LT Weekly: Aug 23, 2024

Advertising/Ad Agencies/Ad Tech

• Baidu’s revenue dipped 0.4% to 33.9bn yuan ($4.7bn) amid China’s economic downturn, reflecting challenges in transitioning from search ads to AI. While Baidu’s AI initiatives, including the “Ernie” language model, have contributed sales, they face fierce competition from Alibaba and Tencent. Baidu’s reliance on advertising remains pressured, and its AI ventures are expected to lose money for the next three years. (Yahoo Finance)
• Unilever is globally consolidating the creative accounts for its beauty and wellbeing brands into WPP. The consolidation means WPP will take on creative responsibilities for Clear, Dove, TreSemme, Sunsilk, Simple, Nexxus, Shea Moisture, Clear and Pond’s globally, while continuing its previous work on Vaseline. WPP already had responsibility for some of the Co’s biggest brands, mostly through its creative agency Ogilvy. (MM+M – Medical Marketing and Media)

Artificial Intelligence/Machine Learning

• Anthropic was sued by a group of authors, who accused it of training its models on pirated books. The proposed class action lawsuit was filed in a California court on Aug 19 and alleges Anthropic “built a multibillion-dollar business by stealing hundreds of thousands of copyrighted books.” In the lawsuit, the authors say that Anthropic used a sprawling, open-source dataset known as “The Pile” to train its family of Claude AI chatbots. (The Verge)
• China’s internet co’s are betting billions on incubating the country’s OpenAI challengers, w/ Alibaba and Tencent leading the charge. Since 2023, investors, including the country’s biggest tech cos, have valued at least six China-based startups developing large language models at more than $1bn each. Most of these unicorns, dubbed China’s six “Little Artificial-Intelligence Dragons,” have received capital from Alibaba and Tencent. (OODA Loop)
• Congresswoman Nancy Pelosi issued a statement laying out her opposition to SB 1047, a California bill that seeks to regulate AI. “The view of many of us in Congress is that SB 1047 is well-intentioned but ill-informed,” Pelosi said. The bill was recently amended to address concerns from critics, including AI Co Anthropic, and is currently headed to California’s Assembly for a vote. (TechCrunch)
• Google is upgrading its Gemini writing tools in Gmail to help users polish drafts that they have already written. Now, among other Gemini-powered “Help me write” options like Formalize and Elaborate, users can tap “Polish” to refine their emails, Google says in a blog post. The co has also added shortcuts that appear in the body of your emails on Android and iOS, making it more obvious that there are AI writing tools to use. (The Verge)
• More than half of Fortune 500 Cos have cited AI as a risk factor in their latest annual reports, per Arize AI. A survey of annual reports from the biggest US corporations are increasingly highlighting AI as a possible risk factor. According to a report from Arize AI, the number of Fortune 500 Cos that cited AI as a risk hit 281. That represents a 473.5% increase from the prior year, when just 49 Cos flagged AI risks. (Fortune)
• The growing demand for AI is prompting Cos like Microsoft, Google, and Amazon to explore converting old power stations and industrial sites into data centers. As finding suitable locations with sufficient power becomes harder, companies are turning to these sites, which are often designed for high power use. However, converting such sites can be complex, costly, and time-consuming, yet they present new opportunities for data center expansion. (Ars Technica)

Audio/Music/Podcast

• Alex Cooper and her top-ranking podcast Call Her Daddy have inked an extensive exclusive content deal w/ SiriusXM. The agreement means SiriusXM will pick up the exclusive advertising and distribution rights, content, events, and more for Cooper’s flagship podcast, as well the shows produced by Cooper’s Unwell Network. Terms of the deal were not released, but reports have suggested it could be worth $100mn+. (Insideradio.com)
• Apple Podcasts is expanding to the web. Users can access the new web app version at podcasts.apple.com in desktop web browsers, including Safari, Chrome, Edge, and Firefox. For the first time, Apple Podcasts users can access their Up Next queue, library of saved shows, and browse for new podcasts inside their PC web browser. Previously, only macOS offered a desktop Podcasts app experience. (9to5Mac)

Broadcast/Cable Networks

• DIRECTV’s 5-year deal with Disney is ending, and they’re seeking a new agreement similar to Spectrum’s, which includes Disney+ and ESPN+ for subscribers. DIRECTV wants flexible, lower-priced packages and an aggregated experience. The negotiations raise concerns about a potential blackout of Disney channels on DIRECTV, as happened with Spectrum, with the possibility of a last-minute deal being necessary. (Cord Cutters News)
• Night 1 of the Democratic National Convention drew 20.025mn viewers and 15.003mn households, surpassing the Republican National Convention’s 18.130mn viewers and 13.2mn households. The DNC broadcast also outperformed the first night of the 2020 DNC, which had 15.338mn viewers, indicating a strong start for the event. (NextTV)

