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  • After Twitter users voted to oust Elon Musk as CEO, he wants to change how polls work | CNN Business

    After Twitter users voted to oust Elon Musk as CEO, he wants to change how polls work | CNN Business

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    New York
    CNN
     — 

    When Elon Musk polled Twitter users about whether to reinstate former President Donald Trump’s account, he quickly followed through on the majority’s wish to do so. “Vox Populi, Vox Dei,” he pronounced via tweet, Latin for “the voice of the people is the voice of God.”

    Likewise, when Twitter users voted on another of his polls to provide “general amnesty to suspended accounts,” he went ahead and did it. He also heeded user votes in a poll to restore the accounts of tech journalists that he had suspended on Friday.

    But since a clear majority of Twitter users voted for Musk to step down as Twitter CEO in another poll on Sunday, Musk has remained conspicuously (and uncharacteristically) silent. Now, he appears to think the problem isn’t him, but who gets to vote in the polls.

    In a tweet Monday, roughly 12 hours after his CEO poll ended, Musk suggested that he would change how polling on Twitter works so that only those who pay for Twitter’s updated subscription service can vote. After one Twitter user said, “Blue subscribers should be the only ones that can vote in policy related polls,” Musk responded, “Good point. Twitter will make that change.”

    While it’s unclear how he would restrict voting to only those who pay for the company’s subscription service, such a change could dramatically reduce the number of Twitter users who could vote in polls. It would also skew those who can vote to the users who are willing to pay up for Twitter Blue, which includes the controversial paid verification feature Musk pushed to introduce. Musk’s Monday tweet immediately prompted comparisons to poll taxes.

    The incident is yet another example of the inconsistencies and chaos in Musk’s management of Twitter since acquiring the company in October. After coming under fire this weekend for a controversial new policy restricting users from posting links to rival platforms, Musk pledged to effectively crowdsource “major policy changes” at Twitter by polling users about them and soon launched the poll about whether he should remain as CEO.

    Now, Musk appears to be ignoring the results of the CEO poll and looking to overhaul how polls work without first polling users about what is arguably another “major policy change.”

    Musk’s poll, and his limited reaction to it so far, could add to the growing uncertainty about his commitment to remaining Twitter’s CEO. Musk has faced criticism from Twitter users and advertisers for his decision to eliminate much of the company’s staff, restore the accounts of a number of incendiary users, and the whiplash from seemingly rushing out new policies and features only to pull them later. The Tesla CEO is also facing pressure from the carmaker’s shareholders to find a replacement at Twitter, after Tesla’s stock has declined significantly this year.

    Musk has not directly commented on the user vote that he should step down from running Twitter. Musk said last month that he expects to “reduce my time at Twitter, and find somebody else to run Twitter, over time.” But in a tweet Sunday he said: “No one wants the job who can actually keep Twitter alive. There is no successor.”

    CNBC reported Tuesday that Musk is “actively searching” for a new Twitter CEO, citing anonymous sources. Twitter, which recently cut most of its public relations team, did not immediately respond to a request for comment. Musk responded to the story on Twitter with two crying laughing emojis.

    The most obvious potential candidates for a new Twitter CEO are the Musk lieutenants who have been helping to run the company since his takeover. The short list likely includes investor Jason Calacanis, Craft Ventures partner David Sacks and Sriram Krishnan, an Andreessen Horowitz general partner focused on crypto and Twitter’s former consumer teams lead.

    A range of other wild card candidates have publicly offered to take on the job, including former T-Mobile CEO John Legere and rapper Snoop Dogg.

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  • Here’s who Elon Musk could pick to be Twitter’s next CEO | CNN Business

    Here’s who Elon Musk could pick to be Twitter’s next CEO | CNN Business

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    New York
    CNN
     — 

    Elon Musk may soon be on the lookout for a new chief executive to run Twitter.

    After mounting criticism of his chaotic leadership at Twitter, including recent decisions to suspend tech journalists and introduce (and then delete) a controversial policy banning linking out to rival platforms, Musk posted a poll asking whether he should step down as CEO. The poll ended Monday morning with 57% of voters in favor of Musk handing off the top job.

