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North Korea skirts US sanctions by secretly selling software around the globe

Fake social media profiles are useful for more than just sowing political discord among foreign adversaries, as it turns out. A group linked to the North Korean government has been able to duck existing sanctions on the country by concealing its true identity and developing software for clients abroad.

This week, the US Treasury issued sanctions against two tech companies accused of running cash-generating front operations for North Korea: Yanbian Silverstar Network Technology or “China Silver Star,” based near Shenyang, China, and a Russian sister company called Volasys Silver Star. The Treasury also sanctioned China Silver Star’s North Korean CEO Jong Song Hwa.

“These actions are intended to stop the flow of illicit revenue to North Korea from overseas information technology workers disguising their true identities and hiding behind front companies, aliases, and third-party nationals,” Treasury Secretary Steven Mnuchin said of the sanctions.

As the Wall Street Journal reported in a follow-up story, North Korean operatives advertised with Facebook and LinkedIn profiles, solicited business with Freelance.com and Upwork, crafted software using Github, communicated over Slack and accepted compensation with Paypal. The country appears to be encountering little resistance putting tech platforms built by US companies to work building software including “mobile games, apps, [and] bots” for unwitting clients abroad.

US Treasury sanctions North Korea over Sony hack and WannaCry attack

The US Treasury issued its first warnings of secret North Korean software development scheme in July, though did not provide many details at the time. The Wall Street Journal was able to identify “tens of thousands” of dollars stemming from the Chinese front company, though that’s only a representative sample. The company worked as a middleman, contracting its work out to software developers around the globe and then denying payment for their services.

Facebook suspended many suspicious accounts linked to the scheme after they were identified by the Wall Street Journal, including one for “Everyday-Dude.com”:

“A Facebook page for Everyday-Dude.com, showing packages with hundreds of programs, was taken down minutes later as a reporter was viewing it. Pages of some of the account’s more than 1,000 Facebook friends also subsequently disappeared…

“[Facebook] suspended numerous North Korea-linked accounts identified by the Journal, including one that Facebook said appeared not to belong to a real person. After it closed that account, another profile, with identical friends and photos, soon popped up.”

Linkedin and Upwork similarly removed accounts linked to the North Korean operations.

Beyond the consequences for international relations, software surreptitiously sold by the North Korean government poses considerable security risks. According to the Treasury, the North Korean government makes money off of a “range of IT services and products abroad” including “website and app development, security software, and biometric identification software that have military and law enforcement applications.” For companies unwittingly buying North Korea-made software, the potential for malware that could give the isolated nation eyes and ears beyond its borders is high, particularly given that the country has already demonstrated its offensive cyber capabilities.

Between that and sanctions against doing business with the country, Mnuchin urges the information technology industry and other businesses to exercise awareness of the ongoing scheme to avoid accidentally contracting with North Korea on tech-related projects.


Source: Tech Crunch

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Twitch updates security for its TwitchCon event following the Jacksonville esports shooting

Twitch is today announcing changes to its security procedures for its TwitchCon event taking place in San Jose, California on Saturday, October 27th. The update follows news of the tragic shooting at an esports event in Jacksonville, Florida last month where three people died, including the shooter, and 11 were injured. Twitch said it would review its procedures as a result, and would soon have more information about what it’s doing to keep attendees safe.

Today, the company shared those plans.

According to Twitch, it’s working with San Jose’s local law enforcement, convention staff, and additional security services on the event.

The conference will include bag searches and screenings at designated entrance points, and attendees will be limited to carrying just one bag.

The bag can be no larger than 12” x 15” x 6”, the company says.

Backpacks, luggage, large bags and bulky clothing will not be allowed. In addition, backpacks acquired at the show – even those that are Twitch-branded – will not be eligible for re-entry. There will be an on-site bag check available, but the company suggests that larger bags are just left at home as space will be limited.

It says small fanny packs or clear bags will help attendees move through the security checkpoints faster.