Broader Media & Entertainment

• India’s antitrust body reached an initial assessment that the $8.5bn India merger of Reliance and Walt Disney media assets harms competition due to their power over cricket broadcast rights. The Competition Commission of India (CCI) has privately warned Disney and Reliance through a notice in which it has shared its concerns about their grip over rights to broadcast the favorite sport of the world’s most populous country. (CNBC)
• Liberty Media annc’d a public offering of 10,650,000 shares of Series C Liberty Formula One Common Stock (“FWONK”). Liberty Media also expects to grant the underwriters of the offering an option to purchase up to an addt’l 1,597,500 shares of FWONK. If the Acquisition is not consummated for any reason, the net proceeds from this offering would be available for general corporate purposes and attributed to the Formula One Group tracking stock. (BUSINESSWIRE)

Cable/Pay-TV/Wireless

• China Mobile surpassed the 1bn subscriber mark at the end of Q2 w/ the Co adding nearly 9.3mn new subs y/y. The Co’s user base is more than twice that of the world’s second-largest player Reliance Jio in India, which has 489.7mn, data from GSMA Intelligence showed. China Telecom was third w/ nearly 417mn mobile subs and Bharti Airtel fourth w/ 355.8mn, followed by China Unicom w/ 339.5mn. (Mobile World Live)
• China Telecom revealed financial results and key achievements that include its AI deployment strategy during the H1:24. China Telecom’s revenues rose 2.8% to RMB268bn in the first half. Net profit incr’d 8.2% to RMB21.8bn. Service rev of China Telecom rose 4.3% to RMB246.2bn. Mobile communications svs revs rose 3.6% to RMB105.2bn. Revs from mobile value-added and applications surged 17.1% to RMB18.1bn. (TelecomLead)
• Cox Communications asked the Supreme Court to overturn a lower court’s ruling that held the Co liable for its subscribers’ copyright infringement. The Supreme Court’s review “is needed to restore a uniform, nationwide copyright damages regime”, the Co said. The case, which began in 2018 when Sony Music, UMG, WMG, and other music giants sued Cox, aims to make it so ISPs including Cox are accountable for piracy committed by their subscribers. (NextTV)
• Ericsson expects to receive SEK10.6bn ($1bn) from the sale of number portability and data exchange services subsidiary iconectiv, a US-based unit it arranged to offload to Koch Equity Development. The sum stated would be booked as a cash benefit and includes settlements of taxes, transaction expenses, and other obligations. Ericsson explained it anticipates booking a one-off EBIT gain of ~SEK8.8 bn. (Mobile World Live)
• Kaleido Intelligence found that annual fraud losses from voice and operator messaging channels will decline to $17bn in 2028, an annual decline of 9% on 2024’s projected losses for the yr. A combination of declines in channel use and the shutdown of circuit-switched networks will encourage fraudsters into newer forms of fraud, including attacks on APIs and the use of AI to directly manipulate the telecoms network. (VanillaPlus – The global voice of Telecoms IT)
• MTN Group posted a half-year 2024 loss, weighed down by devaluation of the Nigerian naira and operational challenges in Sudan. The Co’s svs rev fell by 20.8% to 85.3bn South African rand ($4.78bn) from 107.735bn rand for the same period a yr earlier. The EBTIDA margin fell to 32% from 43.6% due to cost pressure from challenging conditions. At the end of the period, MTN’s total subscriber numbers were up 0.8% to 288mn. (Kenyan Wall Street – African Business and Global Finance)
• Nokia annc’d that it has been selected by TIM Brasil to expand its 5G radio access network coverage across 15 Brazilian states from Jan 2025. This partnership will increase the number of municipalities w/ access to 5G, bringing the benefits of secure, ultra-high-speed connectivity to a wider population. The expansion will also enable enterprises in these regions to digitalize their operations, fostering innovation and driving economic growth. (THEFASTMODE)
• Virgin Media O2 is launching a new mobile plan to help people on low incomes stay connected. The O2 Essential Plan is available for new and existing customers who receive a range of benefit payments, and comes w/ 10GB of mobile data, plus unlimited calls and texts for £10 per month. The plan can be taken as a 30-day rolling contract, has no activation or exit fees, and no price changes while customers receive benefit payments. (Virgin Media O2)

