Apr 5, 2017

Messaging app Yik Yak on its last legs

There were several reports yesterday on the fate of Yik Yak, the flailing social messaging app that had been valued at around $400 million in 2014 by VC firms like Sequoia Capital and DCM. First by Fortune, and then by The Verge ― the latter of which mentioned that payments company Square was among the potential suitors.

Asset-light: As both stories said, this would be an acqui-hire of what likely amounts to just a small number of engineers. Nobody, including Square, has any interest in the actual Yik Yak IP.
Doublebacker: Sequoia partner Roelof Botha is on the board of Square, but the immateriality of this deal (were it to happen) makes it unlikely that it would rise to the level of a board vote. Also worth noting that Yik Yak is a reminder that even the best VCs can blow a deal in the exact same space as their greatest win, since Sequoia's partner here was WhatsApp lead Jim Goetz.
Location, location, location: The real appeal of Yik Yak for potential acqui-hirers may be getting to hire an Atlanta-based team (read: cheaper than a San Francisco-based team with the same skill set).

Go deeper

Dan Primack

Congress' $250 billion PPP injection could come too late for some businesses

Illustration: Sarah Grillo/Axios

Before the Paycheck Protection Program formally launched last Friday, we knew two things: The rollout would be rocky, and the initial $250 billion wouldn't be enough for America's small businesses.

The state of play: Banks and government officials have been working to smooth out the process, and on Thursday the Senate will vote to pump another $250 billion into the program.

Go deeper2 mins ago - Economy & Business

Rashaan Ayesh

Fauci: Social distancing could reduce coronavirus death toll to 60,000

Photo: Chip Somodevilla/Getty Images

Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, told NBC's "Today" on Thursday that he's hopeful that social-distancing measures in place across the U.S. will reduce the total number of coronavirus deaths.

Why it matters: Fauci said that while early models projected between 100,000 and 200,000 U.S. deaths from the pandemic, he now believes that number could come down to 60,000 — but he emphasized the importance of keeping social distancing in place to ensure that trend holds.

Go deeper17 mins ago - Health

Ben Geman

OPEC+ and G20 energy meetings mark zero hour for oil diplomacy

Illustration: Aïda Amer/Axios

The next two days will be pivotal for determining whether large oil-producing countries can partially stabilize an industry reeling from very low prices and the historic, coronavirus-fueled collapse in demand.

Driving the news: The OPEC+ group led by Saudi Arabia and Russia begin meeting remotely later Thursday morning to discuss production cuts, to be followed by a virtual Friday meeting among G20 energy ministers that includes the U.S.

Go deeper40 mins ago - Energy & Environment