Meanwhile, exhibitors will only be able to hand carry their products and display materials in oversized bags and rollers before 8 AM on show days – that way there won’t be a way for people to bring in large bags when the event is underway.

Press will also have to wear their press badges, and crew that needs to carry their large camera equipments will needed to be approved.

Of course, the event has a no weapons policy as well, and anyone in violation will be removed without refund.

Badges must be worn at all times, and an ID or passport needs to be on hand, as well.

At first glance, the updated procedures don’t seem remarkably different from Twitch’s earlier policies.

The company’s security plan before Jacksonville had also included bag searches, walkthrough or hand-held scanners, the use of uniformed guards, ID checks, and the wearing of badges.

The biggest on-record change appears to be the backpack ban.

However, we understand the reference to Twitch’s closer work with law enforcement services and the “additional security services” is a reference to other changes that may not have been fully detailed. (We’d guess this is likely because Twitch doesn’t want to provide too much information to anyone trying to workaround its security procedures.)

The annual TwitchCon event brings together the Twitch community to play games, watch live esports, participate in hackathons and cosplay contests, attend sessions, and hear from the company about what’s next for the live game-streaming service.

Last fall, for example, Twitch unveiled a new set of tools at TwitchCon that would allow creators to make money from their online channels.

However, the events in Jacksonville have had many of TwitchCon’s regular attendees concerned about event safety.

After all, the video game competition, taking place at the GLHF Game Bar in Jacksonville, Florida, had been live-streamed on Twitch when the shooting happened. Would a copycat try to get into Twitch’s conference?, some have wondered.

According to reports, the Florida shooter had been upset about losing two games of Madden earlier in the tournament, even refusing to shake hands with the winner after one game. Despite a history of mental illness, the shooter had been able to legally acquire his weapons. It wasn’t clear how he got them into the Jacksonville bar.

Sadly, mass shootings in the U.S. have now taken place at schools, movie theaters, churches, concerts, workplaces – even at YouTube –  and elsewhere. But they had not yet before occurred at an esports event.

The tragic event brought attention on the esports industry as a whole, which still sits somewhere outside of mainstream attention, despite Twitch having over 2 million broadcasters and 15 million viewers who tune in daily to watch.

 

Shortly after the tragedy, Twitch said it would make changes.

“Security at TwitchCon is our top priority and is something we take very seriously at all our events,” the company told TechCrunch in August. “We regularly review and iterate on our policies and approach in order to provide a safe and positive experience for staff, attendees, and exhibitors. In the wake of yesterday’s tragedy we will be re-reviewing our plans and updating them accordingly,” a spokesperson had said at the time.

The updated plans for TwitchCon are detailed on Twitch’s blog.

Image credit: Twitch

 


Source: Tech Crunch

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UK warns of satellite and space program problems in case of Brexit ‘no deal’

The UK government says that access to satellites and space surveillance programs will suffer in the event of a “no deal” departure from the European Union .

Britain has less than six months to go before the country leaves the 28 member state bloc, after a little over half the country voted to withdraw membership from the European Union in a 2016 referendum. So far, the Brexit process has been a hot mess of political infighting and uncertainty, bureaucracy and backstabbing — amid threats of coups and leadership challenges. And the government isn’t even close to scoring a deal to keep trade ties open, immigration flowing, and airplanes taking off.

Now, the government has further said that services reliant on EU membership — like access to space programs — will be affected.

The reassuring news is that car and phone GPS maps won’t suddenly stop working.

But the government said that the UK will “no longer play any part” of the European’s GPS efforts, shutting out businesses, academics and researchers who will be shut out of future contracts, and “may face difficulty carrying out and completing existing contracts.”

