Discussion and response

Assignment #1

Go to www.cnbc.com and explore the video tab using the key term capital investment. As you learned in this unit, there are various sources of information. Watch at least three videos you find and provide a summary of the type of information that the video contained and how it relates to this unit. How does your current or past company you work for, or one that you know of, evaluate capital investments?

Textbook: Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial management: Principles and applications (12th ed.). Upper Saddle River, NJ: Pearson.

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Please respond to my classmate response below:

Video I Investing and making money in e-sports

Mark Ein, Capitol Investment Corp IV founder and CEO is investing in e-sports of professional competitive gaming. Ein is involved in founding six other companies worth over 1 billion dollars. E-sports has staged events to take place in actual cities and set up as teams. They have drawn more than 10 million viewers in the first week. They are making money by selling tickets, media rights, sponsorships, and the league have a $90 million streaming right for two years from Twitch, ESPN, and Amazon. This type of investment is for the next generation looking to watch the best in the world.

Mark Ein has invested six other companies as well as e-sports providing him with the diversification of investment. If one venture fails, there may be another that will gain.

Video 2: Sheryl Sandberg: Investments on keeping Facebook safe starting to pay off

Facebook COO and Twitter COO are working to shut down fake news.

Sheryl Sandberg highlighted the initiatives that have been executed to eliminate fake news. Sandberg noted an authorization process put into place for large pages that have a large audience. Sandberg gave an update on the accounts that Facebook has removed because of inauthentic behavior such as news posing as news organizations or international pages. Sandberg gave an overall update on social media’s continued efforts to meet the challenges of hackers and promised to keep investing in the process.

Facebook and Twitter’s investment directly into their company will make their business more valuable and sustainable.

Video 3: Higher rates can create opportunity in a deal market: Billionaire investor

Mark Ein, Capitol Investment Corp IV CEO Discusses high-interest rates and believes this will create opportunity. Ein seeks investment opportunities in ways to make the investment better. Ein prefers to pay a lower price for something that he can improve vs. paying a high price for something that is great. Creating more value of the company after the investment is what makes a difference. Ein structures his business, so he does not get carried interest. Retail department stores can be affected if rates go up, revenues slow, profits go down, and then have problems and bankruptcy is likely. Ein’s investment company looks for experiences that people are interested in rather than materialistic investments.