Dez Reads. Reddit's Remarkable ROI, Free Speech Frontlines, Gen Z's Political Discontent, Facebook's AI Fiasco, Royal Rumors Unraveled, and the Ohtani Scandal.
Welcome to Dez Reads, where we explore the latest in finance, law, technology, culture, politics, and sports upheavals. This week spotlights Conde Nast's surprising windfall from Reddit's IPO and delves into the free speech battles on social media platforms. We explore the rising tide of AI-generated spam on Facebook and the cultural ripples from ongoing royal photo controversies, the political disillusionment of Gen Z, and, in sports, the shocking allegations of Shohei Ohtani and his interpreters' involvement in a tangled web of loyalty, deception, and high-stakes gambling.
Each story offers insights into the evolving dynamics of media, technology, legality, celebrity, and sports. Join us as we explore these narratives, each shedding light on the different headlines driving today's news.
Here we go.
Finance.
The Information. How a Legacy Media Company Dwarfed Venture Capitalists’ Returns on Reddit.
Media conglomerate Conde Nast bought Reddit nearly 20 years ago for $10 million. This was the early days of the internet; Conde Nast had only just bought the web domain for its Wired magazine before purchasing the world’s most famous message board.
At a time when legacy media was still a very profitable advertising platform, Conde Nast made a very smart bet on the future of the internet. With Reddit’s IPO this week, the company made a $1.4 billion profit on the early investment. A magazine company outperformed most venture capitalists and other early investments due to its sizeable early bet. When new, disruptive technologies and platforms emerge, it’s generally a good idea to consider diversifying your potential revenue streams away from what has always worked.
– Josh Culling
Legal.
America has been fighting over “free speech” since our founding. It’s fair to say that our leaders have always believed conceptually in free speech until it becomes a political problem. Historically, free speech fights have been the most heated during war times. During the Civil War, Lincoln sent the army to close the NY Post, which was advocating against young men responding to their draft notices. During WW1, Wilson’s Justice Department arrested labor leaders Richard Schenck and Eugene Debs under the Sedition Act for urging their union members not to fight. This led to the famous (or infamous) ruling by Justice Oliver Wendell Holmes (a decorated Civil War Veteran) that this was the equivalent of “shouting fire in a crowded theater.” Civil libertarians, led by Clarence Darrow, were so appalled they formed a new group -- The American Civil Liberties Union – to get this decision overturned. They accomplished this just in time for the Vietnam War protests.
For the last 25 years, these free speech fights have moved to a different realm than war. It started with college campuses and “hate speech” prohibitions and accelerated into what can be said on social media platforms. These platforms are in an impossible position. They can’t monitor everything that’s said by their hundreds of millions of users. And they can’t be indifferent to outside forces, including the government, that see these platforms as vehicles for radicalizing a small segment of their users. There is no legislation or policies that can solve these problems. Companies will simply have to accept constant litigation, congressional hearings, and lectures from politicians and pundits as long as they exist.
– Steven Schlein
Tech.
404meida. Facebook’s Algorithm Is Boosting AI Spam That Links to AI-Generated, Ad-Laden Click Farms
Most Millennials and Gen Z have been saying, "What the hell is going on with Facebook?" for quite a while… but never did I think "shrimp Jesus" would go viral in an AI-generated spam campaign. These spam pages post AI-generated photos that the Facebook algorithm, for whatever reason, is pushing to virality. The posts link directly to link farms that make who knows how much money either through ad spots on spammy pages or through low-quality, sham products.
What's interesting, but not surprising, knowing the demographics of Facebook's user base, is that the people interacting with these posts don't seem to know they're AI-generated. As a former political operative, I am nervous about the fate of elections across the globe as well as about the data privacy of unaware individuals. Suppose people don't realize that some egregious photos you see in this article aren't real. Deepfakes will have more impact on elections than leaders care to admit. Or maybe they don't care if their friends can use them to win.
Anyway, Facebook continues to promote insane things in a desperate attempt to retain users and stay relevant. It'd almost be entertaining at this point if it didn't have such worrisome real-world implications. But, brb, I'm putting "shrimp Jesus" on my 2024 Bingo card. Let me know if there are any other bizarre happenings I should include.
