TechCrunch : Meta will let third-party apps place calls to WhatsApp and Messenge

Meta will let third-party apps place calls to WhatsApp and Messenger users — in 2027

Meta on Friday published an update on how it plans to comply with the Digital Markets Act (DMA), the European law that aims to promote competition in digital marketplaces, where the law concerns the company’s messaging apps, Messenger and WhatsApp.

As Meta notes in a blog post, the DMA requires that it provide an option in WhatsApp and Messenger to connect with interoperable third-party messaging services and apps. Meta says it’s building notifications into WhatsApp and Messenger to inform users about these third-party integrations and alert them when a newly compatible third-party messaging app comes online.


The company also says it’s introducing an onboarding flow in WhatsApp and Messenger where users can learn more about third-party chats and switch them on. From the flow, users will be able to set up a designated folder for third-party messages or, alternatively, opt for a combined inbox.

In 2025, Meta will roll out group functionality for third-party chats, and, in 2027, it’ll launch voice and video calling in accordance with the DMA.

And at some unspecified point in the future, Meta will bring “rich messaging” features for third-party chats to WhatsApp and Messenger, like reactions, direct replies, typing indicators and read receipts, the company says.

“We will keep collaborating with third-party messaging services in order to provide the safest and best experience,” Meta wrote in the post. “Users will start to see the third-party chat option when a third-party messaging service has built, tested and launched the necessary technology to make the feature a positive and secure user experience.”

The upcoming WhatsApp and Messenger interoperability features aren’t a slam dunk necessarily. As we’ve reported previously, it’s not clear whether other major messaging operators, such as Viber and Telegram, will support them. WhatsApp will require end-to-end encryption to enable interoperability, which could also present technical roadblocks. Plus, Meta requires that companies sign an agreement — the details of which haven’t been made public — to integrate with any of its systems.

Open source messaging protocol Matrix’s founder Matthew Hodgson, for one, noted in a talk this year that Matrix will work with WhatsApp, end-to-end encryption intact, “on an experimental basis.”

Meta is attempting to meet its obligations under the DMA’s messaging-related clauses, but the company has come under fire for allegedly violating other components of the legislation.

This summer, the European Commission said that Meta’s “pay or consent” ad model, which offers EU users of Facebook and Instagram a choice between a paid, ad-free experience or a free, ad-supported version, failed to comply with the DMA.

>>> S&P announces quarterly rebalancing; Palantir Tech (PLTR), Dell (DELL) and E

S&P announces quarterly rebalancing; Palantir Tech (PLTR), Dell (DELL) and Erie Indemnity (ERIE) to join S&P 500, replacing AAL, ETSY and BIO
S&P Dow Jones Indices will make the following changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective prior to the open of trading on Monday, September 23, to coincide with the quarterly rebalance. The changes ensure each index is more representative of its market capitalization range. All companies being added to the S&P 500 are more representative of the large-cap market space, all companies being added to the S&P MidCap 400 are more representative of the mid-cap market space, and all companies being added to the S&P SmallCap 600 are more representative of the small-cap market space.
  • Palantir Technologies (PLTR), Dell Technologies (DELL), and S&P MidCap 400 constituent Erie Indemnity (ERIE) will replace American Airlines (AAL), Etsy (ETSY) and Bio-Rad (BIO) in the S&P 500, respectively. American Airlines will replace TEGNA (TGNA) in the S&P MidCap 400, and TEGNA will replace Designer Brands (DBI) in the S&P SmallCap 600. Etsy will replace Haverty Furniture (HVT) in the S&P SmallCap 600. Bio-Rad Laboratories will replace Erie Indemnity in the S&P MidCap 400.
  • CNH Industrial (CNH), Western Alliance Bancorp (WAL), Parsons (PSN), Hamilton Lane (HLNE), Viper Energy (VNOM) and S&P SmallCap 600 constituent Fabrinet (FN) will replace MP Materials (MP), Progyny (PGNY), Adient (ADNT), Wolfspeed (WOLF), Helen of Troy (HELE) and Ziff Davis (ZD) in the S&P MidCap 400 respectively. MP Materials, Progyny, Adient, Wolfspeed, Helen of Troy, and Ziff Davis will replace Calavo Growers (CVGW), Enhabit (EHAB), Mercer Intl (MERC), Compass Minerals (CMP), 3D Systems (DDD), and Fabrinet in the S&P SmallCap 600 respectively.
  • Zurn Elkay Water (ZWS), Clear Secure (YOU), TG Therapeutics (TGTX), Inspire Medical (INSP), CSW Industrials (CSWI), ADMA Biologics (ADMA), and Impinj (PI) will replace Community Healthcare Trust (CHCT), Varex Imaging (VREX), Dine Brands (DIN), Nu Skin (NUS), AMC Networks (AMCX), Olympic Steel (ZEUS) and B. Riley Financial (RILY) in the S&P SmallCap 600 respectively.

