Private-equity investors have poured billions into healthcare but often game the system, hurting both doctors and patients. From a report: Consolidation is as American as apple pie. When a business gets bigger, it forces mom-and-pop players out of the market, but it can boost profits and bring down costs, too. Think about the pros and cons of Walmart and "Every Day Low Prices." In a complex, multitrillion-dollar system like America's healthcare market, though, that principle has turned into a harmful arms race that has helped drive prices increasingly higher without improving care. Years of dealmaking has led to sprawling hospital systems, vertically integrated health insurance companies, and highly concentrated private equity-owned practices resulting in diminished competition and even the closure of vital health facilities. As this three-part Heard on the Street series will show, the rich rewards and lax oversight ultimately create pain for both patients and the doctors who treat them. Belatedly, state and federal regulators and lawmakers are zeroing in on consolidation, creating uncertainty for the investors who have long profited from the healthcare merger boom. Consider the impact of massive private-equity investment in medical practices. When a patient with employer-based insurance goes under for surgery, the anesthesiologist's fee is supposed to be determined by market forces. But what happens if one firm quietly buys out several anesthesiologists in the same city and then hikes the price of the procedure? Such a scheme was allegedly implemented by the private-equity firm Welsh, Carson, Anderson & Stowe and the company it created in 2012, U.S. Anesthesia Partners, according to a Federal Trade Commission lawsuit filed last year. It started by buying the largest practice in Houston and then making three further acquisitions, eventually expanding into other cities throughout the state of Texas. In each location, the lawsuit alleges, USAP pursued an aggressive strategy of eliminating competitors by either acquiring them or conspiring with them to weaken competition. As one insurance executive put it in the FTC lawsuit, USAP and Welsh Carson used acquisitions to "take the highest rate of all ... and then peanut butter spread that across the entire state of Texas." In May, U.S. District Judge Kenneth Hoyt dismissed the FTC's unusual step of charging the private-equity investor, Welsh Carson, but allowed the case against USAP to proceed.

Read more of this story at Slashdot.

Vista Equity Partners has written off the entire equity value of its investment in tech learning platform Pluralsight, three years after taking it private for $3.5 billion, Axios reported Friday. From the report: One source says that the Utah-based company's financials have improved, with around 26% EBITDA growth in 2023, but not enough to service nearly $1.3 billion of debt that was issued when interest rates were lower. It's also a company whose future could be dimmed by advances in artificial intelligence, since some of the developer skills it teaches are becoming automated. Vista agreed to buy the company in late 2020 for $20.26 per share, representing a 25% premium to its 30-day trading average, despite a lack of profits.

Read more of this story at Slashdot.

An anonymous reader quotes a report from Reuters: Best Buy is set to post its tenth consecutive quarter of sales decline on Thursday when the U.S. electronics retailer reports quarterly results, as spending on big-ticket electronics remains pressured despite easing inflation. Although results from big-box retailers Walmart and Target indicate that consumers have resumed spending on less-expensive discretionary items such as apparel and accessories, they are still hesitant to go for TVs and washing machines. UPDATE 5/30/24: Best Buy's quarterly profit exceeded Wall Street estimates due to improved demand in its computing category, cost-saving efforts, and a successful membership program, leading to a 10% rise in shares. "Demand for artificial intelligence-enabled laptops as well as higher-end televisions is helping Best Buy regain lost ground on sales in the country as consumers look to upgrade or replace their gadgets after more than two years of restraint on spending on electronics," reports Reuters. "The company is also banking on the launch of Microsoft's AI-powered Copilot+ PCs, which are expected to go on sale on June 18." "Best Buy CEO Corie Barry said on a post-earnings call that the company expects to have more than 40% of the product assortment at launch exclusive to the company. The company has also benefited from people signing up for its two-tiered membership program, which it refreshed last year, helping the top electronics retailer in the United States retain shoppers and drive better margins."

Read more of this story at Slashdot.

