LA Tech Updates: Microsoft Reportedly Looking to Buy TikTok; HBCUvc and PledgeLA's New Partnership
Jul 31 2020
Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.
Today:
- Trump could order ByteDance to divest of TikTok today, Bloomberg reports
- HBCUvc and PledgeLA offer $5,000 grants to founders from HBCUs
<ul class="ee-ul"></ul><ul class="ee-ul"></ul><ul class="ee-ul"></ul>
<p class=""><br></p>
HBCUvc and PledgeLA offer $5,000 grants to founders from HBCUs
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ1OTg0Mi9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY0Nzk2NDIxM30.USZ0uaglvnNlRachpixeUdJ2El5XbF51jkqBoAEyUpo/img.png?width=980" id="2e0e1" class="rm-shortcode" data-rm-shortcode-id="669fea31b69e26838e22a13d9e6a2288" data-rm-shortcode-name="rebelmouse-image" /><p>HBCUvu, a non-profit increasing racial diversity in venture capital, has partnered with PledgeLA to provide $5,000 grants to startup founders from historically Black colleges and universities. The program, dubbed the The Summer Lab Fund, is now accepting applications through August 6.</p><p>Supported by Crosscut Ventures, the <a href="https://blog.hbcu.vc/pledgela-announces-fund-for-hbcu-entrepreneurs-d688eeda3681" target="_blank">fund</a> will award equity-free grants to technology and tech-enabled startups founded by HBCU students and alumni. Selected startups will also receive mentorship and support from participating sponsors as well as access to HBCUvc and PlegeLA networks. </p><p>The funding opportunity, launched last week, is managed and operated by the current cohort of PledgeLA VC interns who were matched at firms across Los Angeles in a 10-week program.</p><p>PledgeLA is a cohort of tech companies and VC firms created by the Annenberg Foundation and the mayor of Los Angeles. Last week, the organization <a href="https://dot.la/pledgelas-2nd-annual-survey-finds-women-non-whites-still-lack-equity-representation-2646415502.html" target="_self">released</a> results from its annual survey on diversity in tech companies across the city. </p><p>Current intern Evan Hamilton told dot.LA the plan is to establish the Lab Fund as an annual project. Although it only has three spots now, he said, if demand is high enough they will look to raise more funds. </p><p>"What I really hope for, as a result of this, is to encourage that pipeline of investors to go to HBCUs to find interesting entrepreneurial talents because as we've seen many times, most folks are in hoodies coming from Stanford," Hamilton said. </p><p>"Five thousand dollars is a nominal amount of money, but what it does is give someone that ability to say, 'I am an entrepreneur, I have been funded,'" Hamilton said. "It really doesn't take a lot to validate a lot of the thoughts, feelings and opinions that people have. If we're doing this correctly, we're going to help these companies grow, even the ones that aren't able to receive funding."</p><p>He said it hopes to dispel preconceived notions and encourage investors to look toward HBCUs for talent.</p><p>After applications close on August 6, interns will form an investment committee to present and review the interested companies, which come from industries including entertainment tech, retail, education services and sports. Winners of the fund will be announced August 14.</p><p>PledgeLA intern Liza Katsman hopes the thinking behind this initiative will one day extend beyond the HBCU ecosystem. She pointed out that entrepreneurs of different backgrounds - that had largely been excluded from tech companies - bring new perspectives and ideas that can turn into successful products or services.</p><p>"Diversity and inclusion is not just the right thing to do," Katsman said. "It's the smart thing to do." </p><p><em>dot.LA is a member of PledgeLA.</em></p>Trump and Microsoft Are Looking at TikTok