>>> Weekly Market Update

September started off with a swoon as investors aggressively pruned risk assets from their portfolios to start the month. Equities, commodities, crypto, and nearly all asset classes saw outflows while US Treasury yields moved to the lowest levels in more than a year. August ISM manufacturing data disappointed, leading into a week of mostly worse-than-expected US economic readings which stoked worries about growth and the historically illusive “soft landing.” US equities sold off aggressively, giving back all the gains from the second half of August. Much of the stock selling was laid at the feet of multiple compression, the posterchild of which remained Nvidia whose stock led the way lower, down ~25% from where it was trading before earnings amid historic daily declines in market cap. The area above 5600 in the S&P, at more than 20x next year’s earnings, served as significant resistance yet again. For the week, the S&P lost 4.2%, the DJIA was off 2.9%, and the Nasdaq fell 5.8%, the tech index’s worst decline since November 2022.

WTI crude oil prices slid back to the lowest levels since June 2023 despite continued disruption from Libya supplies. The move convinced OPEC+ nations to extend the additional 2.2M bpd of voluntary cuts by two months through end of November. The Bank of Canada cut rates another 25 basis points, seeking to bolster economic growth, while PM Trudeau lost support from a key coalition partner, putting his government in jeopardy.

Wednesday’s JOLTS jobs opening release clearly supported the narrative that the time has come for the Fed to begin lowering rates. The JOLTS data missed estimates by a wide margin, falling back below 8M for just the second time this year. The ratio of openings to unemployed dipped back below a key Fed gauge. It was followed up by an ADP employment report that fell to the lowest level in three years while pay gains for those who didn’t change jobs also stayed at a 3-year low. Separately, the latest rendition of the Fed’s Beige Book revealed economic activity grew only slightly in three Districts, while the other nine Districts reported flat or declining activity, which will likely weigh on Fed officials’ minds.

Perhaps Friday’s August jobs report wasn’t as bad as feared or as the preceding data suggested, but it did offer additional signs of further deceleration in the labor market. In particular, the low establishment survey number and large negative revisions to both June and July payrolls kept the door open for more aggressive Fed action. Several FOMC officials including hawk Waller hit the tape in the wake of the data and indicated, at the very least, 50 basis point will be debated at the upcoming September 18th meeting. In the wake of the employment report, futures markets were pricing in more than 100 bps of cuts by end of 2024 and ~225 bps by September of 2025, and Wall Street banks started revising their Fed forecasts accordingly. Treasury curve normalization continued to gather momentum as well, with the US 2-year yield trading some 4 basis points below the 10-year rate during Friday’s session. Also on Friday, the Dollar/Yen exchange rate traded within 100 pips of the August 5th ‘carry trade’ low, though the VIX volatility index remained well below the highs of that same day, rising above 23.

Corporate news this week centered on a mixed bag a tech earnings. Pandemic era darling Docusign got back on track with strong quarterly results and guidance. Hewlett Packard Enterprises apparently didn’t guide strong enough, as shares slide despite a respectable top and bottom line beat. Tech names found themselves under pressure on Friday in part due to an uninspiring Q3 report from Broadcom that left more questions about the pace of the AI revolution. The broader tech sector was also weighed on this week by reports that the DOJ is ramping up activity in its antitrust case against Nvidia. In M&A news, Nippon Steel’s proposed acquisition of US Steel moved closer to falling apart on reports that the Biden Administration plans to block it on national security grounds. Elsewhere Verizon agreed to acquire Frontier Communications for $9.6B, expanding its fiber network.