    Musk has not commented on the results of the poll. In fact, Musk went an uncharacteristically long time on Monday without tweeting at all. But even if Musk doesn’t immediately honor his own poll, the Tesla CEO will likely only continue to face pressure from the carmaker’s investors to hand the reins to someone else sooner than later. Tesla stock is down 34% since his deal to buy Twitter closed and more than 63% since the start of this year, as investors worry about his many competing priorities. (Musk has also for years mused about finding a successor to run Tesla, with no obvious progress.)

    Musk, for his part, said in a tweet Sunday before the poll had closed: “No one wants the job who can actually keep Twitter alive. There is no successor.”

    If Musk were to look for a new Twitter CEO, he’d likely have many willing takers. Already, the list of people who have offered to run the platform includes former T-Mobile CEO John Legere, MIT artificial intelligence researcher Lex Fridman and rapper Snoop Dogg (who could perhaps run Twitter with the help of his friend and entertainment personality Martha Stewart). Tom Anderson, a founder of MySpace, also commented on Musk’s poll about stepping down from CEO, saying, “depends on who you get to run it,” with a thinking-face emoji.

    There are also some highly qualified candidates out there — such as former Facebook COO Sheryl Sandberg and CTO Mike Schroepfer, who both left their roles at the social media giant earlier this year — although convincing them to take on the chaos machine that is Twitter could be difficult. Jack Dorsey, Twitter founder, CEO of Block and friend to Musk, has previously said he would not return to run the social network.

    The most obvious potential candidates for a new Twitter CEO are the Musk lieutenants who have been helping to run the company since his takeover. The short list likely includes investor Jason Calacanis, Craft Ventures partner David Sacks and Sriram Krishnan, an Andreessen Horowitz general partner focused on crypto and Twitter’s former consumer teams lead.

    If Musk does pick someone else, it might allow him to hand over some of the day-to-day responsibility, and accountability, of running Twitter. But one thing would almost certainly not change: Musk remains very much in charge. Musk pushed out the company’s former leadership and board of directors, and as the company’s owner and sole board director, he will ultimately have the power to hire and fire whoever he wants at the company’s helm.

    Calacanis, who emerged in the tech world as a reporter during the dot com boom, is an early-stage investor who has backed well-known companies such as Uber and Robinhood. He has also launched several media properties and hosts two podcasts (one in partnership with Sacks).

    Calacanis tweeted on Sunday night asking, “Who would like the most miserable job in tech AND media?! Who is insane enough to run twitter?!?!” Calacanis also ran his own Twitter poll asking followers whether he or Sacks should run the company, separately or together, or whether someone else should take over. The majority of respondents voted for “other.”

    In April, shortly after Musk offered to buy Twitter, Calacanis told the billionaire in a text message that “Twitter CEO is my dream job.”

    Sacks, who along with Musk was among the original founding team at PayPal, has at least some experience managing a social network. He founded and ran enterprise communications platform Yammer, before selling it to Microsoft in 2012 for $1.2 billion.

    Sacks has been particularly unflinching in echoing Musks’ talking points, whether it’s justifying a feud with Apple or attempting to stir up outrage about a Twitter account that posted publicly available information about the whereabouts of Musk’s private jet. A Twitter user asked Sacks last month what he and Musk disagree about, and Sacks responded with just one thing: “Chess.”

    On paper, Krishnan may be the most obvious choice of the group. He has direct experience working on the Twitter product, having previously helped manage the teams responsible for features of the platform such as search and the home timeline. He also previously worked on mobile ad products for Snap and Facebook.

    More recently, he has invested in crypto startups at Andreessen Horowitz, which could give him experience helpful to fulfill Musk’s goal of building payment capabilities for Twitter and making it more than just a social media app.

    Krishnan is arguably the least well-known — and therefore perhaps the least controversial — of Musk’s current Twitter leadership team, which could help deflect some of the recent negative attention the company has received.

    Some Twitter users have speculated about other possible leaders for the social media company, including Donald Trump son-in-law Jared Kushner, who was spotted watching the World Cup with Musk over the weekend.

