Slate Money: The Put a Fork In It Edition — Detailed Summary

Date: June 9, 2018
Host: Felix Salmon
Co-hosts: Anna Shymansky, Emily Peck
Guest: Paul Ford (Co-founder and CEO, Postlight)

Episode Overview

In this wide-ranging episode, the Slate Money team, joined by Paul Ford, dives into the biggest business stories of the week. They discuss Microsoft’s $7.5 billion acquisition of GitHub, the controversial fallout from Facebook’s WhatsApp purchase, and a breaking banking scandal in Australia. Along the way, they reflect on the changing reputations of tech giants, the intersection of privacy and profit, and why "throwing a banker in jail" might make a surprising regulatory difference.

Key Discussion Points and Insights

Paul Ford: Life as a CEO (00:43–02:28)

• Paul Ford returns, now as CEO of Postlight:

  "I have a software firm with a co-founder and we decided to promote me." (01:03, Paul Ford)

• Discusses job roles:
  • CEO as the long-term strategic visionary
  • President as operational lead ("like a high-level COO," per Felix)

Memorable Moment

Paul’s wry take on titles:

"I feel like people know what a CEO does and absolutely no one knows what a president does." (01:47, Felix Salmon)

Segment 1: Microsoft Acquires GitHub ($7.5 billion) (04:00–13:12)

What is GitHub? (04:00–06:33)

• Paul breaks down Git, version control, and why GitHub matters:

  "Code is just a lot of words in a file and numbers and symbols... What has evolved over the last 50 years is... having versions of your code." (04:28, Paul Ford)

• GitHub made complex technology accessible and became central to the developer ecosystem.

GitHub’s Financials (06:33–07:28)

• Revenue reportedly around $200 million/year, but not profitable.

Why Does Microsoft Want GitHub? (07:28–11:54)

• Strategic move: Beyond money, a bid for relevance in open-source, cloud, and developer ecosystems.

  "Does Microsoft's concept of money actually align with the concept of money we have in our wallet?" (07:28, Paul Ford)

• Microsoft’s cultural evolution noted under Satya Nadella.

Valuation Logic (10:32–11:54)

• Anna: Acquisition isn’t about direct profits, but strategic integration for Microsoft’s wider business.

  "So it's not that they ever expect that GitHub would be generating tremendous amounts... it can strategically create earnings in other ways." (10:46, Anna Shymansky)

Content/Free Speech Implications (11:54–13:55)

• Discussion of GitHub’s role in circumventing censorship:

  "Is it not the case that GitHub is one of the very few sites in the world... the Chinese government basically can't censor?" (12:42, Felix Salmon)

• Paul downplays likelihood, but notes possibilities for creative uses.

Microsoft’s Track Record with Acquisitions (14:08–17:22)

• Comparison with LinkedIn acquisition, differing cultural and product outcomes.

Notable Quote

"Most people... are just like, well, another big thing happened with an enormous amount of money... They're probably not going to screw it up." (09:52, Paul Ford)

Segment 2: Facebook, WhatsApp & Privacy Betrayal (17:46–28:26)

WhatsApp Acquisition Disaster (17:52–19:59)

• Facebook’s $22 billion purchase of WhatsApp seen as risky—founders strictly anti-advertising.
• Both founders quit early, forfeiting ~$1.3B, due to Facebook’s pivot toward monetization.

"They walked away from what is it, $1.3 billion because they were just freaking fed up with Facebook, which a lot of people are." (18:46, Emily Peck)

Founders’ Principles vs. Corporate Reality (20:10–24:45)

• WhatsApp founders’ privacy stance rooted in their product vision.
• Facebook's shift to data-driven advertising undermined WhatsApp’s founding values.
• Heated debate on whether the founders should have anticipated this:

  "Privacy plus capitalism equals comedy." (21:16, Paul Ford) "Buyer beware. These are sophisticated people. I don't feel sorry for anyone here." (21:45, Anna Shymansky)

Contractual Disputes and Legal Shenanigans (25:04–26:26)

• Founders reportedly had clauses to exit if monetization occurred but were discouraged from executing those rights.