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ0ODQ3Mi9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYwMzI2Nzc5OH0.nqOLhJhVWxeEzL1-Bs6w7LNxiiNnnx0-o7rlFhF1f1w/img.jpg?width=980" id="b7b3a" class="rm-shortcode" data-rm-shortcode-id="7ac4ba0a2e1685d81d3a3c2cedb4b6b8" data-rm-shortcode-name="rebelmouse-image" />Amazon Tells Employees to Delete TikTok, Then Claims Directive Was Sent in Error<p>Microsoft is in talks to buy TikTok as President Donald Trump plans to ban it, <a href="https://www.wsj.com/articles/trump-to-sign-order-demanding-chinas-bytedance-to-divest-tiktok-11596219920?mod=hp_lead_pos1" target="_blank">various</a> <a href="https://www.wsj.com/articles/trump-to-sign-order-demanding-chinas-bytedance-to-divest-tiktok-11596219920?mod=hp_lead_pos1" target="_blank">media</a> reported Friday. </p><p>TikTok has come under increasing pressure from the administration that Chinese Internet company ByteDance is sharing data with Beijing and has threatened to ban it. <br></p><p><a href="https://www.bloomberg.com/news/articles/2020-07-31/trump-to-order-china-s-bytedance-to-sell-tiktok-u-s-operations-kdaib6eb" target="_blank">Bloomberg</a><em> </em>reported the Trump administration had planned to order ByteDance to divest of the Culver City-based company as early as Friday. </p><p> Microsoft could alter the question of ownership. It's unclear how advanced the talks are.<br></p><p>The White House could immediately be reached for comment. </p><p>But in an emailed statement a spokeswoman for TikTok said, "While we do not comment on rumors or speculation, we are confident in the long-term success of TikTok." </p><p>Trump's move would not come as a surprise. He told reporters on Friday: "We're looking at TikTok, we may be banning TikTok. We may be doing some other things. There's a couple of options."</p><p>Earlier this month, Trump suggested he would ban the app as punishment over China's handling of the coronavirus. Those comments came after Secretary of State Mike Pompeo <a href="https://dot.la/could-u-s-ban-chinese-owned-tiktok-2646359784/could-the-u-s-ban-chinese-owned-tiktok" target="_blank">told Fox News </a>that the United States is considering whether to restrict TikTok and other social media apps amid concerns that information was being shared with China's communist government. </p><p>"We are taking this very seriously and we are certainly looking at it," Pompeo <a href="https://www.foxnews.com/media/mike-pompeo-tik-tok-china-communist-social-media-spying-fox-ingraham" target="_blank">said</a>. </p><p>In March, another Chinese company, Beijing Kunlun Tech sold the West Hollywood-based gay dating app Grindr for more than $600 million after the Committee on Foreign Investment in the United States forced it to divest. </p><p>Two months later, Beijing-based parent company ByteDance appointed Kevin Mayer, once widely considered Bob Iger's heir apparent at The Walt Disney company, to head TikTok in a move that would help distance itself from its Beijing parent company. </p><p><span></span>TikTok, has around 30 million active users and has increasingly become a favorite of advertisers to sell their products among the youth-oriented social media app. <br></p>From Your Site Articles
- Could the U.S. Ban Chinese-Owned TikTok? - dot.LA ›
- TikTok's $2 Billion Creator Fund Goes After Instagram - dot.LA ›
- TikTok CEO Promises More Transparency, Jabs Facebook for ... ›
- TikTok Says it Will Pay Creators— and Universal Music Group - dot.LA ›
- TikTok addresses 'tough but fair questions' about opportunities for ... ›
- Snap Releases Dismal Diversity Report - dot.LA ›
Related Articles Around the Web
Read more
Show less
TikTok made two significant announcements on Thursday, each suggesting a gesture of goodwill to communities on which the user-generated video-sharing platform relies. One was a multi-year deal with the National Music Publishers Association, a trade association that has previously accused TikTok of failing to pay adequate royalties to music rights-holders and reportedly has threatened legal action.
<p>The "new partnership will give NMPA members the ability to opt-in to a licensing framework that allows them to benefit from their works included on TikTok," according to a joint statement.</p><p>Prior to the deal, TikTok had been operating with a bit of a hodgepodge approach toward its licensing arrangements with music publishers. It had short-term contracts with Sony Music and Warner Music's publishing arms, but none with Universal Music Group Publishing since their deal lapsed last year. </p><p>TikTok has faced <a href="https://dot.la/tiktok-privacy-issues-2646002525.html" target="_blank">political backlash related to privacy concerns</a> and from its being owned by ByteDance, a Chinese firm. In June the app was <a href="https://www.nytimes.com/2020/06/29/world/asia/tik-tok-banned-india-china.html" target="_blank">banned in India</a>, one of its biggest markets, and it now faces <a href="https://dot.la/could-u-s-ban-chinese-owned-tiktok-2646359784/could-the-u-s-ban-chinese-owned-tiktok" target="_blank">a threat of similar action from the U.S</a>. The company recently hired Kevin Mayer away from Disney, a move seen by some analysts as <a href="https://dot.la/kevin-mayer-leaves-disney-for-tiktok-chapek-regime-moves-on-2646028687.html" target="_blank">an effort to quell concerns</a> about its relationship to the Chinese government. </p><p>TikTok has also faced criticism from NMPA President and CEO David Israelite, but today's deal seems to have assuaged his grievances.