“There should be no noticeable impact if the UK were to leave the EU with no agreement in place,” but the UK is investing £92 million ($120m) to fund its own UK-based GPS system. The notice also said that the UK’s military and intelligence agencies will no longer have access to the EU’s Public Regulated Service, a hardened GPS system that enhances protections against spoofing and jamming. But that system isn’t expected to go into place until 2020, so the government isn’t immediately concerned.

The UK will also no longer be part of the Copernicus program, a EU-based earth observation initiative that’s a critical asset to national security as it contributes to maritime surveillance, border control and understanding climate change. Although the program’s data is free and open, the UK government says that users will no longer have high-bandwidth access to data from the satellites and additional data, but admits that it’s “seeking to clarify” the terms.

Although this is the “worst case scenario” in case of no final agreement on the divorce settlement from Europe, with just months to go and a distance to reach, it’s looking like a “no deal” is increasingly likely.


Source: Tech Crunch

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ChargePoint is adding 2.5M electric vehicle chargers over the next 7 years

Electric vehicles still make up just a fraction of the cars, trucks and SUVs on the road today. But that’s changing: The number of electric and plug-in hybrid cars on the world’s roads exceeded 3 million in 2017. By 2025, there are expected to be 20 million electric vehicles in just North America and Europe.

And that means the world is going to need a lot more chargers.

ChargePoint, the California startup that provides infrastructure for electric vehicles, said Friday it will expand its network of chargers nearly 50-fold over the next seven years. The company, which has more than 53,000 chargers in operation today, has committed to a global network of 2.5 million charging spots by 2025.

The majority of these new EV chargers will be evenly split between Europe and North America, with smaller percentages in Australia and New Zealand, the company said Friday at the Global Climate Action Summit.

ChargePoint has raised more than $292 million since its founding in 2007. It’s used the funds to add chargers to its network, including an expansion last year into Europe. The company secured an $82 million funding round, led by automaker Daimler in May 2017. A month later the company announced another $43 million in funding from German engineering giant Siemens to bolster its European expansion.

The network expansion comes at an auspicious time for automakers, a number of which are planning to roll out electric vehicles in the next several years. Tesla has its own network of chargers that it calls superchargers. The automaker has invested heavily to build out the network, which is now 1,342 stations with 11,013 superchargers globally.

Only Tesla vehicles can use that network, which aims to promote long-distance travel. Other automakers that are beginning to sell EVs will rely heavily on third-party EV providers like ChargePoint. It’s estimated that at least 40 new electric vehicle models will be introduced in the next five years. Jaguar will start delivering its first EV, the i-Pace crossover, to customers in the U.S. this fall. Audi plans to introduce its first electric vehicle, the e-tron, on Monday.


Source: Tech Crunch

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The new iPhone’s here, so Google wants to talk Pixel 3

In the off-chance you haven’t already had your fill of phone news for the week, Google just offered up a few friendly reminders that it’s got its own handset coming out in the not so distant future.

The company’s event isn’t happening until early next month, but Google’s started with the teasers. Here’s a site with a big number 3, while over here a “coming soon” placeholder shows off the rough outline of what one assumes is the new phone.

It’s pretty bare bones at the moment, but a click of the “G” logo unleashes a slow, steady stream of confetti. As Android Police handily notes, the phone’s silhouette is shown in three colors — black, white and a kind of mint green.

The former have already been leaked like crazy all over the internet. The pale green, on the other hand, could be a surprise — well, a “surprise,” I suppose. Companies love to whet the tech press’s collective palate with a hint or two.Though we’ve been burned in the past.

Remember when the popsicle wallpaper appeared to be a nod to the upcoming Android P name? The truth of the matter was a bit more dull. That said, there’s no shortage of Pixel 3 information out in the world right now. We’ve already seen about as much of the upcoming handset as we have Apple’s new devices.

Whatever the case, all will be revealed on October 9. 


Source: Tech Crunch

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The iPhone SE was the best phone Apple ever made, and now it’s dead

I only wanted one thing out of 2018’s iPhone event: a new iPhone SE. In failing to provide it Apple seems to have quietly put the model out to pasture — and for this I curse them eternally. Because it was the best phone the company ever made.