The Real Victims? (WhatsApp Users) (22:48–28:26)

• Deep concern about user privacy erosion.

  "WhatsApp was built on the idea that we don't want to know anything about you... Facebook... wants to target advertising, you needs to know all of these things." (22:48, Felix Salmon)

• Signal emerges as privacy-focused alternative, now funded by WhatsApp's co-founder.

Tone and Humor

• Running jokes about "air-cooled Porsches," disc golf, and privacy-themed bathroom stalls reflect the absurdity of Silicon Valley culture.

Segment 3: Tech Giants—Maturing or Menacing? (28:44–32:38)

• The changing image of Microsoft and Facebook:

  "It does seem to be an astonishing reversal... Microsoft was this big evil corporation and Facebook was this amazing fun place... Now it's the other way around." (28:44, Felix Salmon)

• The life cycle of tech firms and their impact on users and workers.
• Notable observation:

  "Amazon knows everything about everyone and somehow has managed to avoid being tarred with this... Facebook is the opposite." (31:22, Paul Ford)

Segment 4: Australian Bankers Face Jail—Finance Reckoning (33:21–41:13)

The Scandal (33:21–38:03)

• Senior bankers at Deutsche Bank and Citibank are prosecuted over collusion to dump unsold shares post-secondary offering at ANZ bank.
• Opaque charges (unlike US system), but likely connected to deceptive market practices.
• Possible regulatory overreach debated.

"The fact is the bottom line is that we have a major criminal prosecution of bankers going on in Australia. And I think a lot of people are like, wow, is that possible?" (34:24, Felix Salmon)

Regulatory Comparisons (35:09–35:41)

• Australia historically seen as lax, now catching up amid public outrage.

Deterrence & Justice (39:43–40:32)

• JP Morgan avoided charges by alerting regulators.
• The deterrent impact of even a single banker facing jail time stressed.

"You just have to do this once, you throw one banker in jail, and the rest will go running scared, perhaps." (40:03, Emily Peck)

Numbers Round (41:37–46:55)

Fun facts and stats shared by panelists — a Slate Money staple.

• Paul Ford:
  80 million — The number of code repositories on GitHub. (41:39)
• Anna Shymansky:
  395 million — Number of trades in a JP Morgan study on market stabilization after shocks; found hedge funds play a key role. (42:19)
• Felix Salmon:
  £350 million — The (satirical) asking price for a Banksy artwork referencing the Brexit bus claim at the Royal Academy exhibition. (43:38)
• Emily Peck:
  $935,000 — Average women-founded startup investment, less than half of men’s, yet women generate more revenue per dollar. (45:21)

Notable Quotes & Memorable Moments

• On GitHub and Microsoft:

  "There's just inspiration there for the finding... When the machines eventually take over, you want to be able to speak their language, just like economics." (42:06, Paul Ford)

• On Tech Evolution:

  "I think it's just a natural tech company progression. Like when you're young, you're arrogant... then you finally, you reach middle age, you get older and you mellow. Right." (31:51, Emily Peck)

• On WhatsApp’s Downfall at Facebook:

  "If someone came to you and said, I need you to believe this for $19 billion, wouldn't you believe it? I would." (27:13, Paul Ford)

• On Bankers and Justice:

  "I'm not saying throw an innocent banker in jail. No. But throw a guilty banker in the list." (40:28, Felix Salmon)

Final Thoughts

This episode explores not just the week’s headline business stories, but the sweeping cultural, ethical, and psychological shifts behind them—whether it’s Microsoft’s bid for relevance, Facebook’s broken promises, or Australia’s drive to hold financiers to account. Throughout, the humor is sharp, the analogies fresh, and the skeptical spirit on full display.

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