5 things to know today …
1. An “over-the-top” messaging app has become 2016’s biggest technology IPO. Japanese messaging app Line this week launched its initial public offering in New York and Tokyo and saw its value soar to $8.6 billion.
Line has 218 million global monthly active users, many of whom are in developed economies in Southeast Asia. Line’s chief competitors are considered WeChat – the most popular messaging app in China – Facebook’s Messenger and WhatsApp, also owned by Facebook, which dominates with more than 1 billion global users.
2. Advertising executives are reportedly pulling for Verizon Communications in the contest to purchase all or part of Yahoo. According to The New York Post, Madison Avenue sees an AOL-Yahoo combination as a digital platform advertisers would value almost as much as Google and Facebook. (Verizon has owned AOL for more than a year now.)
The report also says Verizon is the only strategic bidder still in the race. The other contenders are said to be private equity group TPG Capital and investor Dan Gilbert, backed by Warren Buffett.
3. The U.S. government is making a coordinated effort to advance “5G” research and deployments. The Federal Communications Commission this week voted to make high-band spectrum available for next-generation wireless networks, and today the White House announced $400 million in funding for research and development to be deployed in testing platforms developed in partnership with 20 wireless companies and industry associations.
According to analyst Craig Moffett of MoffettNathanson, carriers could end up spending almost as much on the high-band spectrum as they are expected to spend on the 600 MHz spectrum the FCC is transferring from broadcasters to wireless carriers. This is because of the large volume of spectrum the FCC is releasing in the upper bands.
4. Nokia said it has expanded its cross-licensing agreement with Samsung, meaning each company will be able to license more patents from the other. The deal builds upon an initial agreement the two companies announced in February.
“Earlier this year, investors and management were disappointed with Nokia’s licensing settlement with Samsung … so the incremental, high margin revenue comes as good news,” said analyst Simon Leopold of Raymond James.
5. Wireless carriers are eager to align themselves with the Pokemon Go game. Sprint said starting this weekend its “stores will have lures to attract monsters that players can capture.” The marketing move aligns perfectly with Sprint’s goal of increasing retail traffic as it works to replace T-Mobile US as the nation’s No. 3 carrier.
T-Mobile US, for its part, is tying Pokemon Go to its T-Mobile Tuesdays promotion. Starting this Tuesday, T-Mobile US plans to zero-rate data used by its customers for the augmented-reality game.
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