If you were one of the many who passed over the SE back in 2015, when it made its debut, that’s understandable. The iPhone 6S was the latest and greatest, and of course fixed a few of the problems Apple had kindly introduced with the entirely new design of the 6. But for me the SE was a perfect match.

See, I’ve always loved the iPhone design that began with the 4. That storied phone is perhaps best remembered for being left in a bar ahead of release and leaked by Gizmodo — which is too bad, because for once the product was worthy of the lavish unveiling Apple now bestows on every device it puts out.

The 4 established an entirely new industrial design aesthetic that was at once instantly recognizable and highly practical. Gone were the smooth, rounded edges and back of the stainless original iPhone (probably the second-best phone Apple made) and the jellybean-esque 3G and 3GS.

In the place of those soft curves were hard lines and uncompromising geometry: a belt of metal running around the edge, set off from the glass sides by the slightest of steps. It highlighted and set off the black glass of the screen and bezel, producing a of specular outline from any angle.

The camera was flush and the home button (RIP) sub-flush, entirely contained within the body, making the device perfectly flat both front and back. Meanwhile the side buttons boldly stood out. Volume in bold, etched circles; the mute switch easy to find but impossible to accidentally activate; the power button perfectly placed for a reaching index finger. Note that all these features are directly pointed at usability: making things easier, better, more accessible, while also being attractive and cohesive as parts of a single object.

Compared to the iPhone 4, every single other phone, including Samsung’s new “iPhone killer” Galaxy S, was a cheap-looking mess of plastic, incoherently designed or at best workmanlike. And don’t think I’m speaking as an Apple fanboy; I was not an iPhone user at the time. In fact, I was probably still using my beloved G1 — talk about beauty and the beast!

The design was strong enough that it survived the initially awkward transition to a longer screen in the 5, and with that generation it also gained the improved rear side that alleviated the phone’s unfortunate tendency towards… well, shattering.

The two-tone grey iPhone 5S, however, essentially left no room for improvement. And after 4 years, it was admittedly perhaps time to freshen things up a bit. Unfortunately, what Apple ended up doing was subtracting all personality from the device while adding nothing but screen space.

The 6 was, to me, simply ugly. It was reminiscent of the plethora of boring Android phones at the time — merely higher quality than them, not different. The 6S was similarly ugly, and the 7 through 8 somehow further banished any design that set themselves apart, while reversing course on some practical measures in allowing an increasingly large camera bump and losing the headphone jack. The X, at least, looked a bit different.

But to return to the topic at hand, it was after the 6S that Apple had introduced the SE. Although it nominally stood for “Special Edition,” the name was also a nod to the Macintosh SE. Ironically given the original meaning of “System Expansion,” the new SE was the opposite: essentially an iPhone 6S in the body of a 5S, complete with improved camera, Touch ID sensor, and processor. The move was likely intended as a sort of lifeboat for users who still couldn’t bring themselves to switch to the drastically redesigned, and considerably larger, new model.

It would take time, Apple seems to have reasoned, to convert these people, the types who rarely buy first generation Apple products and cherish usability over novelty. So why not coddle them a bit through this difficult transition?

The SE appealed not just to the nostalgic and neophobic, but simply people who prefer a smaller phone. I don’t have particularly large or small hands, but I preferred this highly pocketable, proven design to the new one for a number of reasons.

Flush camera so it doesn’t get scratched up? Check. Normal, pressable home button? Check. Flat, symmetrical design? Check. Actual edges to hold onto? Check. Thousands of cases already available? Check — although I didn’t use one for a long time. The SE is best without one.

At the time, the iPhone SE was more compact and better looking than anything Apple offered, while making almost no compromises at all in terms of functionality. The only possible objection was its size, and that was (and is) a matter of taste.

