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TikTok’s parent company, ByteDance, is reportedly looking for $2B before its Hong Kong public offering

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ByteDance, the company behind the social media sensation TikTok, is in talks to raise another $2 billion before the initial public offering of a large chunk of its international businesses on the Hong Kong StockExchange, according to a Bloomberg report.

The new financing would give the Chinese tech powerhouse a valuation of $180 billion, according to people cited by Bloomberg.

Investors including ByteDance’s existing backers like Sequoia are in the running to finance the new investment, the Bloomberg report said.

Sequoia had emerged as one of the drivers behind a now-stalled deal touted by the Trump administration to have Oracle take some sort of control over the American operations of ByteDance’s most valuable international asset — TikTok.

Both Sequoia and Oracle have significant ties to President Trump through Republican mega-donors Doug Leone, a managing partner at Sequoia, and Safra Catz and Larry Ellison, Oracle’s top leadership and founder.

ByteDance’s has long planned a public offering for some of its largest Asian assets Douyin and Toutiao, which are huge drivers for the company’s revenues.

TechCrunch previously reported that ByteDance last year generated 120 billion yuan ($17.2 billion) in revenue, citing an investor with knowledge of the company’s finances. Around 67% of that revenue was derived from ads sold on its domestic apps Douyin, TikTok’s Chinese version, and popular news aggregator Toutiao. Live streaming targeted at users of Douyin and another app in the family made up about 17%. Nascent businesses including games, e-commerce and TikTok accounted for 20 billion yuan, or roughly another 17%.

The company projected its 2020 revenue at 200 billion yuan ($28.7 billion), with TikTok and other emerging businesses contributing 30 billion yuan, or 15%, according to the investor. Previous reports by Reuters and Bloomberg cited similar revenue figures.

ByteDance is already the most valuable privately held, venture-backed technology company in the world, but at least some of that value is tied up in the revenue-generating potential of the company’s TikTok assets. And it appears that any new investment (at the valuations being reported) would be an indication that investors are shrugging off previous concerns about how a TikTok spinoff might affect the company.

Much of what happens next will hinge on the presidential elections in the U.S. and various court battles that remain underway. A Biden administration could scuttle the planned deal between TikTok, Oracle and Walmart — and a timeline for a separate TikTok public offering within the U.S.

There’s also internal confusion among the TikTok deal’s participants over who will own what when the dust finally settles and a deal moves forward.

As we reported in September:

… our assumption, that Oracle is taking 12.5% in TikTok Global, and Walmart will take 7.5%. The deal terms would value TikTok at about $60 billion by some estimates.

That’s a simple story, but apparently not the full one, because now there is another wrinkle happening here.

In a new statement attributed to its executive vice president Ken Glueck, Oracle said that “Upon creation of TikTok Global, Oracle/Walmart will make their investment and the TikTok Global shares will be distributed to their owners, Americans will be the majority and ByteDance will have no ownership in TikTok Global.”

President Donald Trump has spoken out about the deal himself in places like CNBC, arguing that TikTok must be completely controlled by Americans.

The U.S. government’s trouble with TikTok stems from a few different sources. For one, users on the platform managed to troll a deeply vindictive president and turn one of his planned marquee campaign events into a farce. And more importantly to the nation, but apparently less so to the administration, the company’s ties to China could expose U.S. citizens’ data to the CCP and its users to the potential for manipulation through TikTok’s decisions on what to post or not post on the app.

Sequoia and ByteDance had not responded to a request for comment at the time of publication.

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The UK approves the BioNTech/Pfizer COVID-19 vaccine for emergency use

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The UK government has approved the BioNTech/Pfizer vaccine against COVID-19 for emergency use, following the recommendation of the national medicines regulator.

The UK is the first country to approve the vaccine for widespread use — paving the way for some of the most “high risk” citizens, such as elderly care home residents and front-line healthcare workers, to get the jab before the end of the year.

The BBC reports that the UK’s Medicines and Healthcare Products Regulatory Agency (MHRA) has said the vaccine is safe to be rolled out from next week. Though it’s not yet clear exactly who will get the first doses.

 

The request for emergency authorization was submitted by BioNTech and Pfizer to the MHRA last month — as well as to regulators in Australia, Canada, Europe, Japan and the U.S., none of which has yet given the go ahead.

In a statement, Albert Bourla, chairman and CEO of Pfizer, described the Emergency Use Authorization in the U.K. as “a historic moment in the fight against COVID-19”.

