple point and click interface that hides much of the complexity of navigating a cloud. Currently the company offers what Bayter refers to as the basics: compute, block and object storage, load balancing, networking, DNS, VPN as a service, Docker containers, and autoscaling. Over the next months, it plans to add more features such as database as a service featuring MySQL and MongoDB, as well as Hadoop, and a more granular permission structure.

Farther in the future is an even more ambitious scheme: Ormuco is working to enable companies to resell their own underutilized resources. The company is building technologies that would enable any organization with infrastructure that is underutilized for long periods to rent it out in a federated model. For example, said Bayter, “Imagine a university or a science lab that scales and uses its infrastructure at very particular times; the rest of the time that infrastructure is fairly underused. What if they could make money from that?”

Ormuco would verify and certify the infrastructure, allocate a performance rating that would change dynamically in step with the demands being placed on it, and advertise the offerings in its marketplace, handle usage tracking, and manage billing. To address data sovereignty concerns, customers renting cloud resources in this market would be able to choose where their data is hosted. Ormuco describes the model as “Airbnb for OpenStack clouds.”

Analyst Michelle Warren, principal at MW Research and Consulting, said, “I was quite impressed with Ormuco’s business model and its go-to-market strategy. [Bayter] seems quite focused and knowledgeable about the industry. The service – cloud bursting and leveraging existing clouds – is one that several organizations have been working on addressing over the years. He and his team, however, have figured out how to deliver it to organizations.”

“I also like his working relationship with Helion and HP,” she added. “This relationship should give him the credibility and ability to reach international clients with a solid infrastructure in place.”

Facebook surpasses Wal-Mart in stock price valuation, knocking retail chain out of top 10

NEW YORK — Facebook is now bigger than Wal-Mart, at least when it comes to its value on the stock market.

The world’s biggest online social network knocked the world’s largest retailer out of the top 10 list of the highest-valued companies in the Standard & Poor’s 500 index on Monday and the gap widened on Tuesday.

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Facebook Inc. was valued at US$242.7 billion as of late morning trading, its share price up more than 2 per cent at US$86.59. Wal-Mart Stores Inc., meanwhile, was valued at US$233.8 billion, its stock price down 21 US cents at US$72.58.

Facebook has been on a roll this past year, its shares up about 32 per cent in the past year compared with just 8.2 per cent for the S&P 500 index. Its quarterly results have consistently surpassed expectations.

Her Story review: Live-action murder mystery game a true treat for armchair sleuths

Sam Barlow’s bold and experimental interactive murder mystery Her Story takes many risks, and none greater than its maker’s assumption – or perhaps faith – that players are willing to take a chance on a game composed almost entirely of live-action video clips.

I don’t know if this gamble will pay off in a commercial sense, but from the perspective of creative design and – surprisingly – player engagement it succeeds far better than I suspected it would.

The game begins without  pomp or explanation. Players are simply plopped in front of the desktop of an old police workstation. There are a few things you can click on, including a trash bin and a couple of Readme documents that explain how the computer’s only accessible application – a video database – works. You don’t know why you’re in front of this police computer, or for that matter even who you’re supposed to be beyond an “Authorized Guest” user. All you can do is start searching the database.

So that’s what I did. Queries are conducted by typing in words and clicking a search button. The only files players have access to are videos to do with a 21-year-old homicide case, and all of these videos are short clips of police interview sessions with a single woman shot over the course of a few weeks in June and July 1994.

That’s the whole game in a nutshell. Finding and watching old videos.

But it’s weirdly compelling. I didn’t get up from my computer once during the two-and-a-half hours or so it took me to reach the end of my little investigation.

The fun of the game lies almost entirely in narrative discovery. That means I can’t really get into anything you’ll see in the video clips beyond that there was a murder and that the police’s sole person of interest appears to be the thirty-something female seen in the videos.

What I can talk about, though, is the cleverness of Barlow’s design.

All of the interview clips have been transcribed, and every word the woman speaks is searchable. Hear her mention someone’s name? Type the moniker into the search box, hit enter, and you’ll call up all clips in which she utters it.

However, one of the limitations of the database is that when multiple matches are found it only queues up the first five files. To access the rest you’ll need to get more specific by adding additional words and parameters to your search, like maybe a location or a verb likely to be associated with a name.