It was the best object Apple ever designed, filled with the best tech it had ever developed. It was the best phone it ever made.

And the best phone it’s made since then, too, if you ask me. Ever since the 6, it seems to me that Apple has only drifted, casting about for something to captivate its users the way the iPhone 4’s design and new graphical capabilities did, all the way back in 2010. It honed that design to a cutting edge and then, when everyone expected the company to leap forward, it tiptoed instead, perhaps afraid to spook the golden goose.

To me the SE was Apple allowing itself one last victory lap on the back of a design it would never surpass. It’s understandable that it would not want to admit, this many years on, that anyone could possibly prefer something it created nearly a decade ago to its thousand-dollar flagship — a device, I feel I must add, that not only compromises visibly in its design (I’ll never own a notched phone if I can help it) but backpedals on practical features used by millions, like Touch ID and a 3.5mm headphone jack. This is in keeping with similarly user-unfriendly choices made elsewhere in its lineup.

So while I am disappointed in Apple, I’m not surprised. After all, it’s disappointed me for years. But I still have my SE, and I intend to keep it for as long as possible. Because it’s the best thing the company ever made, and it’s still a hell of a phone.


Source: Tech Crunch

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Microsoft acquires Lobe, a drag-and-drop AI tool

Microsoft today announced that is has acquired Lobe, a startup that lets you build machine learning models with the help of a simple drag-and-drop interface. Microsoft plans to use Lobe, which only launched into beta earlier this year, to build upon its own efforts to make building AI models easier, though, for the time being, Lobe will operate as before.

“As part of Microsoft, Lobe will be able to leverage world-class AI research, global infrastructure, and decades of experience building developer tools,” the team writes. “We plan to continue developing Lobe as a standalone service, supporting open source standards and multiple platforms.”

Lobe was co-founded by Mike Matas, who previously worked on the iPhone and iPad, as well as Facebook’s Paper and Instant Articles products. The other co-founders are Adam Menges and Markus Beissinger.

In addition to Lobe, Microsoft also recently bought Bonsai.ai, a deep reinforcement learning platform, and Semantic Machines, a conversational AI platform. Last year, it acquired Disrupt Battlefield participant Maluuba. It’s no secret that machine learning talent is hard to come by, so it’s no surprise that all of the major tech firms are acquiring as much talent and technology as they can.

“In many ways though, we’re only just beginning to tap into the full potential AI can provide,” Microsoft’s EVP and CTO Kevin Scott writes in today’s announcement. “This in large part is because AI development and building deep learning models are slow and complex processes even for experienced data scientists and developers. To date, many people have been at a disadvantage when it comes to accessing AI, and we’re committed to changing that.”

It’s worth noting that Lobe’s approach complements Microsoft’s existing Azure ML Studio platform, which also offers a drag-and-drop interface for building machine learning models, though with a more utilitarian design than the slick interface that the Lobe team built. Both Lobe and Azure ML Studio aim to make machine learning easy to use for anybody, without having to know the ins and outs of TensorFlow, Keras or PyTorch. Those approaches always come with some limitations, but just like low-code tools, they do serve a purpose and work well enough for many use cases.


Source: Tech Crunch

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This insect-inspired robot can fly a kilometer on a charge with its flappy wings

The incredible agility of the common house or fruit fly puts every drone and robot to shame, but devices inspired by them are beginning to catch up. A new four-winged flapping robot not only successfully imitates the fruit fly’s hyper-agile flying method, but can travel for up to a kilometer before running out of juice.

Robotics researchers at the Delft University of Technology wanted to create a flying platform that could imitate and test theories on how insects fly the way they do, but without tethers or non-animal propulsion like propellers.

It’s not just that they want a cool robot: The way insects respond to things like gusts of wind or an imminent slapping hand demonstrate incredible reaction times and control feedback, things that could inform autonomous craft like drones or even small airplanes. Wouldn’t it be nice to know your jet could autonomously and smoothly dodge a lightning bolt?

