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  • 📈 Google Break-Up? US Ponders Bold Move!

📈 Google Break-Up? US Ponders Bold Move!

BioNTech Bags £129m for UK R&D

October 09, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Google Break-Up? US Ponders Bold Move!

  • BioNTech Bags £129m for UK R&D

  • 90% Workforce Chop: Zapp’s Recipe for Survival!

The summary: The US is eyeing a potential Google shake-up, which could spell more competition in tech and give consumers a break from the usual suspects, with Meta, Apple, and Amazon also feeling the heat!

The details:

  • The US government is toying with the idea of breaking up Google to tackle its alleged internet search monopoly, a move that could shake up tech giants’ business models.

  • Google’s response? A stern warning that this could backfire on US businesses and consumers, but hey, they would say that, wouldn't they?

  • The Department of Justice is due to serve Google its proposals by 20th November, with Google replying by Christmas – festive cheer may be in short supply.

  • Following an August court ruling that Google maintained its dominance through shady tactics, the heat is on – and it’s not just Google in the firing line, with Meta, Amazon, and Apple under similar scrutiny.

Why it matters: If Google gets chopped up, it could rewrite the rulebook for how tech giants operate, loosening their stranglehold on the market. For the average Joe, it might mean less Google in your face but more choice – or just a mess of alternatives. Either way, the tech titans are feeling the squeeze, and it’s not just Google dodging the slings and arrows – Meta, Apple, and Amazon are bracing themselves too.

The summary: The UK’s splashing £129m to tempt BioNTech into a £1 billion investment, bringing top-tier R&D, AI innovation, and 460 new jobs to boost Britain’s life sciences game!

The details:

  • The UK is about to splash £129m on BioNTech, but first, the competition watchdog, CMA, will give it the once-over to make sure it’s all above board.

  • The grant aims to sweeten the deal for BioNTech to invest £1 billion in the UK, creating 460 jobs and expanding its work in R&D, AI, and cancer treatments.

  • BioNTech's ambitious plans include a Cambridge centre for drug development and a London AI hub led by its InstaDeep subsidiary—no small potatoes!

  • According to the government, this investment will fix pesky market failures, boost life sciences R&D, and give the UK economy a much-needed shot in the arm.

Why it matters: The UK is dangling a hefty cheque to lure in BioNTech, aiming to boost cutting-edge science and AI right on British soil—jobs and innovation, anyone? With a billion-pound investment on the table, it's a power move to keep the UK at the forefront of life sciences and cancer research. And let's be honest, who doesn’t love a bit of clever subsidy to get big names to set up shop?

The summary: Zapp’s bold workforce cuts and strategic shift to target affluent Londoners show their determination to thrive in the challenging grocery delivery landscape, proving that a little savvy and a focus on premium shoppers might just keep them in the game!

The details:

  • Zapp’s great trim-down: 90% of its workforce gone in 2023 as the rapid grocery delivery game proves tough.

  • From red to... slightly less red: Pre-tax losses slashed from £91.9m to £23m, thanks mainly to ruthless cost-cutting.

  • London calling: Zapp ditched international markets, now laser-focused on London’s wealthy areas and premium shoppers.

  • Profits on the horizon? Despite progress, Zapp might still need a top-up if the financial winds blow the wrong way.

Why it matters: Zapp’s massive cost cuts and exit from international markets highlight just how brutal the rapid grocery delivery race has become. By slimming down and homing in on wealthy Londoners, they’re betting premium shoppers can save their bacon. But with potential financial storms ahead, Zapp might still need a bit more than just a posh postcode to stay afloat.