– Annie Moore
Culture.
NYT. As U.K. Royals Struggle to Calm Rumors, Agency Flags Older Edited Photo
The Princess Kate photo kerfuffle continues unabated. The conspiracy theories are hilarious and byzantine and tell us a lot about how the consumer public believes the powerful operates. Specifically, the scenarios involve Mission: Impossible-style disguises and body doubles, not to mention hyper-secrecy so absolute as to run violently contrary to everything I’ve learned about how human beings and organizations behave.
How is it that the same masterminds that allow a sloppily edited family photo to be published are also able to produce a flawless fembot? Why would a PR apparatus that announced the king had cancer undertake a massive subterfuge to cover up the princess’s abdominal surgery? The answer: They wouldn’t.
Conspiracy theories bring us pleasure. They give us a sense of control over a world we cannot control. They explain a God that cannot be explained and make whoever is spouting the latest nitwittery become the center of attention. Years ago, I advised a royal family member (I won’t name the country) on how to deal with this stuff. I said, “You have no control over any of this. None. You hire someone who says they can manage it at your peril. All you control is what you do, so do what you want and what you believe in. Your legacy will flow from that.”
– Eric Dezenhall
Politics.
WSJ. The Rough Years That Turned Gen Z Into America’s Most Disillusioned Voters
In the last decade, there have been too many “once in a generation” national issues and global crises to list, and that’s the backdrop of Gen Zs coming of age. With approximately 41 percent of Gen Z Americans, ages 18-27, eligible to vote this year, “Gen Z’s widespread gloominess is manifesting in unparalleled skepticism of Washington and a feeling of despair that leaders of either party can help.”
Congress’ swift moves to advance legislation to ban TikTok are not improving Gen Z voters' outlook on the electoral system. One twentysomething put it aptly: “It’s funny how they quickly pass this bill about this TikTok situation. What about schools that are getting shot up? No, we’re going to worry about TikTok, and that just shows you where their head is…. I feel like they don’t really care about what’s going on with humanity.”
Based on my wholly unscientific and anecdotal research, Millennials and Gen X are increasingly disenfranchised with politics and are beginning to give up on the political process. We don’t want to run for office or be lifelong public servants because what’s the point? The government is getting older and less representative, and the goal for most is political fame, not legislating for the betterment of society. Thank you next.
Enter Gen Z. They have never seen government function in a cohesive, collaborative (dare I say bipartisan) manner, so they can reimagine the entire political ecosystem entirely. I, for one, am pinning my hopes on Gen Z turning the current political landscape and framework on its head in the coming years. Will they take their displeasure to the polls this election cycle and start a wave of political activism and involvement the old guard isn’t ready for? Here’s hoping.
– Anne Marie Malecha
Sports.
ESPN. Shohei Ohtani’s interpreter fired amid gambling, theft allegations
In a twist that mirrors the age-old tale of sports and high-stakes gambling, the Los Angeles Dodgers have terminated Shohei Ohtani's interpreter, Ippei Mizuhara, amid allegations of a "massive theft" connected to a staggering $4.5 million wired to a gambling ring. Mizuhara and Ohtani now find themselves caught up in a scandal that raises more questions than it answers.
This unfolding drama, initiated by ESPN's inquiry into suspicious wire transfers from Ohtani's account, paints a complex picture of gambling debts and potential deception. Mizuhara's narrative – from staunchly defending the transfers as necessary to settle his gambling debts to later distancing Ohtani from any involvement – adds layers of intrigue and speculation.
The Dodgers' decision to part ways with Mizuhara spotlights the intricate and often shadowy interplay between professional sports, loyalty, and gambling. With federal investigators delving deeper, the sports community remains riveted, aware that this might just be the tip of the iceberg.
As the story is still breaking, one can't help but wonder if Mizuhara's admissions are merely a façade, concealing deeper gambling entanglements possibly involving Ohtani himself. This story, ripe with intrigue and hidden layers, reminds us that in the world of professional sports and online gambling, the next revelation is just a dice roll away.
– Mark Emerson
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