The trouble is that when you get much bigger than an insect, that method of flying doesn’t always work any more due to the differences in mass, drag and so on. As the researchers put it in their paper, which made the cover of Science:

Because of technological challenges arising from stringent weight and size restrictions, most existing designs cannot match the flight performance of their biological counterparts; they lack the necessary agility, sufficient power to take off, or sufficient energy to fly for more than a minute.

Not only that, but tiny robots like the Robobee require a wired power connection, and other tiny flapping craft require manual piloting. Can’t have that! So rather than slavishly imitate the biology of a single animal, the team focused on how to achieve similar flight characteristics at a realistic scale.

The four-winged, tailless style of their creation, the DelFly Nimble, is novel but evidently effective. Their robot can go 7 meters per second, or about 15 MPH, hover in place or perform all kinds of extreme motions like dives and rolls smoothly. It’s no joke doing that using rotors with continuous thrust, let alone via coordinated wing movement. You can see it perform a few more capers in the video here.

Perhaps most amazing is its range; the robot can travel for a kilometer on a single charge. That sort of spec is the kind that military R&D directors love to hear about.

But the DelFly Nimble is already producing interesting scientific data, as lead researcher Matěj Karásek explains:

In contrast to animal experiments, we were in full control of what was happening in the robot’s ‘brain.’ This allowed us to identify and describe a new passive aerodynamic mechanism that assists the flies, but possibly also other flying animals, in steering their direction throughout these rapid banked turns.

Development is continuing, and no doubt biologists and three-letter agencies have tendered letters of interest to the Dutch inventors.


Source: Tech Crunch

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JBL’s smart display combines Google smarts with good sound

If you’re looking for a smart display that’s powered by the Google Assistant, you now have two choices: the Lenovo Smart Display and the JBL Link View. Lenovo was first out of the gate with its surprisingly stylish gadget, but it also left room for improvement. JBL, given its heritage as an audio company, is putting the emphasis on sound quality, with stereo speakers and a surprising amount of bass.

In terms of the overall design, the Link View isn’t going to win any prizes, but its pill shape definitely isn’t ugly either. JBL makes the Link View in any color you like, as long as that’s black. It’ll likely fit in with your home decor, though.

The Link View has an 8-inch high-definition touchscreen that is more than crisp enough for the maps, photos and YouTube videos you’ll play on it. In using it for the last two weeks, the screen turned out to be a bit of a fingerprint magnet, but you’d expect that given that I put it on the kitchen counter and regularly used it to entertain myself while waiting for the water to boil.

At the end of the day, you’re not going to spend $250 on a nice speaker with a built-in tablet. What matters most here is whether the visual side of the Google Assistant works for you. I find that it adds an extra dimension to the audio responses, no matter whether that’s weather reports, a map of my daily commute (which can change depending on traffic) or a video news report. Google’s interface for these devices is simple and clear, with large buttons and clearly presented information. And maybe that’s no surprise. These smart speakers are the ideal surface for its Material Design language, after all.

As a demo, Google likes to talk about how these gadgets can help you while cooking, with step-by-step recipes and videos. I find that this is a nice demo indeed, and thought that it would help me get a bit more creative with trying new recipes. In reality, though, I never have the ingredients I need to cook what Google suggests. If you are a better meal planner than I am, your mileage will likely vary.

What I find surprisingly useful is the display’s integration of Google Duo. I’m aware that the Allo/Duo combo is a bit of a flop, but the display does make you want to use Duo because you can easily have a video chat while just doing your thing in the kitchen. If you set up multiple users, the display can even receive calls for all of them. And don’t worry, there is a physical slider you can use to shut down the camera whenever you want.

The Link View also made me appreciate Google’s Assistant routines more (and my colleague Lucas Matney found the same when he tried out the Lenovo Smart Display). And it’s just a bit easier to look at the weather graphics instead of having the Assistant rattle off the temperature for the next couple of days.