</p><p>"We are pleased to find a way forward with TikTok which benefits songwriters and publishers and offers them critical compensation for their work," he said in the statement.</p><h2>A New Deal for TikTok Creators</h2><p>TikTok's second announcement Thursday described <a href="https://newsroom.tiktok.com/en-us/introducing-the-200-million-tiktok-creator-fund" target="_blank">a new $200 million fund</a> "to help support ambitious creators who are seeking opportunities to foster a livelihood through their innovative content" on the platform.</p><p>There were few details on how the funds will be distributed and who is eligible to receive them. Creators must be at least 18 years old, exceed an undisclosed number of followers on the platform, and "consistently post original content" that adheres to TikTok's community guidelines, according to the announcement. The company will begin accepting applications for a piece of the TikTok Creator Fund starting in August, the statement said.</p><p>Despite its geopolitical setbacks, TikTok has had a banner 2020. <a href="https://www.msn.com/en-us/music/news/tiktok-and-nmpa-reach-a-global-partnership-agreement-exclusive/ar-BB176fnk" target="_blank">According to analytics firm SensorTower,</a> the platform generated over 315 million installs on the iOS App Store and Google Play in the first three months of the year. If true, that would be the most quarterly downloads for any app in the App Store.</p>
From Your Site Articles
- TikTok's $2 Billion Creator Fund Goes After Instagram - dot.LA ›
- Microsoft Reportedly Looking to Buy TikTok ›
- Microsoft Reportedly Looking to Buy TikTok - dot.LA ›
Related Articles Around the Web
Read more
Show less
Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.
Today:
- New Streaming Data Underline Quibi's Struggles
- John Legend Takes to Wave's Virtual Stage
- TIkTok Reportedly Rakes in $200M
- Snap Rolls Out Pride Lenses For U.S. Regions
<ul class="ee-ul">
</ul>
New Streaming Data Underline Quibi's Struggles
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vbWVkaWEucmJsLm1zL2ltYWdlP3U9JTJGUVJwNjF1THhaY2wybHQxWjJ5SmNGSDd6QXQ5dmhsMS13VWxCUVU4SWNFOTVqWWxZY3NxZkJjOWhLVEk4T2RFbmUxaUZ4NFQ5Yzc4dWR5WTlXeW9MdW1LOFExNVdpQzQ1ZC1ZT0lUWDl0aUxILU8xUmx4clJ6M0tBUWdFVmJDM244TVh3MmprQyZobz1odHRwcyUzQSUyRiUyRmxoMy5nb29nbGV1c2VyY29udGVudC5jb20mcz0xODkmaD04NDUyMTY4Mjk0YTE5OGMwOTJkZjU3YmNhZmU5OGNjNjBjOGIxZWM0ODRlMDVlN2U4Y2Y2YTc5YzIwZDE3MTk5JnNpemU9OTgweCZjPTExNzU4Mjg2MTgiLCJleHBpcmVzX2F0IjoxNTk5MzgyMTg5fQ.a-Q2gq9m-vL_Iua4-8EQquKRzs9Akc6d5ULBzBYCjbM/img.jpg" id="202ee" class="rm-shortcode" data-rm-shortcode-id="ab3309389162b7f848f0f8304aeeb8c8" /> <p>Things started so rosily for Quibi, with a fat $1.75 billion fundraise, loads of content deals with A-listers, and a <a href="https://variety.com/2019/digital/news/quibi-sells-out-advertising-inventory-150-million-1203380540/" target="_blank">sold-out advertising slate</a>. But lately it's been nothing but bad news. </p><p>Recent reports have depicted all kinds of troubles: <a href="https://www.wsj.com/articles/quibi-jeffrey-katzenbergs-on-the-go-streaming-bet-adjusts-to-life-on-the-couch-11588266129" target="_blank">low demand</a>, <a href="https://deadline.com/2020/04/quibi-marketing-megan-imbres-leaves-launch-1202915748/" target="_blank">executive departures</a>, <a href="https://www.wsj.com/articles/advertisers-seek-to-revise-deal-terms-with-streamer-quibi-11590519825" target="_blank">unhappy advertisers</a>, an <a href="https://www.latimes.com/entertainment-arts/business/story/2020-05-04/elliott-management-funds-ekos-lawsuit-against-quibi" target="_blank">ongoing intellectual property lawsuit</a>, and a <a href="https://www.wsj.com/articles/quibi-katzenberg-whitman-streaming-startup-11592157291" target="_blank">potential rift between its two chiefs</a>, Jeffrey Katzenberg and Meg Whitman. All this on top of a global pandemic that has <a href="https://www.nytimes.com/2020/05/11/business/media/jeffrey-katzenberg-quibi-coronavirus.html" target="_blank">done no favors to the company's initial value proposition</a> of serving the "on-the-go" moments of consumers' lives.