PayPal to Buy Pinterest? Reportedly Considers $39B Deal

Daily Crunch: October 20, 2021 – Key Tech News

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Greetings, and welcome to the Daily Crunch for October 20, 2021. Today has been particularly eventful. Facebook has been the subject of numerous reports, alongside a flurry of IPO news and discussions regarding potential acquisitions, as well as a substantial agreement involving Twitter.

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Facebook dominated the news cycle today with a series of announcements and developments. The company's actions and statements have drawn considerable attention from the tech community.

The IPO landscape is currently very active. A multitude of companies are progressing toward initial public offerings, generating significant investor interest.

Rumors of potential acquisitions are circulating within the industry. Several companies are reportedly exploring opportunities to expand through strategic purchases.

A significant deal involving Twitter has been finalized. This agreement is expected to have a notable impact on the social media landscape.

These developments represent a snapshot of the dynamic and fast-paced nature of the technology sector. Staying informed about these changes is crucial for anyone involved in the industry.

The TechCrunch Top 3

Reports indicate that Facebook is considering a name change. This mirrors Google’s earlier move to establish Alphabet as a parent company for its diverse ventures.

The news sparked immediate reactions on Twitter, largely in the form of humorous commentary. However, the underlying information – Facebook’s strong commitment to becoming a metaverse company – seems substantial.

This strategic direction may explain the company’s sustained investment in virtual reality (VR) technologies.

IPO Updates

Alongside developments with major tech firms and governmental bodies, several startups preparing for initial public offerings (IPOs) generated significant attention.

Backblaze, for instance, disclosed in its IPO filing a history of efficient capital management as it progresses toward becoming a publicly traded entity.

Udemy has also announced a preliminary IPO price range, potentially reaching a valuation exceeding $4 billion.

Furthermore, Rent the Runway is aiming for an IPO with a valuation surpassing $1 billion, though a complete analysis of their filing is still underway.

Potential Acquisition of Pinterest by PayPal

Adding to the day’s flurry of activity, reports surfaced suggesting that PayPal, a leading U.S. fintech company, is exploring the possibility of acquiring Pinterest, another publicly traded American company.

The specific rationale behind PayPal’s potential use of Pinterest as an asset remains unclear.

However, there's a notable historical parallel: PayPal, which previously separated from eBay, could potentially align with another non-financial organization.

This potential acquisition has generated considerable discussion within both the financial and technology sectors.

Startups & Venture Capital Updates

Prior to examining individual news items, Romain Dillet has published a valuable article detailing how startups can effectively select the appropriate technology stack for their operations. This resource could be particularly beneficial if you are currently in the development phase.

Fraud Prevention Services

Resistant AI has secured $16.6 million in funding, focusing on providing fraud prevention as a service. As reported by Natasha Lomas, the company leverages artificial intelligence to assist financial institutions in combating fraud and financial crime.

Eventually, it will become feasible to launch a neobank that completely outsources all aspects of its technological infrastructure.

Innovations in Shipping Logistics

Flock Freight has achieved unicorn status following a Series D funding round led by SoftBank, raising a nine-figure sum. Operating within the shared truckload market, the company aims to address challenges within the global supply chain.

Decentralized Finance (DeFi) Continues to Grow

Coinciding with Bitcoin reaching a new all-time high in USD, Element Finance announced a $32 million Series A round for its decentralized yield generation platform. The investment was led by Polychain Capital.

Built on the Ethereum blockchain, the platform enables users to achieve predictable returns on their investments. In a climate of negative bond yields, the potential for enhanced returns from the crypto space could significantly drive broader blockchain adoption.

Stripe Expands into India

Stripe, a major fintech company, has made its first acquisition in India, purchasing Recko. Recko has developed a platform for businesses to automate and track payment reconciliation processes.

While payment reconciliation may not be inherently exciting, this acquisition demonstrates Stripe’s substantial growth ambitions.

The Value of Digital Intellectual Property

Superplastic’s $20 million Series A funding highlights the increasing value of new intellectual property. The company has created a collection of digital characters that collaborate with individuals on various projects.

Despite potential skepticism, this approach appears more sensible than expending $3 million on a digital signature for an image on a single blockchain.

Accessibility in Technology

TechCrunch continues to prioritize technology accessibility. Further information on this topic can be found here.

Automattic TC-1: A Comprehensive Analysis

This in-depth exploration focuses on Automattic, recognized as the primary commercial entity supporting the open-source WordPress publishing platform.

Having operated for 16 years, the company is evolving into a significant force in the media landscape. The acquisition of Tumblr broadened its presence within social networking, while WooCommerce, its open-source e-commerce solution for WordPress, now connects with point-of-sale systems in physical retail environments.

This series is structured into four distinct sections, offering a multifaceted perspective on Automattic:

• Part 1: The unconventional path Automattic took to become a multibillion-dollar media leader (company history).
• Part 2: Navigating the complexities of aligning commercial expansion with an open-source developer ecosystem (open-source contributions).
• Part 3: Assessing the potential of social media and e-commerce to reshape the future of the open web (strategic acquisitions and future outlook).
• Part 4: The evolving role of written communication in the context of remote work (company culture and remote work practices).

The series provides a detailed examination of Automattic’s operations and impact.

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

Big Tech Inc.

A significant amount of recent developments have occurred within the large technology sector. For clarity, related entities have been consolidated where appropriate.

• Facebook: A penalty of $70 million has been levied against the company due to non-compliance with a directive issued by the U.K. concerning its acquisition of Giphy. Furthermore, ongoing efforts are being made to enhance the functionality of Facebook’s Groups feature.
• Microsoft: Microsoft previously announced the capability for Windows 11 users to execute Android applications. Details regarding the implementation of this feature are now available. The level of enthusiasm for this update will vary based on user preference, but it aligns with Microsoft’s broader strategy of integrating with other operating systems like Linux.
• Acquisitions: Twilio, a company specializing in developer APIs, is strengthening its presence in the marketing sector through a recent acquisition. Simultaneously, Twitter has acquired Sphere, a group chat application; its founder is recognizable from coverage of the tech industry during Marissa Mayer’s tenure at Yahoo.
• Shopify & Spotify Collaboration: Spotify and Shopify are partnering, with Shopify facilitating merchandise sales for artists directly within the Spotify platform. This collaboration is a positive development. However, a more impactful change would be to enable users to allocate a portion of their subscription fees directly to artists, potentially revitalizing niche genres and fostering a more inclusive environment for emerging musicians.
• Government Restrictions: The U.S. government has instituted a ban on the sale of hacking tools to China and Russia, a measure that, surprisingly, was not already in effect.

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