Cloud/DataCenters/IT Infrastructure

• Informatica annc’d Lumen Technologies successfully modernized on-premises PowerCenter workloads to Informatica’s Intelligent Data Management Cloud platform. This accels Lumen’s time-to-value and minimizes migration costs as well as effort in its expansion to the cloud. Informatica’s AI-powered IDMC platform allowed Lumen to work within a single platform to streamline network assets, cloud connectivity, security solutions, and collab tools. (Aithority)
• Microsoft lowered its cloud computing unit revenue forecast in a bookkeeping move, shifting money to its “productivity” software business. Microsoft said the change is intended to more closely align earnings reports w/ how the co operates when it comes to cloud services tied to its business computing unit. (BARRONS)
• Singtel and Bridge Alliance annc’d a partnership on Aug 19 that will take Singtel’s GPUaaS offerings to enterprises across Southeast Asia once it is launched later in 2024. The deal will allow Bridge Alliance member operators, which total 35 globally, to gain access to the GPUaaS offerings from Singtel. GPUaaS is a cloud-based solution that offers access to graphics processing units (GPUs) on demand. (The Straits Times)

Cybersecurity/Security

• Flight tracking site FlightAware blamed a “configuration error” for exposing a raft of personal info of its customers, including some of their Social Security numbers. The Co said in a notice that it identified the unspecified error on July 25, which exposed names, email addresses, and more, depending on what information users provided to the Co. In a separate notice, FlightAware said that passwords and Social Security numbers were also exposed. (TechCrunch)
• New details are emerging about a breach at National Public Data (NPD), a consumer data broker that recently spilled hundreds of millions of Americans’ Social Security Numbers, addresses, and phone numbers online. KrebsOnSecurity has learned that another NPD data broker that shares access to the same consumer records inadvertently published the passwords to its back-end database in a file that was freely available from its homepage until today. (SLASHDOT)