MON 09-02
(IT) ITALY AUG MANUFACTURING PMI: 49.4 V 48.5E (5th month of contraction, highest since Mar)
VOW3.DE Reportedly considering closing some factories in Germany (1st time in history) - financial press
X (US) VP Kamala Harris says she is opposed to Japan's Nippon Steel buying US Steel - comments at campaign rally (update)

TUES 09-03
(AU) AUSTRALIA Q2 GDP Q/Q: 0.2% V 0.2%E; Y/Y: 1.0% V 0.9%E
(EU) ECB’s Nagel (Germany): Great wave of inflation is over; Won't commit in advance on whether to vote for September rate cut – interview
(US) AUG FINAL S&P MANUFACTURING PMI: 47.9 V 48.1E
(US) AUG ISM MANUFACTURING: 47.2 V 47.5E
NVDA Reportedly received US DOJ subpoena related to ongoing antitrust investigation - press
STZ Raises lower-end of comparable EPS guidance to $13.60-13.80 (prior: $13.50-13.80) v $13.54e, cuts enterprise sales outlook; Affirms double-digit comparable EPS growth; Sees Wine & Spirits non-cash impairment charge $1.5-2.5B
ZS Reports Q4 $0.88 v $0.69e, Rev $592.9M v $568Me

WED 09-04
(CA) BANK OF CANADA (BOC) CUTS INTEREST RATES BY 25BPS TO 4.25%; AS EXPECTED
(IL) US and Israel said to hold virtual meeting on September 3rd to discuss how to calm tensions in Lebanon - Axios (update)
(IT) ITALY AUG SERVICES PMI: 51.4 V 52.5E (8th month of expansion)
(JP) JAPAN JULY LABOR CASH EARNINGS Y/Y: 3.6% V 2.9%E
(UR) Ukraine Foreign Min Kuleba reportedly resigns - press
(UR) Andrii Sybiha to be nominated as Ukraine Foreign Min - press (update)
(US) Fed’s Daly (voter): Need to cut policy rate because inflation is falling and the economy is slowing - financial press interview
(US) Atlanta Fed GDPNow: Raises Q3 GDP forecast from 2.0%to 2.1%
(US) JULY FACTORY ORDERS: 5.0% V 4.8%E
Reportedly OPEC+ discussing delay to planned oil output hike in October – press
ASML.NL *Article in German press notes suppliers in Eindhoven region will face lower activity for the time being due to the company postponing current orders - press
DKS Reports Q2 $4.37 v $3.77e, Rev $3.47B v $3.43Be; Raises guidance
HPE Reports Q3 $0.50 v $0.46e, Rev $7.71B v $7.64Be; Raises EPS guidance
JILL Reports Q2 $1.05 v $0.94e, Rev $155M v $155Me; Cuts FY guidance

THRS 09-05
(US) Q2 FINAL NONFARM PRODUCTIVITY: 2.5% V 2.5%E; UNIT LABOR COSTS: 0.4% V 0.8%E
(US) AUG INITIAL JOBLESS CLAIMS: 227K V 230KE; CONTINUING CLAIMS: 1.838M V 1.87ME
(US) AUG ISM SERVICES INDEX: 51.5 V 51.4E
(CN) China to review anti-dumping duties over chemicals from US and EU – press
(US) WEEKLY EIA NATURAL GAS INVENTORIES: +13 BCF VS. +27 BCF TO +29 BCF INDICATED RANGE
(US) NY Fed takes $291B (prior: $337.3B) in RRP program at 5.30%; 59 participating and accepted counterparties (first drop below $300B since Aug 6-7th)
(US) AUG FINAL S&P SERVICES PMI: 55.7 V 55.0E; Confirms 19th month of expansion
OPEC+ said to agree to delay Oct output increase by 2 months - press
AVGO Reports Q3 $1.24 v $1.20e, Rev $13.1B v $12.9Be; Guides Q4 in line with consensus; Raises dividend 1%

