MTG Acquires PlaySimple for $360M: India's Largest Exit

Daily Crunch: July 2nd Recap

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Tech News Remains Active

Greetings, and welcome to the Daily Crunch for July 2nd. Despite the approaching holiday weekend in the United States, the flow of technology news has remained consistently strong.

Contrary to expectations, activity within the tech sector hasn't diminished. Several key developments have occurred, which we will detail below.

Upcoming TechCrunch Events

Looking forward, two major TechCrunch events are scheduled in the near future.

TC Early Stage 2021: Marketing & Fundraising is slated for next week.
Disrupt is fast approaching.

Excitement is building for both of these important industry gatherings!

— Alex

TechCrunch's Top 3 Updates

Recent developments highlight challenges across the tech landscape. These include regulatory scrutiny, financial concerns, and leadership transitions within prominent companies.

Lordstown Motors Under Investigation

The United States Department of Justice is currently investigating Lordstown Motors, an electric vehicle (EV) manufacturer. This investigation follows concerns raised by critics regarding discrepancies between the company’s pre-public statements and its current situation.

Specifically, questions have been directed at the accuracy of information presented in the company’s SPAC (Special Purpose Acquisition Company) documentation. It appears the projections outlined to investors have not aligned with the company’s actual performance.

Despite earlier assurances to investors that additional funding would not be required, Lordstown Motors is now seeking further capital. This reversal has drawn significant attention.

Didi Faces Regulatory Hurdles in China

Didi, a leading ride-hailing company based in China, is encountering difficulties with its own regulatory bodies. The company has been instructed to suspend the registration of new users.

This directive stems from an ongoing cybersecurity review initiated by Chinese authorities. The timing of this action is particularly noteworthy, occurring just days after Didi completed its initial public offering (IPO) in the United States.

Leadership Change at IBM

Jim Whitehurst, who joined IBM through the acquisition of Red Hat, has stepped down from his position as President. His term in the role lasted approximately 14 months.

Details surrounding his departure remain limited, as reported by Ron Miller. The reasons for this transition are currently unclear.

These three events collectively demonstrate the dynamic and often unpredictable nature of the technology sector.

Startups and Venture Capital Updates

Recent news concerning startups demonstrates a notable focus outside of the United States. This is largely due to widespread observance of a day off across the country, irrespective of work schedules.

Despite this, activity continued globally, with several key developments occurring:

Funding Rounds and Acquisitions

Licious Secures $192M in Funding: The Bangalore-based company, specializing in the online sale of meat and seafood, has completed a Series F funding round, bringing its total raised to $192 million. Previously, a Series F designation might have implied difficulties in achieving an IPO, but current market conditions suggest otherwise.
PlaySimple Acquired by MTG for $360M: The substantial investment in the Indian startup landscape is highlighted by the acquisition of PlaySimple by Swedish gaming company MTG. This transaction represents a significant exit within the Indian startup ecosystem, as reported by TechCrunch.

Fintech Investment in Africa

Tiger Global Invests $40M in Nigerian Neobank: FairMoney, a Nigerian startup initially focused on consumer credit, has received a $40 million investment from Tiger Global. This funding further underscores the robust activity observed within the African fintech sector.

The continued investment in African fintech demonstrates a growing confidence in the region’s potential for innovation and growth.

Navigating Twitter as a CEO: Three Essential Guidelines

Recent events, such as the SEC lawsuit against a CEO for inaccurate funding announcements, and the pharmaceutical executive whose online provocations impacted the Nasdaq Biotechnology Index by 4.4%, underscore a critical point.

Executives, particularly those leading startups, face heightened scrutiny regarding their social media communications.

Reputation, painstakingly cultivated over time, can be swiftly undermined by a single ill-considered post, as Lisa W. Liu, a senior partner at The Mitzel Group in San Francisco, explains.

Her firm frequently advises startups, and she has developed a framework to assist leaders in avoiding potential legal and public relations pitfalls.

Liu presents six fundamental questions for tech executives before they share content on Twitter.

A lack of clarity on any of these points should serve as a clear signal to refrain from posting.

(Extra Crunch is a membership program designed to empower founders and startup teams. Registration is available here.)

Big Tech Inc. – Recent Developments

Current news from the world of Big Tech presents a diverse range of stories, all notably connected to California. Let's examine the key updates:

GM's Investment in California Lithium Extraction

General Motors is directing investment towards a lithium extraction project located in California. This strategic move is driven by the increasing demand for lithium, a crucial component in battery production.

The availability of batteries is fundamental to the expansion of the electric vehicle market. Without sufficient battery supply, the growth of electric car manufacturing would be significantly hampered.

This particular project is uniquely positioned, leveraging the resources of the Salton Sea Geothermal Field, situated near Los Angeles. The geothermal field will supply both energy and the necessary materials for extraction.

Consequently, the overall carbon footprint associated with electric vehicle production may be reduced, contributing to a more sustainable manufacturing process.

Twitter's Enhanced Misinformation Labels

Twitter, headquartered in California, is implementing more prominent labeling for content identified as misinformation.

This development occurs concurrently with Google’s efforts to integrate advertisements more seamlessly into its organic search results, creating a contrasting approach to content presentation.

Facebook Privacy Lawsuit in the Netherlands

Several Dutch nonprofit organizations have initiated legal action against Facebook, alleging extensive and unauthorized data collection from internet users.

The lawsuit contends that Facebook lacks a legitimate legal foundation for processing the vast amount of data it gathers, as reported by TechCrunch.

The outcome of this case could have far-reaching implications, considering the pervasive nature of data collection practices across the internet.

Given the constant and widespread collection of user data online, the ruling may set a significant precedent for data privacy regulations.

TechCrunch Seeks Top Growth Marketing Professionals

daily crunch: in one of india’s largest exits, swedish media giant mtg buys playsimple for $360m

TechCrunch is currently soliciting recommendations for accomplished growth marketers. These professionals should demonstrate proficiency in areas like SEO, social media marketing, and content creation.

Request for Client Feedback

If you are a growth marketing specialist, please share this survey with your clients. TechCrunch is interested in gathering testimonials regarding positive client experiences.

Areas of Expertise Sought

The focus is on marketers with a diverse skillset. Specifically, expertise in SEO, social media strategies, and compelling content writing is highly valued.

How to Participate

Growth marketers are encouraged to distribute the survey to their clientele. Client feedback will be used to identify leading professionals in the field.

TechCrunch aims to highlight the value these marketers bring to their clients’ businesses. The survey seeks to understand the reasons behind client satisfaction.