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Thursday, December 3, 2020
Close-up of sign for gig economy meal delivery app Doordash in a restaurant in Lafayette, California. Smith Collection | Gado | Archive Photos | Getty Images Leading food delivery app DoorDash is looking to raise up to $2.8 billion in its IPO, giving it a valuation of up to $32 billion on a fully diluted basis, the company revealed in a new filing Monday. Its last private valuation was $16 billion as of June. DoorDash plans to list 33 million shares at a price between $75 and $85 per share. The company will list its shares on the New York Stock Exchange under the symbol DASH. DoorDash released its first filing to go public with the Securities and Exchange Commission about two weeks ago. DoorDash will offer three classes of stock with different voting and conversion shares. Class A common stock will grant owners one vote per share. Class B shares will come with 20 votes per share, while Class C shares will have no voting rights. DoorDash reported $1.9 billion in revenue for the nine months ended Sept. 30. That's up from $587 million
Zoom founder Eric Yuan speaks before the Nasdaq opening bell ceremony in New York on April 18, 2019. Kena Betancur | Getty Images Zoom Video Communications shares fell about 5% in extended trading on Monday after the company reported fiscal third-quarter earnings and quarterly guidance that exceeded analysts' expectations. Investors seemed disappointed that the rate of revenue growth, which has accelerated this year, could moderate. Here's how the company did: Earnings: 99 cents per share, adjusted, vs. 76 cents per share as expected by analysts, according to Refinitiv. Revenue: $777.2 million, vs. $694.0 million as expected by analysts, according to Refinitiv. With the coronavirus pandemic continuing to drive people to Zoom for work, school and family meetings, Zoom's revenue grew 367% on an annualized basis in the quarter, which ended Oct. 31, according to a statement. In the previous quarter revenue increased 355%, and in the quarter before that, revenue had risen 169%. Zoom's gross margin declined to 66.7% from 67.3% in the previous quarter. During the quarter Zoom dealt with a higher mix of free users, including students and teachers who logged in as school resumed.
Ajit Pai Brad Quick | CNBC Federal Communications Commission Chairman Ajit Pai will step down from his post on Jan. 20, the day President-elect Joe Biden is inaugurated, he announced Monday. The announcement means that the FCC could reach a Democratic majority sooner than it would otherwise be able to. Pai's term was slated to expire in June 2021, though Biden will be able to choose a Democrat to chair the commission once in office. Commissioners must be confirmed by the Senate. Pai's decision to step down could have significant implications on net neutrality, an issue that helped define his term as chairman. In 2017, Pai voted with his fellow Republican commissioners to remove rules that prohibited internet providers from blocking or slowing traffic to particular sites and offering higher speed "lanes" at higher prices. Many major internet providers have not yet taken advantage of that rule change, however. "It has been the honor of a lifetime to serve at the Federal Communications Commission, including as Chairman of the FCC over the past four years," Pai said in a statement. "I am grateful to President Trump for giving
Demis Hassabis, CEO of Alphabet, Google DeepMind research group, at Google's Future of Go Summit in China on May 23, 2017. LONDON — Alphabet-owned DeepMind has developed a piece of artificial intelligence software that can accurately predict the structure that proteins will fold into in a matter of days, solving a 50-year-old "grand challenge" that could pave the way for better understanding of diseases and drug discovery. Every living cell has thousands of different proteins inside that keep it alive and well. Predicting the shape that a protein will fold into is important because it determines their function and nearly all diseases, including cancer and dementia, are related to how proteins function. "Proteins are the most beautiful, gorgeous structures and the ability to predict exactly how they fold up is really very, very challenging and has occupied many people over many years," Professor Dame Janet Thornton from the European Bioinformatics Institute told journalists on a call. British research lab DeepMind's "AlphaFold" AI system was entered into a competition organized by a group called CASP (Critical Assessment for Structure Prediction). It's a community experiment organization with the
