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The latest Freewrite device is a fancy mechanical keyboard built with writers in mind

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The Detroit-based company Astrohaus has been making its “distraction-free writing tools” under the Freewrite name for about a decade. So far, those have all been standalone, single-purpose devices meant simply for drafting text, but Astrohaus is branching out at CES 2025. The company just announced a mechanical keyboard called the Freewrite Wordrunner, a device designed specifically with writers in mind.

This comes more than three years after Astrohaus quietly revealed intentions to build a keyboard, originally known as the Maestro. But the company eventually pulled the plug on its planned 2022 launch, and I hadn’t heard anything about it since then — it seems that they’ve just been working away at it this whole time. CEO Adam Leeb said in a press release that the company had been iterating and developing it for almost four years.

Freewrite Wordrunner

Freewrite

Mechanical keyboards have largely become the domain of gamers; the company wanted to build a device for people who make their living writing instead. Without spending some quality time with it, I can’t say if they’ve hit that mark yet, but there are some fun ideas on display here.

The Wordrunner has a tenkeyless design that looks familiar at first glance, but you’ll quickly notice that the function row has been replaced by a custom set of keys that’ll make zipping around text documents faster. That includes find and replace, undo and redo, paragraph up and down as well as back, forward and reload keys. I’d be upset about losing media controls from the function row, but the Wordrunner has it covered with the bright red joystick / button. It moves in all four cardinal directions, can be turned like a knob and can also be pressed in vertically to skip tracks, change volume or pause your tunes.

Freewrite Wordrunner mechanical keyboardFreewrite Wordrunner mechanical keyboard

Nathan Ingraham for Engadget

On the other side, you’ll find three customizable macro keys with the cutesy names “zap,” “pow” and “bam.” They’re programmable for anything you might want, but Astrohaus suggested using them to launch specific writing apps, converting text to title case or inserting the date. I don’t yet know what I’d use them for, but having customizable keys is a table-stakes feature for most enthusiast keyboards so I’m glad to see them here.

Probably the most visually striking thing about the Wordrunner are the two mechanical counters you’ll see up top. One is a timer you can use for writing sprints or just staying focused for a bit. More intriguing is the Wordometer dead-center at the top of the keyboard. It’ll track your words with its whopping eight-digit mechanical counter, and since it saves your word count as long as you want, you could try and max it out someday. Of course, you can also reset it at any time or pause it if you don’t want it to advance while you’re chatting with friends or sending emails.

Freewrite Wordrunner mechanical keyboardFreewrite Wordrunner mechanical keyboard

Nathan Ingraham for Engadget

The mechanical keys are backlit and use Kailh switches; the keycaps are replaceable but the switches aren’t. It also has some sound dampening built in so you can use it without subjecting everyone around to you overly loud key clacks (this may be a plus or minus depending on how you like your keyboards). As for connectivity, the Wordrunner uses Bluetooth or USB-C, and you can pair the keyboard with three different devices and quickly switch between them with dedicated hotkeys.

I got a chance to play with a prototype of the Wordrunner, and my first impressions was “wow, this is heavy!” It’s a thick slab of polished aluminum that matches the finish of the premium Hemingway edition of the Smart Typewriter. Astrohaus founder / CEO Adam Leeb told me that the company was shooting to make this keyboard feel like a premium, limited edition with the finish even if they’re planning for it to be part of the permanent portfolio.

Freewrite Wordrunner mechanical keyboardFreewrite Wordrunner mechanical keyboard

Nathan Ingraham for Engadget

While I didn’t get to try the Wordrunner hooked up to a computer, I still got to see the mechanical Wordometer turn over when I started typing. It’s quite satisfying to see it count up as I wrote an imaginary story on it, and there’s a small LED that’s green when the counter is turned on and red when you turn it off. The keys and travel all felt great, and the joystick was similarly a lovely tactile experience — I’m looking forward to using it like a volume knob for media. Leeb says that this keyboard is still a prototype, but it feels quite polished and nearly final to me.

