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The Nobel Prize in Economics goes to prosperity researchers

Darren Acemoglu, Simon Johnson and James A. Robinson received this year’s Nobel Prize in Economic Sciences for their contributions to proving the importance of public institutions to a country’s prosperity.

KEY FACTS

  • The prestigious prize, officially known as the Sveriges Riksbank Prize for Economic Sciences in Memory of Alfred Nobel, is the last prize awarded this year and is worth SEK 11 million ($1.1 million).
  • This year’s laureates showed that one of the explanations for differences in countries’ prosperity is the social institutions introduced during European colonization. Inclusive institutions were often introduced in countries that were poor at the time of colonization, which over time led to general prosperity for the population. This is an important reason why former colonies that were once rich are now poor and vice versa.
  • Introducing inclusive institutions would create long-term benefits for everyone, but extractive institutions provide short-term gains for those in power. As long as the political system ensures they retain their control, no one will trust their promises of future economic reforms. According to the laureates, this is the reason why there is no improvement.
  • “Reducing the huge income gaps between countries is one of the greatest challenges of our time. The laureates have demonstrated the importance of public institutions in achieving this,” said Jakob Svensson, Chairman of the Economic Sciences Prize Committee.
  • “Societies with poor rule of law and institutions that exploit the population do not generate growth or change for the better,” the prize’s organizers add on their website.

TANGENT

Darren Acemoglu and Simon Johnson work at MIT, while James Robinson is at the University of Chicago.

Acemoglu and Johnson recently collaborated on a book researching technology through the ages that demonstrates how some technological advances are better at creating jobs and spreading wealth than others.

KEY STORY

The Economics Prize is not one of the original science, literature and peace prizes created by the will of dynamite inventor and businessman Alfred Nobel and first awarded in 1901, but is a later additional prize established and funded by the Central Bank of Sweden in 1968.

Past recipients of the award include a number of influential thinkers such as Milton Friedman, and John Nash – played by actor Russell Crowe in the 2001 film A Beautiful Mind, and former US Federal Reserve Chairman Ben Bernanke.

Last year, Harvard economic historian Claudia Goldin won a prize for her work highlighting the causes of pay and labor market inequality between men and women.

$250 Million VideoVerse Deal Unravels Amid Fraud Allegations

What began as a major success for India’s startup ecosystem has turned into a complex legal dispute less than a year after VideoVerse was acquired for $250 million.

The deal was announced in September 2025 by VideoVerse and international sports publisher Minute Media. VideoVerse had developed AI-powered software for turning sports broadcasts into short clips, with plans to expand the technology internationally.

The deal has since unravelled. Investors are still waiting for proceeds, while founder Vinayak Shrivastav faces multiple legal claims. In May, Minute Media terminated its agreement with VideoVerse, citing “significant discrepancies” in the company’s representations.

Investors Seek Millions

Bluestone Capital, which backed VideoVerse in 2023, is suing the company for fraud and alleges that it failed to distribute acquisition proceeds as required.

Another creditor is seeking $64 million from a loan Shrivastav took out shortly after the acquisition. The complaint alleges that fraudulent merger documents were used to secure shareholder approval.

Former COO Sabya Das has separately accused Shrivastav of forging his signature on loan and share-repurchase agreements that allegedly resulted in tens of millions of dollars being extracted from the company.

The allegations have not been proven in court, and Shrivastav did not respond to requests for comment.

Loan Raises Further Questions

In October 2025, Shrivastav arranged a $55 million structured loan from investment firm Lingotto. According to court filings, $53 million was transferred to an account controlled by VideoVerse.

Lingotto now alleges that documents supporting the loan were forged, including papers supposedly signed by Minute Media’s CEO, while screenshots showing company bank balances were also allegedly fabricated.

After a $4 million payment due in March was missed, Lingotto demanded repayment and discovered other creditors were also awaiting payments. Shrivastav was removed as CEO by the end of April.

From AI Startup To Legal Dispute

VideoVerse had built a strong position in automated sports content through its Magnifi platform, which uses AI to identify key moments and players and create short-form clips. Its customers included the Indian Premier League, FIFA+ and Nippon TV.

Minute Media had hoped to use the technology to expand internationally. Instead, the acquisition has triggered multiple legal battles over missing funds, disputed agreements and the conduct of the company’s leadership.

Cases involving Minute Media, Lingotto, Bluestone Capital and former executives are now being heard in Delaware Chancery Court, leaving investors and creditors seeking answers about what happened to the money and whether the $250 million deal received adequate due diligence.

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