☕️ New Threads

The Zuckerberg v Musk rivalry just went up a notch

July 07, 2023

Good morning.

In the space of just 24 hours, 30 million people around the world downloaded Threads, the new Twitter style app from Meta, the Mark Zuckerberg-led company that used to be known as Facebook. That’s a fairly phenomenal outcome for Zuck and Co, and one that adds further spice to his brewing rivalry with Twitter’s owner Elon Musk.

Clearly, many Twitter users have been crying out for an alternative to the bird site after Musk bought the platform for US$44bn and introduced a series of a erratic product changes. And after many false starts (Mastodon, BlueSky, Post) we now appear to have an unambiguous leader in that race.

Threads’ strong start out of the blocks is a remarkable on a few different levels. The app is not even available in Europe. And not long ago Zuck was considered the ultimate villain in big tech due to Facebook’s repeated privacy and misinformation problems (and how long before they become an issue at Threads?). Now, while it would be a stretch to say Zuck is being cast as a hero, he certainly seems to have surrendered the villain role to Musk.

Expect sparks to fly between the two for a while now, whether the cage match happens or not.

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MARKET MOVERS

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

Market News: Global funds manager Magellan was one of the worst performers on a weak day for the broader Aussie market.

The stock was hit after the company said it shed a further $2.1 billion in funds under management. Magellan has been beset by management turmoil and poor performance, and it clearly hasn’t turned the corner yet.

THE QUICK SYNC

  • Meta’s Threads passed 30 million downloads in less than 24 hours. (TechCrunch)

    • Twitter has accused Meta of stealing trade secrets for its new Threads app. (CNBC)

  • Red hot jobs data in the US sparked fears of more rate increases and sent the Dow tumbling. (CNN)

  • The CFA Level II exam pass rate hit 52% - way above its historical average. (Bloomberg)

  • Uber, Facebook used PwC schemes to sidestep Australia’s multi-national tax crackdown. (AFR)

TRADING FLOOR

M&A:

  • Birch & Waite Foods acquired Queensland’s Epicurean Foods. (AFR)

  • The NSW arm of Red Rich Fruits has entered into a binding term-sheet agreement with Batlow Fruit and its majority owner Ausfarm Fresh Horticulture. (AFR)

  • American Equity Investment Life Holding accepted a $6.5bn cash and stock takeover bid from a Brookfield arm. (AFR)

  • Crescent Capital shortlists bidders for 24-7. (The Australian)

  • Intermediate Capital Group is among Pan-Asian private equity firms lining up for Aurora Healthcare. (The Australian)

  • Ampol is understood to have hired investment bank UBS for a tilt at its $2bn rival 7-Eleven. (The Australian)

     

Capital Markets:

  • Guardian Childcare and Education is wrapping up its first round of investor presentations and handing out fliers. (AFR)

  • Public Hospitality Group orders a $300m refi via KPMG. (AFR)

  • More Australian-listed real estate groups are considering convertible bond offerings. (The Australian)

VC:

Others:

  • Philip Tauberman is revealed as the mystery trader in Openmarkets’ $4.5m ASIC fine. (AFR)

    • Markets Disciplinary Panel has handed down a record fine of $4.5m to Openmarkets. (BNA)

  • Meta has launched Threads, its long-awaited alternative to Twitter. (SMH)

THE WATERCOOLER