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Google Puts Boston Dynamics Up for Sale in Robotics Retreat

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A logo is pictured at Google's European Engineering Center in Zurich

The video, published to YouTube on Feb. 23, was awe-inspiring and scary. A two-legged humanoid robot trudges through the snow, somehow maintaining its balance. Another robot with two arms and pads for hands crouches down and lifts a brown box and delicately places it on a shelf — then somehow stays upright while a human tries to push it over with a hockey stick. A third robot topples over and clambers back to its feet with ease.

Tens of millions of people viewed the video over the next few weeks. Google and the division responsible for the video, Boston Dynamics, were seemingly pushing the frontier in robot technology.

But behind the scenes a more pedestrian drama was playing out. Executives at Google parent Alphabet Inc., absorbed with making sure all the various companies under its corporate umbrella have plans to generate real revenue, concluded that Boston Dynamics isn’t likely to produce a marketable product in the next few years and have put the unit up for sale, according to two people familiar with the company’s plans.

Possible acquirers include the Toyota Research Institute, a division of Toyota Motor Corp., and Amazon.com Inc., which makes robots for its fulfillment centers, according to one person. Google and Toyota declined to comment, and Amazon didn’t respond to requests for comment.

Robotics Push

Google acquired Boston Dynamics in late 2013 as part of a spree of acquisitions in the field of robotics. The deals were spearheaded by Andy Rubin, former chief of the Android division, and brought about 300 robotics engineers into Google. Rubin left the company in October 2014. Over the following year, the robot initiative, dubbed Replicant, was plagued by leadership changes, failures to collaborate between companies and an unsuccessful effort to recruit a new leader.

At the heart of Replicant’s trouble, said a person familiar with the group, was a reluctance by Boston Dynamics executives to work with Google’s other robot engineers in California and Tokyo and the unit’s failure to come up with products that could be released in the near term.

Tensions between Boston Dynamics and the rest of the Replicant group spilled into open view within Google, when written minutes of a Nov. 11 meeting and several subsequent e-mails were inadvertently published to an online forum that was accessible to other Google workers. These documents were made available to Bloomberg News by a Google employee who spotted them.

The November meeting was run by Jonathan Rosenberg, an adviser to Alphabet Chief Executive Officer Larry Page and former Google senior vice president, who was temporarily in charge of the Replicant group. In the meeting, Rosenberg said, “we as a startup of our size cannot spend 30-plus percent of our resources on things that take ten years,” and that “there’s some time frame that we need to be generating an amount of revenue that covers expenses and (that) needs to be a few years.”

‘Brick Wall’

Aaron Edsinger, director of robotics at Google in San Francisco, said that he had been trying to work with Boston Dynamics to create a low-cost electric quadruped robot and felt “a bit of a brick wall” around the division, according to the minutes of the meeting.

Marc Raibert, a former Massachusetts Institute of Technology professor and the founder of Boston Dynamics, said that “I firmly believe the only way to get to a product is through the work we are doing in Boston. (I) don’t think we are the pie in the sky guys as much as everyone thinks we are,” the minutes show.

Raibert didn’t respond to multiple messages seeking comment for this story.
Part of the challenge was that Alphabet, created in 2015, was geared toward making Google inviting to startup founders and entrepreneurial executives who wanted to join companies driving toward products and revenue, which could increase shareholder value for those subsidiaries. Page wanted to invite top-tier engineers to join the companies within Alphabet and entice them with equity.

In December, Google announced that Replicant had been folded into Google’s advanced research group, Google X. In a private all-hands meeting around that time, Astro Teller, the head of Google X, told Replicant employees that if robotics aren’t the practical solution to problems that Google was trying to solve, they would be reassigned to work on other things, according to a person who was at that meeting.

Distancing Google

Boston Dynamics, though, was never folded into Google X and was instead put up for sale. After the division’s latest robot video was posted to YouTube, in February, Google’s public-relations team expressed discomfort that Alphabet would be associated with a push into humanoid robotics. Their subsequent e-mails were also published to the internal online forum and became visible to all Google employees.

“There’s excitement from the tech press, but we’re also starting to see some negative threads about it being terrifying, ready to take humans’ jobs,” wrote Courtney Hohne, a director of communications at Google and the spokeswoman for Google X.

Hohne went on to ask her colleagues to “distance X from this video,” and wrote, “we don’t want to trigger a whole separate media cycle about where BD really is at Google.”

“We’re not going to comment on this video because there’s really not a lot we can add, and we don’t want to answer most of the Qs it triggers,” she wrote.

Bloomberg

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Multichoice Nigeria Rolls Out Tariff Increase Despite Tribunal’s Interim Order

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Multichoice- Investors King

Multichoice Nigeria, a prominent Pay TV provider, has proceeded with the implementation of tariff adjustments for its DStv and GOtv subscribers, despite an interim order issued by a competition and consumer protection tribunal (CCPT) in Abuja.

On April 24, Multichoice announced plans to increase prices for its cable services, scheduled to take effect from May 1.

However, the CCPT ruled that the company should refrain from raising rates as initially scheduled, following an ex-parte motion presented by the applicant’s counsel.

Despite the tribunal’s interim order, checks conducted by Nairametrics revealed that Multichoice Nigeria has forged ahead with the tariff increase, with the new prices being displayed and enforced on its official website.

For DStv Premium subscribers, the price has surged from N29,500 to N37,000, while Compact Plus subscribers now face an increase from N19,800 to N25,000.