    Kushner is friendly with the Saudi Royal Family, one of Twitter’s largest investors. Prior to working as an advisor in Trump’s White House, Kushner worked for his family’s real estate development company, and last year he said he would leave politics and start an investment firm. Kushner also previously owned the weekly New York newspaper, the New York Observer.

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  • Elon Musk says he will step down as Twitter CEO if voted out by a poll he tweeted | CNN Business

    Elon Musk says he will step down as Twitter CEO if voted out by a poll he tweeted | CNN Business

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    New York
    CNN
     — 

    Twitter’s mercurial new boss may be out the door after less than two months on the job, if results of a Twitter poll go against him.

    Elon Musk tweeted a poll Sunday evening asking people to vote on whether he should step down as Twitter’s CEO. Musk said he would abide by the poll’s results.

    As of Sunday evening, “Yes” was winning by a margin of 58% to 42%.

    In several follow-up tweets, Musk suggested that he was serious about leaving and made a vague threat about Twitter’s future if he is voted out.

    “As the saying goes, be careful what you wish, as you might get it,” Musk tweeted.

    Since buying Twitter for $44 billion and taking over as CEO in late October, Musk has journeyed from one controversy to the next.

    A brief and incomplete recap:

    – Musk immediately laid off several top executives and laid off about half of Twitter’s staff.
    – He then gave an ultimatum to the remaining staff that they need to do “extremely hardcore” work or leave — and another thousand or so employees headed out the door.
    – Musk has fired employees who openly disagreed with him and publicly named and shamed former employees who were engaged in difficult moderation discussions as part of the ongoing “Twitter Files.”
    – Musk has also started, stopped and started again a revised verification system that costs $8 for a blue check mark and initially led to widespread account spoofing.
    – Musk has frequently changed Twitter’s rules by executive fiat and with no notice, banning people who violate the new rules — including several tech journalists and an account that tracked his jet. Musk had once tweeted that allowing the ElonJet account to remain on Twitter demonstrated his commitment to free speech on the platform.
    – He has waded deeply into the culture wars, allowing some of the platform’s permanently banned accounts back on, including former President Donald Trump and many people who had been engaged in misinformation, conspiracy theories or hate speech.

    Meanwhile, brands have been removing their advertising from Twitter left and right. Musk has frequently stated that Twitter’s finances are dire.

    Replying to a tweet Sunday, in which MIT artificial intelligence researcher Lex Fridman said he would take the CEO job, Musk hinted he hasn’t been completely happy with his new gig.

    “You must like pain a lot,” Musk tweeted, noting the company “has been in the fast lane to bankruptcy since May.”

    Yet Musk denied that he has a new CEO in mind.

    “No one wants the job who can actually keep Twitter alive. There is no successor,” Musk tweeted. “The question is not finding a CEO, the question is finding a CEO who can keep Twitter alive.”

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  • Microsoft buys stake in London Stock Exchange in cloud data deal | CNN Business

    Microsoft buys stake in London Stock Exchange in cloud data deal | CNN Business

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    London
    CNN
     — 

    Microsoft

    (MSFT)
    is buying a 4% stake in the London Stock Exchange as part of a deal that will see the market operator spend at least $2.8 billion over 10 years on the software provider’s cloud services.

    The companies announced the partnership in a joint statement on Monday, touting the benefits it will deliver to the stock exchange’s customers through improved data and analytics. Shares of the London Stock Exchange Group (LSEG) gained 4% in early trade.

    The partnership “creates attractive revenue growth opportunities for both companies,” LSEG CEO David Schwimmer said in the statement.

    As part of the deal, the London Stock Exchange’s data platform and other technology infrastructure will migrate into Microsoft’s Azure cloud environment.

    The companies also plan to work together to develop new products and services for data and analytics using Microsoft Azure, Microsoft Teams and Microsoft’s artificial intelligence (AI) capabilities.

    As a start, the exchange will be able to share its data and analytics with Teams and Microsoft 365, which includes Excel and PowerPoint.