eCommerce/Social Commerce/Retail

• 31% of back-to-school shoppers are expected to go into debt for their purchases, up +2pp from 2022. That includes 24% of respondents who are using credit cards and carrying balances, and 13% who are using buy now, pay later svs like Affirm or Klarna. The people who said they feel pressured to spend more on school shopping than they’re comfortable w/ declined to 14% from 26% in 2022, while 18% of respondents said school shopping did or will strain their budget this yr, down from 31% 2 yrs ago. (Retail Dive)
• Amazon has launched a program allowing sellers using its fulfillment svs to issue product refunds w/out customers returning the item, according to an Aug13 annc’mnt. Fulfillment by Amazon Returnless Resolutions will help sellers avoid returns-related fees by cutting out the physical reverse logistics process and letting customers keep the items instead, the co said. Some products are ineligible for the program, including dangerous goods, heavy and bulky items, and those w/ an avg sales price above $75. (Retail Dive)
• Amazon’s drone delivery program’s tests have become a regular fact of life for residents of College Station, Texas. For the 127,000 people of College Station, the din from the drones has become a nuisance, per CNBC. “It sounds like a giant hive of bees,” John Case, who has lived in the town for 40 years, told CNBC. “You know it’s coming because it’s pretty loud.” (Yahoo Finance)
• California has enacted new laws to combat organized retail crime, developed in collaboration with retailers. The laws allow prosecutors to bundle stolen goods’ value across retailers to meet felony thresholds, permit arrests without witnessing the crime, and extend probation for theft. They also enhance penalties for possessing stolen goods and require online marketplaces to track high-volume sellers. These laws aim to tackle retail theft while preserving criminal justice reforms. (Retail Dive)
• During Walmart’s second-quarter earnings call, CEO Doug McMillon annc’d that the co is placing pressure on its suppliers to reduce their pricing so it can pass savings on to customers. Walmart will cut prices on more than 7,000 items across grocery categories as part of its “rollback” deals, according to Quartz. The statement comes at the same time as Walmart announced its projected sales growth for 2024 to move to between 3.75% and 4.75%. (Food & Wine)
• Lowe’s lowered its full-yr guidance after Q2 was hit by unfavorable weather and consumer sentiment. Q2 net sales fell 5.5% y/y to $23.6bn, w/ comps down 5.1%. Gross margin was about flat to last yr at 33.5%, and net earnings fell 10.8% to $2.4bn. For FY24, Lowe’s now expects total sales to land between $82.7-83.2bn , down from its previous expectation for $84-85bn; comps are expected to fall 3.5-4%, worse than the earlier 2-3% estimate. (Retail Dive)
• Macy’s cut its full-yr sales forecast, as the department store operator said it is contending w/ selective shoppers and more promotions. Macy’s said it now anticipates net sales of between $22.1bn and $22.4bn, which is lower than the $22.3bn to $22.9bn range it had previously anticipated. That metric includes owned and licensed sales, which encompass merchandise that Macy’s owns and items from brands that pay for space w/in its stores, along w/ Macy’s third-party online marketplace. (CNBC)
• Morrisons boss Rami Baitiéh admitted the supermarket “went a bit too far” w/ self-checkouts as it looks to pull back on the technology. The CEO said that the biz is “reviewing the balance between self-checkouts and manned tills” and is looking to remove some from its stores after installing too many. Baitiéh claimed the rise of self-checkouts had also driven more shoplifting at its supermkts. (Retail Gazette)
• Over 50% of the biggest online fashion retailers do not offer free postal returns. The consumer choice firm looked at the returns policies of the 20 biggest online fashion retailers, including Asos, Boohoo and Amazon and found that 12 do not offer free postal returns. The returns fees range from £1.99 to £3.99, w/ some fashion retailers having specific fees and processes for returning items, while others state it’s up to you to arrange and pay for postage. (Retail Gazette)
• Shein is considering selling its shares directly to the British public amid controversy around its possible £50bn stock market flotation on the London Stock Exchange. The co is understood to be in the early stages of examining a possible sale to retail investors alongside City institutions. Shein’s bankers are thought to be running the rule over proposals to sell directly to the public, however the plans are understood to be at an early stage and no decision has been made. (Retail Gazette)
• Target said that sales grew about 3% in its fiscal Q2, a return to growth after a prolonged stretch of sluggish sales and squeezed profits. The discounter beat Wall Street’s earnings and rev expectations, as shoppers made more visits to Target’s stores and website and bought more discretionary items like clothing. The co’s shares closed about 11% higher as Target showed improvement in generating profits. (CNBC)
• Target swung back to growth in the Q2 w/ sales rising 2.6% to $25bn, up from $24.4bn a yr earlier. Net earnings rose nearly 43% to $1.2bn, up from $835mn yr over yr. Operating income was $1.6bn for the quarter, up 37% from $1.2bn a yr ago. Traffic drove comparable sales growth, w/ overall comps rising 2% yr over yr in Q2, while store comps rose 0.7%. Digital comps rose 8.7%. Q2’s gross margin was 29%, compared to 27% a yr ago. (Retail Dive)
• ThredUp is testing out a brand-new peer-to-peer resale mktplace that takes direct aim at competitors like Poshmark, Mercari, and Depop. It’s unclear when exactly the new mktplace debuted, but it’s easy enough to find on ThredUp’s website. (The mktplace doesn’t appear as an option on mobile web or ThredUp’s app.) The mktplace appears to still be under wraps, as ThredUp hasn’t posted about direct listing on any official channels. (Modern Retail)
• Walmart and Burger King announced Thursday a new partnership to offer Walmart+ members a daily discount on digital Burger King orders, effective immediately, the companies said in a statement. The dining benefit includes 25% off digital orders daily and, starting in September, a free Whopper every three months with any purchase. To activate the deal, Walmart+ members must link their membership with Burger King’s free Royal Perks loyalty program. Once the accounts are linked, Walmart+ members can get the deal through Burger King’s app or website. (Retail Dive)
• Walmart opened up its Walmart Cross Border ocean shipping svs to Cos sourcing goods in China. Walmart Marketplace sellers can now use the Co’s ocean shipping svs to transport China-made goods to Walmart’s US fulfillment center network, taking advantage of its negotiated container freight rates and customs clearance capacity. It is only available to WFS sellers that source or manufacture goods in China. (SUPPLYCHAINBRAIN)
• Walmart sold its entire stake in JD.com, according to a person familiar w/ the matter. Walmart is exiting an eight-yr investment to focus on its own operations in China. A placement of the Walmart shares was fully subscribed, the person said, and at the top end of the offered range, would be worth $3.74 bn. Walmart plans to double down on its warehouse biz, Sam’s Club, in China after the stake sale. (Yahoo Finance)
• Shein is suing rival Temu, alleging the retailer stole its designs and built an empire using counterfeiting, IP infringement, and fraud. In its complaint, Shein alleges that Temu, owned by PDD Holdings, is “masquerading” as a legitimate online marketplace because it encourages its sellers to steal other brands’ designs and then prevents them from removing products from the platform, even after they have admitted to infringement. (CNBC)

