☕ Career update

Good morning.

One of the most senior Australians working in global tech has a career update. TikTok’s highest ranking US executive, Australian-born V Papas, is stepping down from the short form viral video site, which is owned by China’s ByteDance.

The move comes as the screws tighten on TikTok in the US. Joe Biden earlier this year threatened to ban the app in the US if ByteDance didn’t sell it.

A multi-billion dollar deal for the business brokered by the Trump administration almost happened in 2020, with Oracle and Walmart set to pay $US12bn for TikTok US. But the transaction ultimately fell apart when the keys to the White House changed hands.

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MARKET MOVERS

*Stock data as of the market close. Commodities and crypto data in USD.

Market News: Tech was the weakest performing sector on the ASX yesterday, mainly due to renewed concerns that inflation offshore will lead to higher interest rates.

TechnologyOne led the way down, falling 4.8%, albeit after touching record highs last month. But of course, tech stocks rallied on Wall Street overnight so we might well see a rebound for the sector locally today.

THE QUICK SYNC

• TikTok’s most senior US executive, Australian-born V Pappas is quitting the company (The Information | The Verge)

• The Bank of England raised UK interest rates by 50bp to 5% - their highest levels in 15 years (CNBC)

• The PWC scandal has triggered a fresh parliamentary inquiry into big four accounting partnerships (AFR)

• Elon Musk and Mark Zuckerberg have agreed to fight each other in a cage match in Las Vegas (BBC)

• Joe Biden and Indian PM Modi announced a series of tech and defence deals at the White House (Bloomberg)

TRADING FLOOR

M&A:

• Volaris is seeking to acquire up to 17.7% of EROAD's register, which was listed on both the ASX and the NZX. (AFR)

• Constellation Software has made an acquisition offer of $NZ147m ($134.5m) for EROAD. (AFR | The Australian)

• Allan Gray has been offering up its 18.7% stake in ARN Media and 16.44% in Southern Cross Media. (AFR)

• Pilbara Minerals has given Macquarie Capital the go-ahead to launch a global hunt for a new partner to build a $1bn processing plant. (AFR)

• Helloworld Travel announced the $70m acquisition of Express Travel Group. (BNA)

• Auckland Council’s sale of its shares in Auckland International Airport could attract huge interest. (The Australian)

Capital Markets:

• Ramsay Health’s high debt levels have caught the eyes of analysts, who think the company may need to raise fresh equity. (The Australian)

• EBR Systems was raising $30m to expand its sales team and inventory for commercial launch. (AFR)

• HMC Capital is understood to have raised $800m for its first Last Mile Logistics Fund. (AFR)

VC:

• Cogo, a carbon footprint management fintech, has raised NZ$1m (A$910k) from existing impact investor Soul Capital. (StartupDaily)

Others:

• Eminence Capital’s dissatisfaction with Entain’s “tone-deaf” approach to deal-making could make it challenging for local investors to get their proposals accepted. (AFR)

• Network 10 has officially pulled out of the race for the rights to the Melbourne Cup. (SMH)

• Australian investment banking fees have fallen 50% in the first half of this year compared to the same period in 2022. (The Australian)

THE WATERCOOLER