COST Reports Aug Total SSS +7.1% y/y (ex-gas and FX) v +7.2% prior; US SSS +6.7% (ex-gas and FX) v +6.3% prior
DOCU Reports Q2 $0.97 v $0.80e, Rev $736M v $726Me; Raises outlook
HOFT Reports Q2 -$0.19 v $0.07 y/y, Rev $95.1M v $97.8M y/y
PATH Reports Q2 $0.04 v $0.03e, Rev $316.3M v $303Me; Announces $500M expansion of stock repurchase program; Raises guidance; CFO Ashi Gupta takes on addition role of COO, effective immediately
SCVL Reports Q2 $0.83 v $0.71 y/y, Rev $333M v $295M y/y; Raises guidance; Notes accelerating sales during Back-to-School season continued through Aug

FRI 09-06
(CA) CANADA AUG NET CHANGE IN EMPLOYMENT: +22.1K V +25.0KE; UNEMPLOYMENT RATE: 6.6% V 6.5%E
(US) AUG UNEMPLOYMENT RATE: 4.2% V 4.2%E
(US) AUG AVERAGE HOURLY EARNINGS M/M: 0.4% V 0.3%E; Y/Y: 3.8% V 3.7%E
(US) AUG CHANGE IN NONFARM PAYROLLS: +142K V +165KE
(US) Fed's Waller (voter, hawk): Important to start rate cuts at next meeting; If appropriate I would advocate for front loading rate cuts
(US) NY Fed takes $299.3B (prior: $291B) in RRP program at 5.30%; 57 participating and accepted counterparties (second consecutive day <$300B)
(US) NY Judge Merchan delays Trump sentencing in the hush money case until Nov 26th (after the election)
(TW) Taiwan Econ Ministry: Will follow US export controls on China's advanced technology
FAST Reports Aug net sales $652.7M, -2.3% y/y
GCO Reports Q2 -$0.83 v -$0.85 y/y, Rev $525M v $523M y/y; Notes Q3 Journeys' traffic and sales trends have accelerated further
(IT) ITALY AUG MANUFACTURING PMI: 49.4 V 48.5E (5th month of contraction, highest since Mar)
VOW3.DE Reportedly considering closing some factories in Germany (1st time in history) - financial press
X (US) VP Kamala Harris says she is opposed to Japan's Nippon Steel buying US Steel - comments at campaign rally

WSJ : Tennis Channel Ousts CEO, Citing Ties to Dr. Phil

Tennis Channel Ousts CEO, Citing Ties to Dr. Phil
As tennis world focuses on U.S. Open, network is embroiled in off-court drama

One of the biggest stories in tennis isn’t happening at the U.S. Open.

Ken Solomon, longtime chairman and chief executive of the Tennis Channel, has been relieved of his duties by parent company Sinclair Inc., people familiar with the matter said.

The shake-up won’t affect Sinclair’s plans to sell the channel, people involved in that effort said.

In communications with Solomon, Sinclair executives cited his involvement in activities not related to the Tennis Channel as cause for his departure. Specifically Sinclair took issue with Solomon’s role as a board member and an adviser for Dr. Phil McGraw’s company, Merit Street Media, as a growing distraction, the people said.

Solomon has been told his last day with the network is Sept. 9.

People close to Solomon said he has held similar outside roles during his tenure with the Tennis Channel without objection from Sinclair and received approval from the company for his role with McGraw’s company, which officially started in late 2023. People familiar with Sinclair’s thinking countered that Solomon’s role with McGraw had become more active and time-consuming than they had anticipated.

Sinclair also indicated to Solomon it wanted a commitment from him to work primarily in the Tennis Channel’s Santa Monica, Calif., offices. Solomon recently acquired property in the Dallas area. The people close to Solomon said it is a horse ranch for his wife. McGraw’s operations are also based in Dallas-Fort Worth.

While tennis has normally lagged behind other major sports, it attracts an audience of high median income that is appealing to advertisers, similar to golf. The sport is having a moment in the U.S. with Jessica Pegula in the Women’s final at the U.S. Open, and many other American players, including Emma Navarro, Frances Tiafoe and Taylor Fritz, going deep in the tournament.