“This authorization is a goal we have been working toward since we first declared that science will win, and we applaud the MHRA for their ability to conduct a careful assessment and take timely action to help protect the people of the U.K.,” he said. “As we anticipate further authorizations and approvals, we are focused on moving with the same level of urgency to safely supply a high-quality vaccine around the world. With thousands of people becoming infected, every day matters in the collective race to end this devastating pandemic.”

The UK approval is based on trial data, including a worldwide Phase 3 clinical study carried out by BioNTech/Pfizer  which demonstrated an efficacy rate for the vaccine of 95% and raised no serious safety concerns.

The vaccine was also shown to be effective both in participants who had not previously contracted the SARS-CoV-2 virus and those who had — based on measuring efficacy seven days after the second dose.

Efficacy was also reported as consistent across age, gender, race and ethnicity demographics, with an observed efficacy in adults age 65 and over of more than 94%, the companies said.

UK prime minister Boris Johnson tweeted the news of the formal authorization this morning — writing that the vaccine will “begin to be made available across the UK from next week”. A second tweet anticipated how vaccination in general will “ultimately” enable a return to economic life as usual.

The UK has ordered 40M doses of the BioNTech/Pfizer vaccine, or enough vaccine for 20M people (as it requires two doses), though it will take time for the country to receive all the doses ordered.

“The delivery of the 40 million doses will occur throughout 2020 and 2021, in stages, to ensure an equitable allocation of vaccines across the geographies with executed contracts,” the companies wrote in a press release.

“Now that the vaccine is authorized in the U.K., the companies will take immediate action to begin the delivery of vaccine doses. The first doses are expected to arrive in the U.K. in the coming days, with complete delivery fulfilment expected in 2021,” they added.

The UK’s National Health Service is gearing up for what NHS chief executive, Sir Simon Stevens, described as “the largest-scale vaccination campaign in our country’s history”. Per the BBC, some 50 hospitals are on standby and vaccination centers in venues such as conference centres are also being set up.

In comments to journalists this morning, health secretary Matt Hancock said 800,000 doses of the virus will be available next week, with the bulk of the rollout coming in the new year. “We’ll deploy it at the speed that it’s manufactured,” he added.

Hancock said priority for the first batch of jabs will be given to “the most elderly” and people in care homes, including their carers. “Then essentially it comes down the age range. NHS staff are also high on that priority list, and also the clinically extremely vulnerable… those that are particularly vulnerable to coronavirus,” he added.

“The Emergency Use Authorization in the U.K. will mark the first time citizens outside of the trials will have the opportunity to be immunized against COVID-19,” said Ugur Sahin, M.D., CEO and co-founder of BioNTech in a supporting statement. “We believe that the roll-out of the vaccination program in the U.K. will reduce the number of people in the high-risk population being hospitalized.

“Our aim is to bring a safe and effective vaccine upon approval to the people who need it. The data submitted to regulatory agencies around the world are the result of a scientifically rigorous and highly ethical research and development program.”

One remaining question is how long the vaccine’s protection lasts. Given how quickly the BioNTech/Pfizer vaccine has been developed — in a matter of months — there’s no long term data available to answer that yet.

The same is true of COVID-19 vaccine candidates being developed by other companies.

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Spotify launches ‘2020 Wrapped’ with new features including quizzes, badges and, yes, stories

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Spotify is today launching its 2020 Wrapped personalized experience — the company’s popular year-end review of users’ favorite artists, songs, genres, and podcasts. This year, however, Spotify is making a few changes. For starters, Wrapped will be exclusively available on mobile for Spotify users, while a web experience will offer a version of Wrapped for non-Spotify users for the first time. To reflect Spotify’s continuing investment in podcasts, Wrapped will also this year include a deeper look into users’ podcast listening habits. And it will include new features, like in-app quizzes, a “Story of Your 2020” dedicated to users’ top song of the year, new Wrapped badges, personalized playlists, customization options for social sharing, and other additions.

The feature will launch in the Spotify mobile app for iOS and Android in global markets to give users their year-end insights. But non-users will get a taste of Wrapped with a web version, where Spotify will share its broader global listening trends, including the most-streamed artist, top three podcasts, and other popular music insights.

Image Credits: Spotify

Spotify on Tuesday had shared some of these trends, noting that Puerto Rican rapper Bad Bunny had claimed the top spot with more than 8.3 billion streams in 2020. The top three podcasts, meanwhile, were The Joe Rogan Experience, TED Talks Daily and The Daily.

