Category: UNCATEGORIZED

23 Oct 2020

India’s Flipkart buys over $200 million stake in Aditya Birla Fashion and Retail

Flipkart is acquiring a 7.8% stake in Aditya Birla Fashion as the Walmart-owned Indian e-commerce firm makes further push into the fashion category in one of the world’s largest retail markets.

The e-commerce group will pay $203.8 million for its stake in Aditya Birla Fashion and Retail, a conglomerate that operates over 3,000 stores including the Pantaloons brand. As part of the “landmark partnership,” Flipkart will also sell and distribute various Aditya Birla Fashion and Retail’s brands products.

“This partnership is an emphatic endorsement of the growth potential of India,” said Kumar Mangalam Birla, Chairman of Aditya Birla Group, which operates the fashion retail firm in a filing to the stock exchange. “It also reflects our strong conviction in the future of the apparel industry in India, which is poised to touch $100 billion in the next 5 years.”

Kalyan Krishnamurthy, CEO of Flipkart Group, said the two companies will work toward “making available a wide range of products for fashion-conscious consumers across different retail formats across the country. We look forward to working with ABFRL and its well established and comprehensive fashion and retail infrastructure as we address the promising opportunity of the apparel industry in India.”

In July, Flipkart also invested $35 million in $35 million in Arvind Fashions, one of the decades-old Indian firm’s subsidiaries.

More to follow…

22 Oct 2020

Senate subpoenas could force Zuckerberg and Dorsey to testify on New York Post controversy

The Senate Judiciary Committee voted in favor of issuing subpoenas for Facebook’s Mark Zuckerberg and Twitter’s Jack Dorsey Thursday, meaning that there might be two big tech CEO hearings on the horizon.

Republicans in the committee declared their interest in a hearing on “the platforms’ censorship of New York Post articles” after social networks limited the reach of a dubious story purporting to contain hacked materials implicating Hunter Biden, Joe Biden’s son, in impropriety involving a Ukrainian energy firm. Fox News reportedly passed on the story due to doubts about its credibility.

Tech’s decision to take action against the New York Post story was bound to ignite Republicans in Congress, who have long claimed, with scant evidence, that social platforms deliberately censor conservative voices due to political bias. The Senate Judiciary Committee is chaired by Lindsey Graham (R-SC), a close Trump ally who is now in a much closer than expected race with Democratic challenger Jaime Harrison.

Earlier in October, the Senate Commerce Committee successfully leveraged subpoena power to secure Dorsey, Zuckerberg and Alphabet’s Sundar Pichai for testimony for their own hearing focused on Section 230, the critical law that shields online platforms from liability for user created content.

The hearing isn’t scheduled yet, nor have the companies publicly agreed to attend. But lawmakers have now established a precedent for successfully dragging tech’s reluctant leaders under oath, making it more difficult for some of the world’s wealthiest and most powerful men to avoid Congress from here on out.

22 Oct 2020

Senate subpoenas could force Zuckerberg and Dorsey to testify on New York Post controversy

The Senate Judiciary Committee voted in favor of issuing subpoenas for Facebook’s Mark Zuckerberg and Twitter’s Jack Dorsey Thursday, meaning that there might be two big tech CEO hearings on the horizon.

Republicans in the committee declared their interest in a hearing on “the platforms’ censorship of New York Post articles” after social networks limited the reach of a dubious story purporting to contain hacked materials implicating Hunter Biden, Joe Biden’s son, in impropriety involving a Ukrainian energy firm. Fox News reportedly passed on the story due to doubts about its credibility.

Tech’s decision to take action against the New York Post story was bound to ignite Republicans in Congress, who have long claimed, with scant evidence, that social platforms deliberately censor conservative voices due to political bias. The Senate Judiciary Committee is chaired by Lindsey Graham (R-SC), a close Trump ally who is now in a much closer than expected race with Democratic challenger Jaime Harrison.

Earlier in October, the Senate Commerce Committee successfully leveraged subpoena power to secure Dorsey, Zuckerberg and Alphabet’s Sundar Pichai for testimony for their own hearing focused on Section 230, the critical law that shields online platforms from liability for user created content.

The hearing isn’t scheduled yet, nor have the companies publicly agreed to attend. But lawmakers have now established a precedent for successfully dragging tech’s reluctant leaders under oath, making it more difficult for some of the world’s wealthiest and most powerful men to avoid Congress from here on out.

