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Equity

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Equity

TechCrunch

Entrepreneurship, Business News, News, Business, Technology

4.2372 Ratings

🗓️ 16 October 2021

⏱️ 18 minutes

🧾️ Download transcript

Summary

In today's episode, talk our way through some big breaking news from the technology world so that we can better understand just what is going on. Danny and Alex got together late Friday on a Twitter Space to discuss Microsoft's decision to pull LinkedIn from the Chinese market, a move that lit up headlines around the world. That LinkedIn was still in China in 2021 may feel more surprising than the news that it will exit that particular market, but the moment matters all the same as it marks the end of an experiment -- could a mega-tech company have a US HQ and a first-party service live in China? Er, no, it turns out. Not really. Microsoft found itself jammed between its own ethics, and governmental censure. It was a lose-lose for the company, so pulling the plug was the smart move. The company isn't going to miss the revenue. For startups, the Microsoft decision is a good reminder that doing business in China is at a minimum very hard for non-Chinese companies, and perhaps impossible. Recall that Microsoft had to work with a Chinese company (21Vianet) to get Azure into the country at all, and that the Chinese government is using a few companies to build a new OS for the country so that it can replace Windows. Precisely how good that OS will prove is not yet clear, at least from a consumer perspective. And then we riffed on GitLab's IPO. My favorite topic of the week. You'll see why it came up when you hit play. Chat Monday! Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Hello and welcome back to Equity. This is an Equity shot.

0:12.8

We are diving into all things,

0:14.0

LinkedIn, China, Microsoft, regulatory, and tension-filled.

0:18.0

It's gonna be an absolute blast.

0:19.3

I have Danny Crichton with me.

0:20.9

Danny, hello.

0:21.8

This is the weekend officially for everyone

0:23.6

tuning in. How you doing? It's good. It's not the weekend yet, but another 20

0:28.6

more meetings on this Friday and we're almost there. Well we're putting this out

0:31.5

on the weekend, so technically everyone listening is, this is Saturday,

0:34.7

so hi, you know.

0:36.2

Congratulations on making it to the weekend.

0:38.2

What's not going to make it to the weekend though is LinkedIn and China.

0:41.3

Big news out this week from Redmond, where the software company is based.

0:46.0

Danny, this feels like a long time coming, and I'm not super surprised by it, but it did drop seemingly

0:51.8

out of the sky. So what's the context for people out there who

0:54.4

are catching up on this story? I mean for years LinkedIn was the only Western or

0:58.9

U.S. based social network that was in China you know Facebook has famously been cut out of the

1:03.4

Middle Kingdom for literally its entire existence. Twitter hasn't been

1:07.1

accessible, Wikipedia is not available, you know, go down the list, there's almost

1:10.6

nothing except for LinkedIn and and for reasons that are

1:13.3

we've been a little bit mysterious Microsoft has been able to sort of dodge a lot of

...

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