LA Tech Updates: GoodRx IPO?; Trump Gives Green Light for Microsoft to Acquire TikTok
- Reuters reports GoodRx is looking to go public
- If American company doesn't buy Tiktok by Sept. 15, Trump said "it will be out of business."
If U.S. Company Doesn't Buy Tiktok by Sept. 15, Trump Said "It Will be Out of Business."
TikTok got at least a temporary reprieve in the ongoing battle between the U.S. and Chinese governments over its fate.
President Donald Trump said Monday TikTok could be bought by an American company after threatening to ban it in the U.S. on Friday. The move opens the door to a Microsoft acquisition but if no deal is reached by September 15th, Trump said TikTok "will be out of business in the United States."
Trump also added a new wrinkle to the negotiations, saying that "a very substantial portion" of the purchase would have to go to the U.S. Treasury, "because we're making it possible for this deal to happen." It is not yet clear how that would work.
Trump's remarks follow a recent conversation with Microsoft chief executive Satya Nadella about his firm's intentions to potentially acquire the Chinese-owned company, Microsoft wrote in a blog post Sunday. The President stated he will hold off banning TikTok while Microsoft negotiates with its Chinese parent company, ByteDance.
According to Microsoft's statement, the two companies are exploring a proposal wherein the Seattle-based software behemoth would purchase and operate TikTok's operations in the U.S., Canada, Australia and New Zealand. The acquisition could also include participation from minority investors.
In its statement, Microsoft touted its ability to add "world-class security, privacy and digital safety protections" to TikTok, which could assuage the national security concerns of many U.S. government officials over the Chinese government's access to TikTok's data.
Specific security measures mentioned in Microsoft's statement include ensuring that TikTok's data on American users is transferred to and remains in the U.S., and that any American user data in servers outside the country is deleted.
Microsoft underscored that the discussions are preliminary. "We do not intend to provide further updates until there is a definitive outcome to our discussions," the statement said.
The two companies have given notice of their intent to pursue a deal to the U.S. Committee on Foreign Investment in the United States, which is already investigating whether ByteDance's 2018 acquisition of L.A.-based Musical.ly threatens national security.
Republican Senator Lindsey Graham called the discussions "a win-win in the making" while Senator Marco Rubio, who has been critical of TikTok, has said if the company and its data can be "purchased & secured by a trusted U.S. company that would be a positive & acceptable outcome."
GoodRx is Reportedly Looking to Go Publicshallow focus photography of prescription bottle with capsules Photo by Sharon McCutcheon on Unsplash
The prescription marketplace platform GoodRx Inc has filed with the U.S. Securities and Exchange Commission for a potential initial public offering, Reuters reported Sunday.
The Santa Monica-based company was valued at $2.8 billion in 2018 when private equity firm Silver Lake took a stake. Reuters reported the company is hiring IPO advisers and the listing could come later this year or early 2021.
Last year, the company purchased HeyDoctor, a telemedicine service that has expanded its care options.
- Is Telemedicine At a Tipping Point? L.A. Doctors Hope So - dot.LA ›
- GoodRx Makes Prescription Drugs More Affordable - dot.LA ›
- TikTok Plans IPO, Considers Instagram Co-Founder as CEO - dot.LA ›
- GoodRx CEO Doug Hirsch on Inequality in US Healthcare - dot.LA ›
Subscribe to our newsletter to catch every headline.
PayPal Holdings, Inc. announced Thursday it will be transferring money to two L.A. firms as part of a $50 million commitment to eight early-stage, Black and Latinx-led venture capital funds.
Slauson & Co., the new fund from PledgeLA chairman Austin Clements focused on people of color, women and LGBTQ+ entrepreneurs; and VamosVentures, the Latinx consumer-focused, early-stage fund founded by Marcos Gonzalez, are both receiving undisclosed investment amounts.
- PledgeLA Releases Report on Diversity in Los Angeles Tech - dot.LA ›
- MaC Venture Capital's Marlon Nichols on 'Diversity Theater' - dot.LA ›
- a16z VC Firm Launches Fund to Target Diverse Founders - dot.LA ›
After seeing the pandemic's disproportionate impact on lower-income minorities, Beatriz Acevedo, the co-founder of digital media company mitú, felt compelled to return to the startup world.
On Thursday, the L.A.-based entrepreneur and three-time Emmy-winning producer announced the launch of SUMA Wealth, a fintech company that will seek to provide U.S-born Latinos with financial-inclusion tools and resources.
L.A.-based entrepreneur and three-time Emmy-winning producer Beatriz Acevedo is the co-founder of SUMA Wealth
- Beatriz Acevedo, President, Acevedo Foundation; Co-founder, LA ... ›
- Why Funding Inequity Isn't Deterring These Female Founders, VCs ... ›
- How Working From Home Challenges Women and How To Succeed ... ›
The pandemic may have accelerated consumers' shift online, but don't expect Americans to forgo theaters permanently for streaming or stop shopping at the grocery store. Concerts and conferences will eventually come back, but the post-pandemic future will likely be very different.
Those are some of the insights from Atom Tickets co-founder Matthew Bakal and Greycroft's Elaine Russell, who spoke in a dot.LA Summit panel moderated by KPMG audit partner Charity Manley on Wednesday. Atom Tickets is a digital movie ticketing service and Greycroft is a venture firm which focuses, in part, on retail.
- Popshop Live's Twist on E-Commerce - dot.LA ›
- GOAT's $100M Raise Fuels its Trendsetter Ambitions - dot.LA ›
- Inside Amazon Fresh, Amazon's Ecommerce Grocery Store - dot.LA ›
- Tapcart Soars as Retail Scrambles to Create a Better Mobile ... ›
- COVID-19 crisis sparks 'inflection point' for online grocery — and ... ›