    “The partnership will build on the good progress made by LSEG on the integration of Refinitiv and enhance its position as a world-leading financial markets infrastructure and data provider,” the statement said.

    LSEG completed its $27 billion acquisition of Refinitiv last year, making it the second largest financial data company after Bloomberg. Its data and analytics business makes up two-thirds of group revenue.

    The deal with Microsoft includes a commitment by LSEG to spend at least $2.8 billion on the software provider’s cloud-related products and services over the 10-year term of the partnership. This is consistent with existing long-term spending plans, according to the statement.

    Microsoft will buy its LSEG shares from Blackstone and Thomson Reuters

    (TRI)
    . The purchase is expected to complete in the first quarter of 2023.

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  • Former Theranos COO sentenced to nearly 13 years | CNN Business

    Former Theranos COO sentenced to nearly 13 years | CNN Business

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    CNN Business
     — 

    Ramesh “Sunny” Balwani, the former chief operating officer of failed blood testing startup Theranos, was sentenced Wednesday to nearly 13 years in prison for fraud. It marks an end to the stunning downfall of a high-flying Silicon Valley company that resulted in the rare convictions of two tech executives.

    “There is an unfortunate saying in Silicon Valley: ‘Fake it ‘til you make it.’ Elizabeth Holmes and Sunny Balwani stretched this idea to a place much farther than the law allows and in so doing put vast amounts of investor dollars at risk,” said Stephanie Hinds, US Attorney for the Northern District of California, in a statement. “Significantly, today the court also made clear that Sunny Balwani’s decision to deceive doctors and patients also put the health of patients at risk. Ms. Holmes and Mr. Balwani now will be justly punished for their illegal conduct.”

    Hinds added, “Let this story be a cautionary tale for entrepreneurs in this district: Those who use lies to cover up the shortfalls of their promised accomplishments risk substantial jail time.”

    The sentencing comes weeks after Elizabeth Holmes, the founder of Theranos and Balwani’s ex-girlfriend, was sentenced to more than 11 years in prison.

    Theranos raised $945 million from an A-list cohort of investors with its promise to test for a wide range of conditions using just a few drops of blood. At its peak, the company was valued at $9 billion.

    The company began to unravel after a Wall Street Journal investigation in 2015 reported that Theranos had only ever performed roughly a dozen of the hundreds of tests it offered using its proprietary technology, and with questionable accuracy. It also came to light that Theranos was relying on third-party manufactured devices from traditional blood testing companies rather than its own technology. Theranos ultimately dissolved in September 2018.

    Holmes and Balwani were first indicted together four years ago on the same 12 criminal charges pertaining to defrauding investors and patients about Theranos’ capabilities and business dealings in order to get money. Their trials were severed after Holmes indicated she intended to accuse Balwani of sexually, emotionally and psychologically abusing her throughout their decade-long relationship, which coincided with her time running the company. (Balwani’s attorneys have denied her claims.)

    In July, Balwani was found guilty on all 12 charges he faced, which included ten counts of federal wire fraud and two counts of conspiracy to commit wire fraud. Holmes was found guilty in January on four charges relating to defrauding investors, and found not guilty on three additional charges concerning defrauding patients and one charge of conspiracy to defraud patients.

    Like Holmes, Balwani faced up to 20 years in prison as well as a fine of $250,000 plus restitution for each count.

    In a recent court filing, prosecutors noted that Balwani was convicted not only of defrauding investors but also defrauding patients. They recommended a 15-year prison sentence for him, as well as an order for Balwani to pay $804 million in restitution. In a separate filing, attorneys for Balwani requested a sentence of probation, noting he had no criminal history.

    Before joining Theranos, Balwani had a career as a software executive. Balwani, nearly 20 years older than Holmes, first met her in 2002 before she dropped out of Stanford. He served as an informal adviser to Holmes in Theranos’ earliest days and the two became romantically involved. Balwani guaranteed a “multimillion-dollar loan” to the startup in 2009, court filings show, and took on a formal role as president and chief operating officer. Holmes and Balwani largely kept their romantic relationship hidden while working together.