The ousting of Solomon comes at an awkward time as Sinclair has been shopping the Tennis Channel for a potential sale. Maryland-based Sinclair is one of the largest owners of local television stations in the United States. It also owns several digital networks and has a stake in the YES Network, the regional sports network that carries the New York Yankees. Diamond Sports, a regional sports-network operator that is going through bankruptcy proceedings, is a subsidiary of Sinclair.

Sinclair Chairman David Smith also separately owns the Baltimore Sun newspaper.

Earlier this year Sinclair retained investment bank Moelis to shop the Tennis Channel along with a significant chunk of the company’s local television stations. Solomon has been very involved in the sales process, working closely with Moelis on presentations and meeting with potential suitors, the people familiar with the situation said. Sinclair valued the network at about $750 million in 2022.

Solomon and some senior executives on his team have stakes in the channel and stand to profit from a sale.

People close to the sales process said it is continuing and a deadline for final bids will be set in the coming weeks.

Solomon has run the channel since 2005. Sinclair acquired the Tennis Channel in 2016 from several private-equity funds for $350 million. His leadership has helped boost the global popularity of the sport.

“Ken is the Tennis Channel,” said Micky Lawler, who headed the Women’s Tennis Association for nearly a decade. Lawler also credited Solomon with embracing new platforms such as the subscription-streaming service Tennis Channel Plus and advertiser-supported streaming service T2. “He is always ahead of the curve, I just can’t imagine not having him there,” she said.

When Sinclair bought the channel it had earnings before interest, taxes, depreciation and amortization in the $15 million to $20 million range. According to material from Moelis, Tennis Channel is expected to have Ebitda of $137 million this year and revenues of $325 million.

The monthly fee Tennis Channel charges distributors is 45 cents per subscriber. Some 35 million homes in the U.S. subscribe to TV bundles that include the Tennis Channel.

Legendary player and Tennis Channel commentator Martina Navratilova said Solomon’s “level of passion is only matched by his business acumen and vision for the future.”

Sinclair has had challenges with its other businesses, including its local TV station operations. Like most broadcasters, it has suffered rating declines and greater competition for advertising from streaming services. Sinclair has been seeking to sell as many as 60 of its 185 TV stations.

Earlier this year, Sinclair also agreed to pay $495 million to settle a legal battle with Diamond Sports. Diamond had alleged that Sinclair took $1.5 billion out of the company before it filed for bankruptcy. Sinclair denied the allegations.

>>> US Close Dow -1.01% S&P -1.73% Nasdaq -2.55% Russell -1.91%

Closing Stock Market Summary
The stock market closed the first week of September on a downbeat note. The major indices registered sizable declines, settling near their lows of the session. The Dow Jones Industrial Average logged a 1.0% decline, the S&P 500 settled 1.7% lower, and the Nasdaq Composite fell 2.6%.
Participants were reacting to this morning's release of the August Employment Situation report.

Hiring activity was lighter than expected in August and there were downward revisions to July and June that left employment 86,000 lower for those months than previously reported. Also, the unemployment rate declined slightly and average hourly earnings increased a stronger than expected 0.4% month-over-month, which should be helpful for spending.

The report was weak enough to fuel more selling on this downbeat week for equities, but not weak enough to convince the market that the FOMC will cut rates by 50 basis points at the September 17-18 FOMC meeting. The fed funds futures market now sees a 29.0% probability of a 50 basis points cut this month, down from 41.0% in front of the data, according to the CME FedWatch Tool.

The negative bias also stemmed from weakness in the semiconductor space. The PHLX Semiconductor Index (SOX) dropped 4.5% after Broadcom's (AVGO 136.99, -15.82, -10.4%) relatively disappointing guidance. Other mega caps also traded lower, leading the Vanguard Mega Cap Growth ETF (MGK) to fall 2.1%.

The 10-yr note yield settled two basis points lower today, and 20 basis points lower this week, at 3.71%. The 2-yr note yield settled 10 basis points lower today, and 28 basis points lower this week, at 3.65%.

