Coronavirus Updates: Garcetti Warns 'At Least Two Months' for Quarantine as Coronavirus Cases Surge in L.A. County

Coronavirus Updates: Garcetti Warns 'At Least Two Months' for Quarantine as Coronavirus Cases Surge in L.A. County

Here are the latest headlines regarding how the novel coronavirus is impacting the Los Angeles startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for the latest updates.

Today:

  • Coronavirus cases surge in L.A. County, nine deaths reported
  • Mayor Garcetti warns it may be "at least two months" in which they'll be quarantined
  • U.S. unemployment figures soar to 3.3. million, California tops 1 million claims
  • NBCUniversal chief Jeff Shell tells staff he has coronavirus

Coronavirus cases surge in L.A. County, nine deaths reported

The number of COVID-19 cases surged as the county stepped up testing with 421 new cases and nine deaths reported by Los Angeles County health officials on Thursday. That brings the total number of cases to 1,216 with 21 deaths. About one out of every five of those tested positive for COVID-19 have had to be hospitalized.

"Unfortunately, we have been expecting this," said Barbara Ferrer, the county's public health director in a statement. "This dramatic increase in cases is due in part to increased testing capacity in LA County, which is allowing us to identify more positive cases. In order to slow the spread and save lives, all of us must do our part by staying home, adhering to all social distancing measures and caring for each other."

Two deaths previously reported have been dropped from the total including a minor from Lancaster whose cause of death is under investigation. The other individual was not a Los Angeles County resident.

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Los Angeles Mayor Eric Garcetti told residents that it may be "at least two months" in which they'll be quarantined at home, and that Staples Center and Hollywood studios could be used as makeshift hospitals if needed. Garcetti toldBusiness Insider "to be prepared for longer" despite comments from President Trump that he wants the nation to open back up by Easter.

Garcetti warned Los Angeles Wednesday that it is not acceptable for workers to return to their offices, warning that the worst of the coronavirus pandemic is still to come. He said the Department of Water and Power will shut services for businesses that don't comply with the city's "safer at home" ordinance. California has the fourth-largest infected population with some 2,500 cases and 53 related deaths as of Thursday.

U.S. unemployment figures soar to 3.3. million, California tops 1 million claims

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The U.S. weekly job claims skyrocketed to a historic high of 3.3 million last week as efforts to contain the fast spreading coronavirus has shut down businesses and paused daily life. Californians were especially hard hit, with Gov. Gavin Newsom announcing on Wednesday that the state hit more than 1 million unemployment claims since March 13.

It comes as House prepares to vote on a historic $2 trillion stimulus package approved by the Senate on Wednesday. The emergency relief package would give most adults $1,200, although some would get less in a hope to stem the economic wreckage coronavirus has caused. An additional $500 payment would be given for children under 16 years of age.

NBCUniversal chief Jeff Shell tells staff he has coronavirus

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NBCUniversal CEO Jeff Shell told staff in a companywide memo on Thursday that he has tested positive for coronavirus. The longtime Hollywood leader oversees Universal Pictures, NBCUniversal, Telemundo, and NBC Entertainment. "I recently have been feeling under the weather and just learned that I have tested positive for COVID-19. Although the virus has been tough to cope with, I have managed to work remotely in L.A. and am improving every day," Shell said in the memo.

🎬 Paramount and Skydance Are Back On
Image Source: Paramount

Happy Friday Los Angeles! Hope you all had a fantastic Fourth!!

🔦 Spotlight

Paramount and Skydance Media have rekindled talks to merge after negotiations abruptly halted in June. The proposed deal, contingent on approval from Paramount’s board, aims to combine Paramount’s extensive media holdings—including CBS, MTV, and Nickelodeon—with Skydance’s film expertise showcased in hits like "Top Gun: Maverick." This merger signals a potential transformation in the media landscape, positioning the new entity to compete more effectively amid challenges from streaming services and the decline of traditional cable TV.