EdTech

• The South Korean govt has plans to bring tablets w/ AI-powered textbooks into classrooms, sparking reservations among some parents. The tablets are scheduled to be introduced next yr, and by 2028, teachers are supposed to be using these AI textbooks for all subjects except music, art, physical education, and ethics. In response, 50,000+ parents signed a petition demanding that the govt’ focus less on new tech and more on students’ well-being. (TechCrunch)

EV/ Autonomous Vehicles

• Self-driving tech co WeRide delayed its plan for an IPO in the US, citing its need for more time to complete documents. WeRide was expected to offer 6.5mn ADS in the range of $15.50 to $18.50. It was looking to raise up to $440mn in a US listing that had been set for this week. The co was last valued around $5.11bn and has raised $1.39bn. (CNBC)
• Waymo revealed details about its newest “generation 6” self-driving tech. W/ new hardware and software integrated into Geely Zeekr electric vehicles, Waymo should be able to handle a wider array of weather conditions without requiring as many costly cameras and sensors. Waymo is currently working to scale in the US, w/ a fresh $5bn investment from Alphabet. (CNBC)
• Xiaomi reported its fastest pace of rev growth since 2021, buoyed by the initial success of its first electric vehicles and a global smartphone market bounceback. Sales rose a better-than-projected 32% to 88.9bn yuan ($12.5bn) in the Jun. quarter, boosted by roughly 6.2bn yuan of revenue from its EV division. Net income also beat expectations at 5.1bn yuan, after a one-time investment gain of almost 550bn yuan. But it booked an adjusted loss of about 1.8bn yuan from the autos arm. (Yahoo Finance)

Film/Studio/Content/IP/Talent

• Deadpool & Wolverine managed to hold off It Ends With Us to take the top spot at the Australian National Box Office for a fourth weekend in a row. The film’s $4.57mn brings its Australian box office to $54.7mn. Blake Lively’s It Ends With Us brought in $4.51mn in its second week, while Alien: Romulus took $3.43mn to take third place, despite knocking off Deadpool & Wolverine from the top of the box office in the US. (Mumbrella)
• Google, California lawmakers, and the California News Publishers Association have agreed on a $250mn plan to support California newsrooms, avoiding a state bill that would have forced tech companies to pay for news content. The five-year deal includes funding from Google and taxpayers, creating a News Transformation Fund to preserve local journalism. However, some lawmakers and journalist unions criticized the deal for being insufficient and lacking transparency. (NYTIMES)
• Warner Bros.Discovery plans to purchase and operate an $8.5bn film studio in Nevada, contingent on the approval of a state tax credit. The 34-acre “Warner Bros. Studio Nevada” will be located at UNLV’s Harry Reid Research & Technology Park and will include film and TV studios and a teaching facility for UNLV students. The project depends on a proposed $95mn annual tax credit over 17 years. (NextTV)

FinTech/InsurTech/Payments

• A proposed 30% mkt share cap in India’s Unified Payments Interface (UPI) segment is looking unlikely, said industry execs, w/ only a little over four months to the deadline. Several UPI newcomers have been told informally that the limit is unlikely to be put into effect and, accordingly, have started redrawing growth and investment plans, people briefed on the matter said. (The Economic Times)
• Adyen will offer the Fastlane by PayPal checkout experience to its enterprise and marketplace customers. The rollout of this offering will begin with Adyen’s customers in the US and then extend globally in the future. The addition of Fastlane by PayPal to Adyen’s platform will accelerate guest checkout flows, improve consumer shopping experiences, and enhance conversion for bizs using the platform. (PYMNTS.com)
• Amazon is considering shifting its payments offerings in India into a standalone app. Some execs at Amazon believe that a separate app w/ a singular focus could help the payments platform gain wider recognition in the country. However, sources cautioned that Amazon, grappling with many other challenges in India, may alter its plans and could still abandon the idea. (TechCrunch)

