Welcome to the Collective. Happy Labor Day to those in the USA. Today’s read includes some topics to add some fun thoughts to your conversations at the beach or your barbecue. Avoid an awkward conversation with your Uncle by talking about the Olympics, or make that conversation a bit spicy by speaking about X’s ban in Brazil. Or if you’re not at a barbecue, chart out your startup’s path to an acquihire. We’ve got you covered.

Tomorrow morning, we’ll be releasing our newest podcast with POSH Co-Founders Avante Price and Eli Taylor-Lemire. With $95 million in bookings, 2 million users, and $31 million raised, their episode is a masterclass in understanding global event culture and applying community-building strategies to marketplace creation. Get notified when the episode is released by subscribing on YouTube or following on Spotify!

— Antonio DiMeglio & Leon Li

The Blue Sky Strategy

Brazil’s Supreme Court ordered a nationwide block of X (formerly Twitter) after Elon Musk refused to comply with court directives to suspend certain accounts. The clash centers on Musk’s purported commitment to free speech versus the Brazilian judiciary’s efforts to curb disinformation and hate speech.

So what does this mean for startups in the social networking space?

1. Precedents: The X case sets a global precedent that could influence how courts handle online speech. Startups must be aware of potential legal challenges in restrictive environments.

2. Perceptions: Musk's defiance has turned him into a symbol for anti-censorship, impacting public perception. Startups must consider how their stance on such issues could affect their brand and investor relations.

3. Expansion: Expanding into markets with strict regulations requires a robust strategy. Startups should plan for legal disputes and assess the risks of operating in different jurisdictions.

The winner in the case for now? X competitor Bluesky, which announced on Friday it was seeing “all-time-highs for activity” with 500,000 new users on the platform and being the number one free iPhone app in Brazil on Saturday.

This is an incredible opportunity for Bluesky. A natural experiment of how the company can compete with a “blue sky strategy” without Twitter is in play, and we would expect this test to make or break the company’s future in the world of social media.

A Gold Medal for NBC

NBCUniversal’s strategic overhaul of its Olympic coverage, especially through its streaming platform Peacock, has yielded significant results. The Paris 2024 Olympics saw over 30 million viewers on NBC’s TV and streaming platforms and generated a record $1.2 billion in advertising revenue. This success not only solidifies NBC’s bet on live sports as a key differentiator, but also proves to potentially be the first live content model where streaming…works.

In a world where live content on streaming platforms has not yet gained a major foothold in the world of binging full pre-released Netflix series, the Olympics presented an opportunity to change the perception of formats where streaming could actually enhance content viewing capabilities.

Here are some of the ramifications we see from NBC’s Olympics coverage:

1. Enhanced Viewer Engagement: Peacock’s Olympic success engaged millions of viewers with exclusive shows and features, including Gold Zone and Snoop Dogg features. In this sense, the streaming platform allowed the company to expand its Olympic offerings. 

2. Revenue Growth Potential: All of the Olympic programs could be effectively sponsored separately, presenting NBC with a remarkable opportunity for both revenue growth and the capability to provide sponsors with the opportunity to work with shows that their brands are most suited towards. 

3. Impact Beyond the Olympics: NBC’s approach to integrating its streaming and traditional TV platforms during the Olympics sets a precedent for future sports coverage. We can only imagine the wide variety of streaming options they may utilize for their next Super Bowl, for example.

NBC Universal Media Group Chairman Mark Lazarus said that “Peacock delivered in every way that we hadn’t before” this Olympics. And we agree. This is only the beginning for the possibilities of comprehensive live coverage on streaming services.

CLASSIFIEDS: Acquihires?

Amazon’s recent hiring of Covariant’s founders and a quarter of its workforce marks yet another instance of a growing trend in the tech industry: acquihires. By securing top AI talent and licensing Covariant’s technology without a full acquisition, Amazon strategically enhances its AI and robotics capabilities while sidestepping regulatory scrutiny.

Here’s our take on why acquihires are becoming popular:

1. The Great AI Race: Acquihires allow tech giants to bring in specialized AI expertise quickly, integrating innovative minds directly into their operations without the lengthy process of a traditional acquisition.

2. Regulatory Evasion: As regulators intensify their scrutiny of Big Tech, acquihires offer a way to acquire key assets without triggering antitrust alarms. This approach enables companies to gain technological advantages while maintaining the appearance of fair competition.

3. Flexibility for Startups: For AI startups struggling with monetization, acquihires provide an exit strategy that allows them to continue operating independently while benefiting from the backing of a major corporation. This arrangement can also foster long-term partnerships that are beneficial to both parties.

The increasing popularity of acquihires reflects the evolving strategies of tech giants like Amazon, Google, and Microsoft as they navigate the complex landscape of AI innovation and regulatory challenges. By focusing on talent acquisition through creative means, these companies can continue to push the boundaries of technology while mitigating the risks associated with traditional acquisitions. As the AI arms race heats up, expect acquihires to play an even more prominent role in shaping the future of the industry.

The results of Friday’s poll? The Collective is split 50-50 on whether Apple, Nvidia, and Microsoft joining forces to back OpenAI is good or bad for tech. With the global AI landscape in flux, time will tell.

Kaleidoscope Focused: Key News

1. Chris Lehane named OpenAI head of global policy

2. US ‘Red Ventures’ program seeking to map gaps in technological innovation with China enters second phase

3. Uber invests in SoftBank-backed self-driving tech startup Wayve

4. PayPal joins group investing $15M in Brazilian payments startup Ume

5. West Point grads start Gray Line Partners, an investment firm using AI to find startups

Curated Picks: Product of the Day

SubSeaPulse SRL, a tech startup in Italy, has built an underwater communication kit for $400. Typically costing over $10,000 to make, the company used a Raspberry Pi to develop the low-cost tool set to increase accessibility in innovation in the underwater communications space.

Just Published

Tomorrow, we will be publishing our podcast with POSH Co-Founders Eli Taylor-Lemire and Avante Price. This interview is a master class in marketplace creation and the use of culture in innovation.

These two co-founders are set to be the voices of Gen Z, and you won’t want to miss how they’ve built an app with $95 million in bookings, 2 million users, and $31 million in fundraising. Subscribe to our YouTube channel or follow on Spotify to be alerted when the episode releases tomorrow morning!

Grow the Collective

Some special surprises may be in store for our first referrers! 👀

Thanks for reading! We’ll be back with the latest on big tech and startups on Wednesday. In the meantime, stay tuned on socials @CoeusCollective.