Now included in Amazon Prime is free delivery via Grubhub. According to The Verge, "Amazon is now embedding Grubhub into Amazon.com and the Amazon Shopping app, and Amazon Prime customers paying $139 per year for Amazon Prime will now pay $0 for food delivery fees on orders of $12 or more, among other benefits." From the report: Amazon had previously offered Prime customers a free one-year subscription to GrubHub Plus, but that one auto-renewed at $129 per year. Now, it's a permanent part of the Amazon Prime subscription. Amazon says the ordering experience is "identical" to ordering from Grubhub's website or app and is accessible to all customers, even without Prime. Amazon and Grubhub say they'll continue collaborating on other promotions, including food pairings and promotions like the limited Nuka burger for the Fallout series premiere. Prime members can also get $5 off their Grubhub meal of $25 or more made through Amazon with code PRIME5 (valid through June 2nd). What will likely not be included in Amazon's Prime subscription is Alexa's upcoming AI overhaul. "Amazon is upgrading its decade-old Alexa voice assistant with generative AI and plans to charge a monthly subscription fee to offset the cost of the technology," CNBC reported earlier this month. Unfortunately, sources said it will not be included in the $139-per-year Prime offering.

Read more of this story at Slashdot.

Salesforce shares dropped as much as 17% in extended trading due to weaker-than-expected revenue and guidance that fell short of Wall Street expectations. "Revenue in the fiscal first quarter, which ended April 30, increased 11% from $8.25 billion a year earlier," reports CNBC. "It's the first time since 2006 that Salesforce fell short on revenue, according to LSEG data." From the report: Salesforce called for adjusted earnings per share in the current quarter of $2.34 to $2.36 on $9.2 billion to $9.25 billion in revenue. Analysts surveyed by LSEG had expected $2.40 in adjusted earnings per share on $9.37 billion in revenue. [...] Salesforce saw budget scrutiny and longer deal cycles than usual during the quarter, president and operating chief Brian Millham told analysts on a conference call. Management implemented go-to-market changes that cut into bookings, Millham said. All five of Salesforce's product areas contributed to the growth. But revenue from the Professional Services and Other category, at $548 million, was down 9% and under the StreetAccount consensus of $572.9 million. Net income jumped to $1.53 billion, or $1.56 per share, from $199 million, or 20 cents per share a year ago.

Read more of this story at Slashdot.

Helen Toner, a former OpenAI board member, said that the board didn't know about the company's 2022 launch of its chatbot ChatGPT until afterward -- and only found out about it on Twitter. From a report: In a podcast, Toner gave her fullest account to date of the events that prompted her and other board members to fire Sam Altman in November of last year. In the days that followed Chief Executive Officer Sam Altman's sudden ouster, employees threatened to quit, Altman was reinstated, and Toner and other directors left the board. "When ChatGPT came out in November 2022, the board was not informed in advance about that," Toner said on the podcast. "We learned about ChatGPT on Twitter." In a statement provided to the TED podcast, OpenAI's current board chief, Bret Taylor said, "We are disappointed that Ms. Toner continues to revisit these issues." He also said that an independent review of Altman's firing "concluded that the prior board's decision was not based on concerns regarding product safety or security, the pace of development, OpenAI's finances, or its statements to investors, customers, or business partners." [...] In the podcast, Toner also said that Altman didn't disclose his involvement with OpenAI's startup fund. And she criticized his leadership on safety. "On multiple occasions, he gave us inaccurate information about the formal safety processes that the company did have in place," she said,"meaning that it was basically impossible for the board to know how well those safety processes were working or what might need to change."

Read more of this story at Slashdot.

Russia may charge domestic companies to use foreign software, the TASS news agency quoted Digital Development Minister Maksut Shadaev as saying on Tuesday, as Moscow seeks to cut dependency on foreign technology and bolster its own. From a report: President Vladimir Putin has made achieving technological independence a key goal, as Western sanctions over the war in Ukraine seek to hamstring Moscow's ability to acquire technology and equipment from abroad that could help it on the battlefield. As part of that push, Putin signed a decree in early May which stated that at least 80% of Russian companies in key economic sectors should transition to using Russian-made software by 2030. Many Russian companies still use foreign software in their daily operations, although an EU sanctions package passed last December prohibits companies from supplying enterprise and design-related software to Russia. Shadaev said that introducing a levy on Russian firms would "equalise" foreign and Russian software.

Read more of this story at Slashdot.

The WeWork founder Adam Neumann has shelved his bid to acquire the bankrupt shared office space provider. From a report: It emerged earlier this year that Neumann, who was ousted from the business in 2019 following a botched attempt to take it public on the stock market, was seeking to buy the business. His new real estate venture, Flow Global, submitted a bid of more than $500m to take over WeWork and its assets. On Tuesday morning, however, Neumann confirmed that Flow was walking away from his dream to take back control of the firm. "For several months, we tried to work constructively with WeWork to create a strategy that would allow it to thrive," he told DealBook. "Instead, the company looks to be emerging from bankruptcy with a plan that appears unrealistic and unlikely to succeed." WeWork, with over $13bn in long-term leases, filed for Chapter 11 bankruptcy protection last November in order to renegotiate these agreements. At its peak, the company had been valued at $47bn as investors including the Japanese multinational SoftBank lined up to back it. As it prepared to go public in 2019, however, analysts gave it a far lower valuation. After it eventually went public, in 2021, its market valuation tumbled to less than $50m.