Mark Zuckerberg, chief executive officer and founder of Facebook Inc., arrives for a House Financial Services Committee hearing in Washington, D.C., U.S., on Wednesday, Oct. 23, 2019. Andrew Harrer | Bloomberg | Getty Images Facebook on Monday announced the acquisition of Kustomer, a customer relationship management start-up. The deal was valued at a little more than $1 billion, according to a person familiar with the matter. CRM tools help clients manage their communications with customers via phone, email, text or direct messages in specific apps, such as WhatsApp or Messenger. The acquisition of a business-software company such as Kustomer is unusual for Facebook. In the past, Facebook has primarily bought consumer-centric companies, such as gif catalog company Giphy in May and Spanish cloud video gaming company PlayGiga in December 2019. These acquisitions usually serve as the foundation for building features for Facebook users. By bringing Kustomer into the fold, Facebook will be providing small businesses that use its service to advertise and sell goods more features to close sales through the social network's services. This should seemingly lead these businesses to spend more on Facebook advertisements. That's
Salesforce's deal to buy Slack is expected to be announced Tuesday after markets close, sources told CNBC's David Faber. The deal is expected to be about half cash and half stock, the sources said, and will price Slack at a premium. Salesforce is set to report quarterly earnings on Tuesday. Slack's market cap was more than $24 billion as of Monday morning. Shares of Slack rose about 4% Monday on the news. Salesforce shares were down more than 3%. Talks between the two companies were first reported last week by The Wall Street Journal and confirmed by CNBC, sending Slack's stock soaring nearly 38%. Salesforce has made several large acquisitions in recent years, including its $6.5 billion deal for MuleSoft in 2018 and its $15.3 billion deal with data visualization company Tableau. The deal with Slack could become one of the largest in the software sector. IBM bought Red Hat for $34 billion in 2019 and Microsoft purchased LinkedIn for $27 billion in 2016. It could also make Slack a more formidable competitor to Microsoft's Teams communication product. Slack filed a complaint against Microsoft with the European Commission this summer, alleging it abused its dominant market
Shares of Nikola plunged by more than 20% in premarket trading Monday after General Motors announced that it is giving up an equity stake in the electric truck start-up and the two said they are dropping plans to build the Badger, Nikola's pickup truck for consumers. In September, the automakers announced a $2 billion deal that gave GM an 11% stake in Nikola to supply battery and fuel cell technologies as well as produce the Badger pickup. The deal was initially viewed as a no-lose situation for GM but the talks became convoluted after short-seller Hindenburg Research lobbed fraud allegations against Nikola and its founder, Trevor Milton, who resigned as the company's executive chairman on Sept. 21. Shares of Nikola initially rallied on the news before plummeting in pre-market trading. GM stock was down less than 1%. Wedbush analyst Dan Ives described the new deal as "a good supply partnership" rather than a "game changer deal" for Nikola. "In a nutshell, the signing of GM as a partner is a positive but ultimately no ownership/equity stake in Nikola and the billions of R&D potentially now off the table is a major negative blow to the Nikola story," he wrote in an investor
Eric Schmidt, chairman of Alphabet Inc. David Paul Morris | Bloomberg | Getty Images LONDON — Eric Schmidt, the former CEO of Google, is one of several tech executives backing a new early-stage European venture capital fund. The tech billionaire — who has a net worth of $20 billion, according to the Bloomberg Billionaire Index — has invested an undisclosed amount into a $111 million fund that was announced Monday by London-headquartered VC firm Firstminute Capital. Firstminute was founded in 2017 by Lastminute.com co-founder Brent Hoberman and former Goldman Sachs analyst Spencer Crawley. It launched with a $60 million fund I (that grew to become $100 million) and this second fund brings total assets under management up to $211 million. RTI Capital Partners is the second fund's main investor, but Chinese tech giant Tencent, venture firm Atomico, and private equity firm Vitruvian have also invested. The founders of big data firm Palantir, gaming firm Supercell and e-commerce platform Zalando have also backed Firstminute. It remains much smaller than well-established VC firms in London like Index Ventures and Accel Partners, however. "European technology is reaching escape velocity, and
