🎮 Angry Birds’ new nest
Hey Snackers,
The humanization of America’s fur babies continues. Coming soon: an AI dog sitter. Companion says its smart device can train, entertain, and feed your pooch. It also monitors movement for any signs of anxiety or stress. Because Fluffy’s life is so ruff.
Stocks ticked up yesterday after a better-than-feared kickoff to earnings season. It’s still early, but most S&P 500 companies that’ve reported so far crushed estimates.
Sega buys Angry Birds for $776M as OG game makers go big on mobile franchises
New nest, who dis… Rovio, the company behind viral bird-chucking game Angry Birds, yesterday agreed to be bought by Sega for about $776M. Sega is the legendary Japanese console and game maker behind franchises like Sonic the Hedgehog. Now it wants to take its IP to the small screen by tapping Rovio's mobile-game expertise and iconic franchise.
- Good egg: Angry Birds, launched in 2009, apparently became the first mobile game to be downloaded 1B times. Since then, it's been spun off into movies, cartoons, and more.
- Your Angry Bird is waiting… Sega can leverage Rovio’s “live service” strategy, which uses frequent game updates to keep players coming back (think: notifications). And Rovio can use Sega to expand to non-mobile platforms.
Mobile-gaming madness… The pandemic sparked a surge in scrolly-tappy gaming as couch-bound players splurged on extras like custom avatars and power-ups. Mobile-gaming revenue (finally) cooled 6% in the first quarter of last year, but was still up nearly 30% from prepandemic level. Now old-school gaming companies want in:
- Sweet deals: Last year Take-Two bought Farmville maker Zynga for a whopping $12.7B. And in 2019 Activision snatched up Candy Crush parent King for nearly $6B.
- Palm-sized: Nintendo has already made billions from dropping smartphone versions of its popular console brands (think: Pokémon GO and Mario Kart Tour).
Small screens can turn into big hits… Sega predicts that by 2026 mobile games will make up 56% of the global gaming market (up from 53% last year). By snatching up smaller companies with franchise buzz, companies like Sega can also cash in on franchises (like movies, shows, and toys). This month, Nintendo’s “Super Mario Bros. Movie” became the highest-grossing video-game flick of all time.
Google’s taking a tortoise-and-hare approach to the AI-powered search race
AI of the tiger… Google, in a (sort of) cautious sprint to maintain its search dominance, is planning to launch a batch of AI-powered search features, The New York Times reported. The botty features (codename: “Magi”) are set to be rolled out to 1M US users next month — and 30M by year’s end. Google’s testing the waters for its broader plan to launch a brand-new engine:
- New-gle: There’s no ETA for Google’s AI-powered search engine, but it would reportedly be more conversational and personalized, and anticipate what users want to see based on past searches.
- Slew-gle: Google’s working on slew of other AI projects, including a tool to generate images in Google Image results, a language-learning chatbot called Tivoli Tutor, and a Chrome assistant called Searchalong.
Bot anxiety… The AI race poses a serious threat to Google’s $162B search business, and rivals like Microsoft's Bing chatbot apparently have the company panicking. News that Samsung might make Bing the default search engine on its devices — a potential $3B loss in revenue — sent Google stock sliding as much as 4% yesterday. A similar Apple contract, worth $20B, is up for renewal this year. Losing its default status on devices like iPhones and Galaxy phones would be devastating for Google.
It’s hard to stop midrace… Hurtling ahead to keep up with the AI pack, Google says it’s trying to move rapidly, safely, and ethically all at once — a tough needle to thread. In a “60 Minutes” interview on Sunday, CEO Sundar Pichai warned against rushing out AI products without regulation. But that might be hard to do with competitors bolting ahead.
The SEC hit Bittrex with charges as the crypto exchange was packing its bags to leave the US
A tricky Bittr-exit… SEC regulators yesterday accused Bittrex of violating federal securities laws, saying the crypto exchange sold securities (and therefore should’ve registered with the commission). The Seattle biz was already planning to cease US operations by month’s end, and had pointed a finger at regulators as a key factor driving its exod-US. Bittrex said it would "vigorously defend" itself against the charges.
Not the first, probably not the last… Bittrex joins a growing list of crypto companies targeted by US regulators after FTX's collapse. Last month the SEC reportedly told Coinbase it was considering legal action, and the CFTC sued Binance. Earlier this year, Kraken axed its staking program for US customers and paid $30M to settle claims that it failed to register with the SEC. Meanwhile, the SEC continues to hire more lawyers for its crypto-enforcement unit.
Leaving the court doesn't end the game… Bittrex's planned US exit didn't stop regulators' pursuit, and any crypto company considering relocating still risks litigation for past actions. Now both companies and lawmakers are seeking clearer crypto rules. But crypto-focused bills that would’ve provided added regulatory clarity stalled last year. In their place, the rules might be set by a tangled string of lawsuits and court cases.
What else we’re Snackin’
- iCash: Apple launched a 4.15% APY savings account for Apple Card users in partnership with Goldman Sachs. As interest rates keep rising, companies are offering high yields to lure cash from checking accounts.
- Flop: Netflix apologized to “Love Is Blind” fans after a much-hyped livestream for the dating show’s reunion didn’t happen as scheduled on Sunday. Netflix ended up releasing a recorded episode (not live).
- Vax: Moderna shares fell 8% despite promising data from its cancer-vaccine trial, which combines an mRNA vax with Merck's Keytruda drug. The companies said the risk of melanoma recurrence dropped significantly.
- Knot: David’s Bridal filed for bankruptcy and said it would shutter all its stores if it didn’t find a buyer. America’s largest bridal retailer has struggled since the pandemic canceled #wedding-szn (weddings still haven’t rebounded).
- McMakeover: McDonald's is giving its signature burgers an upgrade. Picture: softer buns, gooier cheese, and more sauce. McD’s found that premiumization tweaks (like fresh beef) can be big sales boosters.
Tuesday
- Tax Day
- Earnings expected from United Airlines, Bank of America, BNY Mellon, Johnson & Johnson, Goldman Sachs, and Lockheed Martin
Authors of this Snacks own shares: of Apple, Google, Microsoft, and Moderna
ID: 2851312