HealthTech/Wellness

• Neuralink said surgery for its second implant in a human “went well” and the patient is now able to design 3D objects and play video games like Counter-Strike 2. The procedure also appears to have successfully averted an issue that dogged the experience of the first patient, Noland Arbaugh, who had the unexpected complication of electrode threads retracting from his brain. The co said it was working on new capabilities for its brain interface device. (Yahoo Finance)
• Peloton’s Q4 revenue was flat at $643.6mn, with connected fitness products down -4% and subscription revenue up +2%. Operating loss improved 72% to $63.3mn, and net loss narrowed 87% to $30.5mn. For the full fiscal year, revenue fell 3.6% to $2.7mn, with losses reduced by over 50%. Memberships declined as marketing costs were cut. Peloton projects revenue declines and lower subscriptions in the upcoming fiscal year. (Retail Dive)

Last Mile Transportation/Delivery

• Didi Global swung to a profit of 1.4bn yuan ($196mn) in the Jun quarter, a welcome boost as it prepares for a potential re-listing in Hong Kong. The co saw rev climb 4.1% to 50.9bn yuan, after ride-hailing transactions hit a record. The results show that the co is gradually recovering from a tough few yrs. (CAIXINGLOBAL)
• Zomato, the Indian food delivery Co, has acquired the entertainment ticketing biz of financial svs firm Paytm for $244.1mn, signaling a strategic move to expand its “going out” offerings. As part of the deal, Paytm’s flagship app will continue to host these offerings for up to 12 months and 280 of its employees will join Zomato, the cos said. (TechCrunch)

Live Entertainment/Theme Parks/Concerts/Experiential

• Ten more states have signed on to the wide-ranging antitrust suit alleging monopolistic practices by Live Nation and Ticketmaster. The DoJ annc’d Indiana, Iowa, Kansas, Louisiana, Mississippi, Nebraska, New Mexico, South Dakota, Utah, and Vermont have joined the suit. 40 states and the District of Columbia are now included as plaintiffs in the case. The DOJ filed its amended complaint against the Co on Aug 19. (Pollstar News)

Macro Updates

• The recent downward revision of 818,000 U.S. payrolls, the largest since 2009, raises concerns about economic weakness, but current indicators don’t suggest a recession. Jobless claims and GDP data remain stable, unlike in 2009. The revisions may signal overstated job growth, but the Fed is likely to focus on more current data. Some economists believe the revisions might be overstated, adding uncertainty to the outlook. (CNBC)

Satellite/Space

• Project Kuiper, Amazon’s low Earth orbit satellite broadband network, is expanding its footprint at Kennedy Space Center in Florida as it prepares for a full-scale deployment of its satellite constellation. In 2024, Project Kuiper broke ground on a $120mn (€108mn) satellite processing facility, and now the team is investing another $19.5mn to expand its presence by adding a secondary support facility at the site — bringing its total investment in the site to nearly $140mn. (ADVANCED-TELEVISION)

Social/Digital Media

• A new feature annc’d by Instagram will allow users to add a song on their profile — much like Myspace in the early 2000s. The music added to a user’s profile shows up in the bio area, according to screenshots shared by Instagram. A song will be featured on a profile until the user removes or replaces it. But unlike Myspace, songs won’t autoplay — people viewing a profile w/ a song can play and pause the track. Instagram is launching the feature in collaboration w/ pop star Sabrina Carpenter. (The Verge)
• Elon Musk’s loans to buy Twitter have become the worst merger-finance deal for banks since the financial crisis of 2008-09, per a report. Seven banks involved in the deal, including the likes of Bank of America and Morgan Stanley, gave Musk’s holding Co ~$13bn to take X private in 2022. The WSJ reports that banks haven’t been able to sell the debt w/out taking huge losses, predominantly because of the Co’s poor financial performance. (Yahoo Finance)
• Elon Musk’s social media app, X, recently had 95 co-owners, including a Saudi conglomerate, the cryptocurrency firm Binance and entities associated w/ the rapper Sean “Diddy” Combs and the billionaire Bill Ackman, according to a list its lawyers filed in federal court. The list is the public’s first complete look at who co-owns the app since Musk bought the co and took it private in 2022. (NBC News)
• Meta has globally rolled out the ability to cross-post from Instagram and Facebook to Threads, aiming to streamline content sharing across its platforms. This feature, which became available after months of testing, allows users to post Instagram images and Facebook text posts directly to Threads. It’s designed to save time for content creators by reaching multiple audiences simultaneously, though some content may not translate perfectly across platforms. (TechCrunch)
• Ofcom is ramping up its hiring of online safety staff as debate continues over the ability of the UK to properly tackle the spread of misinformation online. The riots in parts of the UK earlier in Aug were fueled by the spread of misinformation in the wake of the stabbings in Southport. The violence was stoked by a number of false claims spreading online, including that the suspect was an asylum seeker who had arrived in the UK by boat last yr. (Yahoo Finance)