22 Oct 2020

Representatives propose bill limiting Presidential internet ‘kill switch’

A pair of U.S. Representatives — one from each party — are proposing a law that would limit the President’s ability to shut down the internet at will. That may not strike you as an imminent threat, but federal police disappearing protestors into unmarked vans probably didn’t either, until a couple months ago. Let’s keep an open mind.

The President has the power under the Communications Act’s Section 706 to order the shutdown of some communications infrastructure in an emergency. While this was likely intended more for making sure official phonecalls could get through in a national emergency, it’s possible that today it could be used as a measure to tamp down on protests and civil unrest, as we’ve seen in authoritarian regimes around the world.

The Preventing Unwarranted Communications Shutdowns Act, from Rep. Anna Eshoo (D-CA) and Rep. Morgan Griffith (R-VA), doesn’t remove this ability, but adds several layers of accountability to it.

In the first place, the bill would limit Section 706 use to when there is an “imminent and specific threat to human life or national security.” This prevents it from being put into play when there is a more general “threat” such as a major protest that might be too much for local police to handle.

The bill would also require the President to inform the top layer of government officials, including opposition leaders, of any shutdown. Ideally before, but it could be up to 12 hours later (and is illegal if not by then). Any shutdown ends automatically after 48 hours unless 3/5 of Congress vote to continue it.

The U.S. government would also be obligated to compensate providers and customers for the monetary value of the shutdown’s impact. This could end up being quite expensive depending on how it’s calculated.

Lastly, a General Accountability Office report is required after every use of Section 706, and they get to the bottom of everything.

Whether this bill has any chance of becoming law is, like practically everything these days, anyone’s guess. But bipartisan laws limiting potential curtailments of civil rights by the White House are probably going to be fairly popular after the feds’ shenanigans over the summer.

At the very least it has some heavy hitters offering glowing blurbs:

FCC Commissioner Jessica Rosenworcel: “In the United States our laws are dated and they offer virtually unchecked power to the president over our wired and wireless communications when we face peril or national emergency. So kudos to Congresswoman Eshoo for legislation to modernize our laws and put in place safeguards to ensure that the internet stays on when we need it most.”

Former Secretary of Homeland Security Michael Chertoff: “A long overdue check and balance on a President’s authority to shut down or significantly curtail internet communication under the guise of an emergency.”

Former FCC Chairman Tom Wheeler: “in a time of emergency, how the internet operates is in the hands of one person. Defining that authority in a focused manner and adding congressional oversight would bring an old statute into the digital age.”

Cybersecurity mainstay Bruce Schneier: “The Internet is critical infrastructure, and needs to be protected from politically motivated shut-downs. This bill helps ensures that the communications censorship that is increasingly common in other countries doesn’t happen in the US. It adds process, and checks and balances, to what is currently an ad hoc authority.”

You can read more about the bill and read the full text here.

22 Oct 2020

Representatives propose bill limiting Presidential internet ‘kill switch’

A pair of U.S. Representatives — one from each party — are proposing a law that would limit the President’s ability to shut down the internet at will. That may not strike you as an imminent threat, but federal police disappearing protestors into unmarked vans probably didn’t either, until a couple months ago. Let’s keep an open mind.

The President has the power under the Communications Act’s Section 706 to order the shutdown of some communications infrastructure in an emergency. While this was likely intended more for making sure official phonecalls could get through in a national emergency, it’s possible that today it could be used as a measure to tamp down on protests and civil unrest, as we’ve seen in authoritarian regimes around the world.

The Preventing Unwarranted Communications Shutdowns Act, from Rep. Anna Eshoo (D-CA) and Rep. Morgan Griffith (R-VA), doesn’t remove this ability, but adds several layers of accountability to it.

In the first place, the bill would limit Section 706 use to when there is an “imminent and specific threat to human life or national security.” This prevents it from being put into play when there is a more general “threat” such as a major protest that might be too much for local police to handle.

The bill would also require the President to inform the top layer of government officials, including opposition leaders, of any shutdown. Ideally before, but it could be up to 12 hours later (and is illegal if not by then). Any shutdown ends automatically after 48 hours unless 3/5 of Congress vote to continue it.

The U.S. government would also be obligated to compensate providers and customers for the monetary value of the shutdown’s impact. This could end up being quite expensive depending on how it’s calculated.

Lastly, a General Accountability Office report is required after every use of Section 706, and they get to the bottom of everything.

Whether this bill has any chance of becoming law is, like practically everything these days, anyone’s guess. But bipartisan laws limiting potential curtailments of civil rights by the White House are probably going to be fairly popular after the feds’ shenanigans over the summer.