The logo of Chinese company Huawei at their main U.K. offices in Reading, west of London, on January 28, 2020. Daniel Leal-Olivas | AFP via Getty Images LONDON — Britain on Monday detailed plans to phase out Huawei from its 5G networks, setting a September 2021 deadline for carriers to stop installing the Chinese firm's gear. The U.K. government decided to ban 5G equipment from Huawei over the summer, reversing course after heightened pressure from the United States. Westminster had initially allowed Huawei a limited role in the U.K's 5G deployment. Washington has imposed devastating sanctions on Huawei, claiming the Shenzhen-based company could enable the government in Beijing to spy on sensitive communications. For its part, Huawei denies the U.S. allegations. In July, U.K. Culture Secretary Oliver Dowden said mobile network operators would be forced to stop buying Huawei equipment from the end of 2020 and to strip out the firm's gear from their infrastructure entirely by 2027. Supply chain diversification Now, Dowden has laid out a roadmap to reduce Huawei's 5G market share in the country to zero. One key measure
From left, GitHub CEO Chris Wanstrath, Microsoft CEO Satya Nadella and future GitHub CEO Nat Friedman at GitHub headquarters in San Francisco. Source: Microsoft In 2018, Microsoft made one of its priciest acquisitions ever, spending $7.5 billion on code-sharing site GitHub. It wasn't the cleanest fit. GitHub is used by over 50 million developers who tend to be outspoken, including when it comes to things they dislike about Microsoft. The deal continues to pose unexpected challenges, like a recent spat with the Recording Industry Association of America. In October, the RIAA asked GitHub to take down youtube-dl, a piece of open-source software that enables people to download videos from YouTube and other online services. The software disappeared from the internet, and users objected. One GitHub user, on the site, described the incident as "a shame for GitHub" and said "that Microsoft acquisition was really a mistake." Another called for Microsoft to resign from the RIAA, an organization that consists primarily of record labels and musicians. The removal by GitHub so angered yet another user that the person responded by posting part of GitHub's own proprietary software on
Zoom founder Eric Yuan poses in front of the Nasdaq building as the screen shows the logo of the video-conferencing software company Zoom after the opening bell ceremony on April 18, 2019 in New York City. Kena Betancur | Getty Images Zoom is poised to show another monster quarter when it reports results on Monday, with sales growth expected to top 300% for a second straight period. But investors of late have been looking past this earnings report, as well as the one after that and even the one after that. It's the back half of 2021 that becomes challenging for Zoom because the company will then have to contend with comparisons to the wild growth periods of the pandemic and surge in remote work. Additionally, a Covid-19 vaccine appears to be on the horizon for 2021. Both Pfizer-BioNTech and Moderna reported preliminary results showing that their respective Covid vaccines were around 95% effective, while the Oxford-AstraZeneca vaccine had an average efficacy of 70%. It's not clear what happens to Zoom's business when people start returning to the office, but the company's stock has sold off on positive vaccine
Salesforce co-CEO Marc Benioff speaks at the grand opening of the Salesforce Tower in San Francisco in May 2018. David Paul Morris | Bloomberg | Getty Images The tech industry has seen some hefty deals announced during the 2020 pandemic, including several in the tens of billions of dollars. But not in software. That could change soon. Salesforce, which has been one of tech's biggest acquirers in recent years, has been in talks to buy Slack, CNBC and other media outlets reported on Wednesday. Slack shares surged almost 38% after the initial report, lifting its market cap to $23 billion. It would be one of the biggest software acquisitions ever, and potentially the largest since IBM bought Red Hat for $34 billion, a purchase announced in 2018. The dearth of big software deals this year reflects the outsized growth much of the industry has experienced during the past eight months of pandemic-induced remote work. Once niche products and applications have become more popular and seen surging demand, leading to inflated stock prices on the public market and increased investment from venture firms on the private side. Zoom