Similarly, Compact, Confam, and Yanga subscribers witness price hikes, ranging from 20% to 25% compared to previous rates.

GOtv subscribers also experience a similar fate, with tariff adjustments reflecting significant increases across various subscription packages.

Despite legal injunctions, Multichoice Nigeria’s decision to proceed with the price hike signals a bold move in a highly contested legal battle.

The Acting Chairman of the Federal Competition & Consumer Protection Commission (FCCPC), Adamu Abdullahi, disclosed that Multichoice had provided a detailed explanation for the price adjustments in a four-page letter to the commission.

The company cited factors such as foreign exchange fluctuations, high electricity tariffs, and operational costs as drivers behind the rate revisions.

Abdullahi explained that the FCCPC would scrutinize Multichoice’s justifications for the price hike, collaborating with regulatory bodies like the National Broadcasting Commission (NBC) and the Nigerian Communications Commission (NCC) to ensure compliance with market regulations.

The decision to proceed with the tariff increase has sparked concerns among consumer rights advocates, who question Multichoice’s adherence to legal directives.

Despite the company’s rationale for the price adjustment, critics argue that subscribers should not bear the brunt of economic challenges beyond their control.

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Nigeria’s OPay Valuation Hits $2.7 Billion Amid Digital Payments Surge

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Opay

Nigeria’s OPay, the fintech startup that has been making waves in the country’s digital payments landscape, has seen its valuation soar to $2.7 billion.

This represents over 30% since its Series C funding round in 2021.

This surge in valuation shows the exponential growth of Nigeria’s digital payments sector and the increasing prominence of financial technology companies within the nation’s economy.

The valuation update comes from recent corporate filings made by Opera, an early investor in OPay. Opera’s stake in OPay gradually declined over the years to 6.4% by 2021.

However, a strategic move in early 2023 saw Opera increase its stake to 9.4% after selling its Asian fintech subsidiary, Nanobank, to OPay in exchange for equity in the company.

According to filings with the US Securities and Exchange Commission (SEC), Opera valued its 9.4% stake in OPay at $253 million, reflecting the $2.7 billion valuation of the fintech startup.

OPay’s meteoric rise can be attributed to several factors, including Nigeria’s increasing adoption of digital payments and the company’s innovative services.

The surge in digital payments volumes, driven in part by an ill-timed currency redesign that led to cash scarcity, has propelled OPay’s growth.

As more Nigerians turned to fintech apps like OPay for transactions, the company experienced a quadrupling of its user base in 2023, accompanied by a revenue growth of over 60% on a constant currency basis, according to Opera.

Despite its rapid growth, OPay, like other fintech companies, faces challenges related to fraud and customer safety concerns.

Regulatory bodies, including the Central Bank of Nigeria, have tightened rules on account safety, highlighting the need for OPay and similar companies to address these issues while continuing to innovate and expand their services.

As Nigeria’s digital payments ecosystem continues to evolve, OPay’s rising valuation underscores its position as a key player in driving financial inclusion and transforming the country’s economy through innovative technology solutions.

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ALTON and ATCON Call for Tariff Review and Regulatory Independence

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telecommunication-tower

The Association of Licensed Telecoms Operators of Nigeria (ALTON) and The Association of Telecommunications Companies of Nigeria (ATCON), representing Mobile Network Operators (MNOs) and telecommunication firms in Nigeria, have jointly raised concerns over the current state of the telecom industry.

In a unified call to action, they have urged the federal government to address critical issues such as tariff review and regulatory independence to ensure the sector’s sustainability and growth.

Despite facing significant economic challenges, Nigeria’s telecommunications industry has not adjusted its general service pricing framework upwards in over a decade.

ALTON and ATCON attribute this stagnation to regulatory constraints that have hindered the industry’s ability to align pricing with economic realities.

They argue that the current price control mechanism, which does not reflect market conditions, poses a threat to the sector’s viability and investor confidence.

In a statement released over the weekend and jointly signed by ALTON Chairman Gbenga Adebayo and ATCON President Tony Izuagbe Emoekpere, the associations highlighted a range of challenges plaguing the telecom sector.

These include unsustainable tariff structures, lack of regulatory independence, infrastructure deficits, a harsh business environment, multiple taxation and regulations, prohibitive Right of Way (RoW) charges, inadequate power supply, and vandalism of telecommunications infrastructure.

The industry leaders stressed the urgent need for collaborative efforts between the public and private sectors to overcome these obstacles.

They called for constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.

Furthermore, ALTON and ATCON emphasized the importance of regulatory independence in fostering a conducive environment for the telecom sector.

They advocated for the sustenance of a culture of independence within the regulatory landscape to safeguard against undue influence and ensure the impartiality of regulatory decisions. Regulatory neutrality and independence, they argued, are crucial for maintaining public confidence and encouraging investment in the sector.

ALTON and ATCON reaffirmed their commitment to working collaboratively with the government to address the challenges facing Nigeria’s telecommunications industry.

They urged the government to prioritize infrastructure development, enhance security measures, and facilitate pricing adjustments to unlock the sector’s full potential.

The call by ALTON and ATCON underscores the pressing need for regulatory reforms and policy interventions to drive sustainable growth and development in Nigeria’s telecom sector.

As stakeholders await government action, the industry remains hopeful that concerted efforts will pave the way for a more resilient and competitive telecommunications landscape.

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