    During her trial, Holmes claimed Balwani tried to control nearly every aspect of her life — including disciplining her eating, her voice and image, and isolating her from others. She testified that while he didn’t control her interactions with investors, business partners and others, “he impacted everything about who I was, and I don’t fully understand that.”

    Holmes is expected to appeal her conviction but was ordered to turn herself into custody on April 27, 2023.

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  • Salesforce Co-CEO Bret Taylor steps down, leaving Marc Benioff alone at the top | CNN Business

    Salesforce Co-CEO Bret Taylor steps down, leaving Marc Benioff alone at the top | CNN Business

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    New York
    CNN Business
     — 

    Enterprise tech giant Salesforce said Wednesday that its co-CEO and Vice Chair Bret Taylor will step down from his roles. Salesforce co-founder Marc Benioff, who had been co-CEO alongside Taylor, will continue running the company and serving as board chair, the company said in a news release.

    Taylor had worked at Salesforce

    (CRM)
    for six years, most recently as president and COO before being elevated to co-CEO last November. He will officially exit his position on January 31, 2023. Benioff, in a statement, called Taylor’s decision to step down “bittersweet.”

    “After a lot of reflection, I’ve decided to return to my entrepreneurial roots,” Taylor said in a statement. “Salesforce has never been more relevant to customers, and with its best-in-class management team and the company executing on all cylinders, now is the right time for me to step away.”

    Prior to Salesforce, Taylor founded and led collaboration platform Quip, which Salesforce acquired for $750 million in 2016. Taylor also worked as chief technology officer at Facebook during the company’s IPO.

    Taylor’s move comes at a rocky time for Salesforce, whose shares have fallen around 40% since the start of this year amid the economic downturn. The announcement coincided with Salesforce’s third quarter earnings report, in which the company said it expected fourth quarter revenue at the low-end of analysts’ expectations.

    Salesforce’s stock fell more than 6% in after-hours trading following the earnings and leadership change announcements.

    Taylor also had a busy year outside Salesforce. As the former chair of Twitter’s board of directors, he was in charge of leading the company through Elon Musk’s tumultuous takeover deal and litigation. Musk officially closed his $44-billion deal to buy the company last month and quickly dissolved the board of directors.

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  • Elon Musk says he’s found a new CEO for Twitter | CNN Business

    Elon Musk says he’s found a new CEO for Twitter | CNN Business

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    New York
    CNN
     — 

    Elon Musk on Thursday said he’s found a new CEO to take over Twitter, months after he first promised to step back from the role.

    The new CEO will assume the role at Twitter Inc., which recently changed its name to X Corp., in the coming weeks, Musk said. He did not provide a name.

    “Excited to announce that I’ve a new CEO for X/Twitter. She will be starting in ~6 weeks!” Musk said in a tweet.

    Musk, who has had a chaotic reign as “Chief Twit” since buying the company in October, said he will become Twitter’s executive chair and chief technology officer, overseeing product, software and system operations.

    In December, Musk ran a poll on the platform asking users whether he should step back as Twitter’s CEO, which ended with the majority of users voting in the affirmative. Musk said he would abide by the results of the poll but later backtracked, saying he would hand over the role “as soon as I find someone foolish enough to take the job!” In February, he reiterated that he planned to find a replacement by the end of the year.

    Musk has faced criticism for a series of policy changes at Twitter, which often came without clear justification and raised concerns about the impact on Twitter’s users.

    He has also been attempting to convince advertisers to rejoin the platform, after many fled over concerns about hateful conduct on the platform, Twitter’s mass layoffs or questions about the company’s future. At the same time, he has been trying to sell users on a new paid subscription platform that includes the ability to pay for a blue verification check mark, but appears to have limited traction so far.

    Musk — who runs or is involved in numerous other companies, including Tesla

    (TSLA)
    — has also faced criticism from Tesla

    (TSLA)
    shareholders concerned that he is distracted by Twitter.

    Musk recently said that Twitter is now “trending to breakeven,” after previously saying it was at risk of bankruptcy. Now, the company’s new CEO will be tasked with trying to help turn around the struggling company and help Musk recoup some of the $44 billion spent acquiring the platform.

