FTI Consulting News Bytes – 22 November 2024

FTI Consulting News Bytes

This week, we start by looking at the rapid rise of Bluesky. The platform hit a significant milestone of 20 million users as people continue to migrate away from X following Donald Trump’s re-election and Elon Musk’s government appointment. Next, we discuss threats from the US Department of Justice to impose the sale of Google Chrome, following a US court ruling that the company had been operating an online search monopoly. Elsewhere, TEKEVER announced announced its Series B fundraise of $74 million led by Baillie Gifford and backed by the NATO Innovation Fund, while multiple bids have flooded in for TV ratings data business Kantar Media, reported to be worth £1 billion. Finally, University of Edinburgh professor Mark Parsons has warned that the UK is at risk of “stifling science and innovation” and falling behind rivals after an £800 million exascale supercomputer project was cancelled by the Labour government.

This week’s news

Bluesky rapidly picking up the pace 

X rival Bluesky reached another significant milestone this week, surpassing 20 million users. According to SimilarWeb, the platform has been growing at a rate of over 1 million new users per day since Donald Trump’s re-election and Elon Musk’s government appointment. With its focus on privacy, customizable algorithms, and a straightforward user interface reminiscent of the old Twitter, Bluesky has become an appealing alternative for those seeking refuge from the direction X/Twitter appears to be heading, The Times reports. While the platform has yet to attract many consumer-facing companies or major corporations, prominent media outlets such as Bloomberg, The Washington Post, Financial Times, and The Guardian have established a presence, supported by activity from their reporters and broadcasters.

US Department of Justice threatens to impose Google Chrome sale

Bloomberg reports Google’s Chrome browser could be sold following calls from the US Department of Justice to overhaul Google’s structure and dominance on internet search. In light of a US court ruling which found the company had been operating an online search monopoly, rumours this week spread that US judge Amit Mehta could impose remedies which include breaking up Google and the sale of their search engine. Google executive Lee-Anne Mulholland expressed his frustration, stating, “[the remedy] would harm consumers, developers and American technological leadership at precisely the moment it is most needed.” According to Bloomberg Intelligence analyst Mandeep Singh, should a sale proceed, Chrome would be worth “at least $15-$20 billion, given it has over 3 billion monthly active users.” Court papers filed on Wednesday night confirmed the proposals which also included a prohibition on Google buying or investing in any search rivals, query-based AI products or advertising technology.

Tekever raises $74 million to expand drone technology

TEKEVER this week announced its Series B fundraise of $74 million led by Baillie Gifford and backed by the NATO Innovation Fund. TechCrunch reported that the leading drone startup would direct the funding towards expanding their global production, particularly in the US. Other investors included the U.K.’s National Security Strategic Investment Fund and Crescent Cove Advisors (based in Silicon Valley) and existing investors Iberis Semper and Cedrus Capital. In response to the announcement CEO Ricardo Mendes stated, “For our Series B, more than investment, we wanted to find partners that shared these beliefs and could help us execute on our vision.” He also noted in remarks to Bloomberg that Europe needed to step up to the plate more, highlighting “We have the war in Ukraine on our borders and [Europe is] lagging behind in terms of technological growth.”

Kantar: Private equity groups circle media research firm

According to The Sunday Times, TV ratings data business Kantar Media has received a host of bids from private equity firms, including Kurt Geiger owner Cinven and London-based Triton Partners. The deal for the company, which provides comprehensive analyses across various media platforms, including print, radio, internet, cinema, mobile, social and outdoor media, is reported to be worth £1 billion. The auction of Kantar Media is expected to lead to a multibillion-pound sale of the wider market research company, Kantar Group, which is owned jointly by advertising giant WPP Group and Bain Capital, who is leading the sales process.

UK will fall behind supercomputer rivals, head of axed £800mn project warns

Mark Parsons, a supercomputing professor at Edinburgh University, has warned that the UK risks “stifling science and innovation” after an £800 million exascale supercomputer project was cancelled by the Labour government. He told the Financial Times that it would be a “disaster” for the UK if the project was not started back up, warning “we can’t be a country the scale of Britain without a supercomputer.” Parsons’s warning comes as figures revealed that the UK’s “most powerful computer” has been overtaken by rivals, signalling a potential setback for the UK’s AI development as the country no longer has a machine ranked in the world’s top 50 most powerful computers. Numerous UK-based researchers and tech executives had been hoping for a commitment to supercomputing funding in Labour’s Autumn Budget, which ultimately did not happen, as pressure mounts to enhance the UK’s supercomputing abilities.  

Top Tweets of the Week 

• Press Gazette: Guardian and Observer journalists have agreed to a 48-hour strike in protest at the planned sale of The Observer to Tortoise Media. The strike will take place in two weeks, with a second potentially to follow.
• Zoe Kleinman, Technology Editor at BBC: I bet Amazon would be interested in buying Chrome. https://t.co/NpQNF0w3ez
• Alex Wickham, Political Editor at Bloomberg: Exclusive: Brazilian fintech company Nubank is considering plans to shift its legal base to the UK. Would be a big win for Britain’s push to encourage more tech firms to move here. Move was discussed at the G20. With @DanCancel @annairrera https://t.co/UIjF9IwcrH

Number of the week

109% – Nvidia’s profit jump following its third-quarter performance (Daily Mail)