</p><p>Quibi is apparently trying to respond. Variety reported on Wednesday that the L.A.-based mobile-first, short-form video platform has been <a href="https://variety.com/2020/digital/news/quibi-streaming-roku-amazon-fire-tv-1234637152/" target="_blank">negotiating with Amazon and Roku</a> to accelerate its availability onto connected devices. Company executives have also <a href="https://www.wsj.com/articles/quibi-asks-senior-executives-to-take-10-pay-cut-11591206642" target="_blank">reportedly taken pay cuts</a>. </p><p>Data provided to dot.LA by <a href="https://www.justwatch.com/us/about" target="_blank">JustWatch, an analytics firm</a> with offices in L.A. and Berlin, show that in May, Quibi and its content library captured just 0.5% of the U.S. streaming audience's interest. Netflix led the way at 31%, followed by Amazon Prime Video at 18%, Hulu at 11%, and Disney+ at 8%. </p><p>Industry observers have frequently cited Quibi's lack of a hit show, combined with its nonexistent back catalog of familiar favorites, as a key reason why it has struggled since its April launch.</p><p>JustWatch's data suggest that <em>Reno 911!</em>, which debuted on Quibi in early May, was far and away the most popular show on the app last month. The firm estimates that the rebooted police satire was four times more popular than the runner-up, <em>The Stranger</em>, and 12 times more popular than Quibi's third-ranked title, <em>Most Dangerous Game</em>.</p><p>Quibi did not immediately respond to a request for comment. </p>John Legend Takes to Wave's Virtual Stage
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQwMDU4MC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYwMzQxNzg2Nn0.EWmJ9avEF-GlUzE4JTaXXPCP_opTqqoefsDLj9HvRX8/image.jpg?width=980" id="f35ac" class="rm-shortcode" data-rm-shortcode-id="6319a8cc4e2b1540a0423135472fae0a" data-rm-shortcode-name="rebelmouse-image" /> <p><em></em>Wave, an entertainment technology company that turns performers into digital avatars and puts them on virtual stages where they can entertain and interact with fans, announced that John Legend will perform on the platform on Thursday, June 25th at 3:00pm PT.<br></p><p>Legend had previously been slated to participate in the L.A.-based entertainment firm's "One Wave" virtual concert series, but no date had been announced before Wednesday.</p><p>The performance, <a href="https://go.wave.watch/johnlegend" target="_blank">available via YouTube and Twitter</a>, will feature new songs from the EGOT winner's upcoming album, "Bigger Love." Leveraging the Wave platform's interactivity, attendees will be able to send "visual gifts" throughout the performance, with 100% of the proceeds going to Legend's FREEAMERICA criminal justice reform campaign.</p><p>Wave is partnering with PEOPLE for the Legend performance. Sponsors also include Yamaha and Valence, a "new social network addressing diversity by connecting Black talent with economic opportunity." The Ad Council will also be providing public service announcements and resources during the show for fighting racial injustice.</p><p>Fresh off <a href="https://dot.la/wave-virtual-concerts-2646166627.html" target="_blank">a $30 million Series B fundraise,</a> Wave has hosted over 50 events, for up to 400,000 people at a time.</p>TIkTok Reportedly Raked in $200M
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzI4MTA2NC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxMTI4NDc0M30.F2EmQwLKpL0bqpvqRnKtfsESZGRp-fL7HNtQzPApv1I/img.jpg?width=980" id="f162f" class="rm-shortcode" data-rm-shortcode-id="c9e4b7ecdb23a3681081ff2365c5e5fa" data-rm-shortcode-name="rebelmouse-image" /><p><em>The Information</em> <a href="https://www.theinformation.com/articles/tiktoks-u-s-revenues-expected-to-hit-500-million-this-year" target="_blank">reported Wednesday</a> that TikTok earned between $200 million and $300 million in revenue worldwide in 2019. The news site also said the Culver City-based social media phenomenon's 2020 revenue goals are $500 million in the U.S. alone. These figures follow <a href="https://www.bloomberg.com/news/articles/2020-05-27/bytedance-is-said-to-hit-3-billion-in-profit-as-revenue-doubles?sref=QjdS4d5U" target="_blank">a separate report from</a> <em><a href="https://www.bloomberg.com/news/articles/2020-05-27/bytedance-is-said-to-hit-3-billion-in-profit-as-revenue-doubles?sref=QjdS4d5U">Bloomberg </a></em><a href="https://www.bloomberg.com/news/articles/2020-05-27/bytedance-is-said-to-hit-3-billion-in-profit-as-revenue-doubles?sref=QjdS4d5U">last month</a> that TikTok's parent company ByteDance raked in $17 billion in 2019, and pocketed over $3 billion in profit.