  • S&P 500: +13.4% YTD
  • Nasdaq Composite: +11.2% YTD
  • Dow Jones Industrial Average: +7.1% YTD
  • S&P Midcap 400: +5.7% YTD
  • Russell 2000: +3.2% YTD

Reviewing today's economic data:
  • August Nonfarm Payrolls 142K (consensus 165K); Prior was revised to 89K from 114K, August Nonfarm Private Payrolls 118K (consensus 142K); Prior was revised to 74K from 97K, August Avg. Hourly Earnings 0.4% (consensus 0.3%); Prior 0.2%, August Unemployment Rate 4.2% (consensus 4.2%); Prior 4.3%, August Average Workweek 34.3 (consensus 34.3); Prior 34.2
    • The key takeaway from the report is that it was not as good as hoped, but it also wasn't as bad as feared. It was a report, however, that meshes with the understanding that there is a slowdown in hiring activity that should translate into a slowdown for the economy.

Looking ahead to next week, the August Consumer Price Index will be released on Wednesday, the August Producer Price Index will be released on Thursday, and the preliminary September University of Michigan Consumer Sentiment survey will be released on Friday.

FT : Porn streamer OnlyFans paid owner $630mn in dividends

Porn streamer OnlyFans paid owner $630mn in dividends
Subscription streaming company’s payouts to ‘creators’ rise to $6.6bn

OnlyFans, the UK company that provides a subscription streaming platform for sex workers, sports stars and celebrities, has paid more than $630mn to its owner, Ukrainian-American entrepreneur Leonid Radvinsky, since the start of last year.

The company said it had paid $6.6bn to the content creators who use its platform as a means of reaching their “fans” in 2023, an increase of about $1bn from the previous year.

OnlyFans, which takes a cut of a fifth from the payments made on its platform, has become an increasingly popular way for online “creators” to offer video content directly to consumers.

The number of creator accounts grew to 4.1mn while the total number of fan accounts grew to 305mn, both an increase of almost a third on 2022.

Many of those who use the platform are sex workers, although the company says there is a wide range of content on offer from sports and music to yoga and wellness aimed directly at individual “fans”.

These fans can pay additional “tips”, or extra for on-demand paid content and private messaging, in addition to the subscription fees. All content on the platform is moderated.

In accounts filed at Companies House, UK-based Fenix International, which owns OnlyFans, said revenues grew a fifth to more than $1.3bn.

Pre-tax profits rose to $657mn from $525mn, with $472mn going to Radvinsky through dividends in 2023. However, it said since the end of the year a further $159mn had been paid to its owner.

Keily Blair, chief executive of OnlyFans, said the company “had a strong year in 2023. We have cemented our place as a leading digital entertainment company and a UK tech success story.”

OnlyFans is based in the UK where it pays corporation tax but its largest market is the US. It was founded in 2016 by British entrepreneur Tim Stokely and his father Guy but was sold in 2018 to Radvinsky, who was already an owner of adult sites.

In an interview with the Financial Times this year, Blair said: “Content creators have the freedom to create the content that they want to. We’ve got lots who don’t produce any adult content, lots who only produce adult content, and then there are some people who are in the middle.”

FT : Former VW boss Herbert Diess rejects union criticism of hybrid car strategy

Former VW boss Herbert Diess rejects union criticism of hybrid car strategy
Works council chair claims ex-CEO left company ‘empty-handed’ when it came to dual-fuel vehicles

Former Volkswagen chief Herbert Diess has pushed back against criticism over his strategy on hybrid vehicles during his tenure at Europe’s largest carmaker, arguing that public backing for the technology was too weak in Germany.

Daniela Cavallo, chair of VW’s works council, on Monday accused the former CEO, who departed in 2022, of having left the company “largely . . . empty-handed” when it came to hybrids — a technology that has grown in popularity as enthusiasm for electric cars has slowed.

“That’s not true,” Diess told the Financial Times, adding that the ailing group had an “excellent portfolio” of plug-in hybrids, including models of the Tiguan, Passat and Golf.

Of the 4mn-plus cars sold by VW Group in the first half of this year, 3 per cent were plug-in hybrids, a figure that the company said had grown by nearly a fifth from the same period last year.

Among the various hybrid technologies, carmakers are increasing investment in plug-ins, which can run for dozens of miles on electric power alone and can be charged at home.

But these vehicles remain relatively expensive since they are rely on a large battery, and sales remain bigger for full hybrids — which run on a smaller battery and are cheaper. Volkswagen sells mainly plug-in hybrids.