Finally, there’s the ever-present question of availability. Astrohaus is launching the Wordrunner on Kickstarter, as it has done with most of its other hardware over the last 10 years. The campaign should start in February with early bird pricing, but we don’t know what that price will be yet. Fortunately, there’s a pretty low-commitment way to get the best price if you’re curious. Astrohaus says you can place a $1 reservation for priority access and the best possible pricing, with plans to deliver the first batch of keyboards before the end of the year. That’s a long ways out, but a buck isn’t a bad investment if you’re interested.

Update, January 8 2024, 9:27PM ET: This article has been updated to include some hands-on impressions and photos of the Wordrunner.



This story originally appeared on Engadget

Biden To Drive Trump Crazy By Awarding Presidential Citizens Medal To Liz Cheney And Bennie Thompson

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Donald Trump has been calling for the members of the 1/6 Committee to be prosecuted for investigating his role in the attack on the Capitol, but President Biden is reminding the American people of the sacrifice that the Committee made for their country by honoring Rep. Bennie Thompson (D-MS) and former Rep. Liz Cheney (R-WY).

The White House wrote about Thompson and Cheney:

Elizabeth L. Cheney

Throughout two decades in public service, including as a Congresswoman for Wyoming and Vice Chair of the Committee on the January 6 attack, Liz Cheney has raised her voice—and reached across the aisle—to defend our Nation and the ideals we stand for: Freedom. Dignity. And decency. Her integrity and intrepidness remind us all what is possible if we work together.

Bennie G. Thompson

Born and raised in a segregated Mississippi, as a college student inspired by the Civil Rights movement, Bennie Thompson volunteered on campaigns and registered southern Black voters. That call to serve eventually led him to Congress, where he chaired the House January 6th Committee—at the forefront of defending the rule of law with unwavering integrity and a steadfast commitment to truth.

The fact that Thompson and Cheney are being honored and deemed decent people of integrity by Biden highlights how far out of the mainstream Trump and his vendetta against those who tried to hold him accountable is.

It is unknown whether a Justice Department that will be under the total control of Donald Trump will follow through with his threat to prosecute those who investigated him, but in the case of the 1/6 Committee, any prosecutions would be impossible because the members of the community were operating in their official capacity as members of Congress and have immunity under the Speech and Debate Clause of the Constitution.

The 1/6 Committee was legislatively authorized and was a part of the oversight duties of Congress. Still, in case Trump tries to prosecute Cheney or Thompson, Biden is telling the country who the patriots really are.

What do you think about Biden honoring Cheney and Thompson? Share your thoughts in the comments below.

Leave a comment



This story originally appeared on Politicususa

JUST THREE MONTHS AGO: Trump Talked About California’s Water Problem and Wildfires on the Joe Rogan Podcast (VIDEO) | The Gateway Pundit

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Add this story to the ‘Trump was right again’ pile.

Just three months ago, when Trump appeared on the Joe Rogan Podcast, he talked to Joe about the ongoing issue of water dispersal in California and about how the state could stop wildfires by clearing dead trees from forests.

He suggested that the state actually has more than enough water to deal with these and other issues such as farming, but progressive environmental policies are standing in the way.

Transcript via the American Presidency Project:

TRUMP:—Los Angeles, you can’t get proper amounts of water and it’s unbelievably expensive, and you might have a house in Beverly Hills, and they’re actually thinking about rationing water. Can you believe it?

ROGAN: I could believe it. I used to live there.

TRUMP: I was, I was in the farm country with some of the congressmen. We’re driving up a highway and I say, “How come all this land is so barren?” It’s farmland and it looked terrible. It was just brown and bad. I said, “But there’s always that little corner that’s so green and beautiful.” They said, “We have no water.” I said, “Do you have a drought?” “No, we don’t have a drought.” I said, “Why don’t you have no water?” Because the water isn’t allowed to flow down. It’s got a natural flow from Canada all the way up north of water, more water than they could ever use. And in order to protect a tiny little fish, the water up north gets routed into the Pacific Ocean. Millions and millions of gallons of water gets poured…

TRUMP: You could have all of the water you need, all of that land would have more water. The whole thing could be like that little patch. Literally, literally I’d say—I was with Devin Nunes, a congressman and other congressmen, we were going up. I was visiting them because they asked me to go up and visit their territory and I did. But I kept saying, “Look at this land. It’s beautiful, but it’s so dry.” And I thought they were going through like a desert like a drought. They said, “No, we have water, but it gets—” So I looked into it.

