Tech Upheavals: Match Group Shake-Up, Starboard’s Bold Moves, and More

Match Group’s Potential Sale, Warburg’s Asian Expansion, and a Busy Week in Tech!

Match Rises After Starboard Takes Stake in Dating Company - Bloomberg

-Hedge fund Starboard Value has taken a stake in Match Group Inc., the owner of dating apps such as Tinder and Hinge. The activist investor plans to push for a sale of Match if a comeback effort is unsuccessful. Starboard argues that Match has underperformed despite having enviable market positions and a decline in paying customers at Tinder due to innovation. With improvements at Tinder, Match could increase its expected growth rate of approximately 6% this year. Match should also consider cutting general and administrative costs and target an adjusted operating margin of more than 40%. Starboard is urging Match to buy back shares using at least 75% of its free cash flow.

Warburg-Backed PDG Eyes Asia Data Center Expansion Fueled by AI - Bloomberg

• Princeton Digital Group plans to double the capacity of its data centers in three years to meet surging demand.

• The company is adding more than 300 employees in markets including Japan, Malaysia, Singapore, and India by the end of 2025.

From Elon Musk to David Sacks, Silicon Valley’s Trump Backers Cheer Vance as VP Pick - Bloomberg

• Donald Trump has chosen Ohio Senator and former venture capitalist JD Vance as his running mate.

• Silicon Valley investors are pleased with the decision, with Elon Musk calling it a “great choice” and David Sacks calling him an “American patriot.”

• Founders Fund partner Delian Asparouhov tweeted that it is a great opportunity for the industry to have a former tech VC in the White House with a tech-focused perspective.

• The Silicon Valley tech industry has traditionally been a liberal stronghold in California, but a Republican contingent within tech has recently become increasingly visible in Washington. - Former Democrats in tech, such as Chamath Palihapitiya and Crystal McKellar, are happy with the pick of Vance as he is a free market capitalist who believes in growth and innovation. 10-11- Vance has criticized big tech companies for their power and influence over politics and has expressed compassion for those left behind by progress. 12-13- Small tech companies have complained about the size of tech companies and the power they wield over the industry, similar to sentiments shared by smaller companies in the industry. 14-15- Thiel and Steven Horowitz have endorsed Vance’s campaign for the Senate in 2022.

Amazon Sold a Used Diaper. It Tanked a Mom-and-Pop Business - Bloomberg

• Paul and Rachelle Baron designed a washable swim diaper for their infant son that quickly became a best-selling product on Amazon

• Satisfied parents left five-star ratings and glowing feedback, elevating the diaper in search results and steering more shoppers their way

• However, a scathing review with a one-star rating was left by a shopper who found the diaper covered in poop stains

• Selling returned products as new on Amazon is a major and growing problem, according to consultants

• The Barons told Amazon repeatedly that they weren’t at fault and that the review should be taken down, but it remains on the site

• They are $600,000 in debt, including a loan secured by their home that complicates the prospect of filing for bankruptcy

• Amazon recently introduced a policy that lets sellers instruct the company not to resell any returned products

Verizon Is Exploring Selling Thousands of Towers in US - Bloomberg

• Verizon is exploring selling thousands of mobile-phone towers across the US.

• The sale could bring in more than $3 billion and is expected to draw interest from infrastructure firms and strategic buyers.

Caterpillar Factory in Mexico Draws Complaint of Labor Abuses - New York Times

• The Biden administration has declined to pursue a union complaint of labor abuses in Mexico, raising concerns about offshoring of American jobs.

• The United Automobile Workers union criticized the decision not to pursue accusations of labor violations by a Mexican subsidiary of Caterpillar, citing blacklisting as a form of retaliation against striking union members. The government’s ability to police such violations is meant to reduce the incentive for American employers to move jobs to Mexico in search of weaker labor protections.

• Caterpillar workers in Mexico face harassment and blacklisting for daring to stand up and report labor violations, according to the U.S.M.C.W.A.

To Protect Against Wildfires, Insurers Try to Change Construction Standards - New York Times

• Property insurers are trying to force changes in construction standards to protect against wildfires

• Insuring homes in some parts of the US has become a money-losing proposition for the industry due to catastrophic storms and fires

• Major insurers like State Farm, Allstate, and Farmers have pulled back from writing new policies and canceling some existing policies in California

• The Insurance Institute for Business & Home Safety (I.B.H.S.) is advocating for new standards for landscaping, fencing, and building materials to help prevent wildfires from ripping through a neighborhood

• They are staging side-by-side burn demonstrations to compare fire-resistant designs and materials with traditional structures

• This could be the biggest overhaul of building standards in more than 30 years

• After Hurricane Andrew, pressure from the insurance industry compelled homeowners and builders in Florida to switch to stronger windows and roof ties

• Insurance customers will have to do something to keep the business model going

Biden Policies Offer Benefits, but Little Political Payoff, in Pennsylvania - New York Times

• The redevelopment of an abandoned iron factory in Erie, Pa., was kick-started with funding from Biden administration programs.