At the very least it has some heavy hitters offering glowing blurbs:

FCC Commissioner Jessica Rosenworcel: “In the United States our laws are dated and they offer virtually unchecked power to the president over our wired and wireless communications when we face peril or national emergency. So kudos to Congresswoman Eshoo for legislation to modernize our laws and put in place safeguards to ensure that the internet stays on when we need it most.”

Former Secretary of Homeland Security Michael Chertoff: “A long overdue check and balance on a President’s authority to shut down or significantly curtail internet communication under the guise of an emergency.”

Former FCC Chairman Tom Wheeler: “in a time of emergency, how the internet operates is in the hands of one person. Defining that authority in a focused manner and adding congressional oversight would bring an old statute into the digital age.”

Cybersecurity mainstay Bruce Schneier: “The Internet is critical infrastructure, and needs to be protected from politically motivated shut-downs. This bill helps ensures that the communications censorship that is increasingly common in other countries doesn’t happen in the US. It adds process, and checks and balances, to what is currently an ad hoc authority.”

You can read more about the bill and read the full text here.

22 Oct 2020

Quibi says it will shut down in early December

Quibi is shutting down — we know that much for sure.

But when? If you’re looking to blast through all 25 episodes of the Reno 911 revival series before Quibi calls its quits, how long do you actually have?

While it seems even Quibi isn’t 100% certain yet, they’ve at least now given users a rough idea of when they expect the plug to be pulled: early December.

As spotted by Variety, a newly published support page on the Quibi site says streaming will end “on or about December 1, 2020.” The “about” suggests that the shutdown date isn’t fully locked quite yet, but it should be sometime around then.

Will any Quibi shows find their way over to Netflix, Hulu, etc.? That’s still up in the air, too. “At this time we do not know if the Quibi content will be available anywhere after our last day of service,” the company writes in a note on the same page.

22 Oct 2020

Extra Crunch Partner Perk: Get 6 months free of Zendesk Support and Sales CRM

We’re excited to announce an update to the Extra Crunch Partner Perk from Zendesk. Starting today, annual and two-year Extra Crunch members that are new to Zendesk, and meet their startup qualifications, can now receive six months of free access to Zendesk’s Sales CRM, in addition to Zendesk Support Suite, Zendesk Explore and Zendesk Sunshine.

Here is an overview of the program.

Zendesk is a service-first CRM company with support, sales and customer engagement products designed to improve customer relationships. This offer is only available for startups that are new to Zendesk, have fewer than 100 employees and are funded but have not raised beyond a Series B.

The Zendesk Partner Perk from Extra Crunch is inclusive of subscription fees, free for six months, after which you will be responsible for payment. Any downgrades to your Zendesk subscription will result in the forfeiture of the promotion, so please check with Zendesk first regarding any changes (startups@zendesk.com). Some add-ons such as Zendesk Talk and Zendesk Sell minutes are not included. Complete details of what’s included can be found here.

22 Oct 2020

Daily Crunch: Facebook Dating comes to Europe

Facebook’s dating feature expands after a regulatory delay, we review the new Amazon Echo and President Donald Trump has an on-the-nose Twitter password. This is your Daily Crunch for October 22, 2020.

The big story: Facebook Dating comes to Europe

Back in February, Facebook had to call off the European launch date of its dating service after failing to provide the Irish Data Protection Commission with enough advanced notice of the launch. Now it seems the regulator has given Facebook the go-ahead.

Facebook Dating (which launched in the U.S. last year) allows users to create a separate dating profile, identify secret chats and go on video dates.

As for any privacy and regulatory concerns, the commission told us, “Facebook has provided detailed clarifications on the processing of personal data in the context of the Dating feature … We will continue to monitor the product as it launches across the EU this week.”

The tech giants

Amazon Echo review: Well-rounded sound — This year’s redesign centers on another audio upgrade.

Facebook adds hosting, shopping features and pricing tiers to WhatsApp Business — Facebook is launching a way to shop for and pay for goods and services in WhatsApp chats, and it said it will finally start to charge companies using WhatsApp for Business.

Spotify takes on radio with its own daily morning show — The new program will combine news, pop culture, entertainment and music personalized to the listener.

Startups, funding and venture capital

Chinese live tutoring app Yuanfudao is now worth $15.5 billion — The homework tutoring app founded in 2012 has surpassed Byju’s as the most valuable edtech company in the world.