Plug-ins accounted for only 1 per cent of the 5mn vehicles sold by Toyota, the pioneer in hybrid technology, during the first six months of the year. But when combined with full hybrids, the segment accounted for 41 per cent for the world’s largest carmaker.

Diess said further investment would not have been possible under his tenure as the dual-power technology had at the time been “discredited in Germany by public discussion in the media and [by] some politicians”.

But he backed hybrid technology, calling it a “missed opportunity” and said it was a “better alternative than EVs both economically and ecologically”, as the extra battery capacity needed for longer-range electric vehicles was more costly and carried a larger product carbon footprint.

The former car executive, who has since become the chair of Munich-based chipmaker Infineon, said that lower-than-expected sales of electric vehicles in Germany could also be attributed to the technology not having been wholeheartedly endorsed by Berlin.

“The mixed messages around EVs really are confusing German customers,” he said, adding that the German government’s demand in 2023 that EU plans to ban combustion engines by 2035 include an exemption for “green” fuels produced using electricity from renewable hydrogen and other gases, had only served to dent demand for EVs.

Diess also criticised Berlin’s sudden withdrawal of EV subsidies at the end of last year, as well as patchy progress on the buildout of a charging network, adding that cash support and infrastructure investment had been “on and off”.

Cavallo’s remarks marked the onset of a battle at VW after Diess’s successor, Oliver Blume, this week endorsed plans to lay off workers — reneging on a three-decade old job security guarantee — and raised the unprecedented prospect of closing some German plants.

Diess found himself ousted within months of making a similar suggestion three years ago, following clashes with Cavallo. The VW’s works council controls half the seats on the company’s supervisory board and often relies on the backing of the state government of Lower Saxony — which holds 20 per cent of the voting rights in the carmaker and is a strong advocate for employment in the region.

FT : TPG in talks to buy stake in used-clothing site Vinted at €5bn valuation

TPG in talks to buy stake in used-clothing site Vinted at €5bn valuation
US private equity group’s interest highlights growing demand for second-hand goods from consumers and investors

US private equity group TPG is in talks to buy a stake in Europe’s largest second-hand fashion site Vinted at a €5bn valuation, underscoring the Lithuanian company’s rapid growth amid rising demand from younger consumers for used clothing.

TPG is in discussions to lead a deal that will see investors acquire several hundred million euros worth of existing shares in the business, according to people familiar with the matter, who cautioned that a transaction had not been finalised yet.

Founded in 2008, Vinted was last valued at €3.5bn in May 2021. It had been working with investment bankers at Morgan Stanley to explore options for its capital structure including a secondary share sale ahead of a potential stock market listing, the Financial Times previously reported.

A sale of existing shares would allow current shareholders in Vinted, including employees, to sell some of their holdings, the people said.

If the TPG-led deal is completed, an increased valuation for Vinted would be remarkable against a backdrop of turbulent venture capital markets that have seen a slowdown since the pandemic-fuelled boom of 2021 and 2022.

But it would underscore the huge increase in interest in second-hand goods from consumers and investors alike, as big brands from H&M and Ikea to Zara and Lego explore the space.

Vilnius-based Vinted recently posted its first annual profit alongside surging sales, becoming the first online platform for second-hand fashion to break even as others such as Depop and ThredUp have struggled to make money.

Vinted made a net profit of €18mn last year versus a loss of €20mn in 2022. Sales increased by 61 per cent to €596mn.

The company, which is present in countries from the US and UK to France, Germany and Italy, has been positioning itself as Europe’s leading player in the sustainable fashion market. It started in Denmark, Finland and Romania last year.

TPG is one of the largest private equity groups with $229bn of assets under management. The investment group has previously backed consumer companies such as India’s Reliance Retail and Neiman Marcus.

Vinted is aiming to move beyond simply being a marketplace and wants to improve logistics for delivering goods between consumers through offering other services such as Vinted Go, a shipping service that has its own lockers for customers to deliver and collect clothes.

The company has previously been backed by investors including EQT, Accel, Burda Principal Investments, Insight Partners, Lightspeed and Sprints.

TPG, Vinted and Morgan Stanley declined to comment.

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