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🇨🇳 The TikTok Ban that Nobody Asked for…Well, Except President Trump
Is time TikToking away for ByteDance? If we can count on President Trump to keep to his word, TikTok will disappear from the lives of Gen-Z Americans in less than 45 days.
We all saw it coming, or did we? US-China relations have been as stable as my attempts at baking the perfect sourdough bread with a faulty oven.
Here’s a quick rundown of events that (might) lead to your favourite TikTokers disappearing from your ‘For You’ page:
Convinced that Chinese tech company Bytedance could misuse the personal data that TikTok handles, the US Government has ordered its ban, citing ‘national security’ concerns.
Then, in what seems to be an act of back pedalling, Trump claimed he was not opposed to having a company acquire TikTok’s US operations so that the app can continue to exist in the Land of The Free.
Hold up, but let’s talk Trump’s T&Cs: (i) the acquisition has to be done by an American company, (ii) the sale has to happen by 15 Sept 2020 and (iii) the US Government should get a “very large percentage” of sale proceeds.
*Drum roll please* …and the company that could save an entire generation of content creators is none other than Microsoft, who began talks in mid-July and is looking at a potential US$50 billion acquisition.
If it goes through, Microsoft would own a portion of TikTok and its operations in US, Canada, Australia and New Zealand.
Sentiments however remain mixed as scores of famous TikTokers have started to bid farewell to their followers on the app while others continue to post videos protesting Trump’s decision.
It is anybody’s guess what will happen on 15 September. Many TikTok users believe that this ban is not a wise long-term solution, with one putting forth a clapback proclaiming that:
“You can ban this app, there’ll be a new one. There’s supply where there’s demand.”
And she’s absolutely right. Since the announcement of the ban, similar apps like Triller and Singapore-based Likee continue to climb the US download charts.
You know it is truly unprecedented times when a teenager makes a more sensical public statement than the leader of the free world.
🌏 COVID-19: Southeast Asia’s Tech Unicorns Feel the Heat
When it comes to a global pandemic, even magical unicorns aren’t immune to its impact. Once thriving with expanding offices and double-digit growth, the coronavirus comes as a swift and brutal reality check for unicorn startups in the Southeast Asian region.
As the number of COVID-19 cases spiked, many of these unicorns found themselves either drowning or paddling furiously to stay afloat (as we all are):
Gojek
An Indonesian startup that was on its way to becoming a “super app”, offers everything from ride-hailing to housecleaning services.
The company saw its dreams come undone as consumer activity collapsed, 9% of its workforce laid off, and several services shut down.
Traveloka
Another Indonesian unicorn, its travel portal offers hotel booking, airline ticketing and car rental services.
The startup was forced to lay off about 100 employees (10% of its total) in early April as borders closed.
Grab
Another “super app” that covers an ever-growing portfolio of ride-hailing, food delivery, logistics, financial services and more.
This Singapore-based tech unicorn resorted to voluntary unpaid leave or reduced working hours for employees in certain departments when the effects of the pandemic were first felt. However, that was only the tip of the iceberg. In June, over 360 employees (5% of the total) were let go.
But, it’s not all doom and gloom.
Analysts believe that the pandemic also works to trim the excess of startups and highlight the enduring ones in the market. For those who survive, there’ll be plenty of room (and funds) for growth:
ASEAN-focused venture capital funds raised close to US$400 million in the first half of 2020.
Sequoia Capital just closed a US$1.35 billion India and Southeast Asian-focused fund in July.
Kopi Kenangan, a coffee chain, raised US$109 million in a Series B funding in May.
And, if you need more good news, how about a triumphant comeback by a struggling unicorn?
Traveloka — yes, the very same battered platform we mentioned earlier — has raised US$250 million in fresh funding in July. So, what’s the secret to this quick turnaround of fate?
The answer lies in rapidly adjusting to the ‘new normal’. In Traveloka’s case, it launched a range of cleverly-devised initiatives that bravely tackle the pandemic head-on — including flights that bundle COVID-19 tests, drive-through COVID-19 testing, and open-date vouchers for hotel stays.
Considering that Traveloka’s business in Vietnam has “returned to 100% pre-COVID-19 level and Thailand has surpassed 50% of its pre-COVID-level,” their strategy has certainly worked out well.
🇨🇳 Tencent to Merge China’s Biggest Game-Streaming Platforms
The world’s largest video game company, Tencent, is playing matchmaker for DouYu and Huya — two of China’s biggest game-streaming platforms. But, while Cupid is driven by love, the Chinese giant’s interest is far less romantic.
The Chinese gaming empire — which already owns a 37% stake in Huya and a 38% stake in DouYu — has reportedly been planning and pushing the deal for months.
So who are the players?
Tencent
This Chinese titan has its tentacles in just about everything to do with tech. We’re talking games, social networking (you may have heard of this little app called WeChat), mobile payments, and more.
It is now the world’s seventh most valuable company, ahead of even Facebook. Mark Zucker-who?
DouYu and Huya
They are China’s most dominant game-streaming platforms. Just like every good and addictive game, there’s fierce rivalry and competition between the two companies.
Both DouYu and Huya have spent tens of millions of yuan to poach top streamers, and retain them exclusively.
But, what’s in it for Tencent? Simple, it seeks to become the largest shareholder of the combined entity. The deal would birth a massive online gaming entity with more than 300 million users and a combined market capitalization of US$10 billion. Can you say, #theempirestrikesback?
🇦🇺 Melbourne’s Retail Stores to Close Until Mid September
Remember the days of hitting Target for things that you need and didn’t need? Well, if you’re based in Melbourne, those glorious days are on hold…at least until after September 13.
In a bid to fight the second wave of COVID-19, Melbourne’s retail stores have pulled down their shutters and are to remain closed for six weeks. This closure comes after the Victorian Government declared a state of disaster in Victoria, with Melbourne moving to tighter movement controls.
Supermarkets, grocery stores, pharmacies, and other essential retailers are spared from these restrictions while click-and-collect and delivery services are still allowed to operate.
But, while we hate to be the bearer of (even more) bad news, the lockdown is not without its ramifications.
What are the fallouts?
Supermarkets are struggling to keep their shelves stocked amid panic buying (again).
Certain supermarkets and grocery stores have reintroduced purchase limits for essential items.
An estimated 250,000 more workers would be stood down.
The outbreak and the resulting lockdown dashed Australia’s hopes for a quick economic rebound.
🍿 The Bite-sized Pieces 🍿
Nintendo reports a staggering 428% jump in profit thanks to Animal Crossing and the Switch.
Grab expands its finance business and ventures into loans and wealth management.
Shippit, an Australian logistic startup looking to make its mark in Southeast Asia, has opened a new office in Singapore and partnered with Shopify.
Shopback, an Asia-Pacific cashback reward company with over 5 million users, is finally available in Vietnam.
MUJI repurposed a tourist bus to sell products to older customers living in Japan’s mountains who might find it hard to get to the city.
🛍️ #Add2Cart #NotSponsored 🛍️
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The Crispy Crew would like to thank you for dropping by and reading all the way to end! If you enjoyed spending the last 5 minutes with us, we’d love for you to spread the word to your family, friends and co-workers too!
Tell us more about you - your thoughts on the stories we’ve covered, what you want to read next and whether you think TikTok will make it past 15 Sept in the US of A? Tell us all about it at thecrisp@substack.com, until then crunch on!