Software

• Snowflake raised its full-year product revenue forecast to $3.36 billion, driven by AI advancements attracting more clients. Despite this, shares dropped over 8% as the company didn’t raise its margin forecast. Snowflake left margins unchanged, awaiting GPU deployments. The firm authorized a $2.5bn share buyback and reported strong Q2 product revenue of $829.3mn, beating estimates. Snowflake is focusing on AI, including developing its own large language model, Snowflake Arctic. (Yahoo Finance)
• Zoom reported adjusted earnings for Q2 w/ per share price of $1.39, up from $1.34 in the same quarter of the previous fiscal yr, on rev of $1.163bn, up 2.1% yr-over-yr. Analysts had expected adjusted earnings per share of $1.21 on rev of $1.15bn. Enterprise rev in the quarter was $682.8 mn, up 3.5% yr-over-yr and online rev came in at $479.7mn, flat yr-over-yr. For its fiscal 2025 Q3, Zoom expects adjusted earnings per share of $1.29 to $1.31 on revenue of $1.16bn to $1.65bn. Analysts had expected earnings of $1.24. (SiliconANGLE)

Sports/Sports Betting

• Ariel Helwani is in advanced negotiations to join Yahoo Sports, per sources. Helwani told his followers on X earlier this week that he “decided to move on” from Vox Media and Spotify at the conclusion of his three-yr deals w/ both Cos, which expired on Aug 15. Helwani said it was difficult to turn down the offers he received from his previous employers, but he didn’t signal where he was headed. (Front Office Sports)
• Arizona generated $429mn in economic impact from hosting the Men’s Final Four in April 2024, per a new report. But Gov Katie Hobbs is “really concerned” it will be the last time Arizona gets to host a national sporting event of this caliber if voters approve what Republicans put on the ballot as the “Border Security Act.” Proposition 314 would allow state and local police to arrest those who enter the country at other than a port of entry. (The Daily Independent at YourValley.net)
• Bill Simmons said on his podcast that Jeff Bezos may explore a purchase of the Celtics, who were put on the mkt by owner Wyc Grousbeck and his partners last month. According to The Information, Bezos “has no plans” to bid on the Celtics. However, lost in Simmons’s report was the price tag that the league hopes the iconic franchise will fetch, whether from the billionaire Bezos or any prospective buyer. (Front Office Sports)
• Jake Paul vs Mike Tyson is set for an eight-round professional bout w/ two-minute rounds after being rescheduled. The bout will stream live globally and exclusively on Netflix on Nov 15 from the 80,000-seat capacity AT&T Stadium in Arlington, Texas. In the preliminary press conference, Paul and Tyson had plenty to say about the upcoming fight, and Tyson even landed a blow on Paul when things became heated. (ADVANCED-TELEVISION)
• Japanese baseball players are trying to make the path to playing abroad easier than it’s ever been before. The union for Japan’s major league is preparing a legal challenge that will attempt to change the league’s free agency system and give players control over their name, image and likeness. Nippon Professional Baseball has produced the likes of Shohei Ohtani and Kodai Senga, but players have lived under a somewhat restrictive system there. Free agency is also heavily restricted by the NPB. (Front Office Sports)
• The legal dispute between Warner Bros Discovery and the NBA is likely to stretch into the 2024-2025 NBA season, affecting TNT Sports as it operates in the final year of its NBA contract. Key dates include the NBA’s response to WBD’s complaint by August 23, and further legal filings into October. WBD alleges contract breaches after the NBA rejected its offer to match Amazon’s media rights deal. (Front Office Sports)
• The NFL is on the verge of allowing private equity into its ownership ranks. The league has scheduled a special meeting for Aug 27 in Minneapolis, where owners will likely vote on whether to approve the addition of private capital. The NFL has been discussing the 10% range, w/ some owners pushing for something closer to 5%, sources said. The NBA, MLB, MLS and NWSL all allow funds to hold up to 30% of a team’s equity. (Sportico.com)
• While building hype for the NFL season, which begins in two weeks, the league is also taking precautions against sports betting among its players, especially as the NBA and MLB have faced significant controversies this yr. The NFL will have investigators on-site during game days to scout for “suspicious activity,” according to ESPN. The NFL’s security team also monitors betting markets in search of suspicious activity, such as large swings in the odds of player props. (Front Office Sports)
• YouTube TV is offering a free Max subscription to customers who sign up for NFL Sunday Ticket, similar to last year’s promotion. Eligible subscribers must not have had Max in the past 90 days and must claim the offer before December 31, 2024. (Cord Cutters News)