ROGAN: What is the fish?

TRUMP: And I got it done. I got it done. I could have water for all of that land, water for your forests. you know, Your forests are dry as a bone, okay?

ROGAN: Yeah. Dangerous.

TRUMP: That water could be routed. you know, You could have everything. Not only dangerous, billions of dollars a year they spend on forest fires. And you know, there’s a case with the environment. They’re not allowed to rake their forests because you’re not allowed to touch it. When a tree falls down, after 18 months it becomes very dry. It’s like you know, real firewood. It’s bad.

Here’s the clip:

Trump was right, but the usual suspects couldn’t allow Trump to be right.

And now we see the real impact of all of this as California is battling the worst fires in a generation and their fire hydrants are empty. It’s madness.




This story originally appeared on TheGateWayPundit

NASA astronauts stuck on International Space Station say they ‘don’t feel like castaways’ | Science, Climate & Tech News

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Two NASA astronauts who have been stuck on the International Space Station since June 2024 have said they “do not feel like castaways”.

Butch Wilmore and Suni Williams originally planned to go to space for just eight days but got stuck on the ISS when their Boeing Starliner spacecraft experienced a myriad of problems. By September, it had returned to Earth without them.

Speaking to NASA leaders in a live video event on Wednesday evening, the pair seemed in good spirits alongside two other astronauts.

Responding to a question referencing the Tom Hanks film Cast Away, in which the main character is stranded on a desert island, Ms Williams said she and Mr Wilmore did not feel abandoned.

“Eventually we wanna go home,” she added. “We left our families a little while ago.

“But we have a lot to do up here and we have to get that stuff done before we go.”

The astronauts also said they had not yet been able to see the wildfires spreading in California from the window of the space station due to the path of their orbit. But they would take pictures from the space station when they do pass over the US state to help those on the ground, they added.

Image:
Starliner spacecraft docked at the International Space Station. Pic: NASA

Mr Wilmore and Ms Williams, both retired Navy captains, have had their trip home repeatedly delayed.

Last month, their scheduled February return was pushed back once more because of problems with the SpaceX rocket that was going to pick them up.

The astronauts are waiting for NASA’s next crew to arrive at the ISS so they can take their places on the rocket home, along with NASA astronaut Nick Hague and Roscosmos cosmonaut Aleksandr Gorbunov.

Read more on stranded astronauts:
How they got stuck in space and how they might get home

In August, Boeing insisted the astronauts are “not stuck” and Ms Williams called the space station her “happy place”.

Almost six months later, the pair have spent the US election, Thanksgiving and Christmas aboard the ISS.

They were both able to vote in the US election, however, and although Mr Wilmore is missing most of his daughter’s final year of high school, the astronauts seemed happy in Wednesday’s call back to Earth.

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Stranded astronauts hear ‘strange noises’

They aren’t in danger; astronauts have spent far longer in space, with the record going to Russian Valeri Polyakov.

He spent 437 days off Earth in the mid-1990s.

In 2023, NASA astronaut Frank Rubio came back from a 371-day trip, breaking the record for the longest amount of time spent in space by an American.

The astronauts on the ISS also received two cargo deliveries recently, with clothes, food, water and oxygen, according to NASA.

“The resupply spacecraft also carried special items for the crew to celebrate the holidays aboard the orbital platform,” said the space agency in December.