Read more of this story at Slashdot.

The US stock market is finally as fast as it was about a hundred years ago. Bloomberg News: That was the last time share trades in New York settled in a single day, as they will from Tuesday under new Securities and Exchange Commission rules. The change, halving the time it takes to complete every transaction, also occurred in jurisdictions including Canada and Mexico on Monday. The switch to the system known as T+1 -- abandoned in the earlier era as volumes became unwieldy -- is ultimately intended to reduce risk in the financial system. Yet there are worries about potential teething issues, including that international investors may struggle to source dollars on time, global funds will move at different speeds to their assets, and everyone will have less time to fix errors. The hope is that everything will run smoothly, but even the SEC said last week the transition may lead to a "short-term uptick in settlement fails and challenges to a small segment of market participants." The finance world's main industry group, the Securities Industry and Financial Markets Association, has instigated what it calls the T+1 Command Center to identify problems and coordinate a response. Firms across the spectrum have been preparing for months, relocating staff, adjusting shifts and overhauling workflows, and many say they're confident in their own readiness. The worry is whether every other counterparty and intermediary is similarly organized.

Read more of this story at Slashdot.

PayPal hopes to boost its growth by starting an ad network [non-paywalled link] juiced with something it already owns: data on its millions of users. From a report: The digital payments company plans to build an ad sales business around the reams of data it generates from tracking the purchases as well as the broader spending behaviors of millions of consumers who use its services, which include the more socially-enabled Venmo app. PayPal has hired Mark Grether, who formerly led Uber's advertising business, to lead the effort as senior vice president and general manager of its newly-created PayPal Ads division. In his new role, he will be responsible for developing new ad formats, overseeing sales and hiring staff to fill out the division, he said. PayPal in January introduced Advanced Offers, its first ad product, which uses AI and the company's data to help merchants target PayPal users with discounts and other personalized promotions. Advanced Offers only charges advertisers when consumers make a purchase. Online marketplaces eBay and Zazzle have begun testing it, according to a PayPal spokesman. But PayPal now aims to sell ads not only to its own customers, but to so-called non-endemic advertisers, or those that don't sell products or services through PayPal. Those companies might use PayPal data to target consumers with ads that could be displayed elsewhere, for instance, on other websites or connected TV sets.

Read more of this story at Slashdot.

iFixit and Samsung are parting ways. Two years after they teamed up on one of the first direct-to-consumer phone repair programs, iFixit CEO and co-founder Kyle Wiens tells The Verge the two companies have failed to renegotiate a contract -- and says Samsung is to blame. From a report: "Samsung does not seem interested in enabling repair at scale," Wiens tells me, even though similar deals are going well with Google, Motorola, and HMD. He believes dropping Samsung shouldn't actually affect iFixit customers all that much. Instead of being Samsung's partner on genuine parts and approved repair manuals, iFixit will simply go it alone, the same way it's always done with Apple's iPhones. While Wiens wouldn't say who technically broke up with whom, he says price is the biggest reason the Samsung deal isn't working: Samsung's parts are priced so high, and its phones remain so difficult to repair, that customers just aren't buying.

Read more of this story at Slashdot.

Nvidia reported fiscal first-quarter earnings surpassing expectations with strong forecasts, indicating sustained demand for its AI chips. Following the news, the company's stock rose over 6% in extended trading. Nvidia also said it was splitting its stock 10 to 1. CNBC reports: Nvidia said it expected sales of $28 billion in the current quarter. Wall Street was expecting earnings per share of $5.95 on sales of $26.61 billion, according to LSEG. Nvidia reported net income for the quarter of $14.88 billion, or $5.98 per share, compared with $2.04 billion, or 82 cents, in the year-ago period. [...] Nvidia said its data center category rose 427% from the year-ago quarter to $22.6 billion in revenue. Nvidia CFO Colette Kress said in a statement that it was due to shipments of the company's "Hopper" graphics processors, which include the company's H100 GPU. Nvidia also highlighted strong sales of its networking parts, which are increasingly important as companies build clusters of tens of thousands of chips that need to be connected. Nvidia said that it had $3.2 billion in networking revenue, primarily its Infiniband products, which was over three times higher than last year's sales. Nvidia, before it became the top supplier to big companies building AI, was known primarily as a company making hardware for 3D gaming. The company's gaming revenue was up 18% during the quarter to $2.65 billion, which Nvidia attributed to strong demand. The company also sells chips for cars and chips for advanced graphics workstations, which remain much smaller than its data center business. The company reported $427 million in professional visualization sales, and $329 million in automotive sales. Nvidia said it bought back $7.7 billion worth of its shares and paid $98 million in dividends during the quarter. Nvidia also said that it's increasing its quarterly cash dividend from 4 cents per share to 10 cents on a pre-split basis. After the split, the dividend will be a penny a share.