<br></p><p>A TikTok company spokesperson would neither confirm nor deny the figures, saying "we don't publicly share company data or revenue metrics."</p><p>In response to <em>The Information's </em>report that TikTok is considering hiring an American executive to oversee its sales team, the spokesperson said, "We are always looking at new opportunities to scale and attract great talent for our teams."</p><p>TikTok, which is <a href="https://dot.la/kevin-mayer-leaves-disney-for-tiktok-chapek-regime-moves-on-2646028687.html" target="_blank">now under the leadership of former Disney streaming executive Kevin Mayer</a>, will be participating later this month in the <a href="https://www.iab.com/events/newfronts-2020/#index-1" target="_blank">NewFronts, the digital media world's jamboree of presentations to woo advertising buyers</a>, which will be virtual this year.</p>Snap Rolls Out Pride Lenses For U.S. Regions
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQwMDU4Ni9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY0MjI1MTkyM30.4r9f-Ek_dqXAquPqNEemT4LZu26rUe-0-EhYp0Nxkjc/image.png?width=980" id="9d768" class="rm-shortcode" data-rm-shortcode-id="3e2ed82098da7c317b825f37551a1847" data-rm-shortcode-name="rebelmouse-image" />Courtesy of Snap
<p>June is Pride Month, and instead of the annual in-person festivities, <a href="https://lapride.org/" target="_blank">L.A. Pride</a> has been celebrating its 50th anniversary with a series of virtual events. Now, Snap is adding augmented reality (AR) to the mix. The Santa Monica company released five new AR lenses on Wednesday in partnership with L.A.'s <a href="https://www.pridemedia.com/" target="_blank">Pride Media</a>. The "community of storytellers, innovators and influencers" reaches over 6 million monthly unique users, which Pride says surpasses any other LGBT media brand.</p><p>The new lenses, which is Snap-speak for the digital overlays that transform a camera image, "spotlight diverse, queer-identifying changemakers advancing equity for all people in every U.S. state," according to a company statement. The release is paired with the annual "<a href="https://www.advocate.com/champions-pride" target="_blank">Champions of Pride</a>" issue from <em>The Advocate</em>, a Pride Media subsidiary publication.</p><p>A Snap spokesperson describes the five new lenses as "art gallery-style spaces" that help Snap's young-leaning users learn about LGBTQ+ and BIPOC advocates. These include "Mighty" Rebekah, a 13-year-old who successfully lobbied for an LGBTQ-inclusive school curriculum in her home state of New Jersey, and Brandon Wolf, the first survivor of the 2016 Pulse nightclub shooting in Orlando to testify before Congress.</p><p>Snap tapped five designers from its official <a href="https://lensstudio.snapchat.com/creators/" target="_blank">lens creator cohort</a> to represent five U.S. regions. Each creator has regional ties and either identifies as LGBTQ+ or an ally, the company says.</p><p>Brielle Garcia, designer of the Pacific West lens, says, "I wanted to work on a Pride lens that was not just a celebration of the past, but a celebration of our future. I hope these Lenses can be an encouragement to everyone in the LGBT community. Encouragement that people as unique as you can have success in business, politics, art, or anything you can dream of. This message is important to me because this kind of success has not always been available to us. So many amazing people have come before us to pave the way and this is a celebration of their success and a guide to what you can achieve."</p><p>Joshua Keeney, repping the Northeast, says, "The takeaways that I want people to have with this Lens is that there is incredible diversity within the LGBTQ community, that everyone can be a champion in their own way, and can bring changes to their own communities."</p>From Your Site Articles
- L.A. Tech Updates: 'Smart' Glass Gets a Boost - dot.LA ›
- Los Angeles' Tech and Startup Scene is Growing. - dot.LA ›
- Snap Stops Promoting Trump In its Discover Platform - dot.LA ›
- Snap Partners with Headspace For Meditation Tools - dot.LA ›
- Snapchat Rolls Out Pride Lenses For Every U.S. Region - dot.LA ›
Related Articles Around the Web
Read more
Show less