Read more from Sky News:
Driverless taxi passenger gets stuck driving in circles
Soldier who exploded Cybertruck ‘used AI to plan attack’

Grooming gangs scandal: What happened

Mr Wilmore and Ms Williams have become part of the regular ISS crew, taking on tasks like plumbing and repair of the space station.

Next week, Ms Williams is due to take part in a spacewalk with another crew member to replace a piece of kit on the outside of the space station that helps with orientation.

They’ll also fix a telescope and a reflector, as well as other items.

It’ll be Ms Williams’ eighth space walk during her long NASA career.



This story originally appeared on Skynews

NHL cancels game and NBA coach evacuates family amid LA fires : NPR

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The Rose Bowl stadium in Pasadena, pictured last week ahead of the College Football Playoff quarterfinal game between Ohio State and Oregon. The stadium is now under evacuation warning.

Harry How/Getty Images


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Harry How/Getty Images

The National Hockey League postponed a game in Los Angeles, and Pasadena’s iconic Rose Bowl Stadium came under evacuation warning as the wildfires burning across Southern California grew Wednesday.

The NHL announced it would indefinitely delay a game between the Los Angeles Kings and Calgary Flames that had been set to take place Wednesday night at Crypto.com Arena in downtown Los Angeles.

In a statement on social media, the Kings said the postponement would help keep fans, staff and players safe.

“Our hearts are with our entire Los Angeles community,” the team wrote, thanking first responders.

An NBA game between the Los Angeles Lakers and Charlotte Hornets is scheduled to take place Thursday at the same arena. As of Wednesday evening, the league had not announced whether it would postpone the game.

“We are in communication with the Lakers and Hornets and continue to closely monitor the situation to determine if any scheduling adjustments are necessary related to tomorrow night’s game,” NBA spokesperson Mike Bass said in a statement to NPR.

Tens of thousands of people are under mandatory evacuation orders across the region. Residents of Pacific Palisades, which include many professional athletes among other celebrities, were told to evacuate on Tuesday.

That included Lakers coach JJ Redick, who said Tuesday his family had evacuated.

“I know a lot of people are freaking out right now, including my family,” he said in a pregame press conference ahead of a game in Dallas. “Thoughts and prayers, for sure, and I hope everybody stays safe.”

The Clippers said their star Kawhi Leonard, who has family in the Los Angeles area, would miss Wednesday’s game in Denver for personal reasons.

Golden State Warriors coach Steve Kerr said his 90-year-old mother was among the evacuees, and that the family home of a Warriors staff member had been destroyed by the fire.

The city’s two NFL teams, the Rams and the Chargers, had each planned to spend this week preparing for a playoff game. Neither team’s practice facility is directly threatened by fire, but smoke has affected air quality around the region.

On Wednesday, the Chargers adjusted its practice schedule to limit time outdoors. The team is set to travel to Houston later this week for a game against the Texans on Saturday.

In case they’re unable to practice entirely, “Coach [Jim] Harbaugh’s got a great Plan B in place if needed,” said Chargers offensive coordinator Greg Roman, speaking to the media on Wednesday.

Some of the team’s personnel have been affected directly, including wide receivers coach Sanjay Lal, who lives in the vicinity of the Palisades Fire.

“Last night was a really intense night for him,” Roman said.

The Rams are set to host their playoff game Monday night against the Minnesota Vikings at home at SoFi Stadium in Inglewood. In a statement, the NFL said there is a contingency plan to move the game to State Farm Stadium in Glendale, Ariz., if necessary.

The Chargers cancelled a pre-playoff fan event scheduled for Friday in Sherman Oaks, north of the Palisades Fire. The team said it would donate $200,000 to relief efforts and asked people attending other fan events to bring donations of bottled water, clothes and toiletries for evacuees.

The historic Rose Bowl stadium in Pasadena, one of the most iconic sites in college football, received an evacuation warning on Wednesday as the Eaton Fire grew to encompass more than 10,000 acres.



This story originally appeared on NPR

Will Rogers’ ranch house, Hearst-owned motel burned by Palisades fire

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Among the carnage wrought by the devastating Palisades fire were two pieces of California history dating to a bygone era.