This is the game part of the game. And it does an astonishing job of making the player feel like an honest-to-goodness sleuth.

I had a pad of paper beside me throughout on which I wrote names, places, and questions about what the woman said or how she looked. I used these notes as the basis to conduct additional searches, and was frequently rewarded with clips revealing interesting – sometimes even vital – bits of information. It was the next best thing to being in the room and questioning her myself.

[youtube=http://www.youtube.com/watch?v=gaHw97l7-Lc&w=640&h=390]

This style of play may not sound particularly interactive. However, because the clips are so short – many are just five or ten seconds long – time rarely seemed to drag. I always seemed to be either jotting notes or actively absorbing information or typing something into the database.

Of course, a game like this hinges on the quality of the writing and performance(s), and while neither here are particularly Oscar-caliber both are wholly acceptable.

Barlow, who has previously written several games (including a couple of PlayStation 2-era Silent Hill games) has crafted a sly mystery loaded with themes and clues that perceptive players will be able to satisfyingly tie to the story’s many twists. Some are perhaps a little too overt due to appearing too many times and in too many forms, but I suspect the occasional repetition was Barlow’s safeguard against players inevitably failing to find some key clips through their searches.

Plus, he had to write the most pivotal scenes without using words that players might try querying right away, revealing too much too soon. Searching “I confess,” for example, returns only one result from an early interview session in which nothing of importance is truly confessed.

British actress and musician Viva Seifert, meanwhile, plays the woman we see in the video with subtle intensity. She wisely errs on the side of showing too little emotion – as opposed to hamming things up in dramatic situations – which keeps her performance believable and her character appropriately inscrutable. She’s not Streeping it by any stretch, but I was rarely drawn out of the moment by her inability to convince me she was a woman accused.

The overall presentation, meanwhile, benefits from a screen glare effect that effectively simulates the sort of crappy old monitor you might find in a small police station. It even occasionally reflects a hint of the person you’re playing between videos, when police car flashers or lights flare up elsewhere in the station in which your character is supposed to be sitting, adding one more layer to the mystery.

Admittedly, there were brief moments during which the spell was broken. It seems, for example, a bit strange that these interviews have been broken into so many tiny segments. Some are literally no more than a few seconds long and reveal nothing of importance.

And I was initially frustrated that I couldn’t scroll beyond the first five results returned in some searches – an artificial limitation likely imposed to keep us engaged in sleuthing and querying rather than searching a word like “the” and then mindlessly clicking through the scores of videos returned. (I just told myself the database was a no-frills program clearly procured government-style by going with the cheapest rather than the best bidder.)

But by and large I was quite happy to go along for and get lost in the mystery. I guarantee you’ve never played anything like Her Story before, mostly because no one else has made anything quite like it.

And after experiencing this gripping little interactive story, you may find yourself wondering why that is.

Big three telco-owned mobile wallet app Suretap finally unveils big update

As companies race to position themselves in the swap of physical wallets and plastic cards for virtual ones, Canada’s largest telcos unveiled a lofty expansion to their mobile payments app Tuesday.

The launch of Suretap, co-owned by Rogers Communications Inc., BCE Inc., and Telus Corp., has been pushed back at least twice. But the launch Tuesday mean it will now be accepted on more cell phones, on more credit cards and at more merchants.

The biggest challenge in getting the expanded app — in production for the past nine months — to stand on its own was getting the slew of moving parts on the same page at the same time, said Jeppe Dorff, the president of Suretap.

When Suretap was first released last year, it was a closed wallet with limited application. It could have been used to pay for everyday purchases where contactless payments were accepted on select devices connected only to the wireless network of Rogers Communications Inc. Only two credit cards from issuer Rogers Bank and gift cards to a handful of retailers could have been installed on the digital application and used in stores.

This release broadens the carrier support for Suretap to five, adding both the main and flanker brands of BCE Inc. and Telus Corp., including Bell, Virgin, Telus and Koodo. CIBC, which also has its own mobile payments app, will offer Suretap users access to its complete credit card portfolio and more retailers such as Forever 21 and Groupon have signed on as well, bringing the total to 38 credit cards and 30 gift cards.

“It made sense to let’s say make sure there’s an application that’s good for the consumer, that the consumer can access irrespective of what carrier they’re on, or what bank they’re with, or what retailer they want to engage with,” said Dorff. “It avoids confusion and drives adoption.”

