“Make it stop.” – Jeff
Hey there carnivores,
Markets were down on Friday after another bad day from big tech.
Today we’re talking Trump giving the TikTok deal the green light.
Jeff & Jason
A public affair
Donny Deals has signed off on a deal between TikTok, Oracle, and Walmart.
Let’s look at the details
Oracle will take a 12.5% stake in TikTok and become its cloud provider. The California based technology company will be responsible for safely storing all of TikTok’s US user’s data. ByteDance’s algorithms, however, are staying in China.
Walmart will own 7.5% of the new company, although the details surrounding its commercial partnership structure are still in the works. Wally World’s CEO Doug “Little Kid Lover” McMillon will become one of the five board members of the social media company, TikTok Global.
An IPO is expected within a year, which should allow more American investors to fire up their Robinhood apps and dip into ByteDance’s remaining 80% stake. However, the Trump administration is already claiming that Americans would have a 53% ownership in TikTok Global since 40% of ByteDance is controlled by US-based PE firms (KKR, Sequoia Capital, General Atlantic). *Me looking at the numbers*
TikTok will expand its headquarters stateside, vowing to add as many as 25k new jobs and likely land somewhere in the great state of Texas. And apparently there will be a $5B education fund established by ByteDance, Walmart, and Oracle because that totally makes sense in the context of this deal.
The bottom line…
And at long last, the TikTok saga is over. We can all go on with our lives without having to hear about the video platform every f*cking day.
Granted, the parties have not yet put pen to paper. And if past negotiations between the US and China are any indication, it’s likely that this might drag on for a little while longer. Speaking of which, whatever happened to that Phase II trade deal?
☑️ It’s in the game Unity, a video game developer platform, did its best Snowflake impression on Friday. It absolutely crushed its initial public offering, opening at $52 after initially pricing shares at $44.
The game engine behind Pokemon Go has become a big f*ckin deal in the game development space. Case in point: it was able to create a game that convinces grown-a** men and women to walk around in real life looking for fake creatures on their phones.
And investors seem to think that the company is in good hands with CEO John Riccitiello who ran EA for years.
☑️ Facebook watch. “I’m always watching” – Big Brother.
Facebook is being sued for “allegedly” spying on Instagram users, which, if you don’t know, it owns.
The suit claims that Zuckerberg and Co. were monitoring users through their own mobile camera, which is, ya know, illegal. The suit, however, isn’t focused on the fact that tapping into people’s cameras without their knowledge and consent is creepy AF, but that the ‘book is using the “lucrative and valuable data” to make money off its users.
☑️ Cat’s in the cradle.
Remember in 2006 when Ericsson made cell phones?
Well, the company has since pivoted and is making big moves in the telecom network space, buying Cradlepoint for $1.1B. This deal is all about 5G and the ability to build out an infrastructure to support the Internet of Things. AKA, the future.
Cradlepoint rivals Cisco Systems in the wireless networking industry. It had sales of $2.1B in 2019, with a gross margin of 61%, which translates to a sh*t ton of profit for those keeping track at home.