Will Rogers’ historic ranch house, owned by the famous social commentator, actor and performer, and the Topanga Ranch Motel, built by newspaper baron William Randolph Hearst, were victims of the fires that have wreaked havoc throughout Southern California over the last two days, according to California State Parks Director Armando Quintero.

Both were consumed by the fire that has charred a total of nearly 16,000 acres and devoured an additional 300 structures — including homes and businesses — as of Wednesday afternoon.

“California State Parks mourns the loss of these treasured natural and cultural resources, and our hearts go out to everyone impacted by the devastating fires in the Los Angeles area,” Quintero said in a statement.

Both structures were part of the damage sustained throughout Topanga State Park and Will Rogers State Park as fire destroyed state employee residences, along with more than 30 other structural losses.

Rogers, known toward the later part of his life for his political commentary, was once one of Hollywood’s highest-paid actors. He started his career as a vaudeville performer and was a famed humorist.

The aftermath of a fire at the historic Topanga Ranch Motel on Jan. 8, 2025.

(California State Parks)

During the 1920s, Rogers purchased land in Santa Monica, developing what became a 359-acre ranch that overlooks the Pacific Ocean in what is now Pacific Palisades.

The actual ranch home consisted of 31 rooms, with an adjacent guesthouse, a stable, corrals, a golf course and hiking trails.

Rogers died at the age of 55 in a plane crash in Alaska in 1935.

His widow, Betty, eventually donated the ranch to the state in 1944, and it became the historic state park.

The family said in a statement Wednesday that it was deeply saddened that Rogers’ historic home and the “the Barn that Jokes built” were destroyed.

“While the loss to the Will Rogers Ranch is devastating, it pales in comparison to the loss of the property and businesses and, more importantly, the lives of those in the surrounding area,” Jennifer Rogers, a Rogers family representative, said in a statement.

Rogers was born to a Cherokee family in Oklahoma and was regarded as “among our most beloved Cherokees,” said Principal Chief Chuck Hoskin Jr. of the Cherokee Nation.

“The … loss of Will Rogers’ historic home is certainly a tragedy, and the entire Cherokee Nation is sending our thoughts and prayers to great-granddaughter Jennifer Rogers-Etcheverry and family,” Hoskin said in a statement.

A long, one-story bungalow-style building.

The Topanga Ranch Motel before the Palisades fire.

(California State Parks)

In 1929, San Francisco native Hearst built the bungalow-style Topanga Ranch Motel, which was across the street from Topanga Beach.

The motel included 30 rooms and once housed construction workers building Pacific Coast Highway.

While area hotels were pricey, Topanga Ranch Motel offered an inexpensive seaside vacation.

Tourists, families and writers stayed there for decades. The facility was acquired by California State Parks in 2001.

There had been plans to restore 20 of the bungalows for public use again.

State Parks closed down Topanga and Will Roger state park and beach shortly after the Palisades fire began Tuesday, Quintero said.

Other historic or notable losses include:

Palisades Charter High School

The 3,000-student campus suffered significant damage, including to the school’s athletic facilities and bungalows. Adjacent Palisades Charter Elementary and nearby Marquez Charter Elementary are feared to be total losses.

Pasadena Jewish Temple and Center

Torah scrolls were saved, but the temple and center were destroyed for a community that has called Pasadena home for more than 100 years.

Pierson Playhouse within Theatre Palisades

Performances date to the 1960s, with the playhouse being built in the 1980s. The board of directors has suspended all operations because of serious damage suffered in the fire, according to a statement.

The Reel Inn

One of Malibu’s famed “seafood shacks,” the Reel Inn burned down, its owners confirmed on Instagram. The establishment had stood for 36 years.




This story originally appeared on LA Times

Apple Cash outage affecting some iPhone users

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Apple Cash is currently experiencing an outage.

Some users were experiencing issues with Apple Cash as a result of an outage confirmed by Apple on Wednesday.