Canadians have been slow to adopt mobile payments, and the time delay between new product releases and the lack of widespread advertising campaigns to improve awareness has only stymied consumer usage.

Still, companies from an array of sectors are converging on the fast-changing space. Some of the country’s largest banks are all promising to be wherever their clients are – even if it means inking partnerships that potentially threaten their own proprietary products. Conversely, the telcos are trying to solidify their place, as technological advances are making it possible for carriers to be bypassed altogether.

The Suretap joint venture makes use of the current payments infrastructure and is pre-installed in most newly activated Rogers devices, a tactic Dorff says has made “a material difference” for adoption. The carriers can persuade new subscribers at the point-of-sale to use Suretap and educate them on how to seamlessly conduct mobile payments, giving the Big Three telcos a valuable head start against the many bank-run or other less-known third-party apps that people have to search for.

In addition to consumer-facing Suretap, rivals Rogers, Bell and Telus operate another joint venture called EnStream LP, which manages access to the infrastructure in a smartphone where sensitive card credentials are stored. Like the companies do in their other business units, this vertical integration is a play for control.

Dorff expects to make additional announcements later this year about the inclusion of debit cards, loyalty cards, digital coupons and deals as well as partnerships with other issuers and Rogers’ Fido, an obvious exclusion because it claims to target younger, tech-savvy users who are more likely to try mobile payments. But it remains to be seen whether Suretap will take hold.

“If you think about the experiences you have with the card products you have in your wallet today – those pieces of plastic – they’re good, they serve a purpose for you,” Dorff said. “But in the future, you’re going to see your balances, transaction histories and get other relevant information when you need it on-demand. It’ll be different.”
cpellegrini@nationalpost.com

Why we’re not in a tech bubble

The ongoing debate about whether the technology sector is in a bubble that poses big risks to investors stems in large part from what’s going on in the private market.

Private companies with valuations in excess of US$1 billion – otherwise known as ‘unicorns’ – continue to grab headlines and the attention of investors. RBC Capital Markets noted that 75 per cent of the largest venture capital investments have been raised in the past five years, helping to create 61 tech unicorns in the U.S. today.

Analyst Mark Mahaney pointed out that much of the growth is shifting to private markets as the biggest deals today would have been IPOs in the past. One estimate pegs these ‘quasi-IPOs’ as now accounting for 75 per cent of total investment dollars in the sector, versus just 40 during the 1999-2001 tech bubble.

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“Our tracking indicates that indeed much more of the growth in Internet companies today (fundamentally and financially) is occurring in private markets,” Mahaney told clients.

Companies are simply staying private longer, with the time-to-IPO extending from 4.5 years during the tech boom to 11 years in 2014.

Not only is the bar for an IPO higher, but more non-traditional private investors are getting involved. Last year, more than three-quarters of the top 20 U.S. tech deals saw participation from non-traditional private investors, up from the low single digits in 2012.

Meanwhile, RBC noted that there were only 53 tech IPOs in 2014, which is similar to levels last seen in the 1980s.

Mahaney believes U.S. tech funding (private and IPO) looks pretty reasonable and representative of the market size and opportunity when measured as a percentage of GDP and per internet user.

“Having worked through the 99-01 bubble, we are strongly of the belief that today’s public markets bear very little resemblance – as a general rule, the total addressable markets today are much larger, the business models less risky, and the public valuations more reasonable,” he said.

So not only has the market opportunity for these companies grown, the barriers to entry for new tech players have fallen. Start-up costs involving things like equipment and systems have plunged, with much more money being spent on growth investments.

Mahaney noted that while venture capital inflows continue to rise, they are still far below the bubble peak, and most of the money being raised is going to companies whose premium valuations may be justified by their disruptive business models.

“Moat-building is cheaper today. Really deep moat-building is more expensive,” the analyst said, highlighting public names that fit this theme such as Amazon.com Inc., Facebook Inc., Google Inc., and Netflix Inc.

BlackBerry Ltd shares spike in premarket trade though loss bigger than expected

WATERLOO, Ont. — BlackBerry Ltd reported a slightly wider than expected adjusted loss on Tuesday, however shares in the company rose over 8 per cent as its revenue slide began to show signs of stalling and its turnaround began to slowly gain traction.