Tech Hardware

• AMD annc’d the signing of a definitive agreement to acquire ZT Systems, a leading provider of AI infrastructure for the world’s largest hyperscale computing Cos. The cash and stock transaction is valued at $4.9bn, inclusive of a contingent payment of up to $400mn based on certain post-closing milestones. AMD expects the transaction to be accretive on a non-GAAP basis by the end of 2025 (Advanced Micro Devices, Inc.)
• Samsung has annc’d a new Odyssey gaming monitor lineup at gamescom that uses eye-tracking technology to convert 2D visuals into glasses-free 3D. The Odyssey 3D is set for a global release “w/in this yr” according to Samsung, and will allow users to “seamlessly switch between 2D and 3D modes” based on preference. (The Verge)
• Shanghai’s govt doubled its domestic chip investment fund, w/ the latest funding round increasing the total to ~CNY14.5bn ($2bn). The fund is supported by state-backed Cos located in Shanghai, which contributed CNY6.9bn to bolster China’s aspiration to lead the mkt, particularly as the need for advanced AI chips increases. The Shanghai Semiconductor Industry Investment was originally established in 2016. (RCR Wireless News)
• Texas Instruments stands to receive up to $1.6bn in funding from the US Department of Commerce for three semiconductor facilities as part of a move to boost the domestic semiconductor industry. The proposed direct funding from the CHIPS and Science Act will be used to help build TI’s 300mm wafer fabs already under construction in the states of Texas and Utah. (Silicon)

Towers/Fiber

• Telecom tower operator IHS Holdings Ltd is exploring a potential sale of its bizs in Rwanda and Zambia. Some proceeds from any disposals would be used to pay down debt. IHS operates 40,000 towers across Africa, LatAm and the Middle East, according to its website. IHS said in March that it’s working with advisers including JPMorgan Chase & Co. to evaluate strategic alternatives for the business across its portfolio and capital allocation priorities. (Yahoo Finance)

Video Games/Interactive Entertainment

• Microsoft is launching three new Xbox Series S / X console options in Oct. There’s the $449.99 white discless Xbox Series X, a 2TB “Galaxy Black” special-edition Xbox Series X priced at $599.99, and a $349.99 1TB Xbox Series S. All three models will be available in the US on Oct.15, w/ other markets to follow on Oct. 29. (The Verge)
• Nvidia will soon let users link an Xbox account to its GeForce Now streaming svs to enable automatic sign-in for supported games. Starting on Aug 22, the new account linking feature will mean users only need to sign-in and link an Xbox profile once so that it’s stored for all future GeForce Now sessions. Nvidia’s improvements for Xbox games on GeForce Now come just weeks after Microsoft integrated GeForce Now into its Xbox game pages on the web. (The Verge)
• Twitch’s mobile app users might have to pay a bit more starting on Oct 1. The co annc’d that Tier 1 and gift subscriptions in more than 40 countries will have a higher price on the iOS and Android apps. According to emails from Twitch shared by Dexerto and on Reddit, Tier 1 subscriptions will cost $7.99 per month, an increase from the current Tier 1 price on the app of $5.99 per month. The cost of Tier 2 and Tier 3 subscriptions will remain the same. (The Verge)

Video Streaming

• Horowitz Research found that an increasing number of budget-conscious consumers say they have cut back on subscription-based streaming svs in favor of FAST channels. Tubi, Pluto TV, Freevee, YouTube, and Roku were the top-used FAST networks by consumers surveyed in the study. 53% of FAST users say they have cut down on their paid streaming svs now that they have adopted FAST. (TVTechnology)
• Nielsen revealed that free streaming svs are rapidly gaining popularity among cord cutters seeking cost-effective options. Nielsen reports that Tubi has tied Disney+ as the fourth most-watched streaming svs in the US, each holding 2.1% of streaming traffic. The Roku Channel and Pluto TV also saw growth, contributing to a total of over 4.4% of streaming in July 2024. YouTube remains the most-watched service at 10.4%. (Cord Cutters News)
• Ampere Analysis has quantified that older seasons of Netflix series typically receive a huge catchup boost when new seasons drop. The Co looked at Netflix’s two massive 2023 ratings data drops, specifically examining older seasons of shows that had new episodes drop in the second half of 2023. On avg, viewership for these shows increased by 86% in the second half of the yr vs the first half. (NextTV)