Led by Shari Redstone, Paramount’s controlling shareholder via National Amusements, the deal represents a pivot towards revitalizing Paramount’s strategic direction amidst financial struggles and shareholder concerns. The involvement of major investors like RedBird Capital Partners and David Ellison underscores the financial backing aimed at stabilizing Paramount’s operations and addressing its $14 billion debt burden. Importantly, the agreement includes provisions to protect National Amusements from potential legal challenges, addressing previous hurdles that stalled earlier negotiations.

The deal also includes a 45-day period for Paramount to explore alternative offers, highlighting continued interest from other potential buyers like Barry Diller’s IAC and media executive Edgar Bronfman Jr. This flurry of activity underscores the significant stakeholders’ interest in Paramount’s future and its potential as a key player in a rapidly evolving media industry.


🤝 Venture Deals

LA Companies

  • Sidecar Health, a startup that offers personalized health insurance plans to businesses that allow members to see any doctor and pay directly at the time of service, raised a $165M Series D led by Koch Disruptive Technologies. - learn more

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😊🚘 Rivian's $5 Billion Lifeline

🔦 Spotlight

Volkswagen announced on Tuesday a significant investment of up to $5 billion in Rivian, a struggling electric truck manufacturer known for its vehicles' distinctive smiley-face design reminiscent of Volkswagen's iconic Beetle. This partnership marks a unique collaboration between the world's second-largest automaker and a startup grappling with profitability challenges akin to those faced by Tesla. Volkswagen's infusion of $1 billion initially, potentially rising to $5 billion pending regulatory approval, underscores its strategic pivot towards enhancing its electric vehicle (EV) software capabilities, an area where analysts believe the company has lagged.

For Rivian, which has received acclaim for its electric trucks and SUVs but struggles with production ramp-up and financial losses, the investment offers crucial financial backing. The company plans to utilize Volkswagen's expertise in manufacturing, leveraging the German automaker's annual production of nearly 10 million vehicles. This alliance aims to bolster Rivian's efforts to launch new models like the R2 midsize SUV and complete its Georgia factory, paused earlier this year to conserve funds. Rivian's stock surged upwards of 40% following the announcement, reflecting investor optimism in the company's future prospects.

Despite their differing corporate cultures—Volkswagen's traditional, structured approach contrasted with Rivian's agile tech startup ethos—the CEOs of both companies expressed mutual admiration and shared goals during the partnership announcement. The collaboration is expected to yield EV software solutions benefiting Volkswagen's various brands, potentially including Audi and Porsche, while allowing Rivian to maintain its brand identity and separate vehicle marketing strategies. This strategic partnership between Volkswagen and Rivian not only promises to revolutionize the electric vehicle market but also highlights the potential for collaboration between established automakers and innovative startups in Southern California, where Rivian is based. Here’s to hoping these smiling cars will balance out some of the inevitable LA road rage.

🤝 Venture Deals

LA Companies

  • HeyGen, a startup that allows users to generate videos with AI-created avatars that can lip-sync to provided audio, making it easier for businesses to create engaging video content, raised a $60M Funding Round at a $500M post-money valuation. The deal was led by Benchmark, with Conviction, Thrive Capital, and Bond Capital also stepping up. - learn more
  • Pomerium, a startup that provides a secure access platform that dynamically verifies user identities to ensure authorized access to applications and services, raised a $13.8M Series A round led by Benchmark and including previous investors Bain Capital, Haystack, and SNR. - learn more
  • Etched, a maker of transformer-specialized AI chips, raised a $120M Funding Round. - learn more
  • Rocketlane, a customer onboarding platform, raised a $24M Series B co-led by 8VC, Matrix Partners India, and Nexus Venture Partners. - learn more
  • Sift, a developer of unified observability solutions for hardware sensor data, raised a $17.5M Series A led by GV. - learn more
  • LOST iN, a travel media brand, raised a $4M Seed Round led by MaC Venture Capital. - learn more

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