Excluding a one-time accounting gain and charges related to restructuring items, the company reported a loss of $28 million or 5 cents a share.

Analysts, on average, were expecting a loss of 3 cents a share, according to Thomson Reuters I/B/E/S.

Before adjustments, BlackBerry had a net profit of US$68 million or 13 cents per share.

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Crucially for the company that is pivoting to focus on its software business, revenues in that segment more than doubled from the year ago period to $137 million in the current period.

BlackBerry’s share price has fallen about 11 per cent on the TSX since the start of the year but the stock was up in pre-market trading after the quarterly report.

BlackBerry is also scheduled to hold its annual meeting on Tuesday morning in Waterloo.

Apple Inc agrees to pay royalties to musicians after Taylor Swift blasts tech giant in open letter

Taylor Swift has Apple changing its tune.

Hours after the pop superstar criticized the giant tech company in an open letter posted online, Apple announced Sunday that it will pay royalties to artists and record labels for music played during a free, three-month trial of its new streaming music service.

“When I woke up this morning and I saw Taylor’s note that she had written, it really solidified that we needed to make a change,” said Apple senior vice-president Eddy Cue in an interview with The Associated Press.

Apple had already agreed to share revenue from paid subscriptions to the new Apple Music service, which will cost $10 a month. But Swift said she would withhold her latest album from the service because Apple wasn’t planning to pay artists and labels directly for the use of their music during the free, introductory period.

<img src=”https://nationalpostcom.files.wordpress.com/2015/06/adult_internet_adresses_37142327.jpg?w=620&#8243; alt=”Evan Agostini/Invision” width=”620″ height=”465″ class=”size-large wp-image-792581″ /> Evan Agostini/Invision

“We don’t ask you for free iPhones. Please don’t ask us to provide you with our music for no compensation,” Swift wrote in an open letter posted Sunday on her Tumblr page, under the heading “To Apple, Love Taylor. ”

Apple has maintained that it negotiated revenue-sharing at rates that are slightly higher than the industry standard, to compensate for the three months that it plans to offer its streaming service without charge.

To Apple, Love Taylor taylorswift.tumblr.com/post/122071902…


Taylor Swift (@taylorswift13) June 21, 2015

We hear you @taylorswift13 and indie artists. Love, Apple


Eddy Cue (@cue) June 22, 2015

#AppleMusic will pay artist for streaming, even during customer’s free trial period


Eddy Cue (@cue) June 22, 2015

I am elated and relieved. Thank you for your words of support today. They listened to us.


Taylor Swift (@taylorswift13) June 22, 2015

“We had factored that in,” Cue said Sunday. But he added, “We had been hearing from artists that this was going to be rough on them, so we are making this change.”

Cue declined to say how much Apple will pay in royalties for streaming during the free trial period. He said Apple will share 71.5 per cent of its revenue from paid subscriptions within the United States and 73 per cent from subscriptions outside the country, while other streaming services generally share about 70 per cent.

Some artists and independent labels had worried they would miss out on opportunities to get a financial return from new music that is released during the three-month trial. Swift said she spoke out on their behalf.

Swift wasn’t immediately available for comment on Apple’s change of heart. But she posted a reaction on Twitter late Sunday, saying “I am elated and relieved. Thank you for your words of support today. They listened to us.”

Cue wouldn’t comment on whether she will now make her album “1989” available on Apple Music. But he said he spoke with Swift personally on Sunday. “She was very pleased to see that we would give her a call right away and have a discussion,” he said.

Since Apple began selling digital music through its iTunes store in 2001, he added, “We’ve always loved music and have strived to make sure that artists are getting paid for their work.”

Swift had written in her letter that she found Apple’s original stance to be “shocking, disappointing, and completely unlike this historically progressive and generous company.”

While praising Apple for developing a paid music service that will compensate artists, she added, “We know that this incredible company has the money to pay artists, writers and producers for the 3 month trial period.”

The singer and songwriter has been outspoken on the issue of compensating musicians for streaming music. Last year, Swift pulled her catalogue of recordings from Spotify after complaining about its use of her music on the free, ad-supported version of its service.

http://taylorswift.tumblr.com/post/122071902085/to-apple-love-taylor

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