The company’s System Status page indicated that there was an ongoing issue with Apple Cash, with users not being able to send or receive funds. Other Apple-branded services, such as the iOS App Store, iCloud, and Apple Pay appear to be functioning normally. The issue first occurred at 10:01 a.m. Eastern Time and is was resolved at 5:18 p.m. Eastern Time.

Users took to social media to complain about Apple Cash not functioning. Apple Cash is a popular payment service, similar to CashApp, Venmo, and Zelle, but under the Apple umbrella.

Only some users were affected. Apple Cash was still working for most during the outage.

Apple’s services periodically experience outages and other issues for various reasons. Apple Wallet experienced a similar problem in December 2023, and Apple Cash was facing an issue in May of the same year.

Update: January 8, 10:00 p.m. ET: Apple updated the status page to state the outage was resolved. Text updated.



This story originally appeared on Appleinsider

Video: UFC’s Most Promising Prospect Wants To Smash Andrew Tate – ‘It’s Like Someone Cheated On Him’

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Red-hot Ultimate Fighting Championship (UFC) Bantamweight prospect Payton Talbott makes his first appearance of the year at UFC 311 next weekend (Sat., Jan. 18, 2025) when he takes on UFC veteran Raoni Barcelos inside the brand-new Intuit Dome in Los Angeles, California.

After he is through with the ultra-tough Barecelos, Talbott already knows who he wants to scrap with next … and it isn’t a UFC fighter. Instead, he wants the very controversial con artist Andrew Tate.

“Yeah, that’s the one. Yeah, let’s get that going,” Talbott said when asked if he wanted to fight Tate. “I’d take that; I’d take that. Yeah, yeah, it’s just a free-for-all.”

Talbott isn’t the first UFC fighter to want to scrap with “Cobra” and probably won’t be the last. But he did offer an explanation on why he dislikes the Tate.

“He’s just the antithesis of me,” Talbott said. “It seems like someone just cheated on him when he was younger, and now he has this vendetta against women. I feel like he takes himself super seriously, and it’s just like, he’s kind of a poison for masculine culture.”

Unfortunately for Talbott, he will have to wait to beat up Tate as he is currently under house arrest in Romania for his human trafficking case.


To check out the latest UFC 311 fight card and rumors click here.



This story originally appeared on MMA Mania

Palisades Houses Lost, Burning – Hollywood Life

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Image Credit: Getty Images

The Palisades fire that broke out in California in January 2025 quickly spread throughout Southern California. In just one day, multiple fires erupted across Los Angeles County. Since Pacific Palisades is well known for its celebrity residents, concerned fans wondered if any stars’ homes were affected by the wildfires. One star did, in fact, reveal that their home burned down.

Apart from wealthy stars, countless residents in Pacific Palisades and surrounding L.A. county areas lost their homes or struggled to fend off embers. After the initial Palisades fire erupted, some people abandoned their cars in the streets and fled the area to escape the encroaching flames and smoke.

Find out if any celebrity homes burned down in the Palisades fire and what other stars lived there below.

@spencerpratt

Nightmare came true

♬ original sound – Spencer Pratt

Which Celebrities Live in Pacific Palisades?

Multiple stars live in the Pacific Palisades neighborhood: Tom Hanks and Rita Wilson, Spencer Pratt and Heidi Montag, Reese Witherspoon and Ben Affleck are among the most recognizable residents.

What Celebrities Lived in Pacific Palisades Before the Fire?

Matthew Perry was one of the most well-known Pacific Palisades residents. The late Friends alum died at his house in October 2023. One year later, his home was sold to film producer and real estate developer Anita Verma-Lallian, according to PEOPLE.

In addition to Matthew, other stars who reportedly owned homes or resided in Pacific Palisades were Billy Crystal, Judd Apatow and Leslie Mann, Dan Aykroyd, Kobe Bryant, Dr. Dre, Alden Ehrenreich, Jennifer Garner, Anthony Hopkins and several others.

Which Celebrity Homes Were Burned in the Palisades Fire?