This year, podcasts got more detailed in Spotify Wrapped, as well. Though the feature had included podcast insights in prior years, this aspect of the experience is being expanded in 2020 to include added metrics, like how many minutes users spent listening to podcasts in 2020 and the most “binge-worthy” podcasts of the year.

Image Credits: Spotify

A new in-app quizzes feature, meanwhile, will allow users to guess before the trends Wrapped reveals. These quizzes will let Spotify listeners guess which were their top podcasts, top artists and even what decade’s songs they streamed the most. Users will also be able to see what new genres they discovered during the year.

Image Credits: Spotify

Stories, naturally, will make an appearance in this year’s Wrapped, too. The company was recently spotted as testing a Stories feature in its app — a continuation of tests Spotify began last year with Storylines and again in January 2020, when it first began to allow influencers to post Stories to introduce their playlists. Now, those influencers also include musicians themselves, according to the latest tests.

In Wrapped, Spotify is introducing “Story of Your 2020,” which shows your top song from the year from its first stream to its 100th stream and several milestones in between.

Image Credits: Spotify

Premium users will gain access to new badges this year based on how they listened. Some will earn the “Tastemaker” badge, if their playlists gained followers; others will earn a “Pioneer” badge for listening to songs first, before they hit 50,000 streams. The third badge, “Collector,” will be awarded to those who added some number of songs to their playlists this year.

Image Credits: Spotify

Along with Wrapped, users will get access to three new personalized playlists. One, called Your Top Songs, features users’ favorite tracks from the year. Missed Hits, meanwhile, will recommend popular songs in 2020 that you didn’t listen to, but Spotify thinks you would like. And for listeners in the U.S., U.K., Ireland, Australia, New Zealand, and Canada, a third playlist called On Record will introduce a mixed media experience that highlights users’ top 2020 artists.

As always, a big part of Wrapped is the social sharing component. This year, users will be able to personalize their Wrapped sharing card by picking from among four color choices before posting it to Facebook, Instagram, Snapchat or Twitter.

2020 Wrapped arrives today on iOS and Android. Later today, Spotify will also roll out its Wrapped creator experience for podcasters and artists.

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Monzo, the U.K. challenger bank, picks up additional £60M in funding

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Monzo, the U.K. challenger bank now with more than 4.8 million customers, has closed another £60 million in funding, priced the same as and effectively an extension of the its previous top-up round in June.

This saw Monzo valued by private investors at around £1.2 billion, marked by industry observers as a down round because it was lower than the upstart bank’s previous — perhaps overheated — valuation before the Coronavirus pandemic skewed leverage in favour of investors or forced a legitimate fintech market correction, depending on your perspective.

The new funding comes from a clutch of new backers including Deliveroo and Stripe investor Novator, Kaiser, and TED Global, as well as existing investor Goodwater. They join the likes of Y Combinator, General Catalyst, Accel, Passion, Thrive and Stripe, who all re-invested earlier this year.

It means Monzo has raised £125 million in funding since COVID-19 struck (an additional £5 million was quietly added during the last top up), and this current extension will be seen as good news for the bank as it looks to continue growing and increasing revenue lines beyond interchange fees.

To that end, Monzo shared some latest numbers with TechCrunch. In addition to approaching 5 million customers overall, it now has more than 60,000 business users — up from 25,000 signups in March — and more than 100,000 customers across its paid-for current accounts, Monzo Plus and Monzo Premium.

Adds Monzo CEO, TS Anil, in a statement given to TechCrunch: “We’ve raised £125 million this year, achieved strong organic growth and are now nearing five million customers, all while becoming the most switched to bank in the U.K. and the top rated for overall service. This news demonstrates the confidence that both our customers and investors have in Monzo”.

Meanwhile, it has been a challenging time for Monzo, as it, along with many other fintech companies, has had to weather the coronavirus crisis and resulting economic downturn. This included utilising the U.K. furlough scheme and subsequently making around 80 employees redundant in the Summer. In addition, there was a round of U.S. layoffs and the shuttering of its Las Vegas-based customer support office.

Like some other banks and fintechs, the coronavirus crisis has resulted in Monzo seeing customer card spend reduce at home and (of course) abroad, meaning it is generating less revenue from interchange fees.

Separately, in May, Monzo co-founder Tom Blomfield announced internally that he was stepping down as CEO of the U.K. challenger bank to take up the newly created role of president. He was replaced as U.K. CEO by then U.S. CEO Anil, who also joined Monzo’s board in replacement of Bloomfield.

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