• Representative Mike Kelly, a Pennsylvania Republican, has taken credit for the Ironworks Square development effort, which is the most ambitious undertaking the Erie County Redevelopment Authority has ever attempted.

• The Biden administration is struggling to take credit for infrastructure and industrial policy in Pennsylvania, despite providing real and visible benefits to blue-collar workers and local infrastructure. - The administration is often blamed for the spurt of rapid inflation that has pushed prices higher on his watch, even though inflation has been a global phenomenon since the pandemic. 10- A recent assassination attempt on former President Donald Trump at a rally in Butler County, Pa. could further influence voters in Pennsylvania. 11- A poll of likely Pennsylvania voters conducted from July 9 to 11, just before the shooting, found that 48% said they would vote for Mr. Trump in a two-way race.

China Is Holding a Major Meeting on the Economy That You Can’t Watch - New York Times

• Xi Jinping is presiding over a conclave to draft a new economic program to shake the world’s second-biggest economy out of its malaise.

• The conclave, called the Third Plenum of the Central Committee, is a stage to promote what Mr. Xi calls high-quality growth and harnessing “new quality productive forces”.

• China is building more factories to offset a shortage of workers willing to work in factories and deploy more robots and automation to offset the impact of regulatory crackdowns and a regulatory crackdown on state-owned enterprises.

• Success or failure of Xi’s plans will largely turn on whether he can win renewed confidence from the Chinese population and foreign investors who have grown disenchanted with his policies. The solar panel, electric car, and battery industries favored by the government are replacing older industries more closely tied to the real estate sector.

Burberry Replaces C.E.O. Amid ‘Disappointing’ Results - New York Times

• Burberry, Britain’s largest luxury brand, reported falling sales and suspended its dividend as it grapples with a pullback in spending by consumers on high-end fashion and related goods.- Revenue fell more than 20% in its latest quarter, which ended June 29, due to a downturn in the luxury market.

• The company named Joshua Schulman as its new chief executive, replacing Jonathan Akeroyd, who is leaving the company immediately, less than two and a half years after he was tapped to reinvent Burberry. The company is expected to report an operating loss for the first six months of its fiscal year and a lower-than-expected profit for the full year. Burberry has struggled to revitalize its brand since the departure of Christopher Bailey in 2017 to include more of the timeless, classic attributes that Burberry is known for.

• Analysts at Bernstein said the repositioning had failed, highlighting the luxury industry’s weakness and the need for stability in luxury brands like Burberry to remain successful.

Inside billionaire investor Vinod Khosla’s high-risk green tech strategy - Financial Times

• Vinod Khosla is a leading investor in the energy transition, pursuing a high-risk approach to climate tech investing.

• He believes in investing in technologies that will prove cost-competitive without relying on long-term support from subsidies or future carbon pricing moves that will push up the cost of high-emitting industrial producers.

• The Hybrit system in steel is an example of a start-up that has started producing low-carbon iron and steel at a significant premium to conventional steel, but at today’s prices. It is not scaling due to its high technical risk, but it has already found new uses in new energy sources such as aquaculture, transportation, and renewable energy sources.

• Commonwealth Fusion Systems is one of the most richly funded start-ups aiming to commercialise fusion power, which could provide vast amounts of carbon-free electricity. The company is building a prototype fusion plant in Massachusetts and expects to have it up and running by 2027. The chief executive expects to deploy conventional geothermal technology to generate more energy than traditional power sources. (

• Despite policy uncertainty and flagging valuations, some investors are still bullish about the outlook for green tech, such as Limelight Steel.

Google parent in talks to buy cyber security start-up Wiz for $23bn - Financial Times

• Alphabet is in talks to buy cyber security start-up Wiz for $23bn, the largest acquisition in the tech group’s history

• Talks are still ongoing and there is a chance the deal could fall apart due to disagreements over details

• The acquisition would be a test case for antitrust regulators and mark a further push into cyber security for Alphabet

• Wiz helps companies secure programs in the cloud and has raised $2bn from investors since its founding four years ago

Keir Starmer plans to introduce AI bill in King’s Speech - Financial Times

• Sir Keir Starmer is expected to introduce an AI bill in the King’s Speech on Wednesday

• The bill will seek to enhance legal safeguards around AI technologies and focus on large language models

• Other proposed legislation includes ousting hereditary peers from the House of Lords, empowering the Office for Budget Responsibility, and implementing worker protection reforms

• Labour will also revive the previous Conservative government’s ambition to create a register of children missing from schools and a cyber security bill

• Starmer’s AI bill marks a departure from the strategy of former prime minister Rishi Sunak, who set out voluntary agreements between the government and companies

• Regulators are concerned about the potential harms of AI technologies, including biases and harmful materials

• GB Energy will be the centrepiece of Labour’s green energy plans, with immediate action to boost the role of solar power.

