Microsoft to Acquire Activision Blizzard for $68.7 Billion

Daily Crunch: January 18, 2022

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Start of the Week

Greetings and a warm welcome to Daily Crunch for January 18, 2022! The beginning of the workweek was marked by substantial news, notably involving Microsoft and a publicly traded corporation.

However, the question remains whether all announced agreements will ultimately be finalized. Time will tell.

Startup News

Alongside this, a wealth of startup-related updates and information is available for your review. Let's delve into the details!

– Alex

TechCrunch's Top 3 Updates

Here's a rundown of the most significant tech news, as highlighted by TechCrunch.

Microsoft's Acquisition of Activision Blizzard

Microsoft is set to acquire Activision Blizzard. This follows a period of internal challenges for Activision Blizzard, including reported instances of sexual harassment and leadership changes.

The purchase represents a substantial premium over Activision Blizzard’s share price prior to the agreement. Microsoft’s previous acquisitions of gaming studios suggest a strategic focus on expanding its gaming portfolio.

However, the deal may attract scrutiny from regulatory bodies. Increased global attention to antitrust concerns could lead to a thorough review of the transaction.

Apple Regains Smartphone Leadership

Global smartphone shipments experienced a 1% increase in the last quarter of 2021.

Apple surpassed Samsung to become the leading smartphone manufacturer worldwide. This marks a shift in the competitive landscape, as the two companies have frequently alternated between the top position.

Factors such as the global chip shortage, the COVID-19 pandemic, and supply chain disruptions have contributed to fluctuations in smartphone shipment numbers.

China's Digital Yuan Gains Traction

Following China’s restrictions on cryptocurrencies and related operations, including mining, the country’s central bank digital currency is experiencing growing adoption.

The digital yuan, as it’s known in English, has been adopted by approximately 261 million individuals. This represents roughly 20% of China’s total population.

This development signifies China’s commitment to establishing a state-backed digital currency alternative.

Startups/VC

Prior to reviewing the latest startup news, Anna Heim’s recent interview on our site provides insightful analysis regarding the evolving workplace and its effects on the startup landscape. The impact extends beyond just communication and HR technologies.

• Autonomous Delivery Investment: A UK-based startup, Wayve, has secured $200 million in funding to advance its work on autonomous vehicle-powered delivery and logistics solutions. This funding round is notable not only for its substantial amount but also because Wayve was previously unknown to many observers. The expansive startup market now allows significant investment rounds to emerge unexpectedly.
• Creator-Fan Connections via Private Photos: The creator economy remains a focal point for entrepreneurs, as evidenced by the recent launch of Roll. This application aims to provide fans with exclusive access to unpublished photos from their favorite creators, offered through a subscription model. While direct access to camera rolls is avoided – a potentially problematic scenario – the concept centers around a direct, paid connection. Its market performance will be closely watched.
• Sports Coaching Software Secures Additional Funding: Mustard, having previously raised $1.7 million in 2020, has successfully obtained an additional $3.75 million in funding. The company is broadening the application of its “sensor-free data capture” technology to new sports. The inclusion of athlete investors in this round could facilitate wider audience adoption.
• Vertical Farming Gains Momentum: The concept of vertical farming – cultivating food upwards in urban settings – presents a compelling solution. It offers the potential for fresher produce and reduced carbon emissions. Upward, a company specializing in vertical farming, has announced plans to construct a 250,000-square-foot facility in Pennsylvania next year. A site visit is definitely desired.
• Optimizing Meeting Schedules with AI: Inefficient meeting culture significantly hinders productivity, despite claims to the contrary. Clockwise has received $45 million in Series C funding to address this issue. The startup utilizes artificial intelligence to help teams reclaim work time and mitigate challenges associated with remote and hybrid work environments, such as burnout. The solution appears promising if effective.
• No-Code Onboarding Tools Attract Investment: Applying a no-code approach to address user journey pain points is proving to be a successful business strategy. Appcues, focused on user onboarding, has secured new funding, indicating strong traction. The evolution of no-code from a buzzword to a standard practice reflects a global developer shortage and a desire to bypass lengthy engineering timelines.

This represents only a portion of the current activity. The startup ecosystem is exceptionally dynamic in January, with a constant stream of news. Additional reports on TechCrunch cover Castiron’s activities, the definition of “food artisans,” Pinwheel’s $50 million Series B raise, and Owen Williams’ analysis of the open-source community and the growing influence of its contributors – a factor impacting nearly all startups today.

The Future of Quantum Computing Investment: Beyond Venture Capital?

Quantum computing holds promise for advancements in fields like machine learning and the acceleration of drug discovery through computer-aided design. However, the sector remains in a nascent stage of development.

Investment activity in quantum technologies saw considerable growth in 2021. Approximately 90 quantum-focused investments were made, totaling $1.4 billion. This represents a substantial increase compared to the $700 million invested in 2020.

Despite this growth, the funding remains comparatively small when viewed against the scale of investment in areas like SaaS (Software as a Service). The current level of funding is a modest fraction of the capital flowing into more established tech sectors.

Early signs of consolidation are emerging within the quantum computing landscape. IonQ, for example, achieved a $2 billion valuation following its 2021 SPAC merger. Rigetti Computing is also pursuing a similar path as it continues to refine its superconducting quantum computer technology.

Mapping the Quantum Computing Ecosystem

Maria Lepskaya, a senior associate at Runa Capital, recently conducted an extensive analysis of the quantum computing industry. Her work involved categorizing leading companies within the field into 12 distinct groups.

(Access to TechCrunch+ provides founders and startup teams with valuable resources and insights. Membership details can be found here.)

Big Tech Inc.

Snap is actively combating the sale of illicit drugs on its platform. This action follows an investigation revealing fatalities linked to fentanyl-laced pills purchased through the social media service.

The company reports ongoing efforts to identify and eliminate content related to drug transactions.

GM and Blink Charging Collaboration

General Motors is partnering with Blink Charging to expand its electric vehicle (EV) charging infrastructure. As GM transitions towards electric vehicle production, external expertise is being utilized.

Blink Charging currently operates approximately 30,000 EV chargers across 13 countries, providing the necessary experience to support GM’s dealership network.

Twitter's Misinformation Reporting Expansion

Twitter is broadening the availability of its misinformation reporting tool to additional international regions. This enhancement is considered a positive, albeit delayed, step towards addressing the spread of false information.

The expansion aims to provide users in more countries with a means to flag potentially misleading content on the platform.

TechCrunch Seeks Expert Recommendations

TechCrunch is currently soliciting recommendations for skilled software consultants. Expertise sought includes areas like UI/UX design, website development, and mobile development.

Request for Client Feedback

Consultants are encouraged to share a survey with their clients. TechCrunch aims to gather insights into positive client experiences and understand the reasons behind client satisfaction.

The survey focuses on identifying consultants who consistently deliver exceptional service. Client testimonials will be valuable in highlighting successful collaborations.

• UI/UX specialists are highly sought after.
• Website development professionals with proven track records are needed.
• Mobile development experts are in demand.

Participation from both consultants and their clients is greatly appreciated. The goal is to create a resource for businesses seeking top-tier software consulting services.

TechCrunch’s initiative will help connect organizations with qualified professionals. This will facilitate successful project outcomes and foster innovation within the tech industry.

If you are a software consultant, please distribute the survey to your clientele. Your clients’ feedback is essential to this process.