Read more of this story at Slashdot.

The Consumer Financial Protection Bureau declared on Wednesday that customers of the burgeoning buy now, pay later industry have the same federal protections as users of credit cards. From a report: The agency unveiled what it called an "interpretive rule" that deemed BNPL lenders essentially the same as traditional credit card providers under the decades-old Truth in Lending Act. That means the industry -- currently dominated by fintech firms like Affirm, Klarna and PayPal -- must make refunds for returned products or canceled services, must investigate merchant disputes and pause payments during those probes, and must provide bills with fee disclosures. "Regardless of whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under long-standing laws and regulations already on the books," CFPB Director Rohit Chopra said in a release. The CFPB, which last week was handed a crucial victory by the Supreme Court, has pushed hard against the U.S. financial industry, issuing rules that slashed credit card late fees and overdraft penalties. The agency, formed in the aftermath of the 2008 financial crisis, began investigating the BNPL industry in late 2021.

Read more of this story at Slashdot.

It seems no industry is safe from consolidation, and the latest target is gaming media. From a report: IGN Entertainment has acquired the website portfolio of UK publisher Gamer Network, which operates a number of beloved games-focused publications. That list includes Gamesindustry.biz, Eurogamer, Rock Paper Shotgun, VG247, and the tabletop site Dicebreaker. The network also holds shares in sites like Nintendo Life and Digital Foundry. Terms of the deal were not disclosed. Gamesindustry.biz reports that "some redundancies" have been made across the sites, though it's not clear how many workers have been impacted. According to several posts on X, editors at both Rock Paper Shotgun and Gamesindustry.biz have been laid off. IGN Entertainment is owned by Ziff Davis, which, in addition to IGN's site, also operates other subsidiaries like Humble Bundle.

Read more of this story at Slashdot.

A blind worker for the National Federation of the Blind said Sonos had a reputation for making products usable for people with disabilities, but that "Overnight they broke that trust," according to the Washington Post. They're not the only angry customers about the latest update to Sonos's wireless speaker system. The newspaper notes that nonprofit worker Charles Knight is "among the Sonos die-hards who are furious at the new app that crippled their options to stream music, listen to an album all the way through or set a morning alarm clock." After Sonos updated its app last week, Knight could no longer set or change his wake-up music alarm. Timers to turn off music were also missing. "Something as basic as an alarm is part of the feature set that users have had for 15 years," said Knight, who has spent thousands of dollars on six Sonos speakers for his bedroom, home office and kitchen. "It was just really badly thought out from start to finish." Some people who are blind also complained that the app omitted voice-control features they need. What's happening to Sonos speaker owners is a cautionary tale. As more of your possessions rely on software — including your car, phone, TV, home thermostat or tractor — the manufacturer can ruin them with one shoddy update... Sonos now says it's fixing problems and adding back missing features within days or weeks. Sonos CEO Patrick Spence acknowledged the company made some mistakes and said Sonos plans to earn back people's trust. "There are clearly people who are having an experience that is subpar," Spence said. "I would ask them to give us a chance to deliver the actions to address the concerns they've raised." Spence said that for years, customers' top complaint was the Sonos app was clunky and slow to connect to their speakers. Spence said the new app is zippier and easier for Sonos to update. (Some customers disputed that the new app is faster.) He said some problems like Knight's missing alarms were flaws that Sonos found only once the app was about to roll out. (Sonos updated the alarm feature this week.) Sonos did remove but planned to add back some lesser-used features. Spence said the company should have told people upfront about the planned timeline to return any missing functions. In a blog post Sonos thanked customers for "valuable feedback," saying they're "working to address them as quickly as possible" and promising to reintroduce features, fix bugs, and address performance issues. ("Adding and editing alarms" is available now, as well as VoiceOver fixes for the home screen on iOS.) The Washington Post adds that Sonos "said it initially missed some software flaws and will restore more voice-reader functions next week."