Chinese EV laser maker fights back against Pentagon blacklisting - Financial Times

• Hesai, the world’s biggest producer of laser sensors used in electric vehicles, was accused by the US Congressional Research Service in May last year of supporting the Chinese military.

• In January 2021, the Pentagon added Hesai to a list of Chinese entities alleged to be part of China’s military-civil fusion programme, creating a perception of investment risk for the company.

• The company began legal proceedings by suing the Pentagon in a US court in May, alleging that the Pentagon’s behavior was arbitrary and capricious and did not provide prior notice or an opportunity to respond. The Pentagon declined to comment on the lawsuit but stated that Hesai met the definition of a “Chinese military company”.

• Congress is considering legislation that would ban the Pentagon from using products that contain Chinese-made lidar, which uses lasers to detect surrounding road conditions for advanced driver-assistance systems and robotics products.

Samsung’s ‘chip crisis’: AI ambitions hit by unprecedented worker unrest - Financial Times

• Samsung Electronics is facing a labour crisis that is hindering its efforts to catch up with rivals in the market for semiconductors used in AI systems.- Samsung is trailing behind in developing high-bandwidth memory (HBM) chips, a crucial component of AI systems, and is yet to pass tests required to qualify as an HBM supplier to Nvidia.

• The company has failed to make a dent in TSMC’s dominance of the global foundry business, despite optimism that big customers would seek to reduce their dependence on the Taiwanese chip giant.

• Workers are on an indefinite strike demanding better pay and conditions, with an estimated 6,500 members of the National Samsung Electronics Union launching an unprecedented three-day strike last week. The strike is the biggest organised labour action in the Samsung company’s history

• Samsung shares have risen about 7.5% this year, against a 65% rally for smaller domestic rival SK Hynix

• Analysts say Samsung is missing out on a big opportunity in the HBM market due to falling behind in areas identified as essential for future growth

• Employees are feeling low morale and directionless management is causing a sense of crisis at Samsung Electronics.

Google Near $23 Billion Deal for Cybersecurity Startup Wiz - Wall Street Journal

• Alphabet is in advanced talks to acquire cybersecurity startup Wiz for $23 billion, its largest acquisition ever.

• The acquisition could boost Alphabet’s efforts in cloud computing and come at a time of intense antitrust scrutiny of the search company and other tech giants

• Wiz raised $1 billion earlier this year at a valuation of $12 billion, one of only a few startups outside the artificial-intelligence industry to raise money at a higher valuation in 2024

• Tech startups are still suffering from the hangover effects of the tech boom that peaked earlier this decade

• If a deal for Wiz comes together, it would be one of the largest technology deals of late

• Alphabet has been a more conservative acquirer than some of its big-tech peers in recent years

• Google is currently awaiting a verdict in a Justice Department antitrust lawsuit over claims that it used illegal means to bolster its dominance in internet search.

Microsoft Quits OpenAI’s Board Amid Antitrust Scrutiny - Wall Street Journal

• Microsoft has resigned its observer position on the board of OpenAI, as regulators scrutinize the partnership between the tech giant and the AI startup.

• Microsoft had invested $13 billion in OpenAI in exchange for a 49% stake in its for-profit arm, which is now facing antitrust scrutiny in the US and Europe.

• The tech giant had gained a nonvoting observer position after the formation of the new board following the abrupt firing and reinstatement of Sam Altman as CEO in late last year. (

• Apple had been set to have a board observer seat after signing a partnership to put ChatGPT on its iPhones and other devices as part of a broader AI initiative called Apple Intelligence).

• OpenAI is establishing a new approach to informing and engaging key strategic partners, such as Microsoft and Apple, and will no longer have board observer seats for any partner.

Samsung Electronics Union Launches Indefinite Strike - Wall Street Journal

• Samsung Electronics unionized workers have launched an indefinite strike in South Korea.

• The union demands an extra one day of leave, an average 3.5% wage increase, and a change to an unfair bonus pay system.

For AI Giants, Smaller Is Sometimes Better - Wall Street Journal

• Tech giants and startups are using small or medium language models to make AI software cheaper, faster, and more specialized. These models are trained on less data and often designed for specific tasks. Smaller models cost less than $10 million to train and use fewer than 10 billion parameters. Microsoft, Google, and Apple have all released smaller models this year. OpenAI recently released a version of its flagship model that it says is cheaper to operate. Businesses and consumers are looking for ways to run generative AI-based technology more cheaply. Small models can answer questions for as little as one-sixth the cost of large language models in many cases. Fine-tuning small models on specific sets of data allows them to perform as effectively as large models at a fraction of the cost.

In an Era of Fakes, How to Know When Someone Online Is Real - Wall Street Journal

• Personalized schemes to dupe internet users are on the rise

• The single best step to determine someone’s identity online and protect yourself is to slow down

• Tech companies are beginning to help, with Google, LinkedIn and Bumble introducing features to detect suspicious messages and users

• Guidelines for operating online are changing, some old rules still apply

• Before transferring funds, ask for your prearranged secret word.