E-bike subscription service Dance closes $17.7M Series A, led by HV Holtzbrinck Ventures — The founders of SoundCloud launched their e-bike service three months ago.

Freelancer banking startup Lili raises $15M — It’s only been a few months since Lili announced its $10 million seed round, and it’s already raised more funding.

Advice and analysis from Extra Crunch

How unicorns helped venture capital get later, and bigger — Q3 2020 was a standout period for how high late-stage money stacked up compared to cash available to younger startups.

Ten Zurich-area investors on Switzerland’s 2020 startup outlook — According to official estimates, the number of new Swiss startups has skyrocketed by 700% since 1996.

Four quick bites and obituaries on Quibi (RIP 2020-2020) — What we can learn from Quibi’s amazing, instantaneous, billions-of-dollars failure.

(Reminder: Extra Crunch is our membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

President Trump’s Twitter accessed by security expert who guessed password “maga2020!” — After logging into President Trump’s account, the researcher said he alerted Homeland Security and the password was changed.

For the theremin’s 100th anniversary, Moog unveils the gorgeous Claravox Centennial — With a walnut cabinet, brass antennas and a plethora of wonderful knobs and dials, the Claravox looks like it emerged from a prewar recording studio.

Announcing the Agenda for TC Sessions: Space 2020 — Our first-ever dedicated space event is happening on December 16 and 17.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

22 Oct 2020

Here’s why Intel’s stock just dropped 10% after reporting earnings

The third-quarter earnings cycle is just getting underway, but we’ve already seen a few companies post numbers that investors did not like. Netflix missed on several metrics yesterday and was punished, and today Intel is joining the video streaming giant in stock-market purgatory.

Intel shares are off around 10% in after-hours trading after the chip company reported its Q3 data. Investors had expected Intel to report an adjusted $1.11 in per-share profit, off around 22% from the year-ago period. They also expected it to report revenues of $18.26 billion in Q3, down a more modest 5% compared to the year-ago Q3.

Notably, Intel beat revenue expectations with top line of $18.3 billion, and met earnings-per-share estimates of $1.11, on an adjusted basis.

So, why are Intel shares sharply lower?

Quick consensus appears to point to weakness in the company data-focused business unit, the smaller of Intel’s two halves (the other focuses on PC chips). Inside the data-side of Intel, its Data Center Group (DCG) had mixed results, including cloud revenue growth of 15%. However, at the same time, the DCG’s “Enterprise & Government” business shrank 47% compared to the year-ago period, following what Intel described as “two quarters of more than 30 percent growth.”

Off that weakness, the resulting top line miss was sharp, with the market expecting $6.22 billion in revenue and DCG only delivering $5.9 billion.

Intel blamed COVID-19 for the weak economics conditions at play in the result. The company also highlighted COVID-19 when it discussed results from its internet of things business and memory operation, which declined 33% and 11% on a year-over-year basis, respectively.

Perhaps due to COVID-19’s recent resurgence in both North America and Europe, investors are concerned that the macroeconomic issues harming Intel’s growth could continue. If so, growth could be negative for a longer period than anticipated. That perspective could have led to some selling of Intel’s equity after the earnings report.

Could guidance have a part to play in Intel’s share price decline? Probably not. Better than what it reported for Q3 2020, Intel’s forward guidance shows a small revenue beat versus expectations, and a small profit beat as well. Intel forecasts revenues of $17.4 billion for Q4 2020 and adjusted earnings per share of $1.10, while the street was looking for $17.34 billion in top line and adjusted earnings per share of $1.06.

Given that Intel is prepped to best expectations in Q4, it’s hard to pin its share-price declines on guidance. That leaves the weakness in its data business as the most obvious culprit.

It is dangerous to over-describe why a stock or a group of stocks move at any given time. But in this case, it seems plain that the revenue miss inside Intel’s data business was at least a portion of why it shed value. As to whether the company’s COVID-19 notes are valid is up to you and how you handicap the broader economy.

22 Oct 2020

Quibi’s shortform life

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast (now on Twitter!), where we unpack the numbers behind the headlines.

Myself, along with Danny and Natasha had a lot to get through, and more to say than expected. A big thanks to Chris for cutting the show down to size.

Now, what did we get to? Aside from a little of everything, we ran through:

Whew! It was a lot, but also very good fun. Look for clips on YouTube if you’d like, and we’ll chat you all next Monday.

Equity drops every Monday at 7:00 a.m. PDT and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.