    Even as Musk prepares to step back from the CEO role, he will likely maintain significant control over the future direction of the company. After taking over the company in October, Musk cleared out the C-Suite, dissolved the board and became both the CEO and sole director of the platform.

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  • A new CEO won’t fix Twitter’s biggest problem | CNN Business

    A new CEO won’t fix Twitter’s biggest problem | CNN Business

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    New York
    CNN
     — 

    During his six months as Twitter’s CEO and owner, Elon Musk decimated its ad business, alienated some news publications and VIP users, and plunged the platform into a constant state of chaos.

    Now, a new chief executive will be tasked with trying to turn things around.

    Musk announced on Friday that he would in the coming weeks hand the CEO role over to Linda Yaccarino, a longtime media executive and former chairman of global advertising and partnerships at NBCUniversal. Yaccarino has said little publicly so far, beyond noting her excitement to “transform this business together.”

    Twitter is in desperate need of stability from a leader. And Yaccarino brings the ad industry chops that Twitter sorely needs to lure back top advertisers and boost its business after a turbulent period. But she may struggle to address Twitter’s biggest problem: Elon Musk.

    Although Musk is handing off the CEO title — and, perhaps, trying to shed some of the accountability that comes with it — the billionaire remains firmly in charge of the company as its owner and executive chair. Musk will still be in the C-Suite as Twitter’s chief technology officer. And he continues to be Twitter’s most-followed user, meaning his controversial statements to his nearly 140 million followers could still create headaches for the company.

    In tech, the CEO is often the public face of the brand. But Musk will almost certainly continue to fill that role, with or without the title, likely to Twitter’s detriment.

    Just this week, Musk drew backlash for baselessly attacking billionaire George Soros, a frequent target for antisemitic conspiracy theories, saying the financier “hates humanity.” Musk’s Twitter also faced criticism in recent days for removing some tweets and accounts at the behest of Turkey’s government amid the country’s election; the company later said it would object to the removal requests in court.

    On Tuesday, Musk said he “didn’t care” if his controversial tweets drew the ire of Twitter advertisers or Tesla shareholders. “I’ll say what I want to say, and if the consequence of that is losing money, so be it,” Musk said in an interview with CNBC.

    “The question is: can she help balance [Musk]?” said Tim Hubbard, management professor at University of Notre Dame’s Mendoza College of Business. He added that top ad buyers are more likely to take calls from Yaccarino than from Musk, who has previously said he hates advertising.

    But “the big problem with Twitter right now is, they’re on a pathway that turns advertisers off, turns users off,” Hubbard said. “Unless there are fundamental changes at Twitter, I don’t think [the leadership change] is going to have the immediate effect that Elon is hoping it will have.”

    Twitter did not respond to a request for comment on this story.

    The Musk issue was on full display at NBCU’s ad upfront this week, which was held shortly after Yaccarino resigned from the company following rumors of her appointment as Twitter’s CEO. On stage at the event, which aimed to promote NBCU’s platforms to advertisers, a talking bear sang to audience members: “Twitter may seem like the place to begin, but Twitter just let all the crazies back in.”

    Even if Musk pulls back on his tweeting, a feat he seems constitutionally incapable of achieving, it will be no easy task for Yaccarino to revive Twitter’s advertising business — let alone expand it.

    Many major advertisers left the platform following Musk’s takeover over concerns about an uptick of hate speech, frustrations over layoffs of much of the company’s ad and safety teams and general uncertainty about the platform’s future. Just 43% of Twitter’s top 1,000 advertisers as of September, the month before Musk’s takeover, were still advertising on the platform as of last month, according to data from market intelligence firm Sensor Tower.

    But for many, leaving Twitter may not have been a particularly difficult call.

    Even in the best of times, Twitter was an also-ran in the digital ad space compared to tech giants like Meta and Google, with a smaller user base and less sophisticated ad targeting technology. And Musk’s takeover came as many advertisers have pulled back their digital ad spending across the board during a precarious moment for the economy. That could only add to the difficulty Yaccarino will face in shoring up Twitter’s business.

