Meta’s Facebook Ends 🔚 Funding 💰 For US 🇺🇸 News Partnerships Program

Hi there 👋. This is a daily newsletter that covers the top business, tech and finance stories for today.

Here’s whats happening:

  • Facebook stops funding US news partnerships program
  • JetBlue to buy Spirit Airlines
  • Solana-based stablecoin NIRV suffers flash loan attack
  • Stadium Live gets $10 million in funding
  • Instagram Rolls Back Some Changes To Its App

Meta’s Facebook Ends 🔚 Funding 💰 For US 🇺🇸 News Partnerships Program

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Meta says it will no longer pay US news organizations to have their material appear in Facebook’s News Tab.

This move from the company comes as it looks to reallocate resources in the wake of economic uncertainty and changing user behavior.

Why does this matter?

Facebook’s decision impacts $100 million worth of deals with news publishers.

“Things just went from news you can use to the news you can lose.”

The timeline:

  • Meta (formerly Facebook) launched Facebook News in 2019.
  • News feed partnerships were struck as a way of compensating media organizations for their featured content on the social network.
  • The company reportedly spent about $105 million in three-year content deals for news (plus $90 million for news videos) for large outlets such as The WSJ, and NY Times, among others.

Here’s what Facebook said: “Most people do not come to Facebook for news, and as a business, it doesn’t make sense to over-invest in areas that don’t align with user preferences. US publishers can keep publishing to the news tab for free, of course.”

JetBlue Airways to Buy Spirit Airlines ✈

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Spirit Airlines is ready to take off again.

The agreement: JetBlue to acquire Spirit Airlines for $3.8 billion.

Let’s recap

  • Spirit Airlines terminated its merger agreement with Frontier Group Holdings, Inc. on July 27 after announcing merger plans in February 2022.
  • Jetblue Airways Corporation had earlier offered an all-cash offer in April.
  • The merger deal was announced after Spirit and Frontier ended their merger agreement.

So, what? JetBlue’s takeover of Spirit would create the country’s fifth-largest airline.

The deal has still to be approved by shareholders & regulators. If approved, it would also be the first major U.S. airline deal since 2016, when Alaska Airlines beat out JetBlue for Virgin America.

The best part: JetBlue will pay $33.50 a share in cash for Spirit, including a $2.50 per share prepayment if Spirit shareholders approve the deal.

The cherry on top? JetBlue will also pay a $0.10 per month ticking fee starting January 2023 until the deal closes.

Solana-Based Nirvana Loses $3.5M to Flash Loan Exploit 🚨

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Today — some bad news came out. Solana-based DeFi protocol, Nirvana Finance lost $3.5 million to a flash loan attack.

What’s even worse? The attack resulted in Nirvana’s native token ANA losing 85% of its value. The token’s price fell from $8.97 to as low as $0.81 within hours of the attack.

What did the hacker do?

The hacker borrowed $10M USDC from the main pool vault using flash loans by Solend Protocol. Next, the hacker minted $10 million worth of $ANA using the funds borrowed from Solend.

This way, the hacker stole $3.5 million from the Nirvana treasury, repaid the USDC loan, and then moved the stolen funds to an Ethereum wallet converting it to DAI stablecoin.

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Is Nirvana doing something?

The Nirvana team is now offering the hacker a whitehat bounty of $300,000 and a “cessation” of the investigation into their identity. Till now, the firm said that the hacker’s wallet tied to a centralized exchange has been flagged.

Digital Social Gaming Platform Raises $10 Million In Funding 🚨

Who got the money?

Stadium Live — the leading platform for Gen Z sports fans.

Who led the funding round?

KB Partners and Union Square Ventures led the funding round.

The round also saw participation from Kevin Durant’s 35 Ventures, Blaise Matuidi’s Origins Fund, Dapper Labs Ventures, Alumni Ventures, Position Ventures, Valhalla Ventures, 6th Man Ventures, and Breakout Capital.

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About Stadium Live Studios

Founded in 2020, Stadium Live wants to revolutionize the sports industry by building a digital playground for millions of next-gen sports fans to play, hang out, and express themselves.

Stadium Live platform allows users to create a custom avatar, collect unique items, chat & make friends with other sports fans, and participate in sports-focused gameplay & live streams to earn coins and level up their avatar.

What will they do with the money?

The startup plans to use engineering and product resources to drive more features to help retain and monetize it.

Anything else? Stadium Live also launched its app’s Android version in October or November 2022.

Instagram Rolls Back Some Changes To Its App 🔙

But why? 🤔 They experienced strong criticism from users, including Kylie Jenner and Kim Kardashian

What’s the deal? Instagram has decided to roll back some recent changes to the product, including a full-screen home feed, and temporarily reduce recommended posts.

That’s a wrap for today, ladies & gents. See ya tomorrow!


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