Read more of this story at Slashdot.

Emilia David reports via The Verge: OpenAI has signed a deal for access to real-time content from Reddit's data API, which means it can surface discussions from the site within ChatGPT and other new products. It's an agreement similar to the one Reddit signed with Google earlier this year that was reportedly worth $60 million. The deal will also "enable Reddit to bring new AI-powered features to Redditors and mods" and use OpenAI's large language models to build applications. OpenAI has also signed up to become an advertising partner on Reddit. No financial terms were revealed in the blog post announcing the arrangement, and neither company mentioned training data, either. That last detail is different from the deal with Google, where Reddit explicitly stated it would give Google "more efficient ways to train models." There is, however, a disclosure mentioning that OpenAI CEO Sam Altman is also a shareholder in Reddit but that "This partnership was led by OpenAI's COO and approved by its independent Board of Directors." "Reddit has become one of the internet's largest open archives of authentic, relevant, and always up-to-date human conversations about anything and everything. Including it in ChatGPT upholds our belief in a connected internet, helps people find more of what they're looking for, and helps new audiences find community on Reddit," Reddit CEO Steve Huffman says. Reddit stock has jumped on news of the deal, rising 13% on Friday to $63.64. As Reuters notes, it's "within striking distance of the record closing price of $65.11 hit in late-March, putting the company on track to add $1.2 billion to its market capitalization."

Read more of this story at Slashdot.

Two university students discovered a security flaw in over a million internet-connected laundry machines operated by CSC ServiceWorks, allowing users to avoid payment and add unlimited funds to their accounts. The students, Alexander Sherbrooke and Iakov Taranenko from UC Santa Cruz, reported the vulnerability to the company, a major laundry service provider, in January but claim it remains unpatched. TechCrunch adds: Sherbrooke said he was sitting on the floor of his basement laundry room in the early hours one January morning with his laptop in hand, and "suddenly having an 'oh s-' moment." From his laptop, Sherbrooke ran a script of code with instructions telling the machine in front of him to start a cycle despite having $0 in his laundry account. The machine immediately woke up with a loud beep and flashed "PUSH START" on its display, indicating the machine was ready to wash a free load of laundry. In another case, the students added an ostensible balance of several million dollars into one of their laundry accounts, which reflected in their CSC Go mobile app as though it were an entirely normal amount of money for a student to spend on laundry.

Read more of this story at Slashdot.

Palo Alto Networks is acquiring IBM's QRadar cloud software and migrating customers to its Cortex Xsiam platform as part of a broader partnership aimed at expanding its consulting capabilities and customer base. The sum of the deal was not disclosed. CNBC reports: The move normally takes one to three months, Nikesh Arora, Palo Alto's CEO, told CNBC. Also, IBM will train more than 1,000 of its consulting employees on Palo Alto's products. [...] For IBM, a more robust lineup of contemporary security tools for consulting might help the company deliver on its stated goal of revenue growth in the mid-single digits for 2024. In the first quarter, revenue increased 3%, with a 2% bump in the consulting segment. Palo Alto is growing much faster than IBM. In the January quarter, revenue jumped 19%. The company will report results for the latest quarter on Monday. Palo Alto more than doubled in value last year and its stock is up 6% year to date, lifting the company's market cap past $100 billion. The stock rose more than 1% in extended trading. IBM is up close to 5% this year and is now valued at $154 billion. The companies said the transaction should close by the end of September, subject to regulatory approval and other conditions. [...] IBM will continue to sell its QRadar software for use in on-premises data centers. At the same time, IBM will suggest that clients using it consider switching to Palo Alto's Cortex Xsiam.

Read more of this story at Slashdot.

Japan's Toshiba said on Thursday it will cut up to 4,000 jobs domestically as the industrial conglomerate accelerates restructuring under new ownership. From a report: Toshiba delisted in December due to a $13 billion takeover by a consortium led by private equity firm Japan Industrial Partners, capping a decade of scandal and upheaval. The consortium's efforts to engineer a turnaround at Toshiba are seen as a test for private equity in Japan, which used to be seen as "hagetaka" or vultures due to its rapacious reputation. The restructuring amounts to up to 6% of Toshiba's domestic workforce. The company also said it would relocate office functions from central Tokyo to Kawasaki, west of the capital, and target an operating profit margin of 10% in three years.

Read more of this story at Slashdot.