Maybe the biggest letdown, though (and this isn’t JBL’s, fault but a feature Google needs to enable) is that you can’t add a smart display to your Google Assistant groups. That means you can’t use it as part of your all-house Google Home audio system, for example. It’s an odd omission for sure, given the Link View’s focus on sound, but my understanding is that the same holds true for the Lenovo Smart Display. If this is a deal breaker for you, then I’d hold off on buying a Google Assistant smart display for the time being.

You can, however, use the display as a Chromecast receiver to play music from your phone or watch videos. While you are not using it, the display can show the current time or simply go to blank.

Another thing that doesn’t work on smart displays yet is Google’s continued “conversation feature,” which lets you add a second command without having to say “OK, Google” again. For now, the smart displays only work in English, too.

When I first heard about these smart displays, I wasn’t sure if they were going to be useful. Turns out, they are. I do live in the Google Assistant ecosystem, though, and I’ve got a few Google Homes set up around my house. If you’re looking to expand your Assistant setup, then the Link View is a nice addition — and if you’re just getting started (or only need one Assistant-enabled speaker/display), then opting for a smart display over a smart speaker may just be the way to go, assuming you can stomach the extra cost.

Review: Lenovo’s Google Smart Display is pretty and intelligent


Source: Tech Crunch

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Why rumors that Adobe could be in talks to buy Marketo make sense

Adobe could be shopping for another piece of the digital marketing puzzle, as reports surfaced today that the company might be in talks with Vista Equity Partners to buy Marketo, a company the private equity firm purchased in May 2016 for $1.8 billion in cash. Reuters was first to report the rumor.

While the report states the talks are early, and nothing is imminent, and none of the companies involved would comment (understandably), it is a deal that makes sense for Adobe. The company has been trying to build out its digital marketing business for some time, including buying Magento in May for $1.8 billion to help beef up the ecommerce piece.

Assuming that Vista wants to flip Marketo for a profit, a good bet, it would likely need to come in at $2 billion at a minimum and probably more. There are only a few companies out there that could afford the price tag, who would be interested in a property like Marketo: Adobe, Salesforce, Microsoft, SAP and Oracle.

If Adobe really wanted to go for the digital marketing jugular, it could fork over the cash and buy Marketo. Brent Leary, who covers this industry as the principle at CRM Essentials, says this would be a way for Adobe to grab a chunk of enterprise marketing automation business at a time when the market is getting highly competitive.

“Marketo would give Adobe a leader in the marketing automation space at the enterprise customer level, particularly in the B2B space.” Leary explained.

While nothing is clear yet, Adobe has the resources if it wants to do it. The company currently has $6.3 billion in cash on hand, according to data on Yahoo finance, and has seen its stock price rise significantly in the last year from $156.24 to $269.58 (as of publication today).

 

Adobe Creative Cloud has always been the primary money maker for Adobe over the years, generating $1.3 billion in the last report (pdf) in June out of $2.2 billion in total revenue. Digital Experience, which includes marketing products, generated $586 million, and although it’s trending up, it has so much more potential.

We have been seeing more M&A action in this space as companies try to fill in various parts of the sale-service-marketing triumvirate. Just last week, we saw Zendesk, the company that concentrates on cloud customer service, enter the sales automation and CRM part of the space with the purchase of Base. Earlier this month, Thoma Bravo bought Apttus, a company which covers the quote-to-cash part of the sales cycle.

Adobe finds itself competing with other giant organizations with the previously mentioned companies all lining up for a piece of the digital marketing business. Getting Marketo certainly has the potential to help push that Digital Experience revenue line up further as the fight for marketshare gets ever more intense. Whether that happens remains to be seen, but Marketo is certainly a company that would match up well with Adobe if it wanted to make such a move.

It’s worth mentioning that Adobe will be reporting its latest earnings next Thursday, September 18th.


Source: Tech Crunch