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Daily Crunch: This TikTok deal is pretty confusing
Companies send out conflicting messages about the TikTok deal, Microsoft acquires a gaming giant and the WeChat ban is temporarily blocked. This is your Daily Crunch for September 21, 2020.
The big story: This TikTok deal is pretty confusing
This keeps getting more confusing. Apparently TikTok’s parent company ByteDance has reached a deal with Walmart and Oracle that will allow the Chinese social media app to continue operating in the United States, and the deal has been approved by Donald Trump. But it’s hard to tell exactly what this agreement entails.
ByteDance said it would retain 80% control of TikTok, while selling 20% of the company to Walmart and Oracle as “commercial partner” and “trusted technology partner,” respectively. However, Oracle released a seemingly conflicting statement, claiming that Americans will have majority ownership and “ByteDance will have no ownership in TikTok Global.”
So what’s going on here? We’re trying to figure it out.
The tech giants
Microsoft set to acquire Bethesda parent ZeniMax for $7.5B — ZeniMax owns some of the biggest publishers in gaming, including Bethesda Game Studios, id Software, ZeniMax Online Studios, Arkane, MachineGames, Tango Gameworks, Alpha Dog and Roundhouse Studios.
Trump administration’s WeChat ban is blocked by US district court — More news about the Trump administration’s efforts to ban some high-profile Chinese apps: A district court judge in San Francisco has temporarily stayed the nationwide ban on WeChat.
Nikola’s chairman steps down, stock crashes following allegations of fraud — This comes in the wake of a report from a noted short-seller accusing the electric truck company of fraud.
Startups, funding and venture capital
With $100M in funding, Playco is already a mobile gaming unicorn — Playco is a new mobile gaming startup created by Game Closure co-founder Michael Carter and Zynga co-founder Justin Waldron.
Indian mobile gaming platform Mobile Premier League raises $90 million — Mobile Premier League operates a pure-play gaming platform that hosts a range of tournaments.
A meeting room of one’s own: Three VCs discuss breaking out of big firms to start their own gigs — We talked to Construct Capital’s Dayna Grayson, Renegade Partners’ Renata Quintini and Plexo Capital’s Lo Toney.
Advice and analysis from Extra Crunch
Edtech investors are panning for gold — At Disrupt, investors told us how they separate the gold from the dust.
Despite slowdowns, pandemic accelerates shifts in hardware manufacturing — China continues to be the dominant global force, but the price of labor and political uncertainty has led many companies to begin looking elsewhere.
The Peloton effect — Alex Wilhelm examines the latest VC activity in connected fitness.
(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)
Everything else
Ireland’s data watchdog slammed for letting adtech carry on ‘biggest breach of all time’ — The Irish Council for Civil Liberties is putting more pressure on the country’s data watchdog to take enforcement action.
Pandemic accelerated cord cutting, making 2020 the worst-ever year for pay TV — According to new research from eMarketer, the cable, satellite and telecom TV industry is on track to lose the most subscribers ever.
Original Content podcast: ‘Wireless’ shows off Quibi’s Turnstyle technology — I interviewed the director of the new Quibi series.
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