The Hills alum Spencer Pratt lost their home during the Palisades fire in January 2025. Spencer shared a frightening TikTok clip at the time, which showed an entire property engulfed in flames. He captioned his video, “Nightmare came true.”

Additionally, Anna Faris, Adam Brody and Leighton Meester‘s homes burned down in the fire, TMZ reported. Paris Hilton and Mandy Moore also revealed that their homes burned down. Paris watched her Malibu house burn, while Mandy had to evacuate Altadena.

@smileyxxmiley

She is so reflective and grateful I love that so much about her – so inspiring 🖤 #mileycyrus #miley #viral #fypシ

♬ snowfall – Øneheart & reidenshi

Celebrity Homes That Burned in Past California Fires

Miley Cyrus is one of the most well-known stars who lost her Malibu, California, home during the 2018 Woolsey fire. The Grammy Award winner shared her house with then-husband Liam Hemsworth. Miley reflected on the loss of her home during a 2023 TikTok video series.

“The Meet Miley Cyrus record was really where I started writing my own songs as a solo artist, and so, I was working with a producer in Malibu that lived in a house in Ramirez Canyon, which I would’ve never known 15 years later I would be living in that house, which would eventually burn down,” Miley said. “That house had so much magic to it. It ended up really changing my life.”

Miley also seemingly referenced her home’s devastation in her hit single “Flowers” in the lyric, “We were right, till we weren’t / Watched a home and watched it burn.”




This story originally appeared on Hollywoodlife

Down 95%, could the THG share price bounce back in 2025?

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Image source: Britvic (copyright Evan Doherty)

Jam tomorrow. That often seems to be the investment case for THG (LSE: THG). The THG share price is now 40% lower than a year ago. And it was not exactly flying high then – in fact, since its stock market listing in 2020, the THG share price has lost a cataclysmic 95%.

Can that be rational?

After all, there is a lot to like about the business – so much, in fact, that several sophisticated financial companies have tried to buy the whole business in recent years at a far higher valuation than it currently commands on the stock market.

So, should I buy the share for my portfolio now, hoping that it could rebound in a big way in the coming year (and beyond)?

Here’s what dogging THG

The issue, as I see it, boils down to whether or not THG has the potential to be a profitable business over the long term.

So far, the numbers are not promising. While it has been doing over a couple of billion pounds a year in sales, THG’s bottom line looks horrendous.

Last year it lost £248m after tax, following a post-tax loss of over half a billion pounds the prior year. The consistently loss-making business has spilt a lot of red ink in its few years on the stock market.

That, bulls might say, is the nature of the beast. THG is a technology business, investing now to build scale in its online retail outsourcing business. Once that reaches the right point, the positive case goes, that expenditure could pay off in spades. It is a similar story to the one heard from believers in the Ocado business case.

As with Ocado, in my opinion, the crux of the issue comes down to whether such a view holds water. Is THG indeed spending now to reap the rewards later? Or is it simply a business with a failed model, ready to keep burning up cash for the foreseeable future?

Strategic fog does not help

I confess, I am even more confused now than a year ago.

For years, THG was touting its Ingenuity platform as a key growth driver. But last month it finalised plans to demerge that business.

That could help achieve a higher valuation for Ingenuity, which I think has never been well understood in the City.

But I wonder why THG, having blown the platform’s trumpet for so long, decided to demerge it. I also question the rationale for raising money by issuing new shares (as THG did) to demerge the business. Why not simply keep the division within THG, or cut the losses and close it down?

THG management’s strategic plan now seems less credible to me than it did before (and I have long had my doubts). Meanwhile, the beauty division grew sales in the first nine months of last year, while THG’s nutrition revenues shrank 7%.

If another bidder comes along, I reckon the THG share price could soar again.

Looking at the fundamentals, however, I see THG as a consistently loss-making business losing sales in a key division and lacking strategic consistency. Even though it sells for pennies, things might yet get worse. I will not be touching this share with a bargepole.



This story originally appeared on Motley Fool