    Musk, for his part, has been attempting to supplement, and potentially largely replace, Twitter’s ad business with subscriptions, but it appears that only a tiny fraction of Twitter users have bought in. The selection of Yaccarino suggests a recognition on his part that the company he bet $44 billion on will continue to be reliant on ad sales for the foreseeable future.

    It’s unclear how much freedom Yaccarino will have to hire additional staff to support her likely remit to revive advertising on Twitter after Musk laid off around 80% of the company’s staff last year. And even if she is able to hire, top talent may be wary of joining Twitter after Musk upended the company’s culture and reportedly rolled back benefits like work-from-home and extended parental leave.

    “Personnel is going to be a huge challenge for her … if tech workers are looking for a stable working environment, they will probably stay away from Twitter,” Hubbard said.

    But Musk’s ongoing influence remains the biggest potential hurdle.

    Musk has said he will oversee product, technology and software and systems operations, while Yaccarino will focus on business operations. The announcement has left open the question of whether Musk will remain in charge of controversial policy decisions, many of which — including allowing users to buy blue verification checks and restoring the accounts of rule violators, including white supremacists — have threatened Twitter’s popularity with users and advertisers.

    “Cleaning up Twitter requires reversing Musk’s dangerous policy decisions, reinvesting in content moderation and enforcement, and restructuring the platform’s governance,” Jessica Gonzalez, co-CEO of media watchdog Free Press who helped found the #StopToxicTwitter campaign encouraging advertisers to avoid the platform, said in a statement.

    “Musk is setting future CEO Linda Yaccarino up to fail — as long as he continues to make the platform toxic, it will be impossible to lure back advertisers and users,” she said.”

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  • How the CEO behind ChatGPT won over Congress | CNN Business

    How the CEO behind ChatGPT won over Congress | CNN Business

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    Washington
    CNN
     — 

    OpenAI CEO Sam Altman seems to have achieved in a matter of hours what other tech execs have been struggling to do for years: He charmed the socks off Congress.

    Despite wide-ranging concerns that artificial intelligence tools like OpenAI’s ChatGPT could disrupt democracy, national security, and the economy, Altman’s appearance Tuesday before a Senate subcommittee went so smoothly that viewers could have been forgiven for thinking the year was closer to 2013 than 2023.

    It was a pivotal moment for the AI industry. Altman’s testimony on Tuesday alongside Christina Montgomery, IBM’s chief privacy officer, promised to set the tone for how Washington regulates a technology that many fear could eliminate jobs or destabilize elections.

    But where lawmakers could have followed a familiar pattern, blasting the tech industry with hostile questioning and leveling withering allegations of reckless innovation, members of the Senate Judiciary Committee instead heaped praise on the companies — and often, on Altman in particular.

    The difference seemed to come down to OpenAI calling for proactive government regulation — and persuading lawmakers it was serious. Unlike the long list of social media hearings in recent years, this AI hearing came earlier in OpenAI’s lifecycle and, crucially, before the company or its technology had suffered any high-profile mishaps.

    Altman, more than any other figure in tech, has emerged as the face of a new crop of powerful and disruptive AI tools that can generate compelling written work and images in response to user prompts. Much of the federal government is now racing to figure out how to regulate the cutting-edge technology.

    But after his performance on Tuesday, the CEO whose company helped spark the new AI arms race may have maneuvered himself into a privileged position of influence over the rules that may soon govern the tools he’s developing.

    Altman’s easy-going, plain-spoken demeanor helped disarm skeptical lawmakers and appeared to win over Democrats and Republicans alike. His approach contrasted with the wooden, lawyerly performances that have afflicted some other tech CEOs in the past during their time in the hotseat.

    “I sense there is a willingness to participate here that is genuine and authentic,” said Connecticut Democratic Sen. Richard Blumenthal, who chairs the committee’s technology panel.

    New Jersey Democratic Sen. Cory Booker, adopting an unusual level of familiarity with a witness, found himself repeatedly addressing Altman as “Sam,” even as he referred to other panelists by their last names.

    Even Altman’s fellow witnesses couldn’t resist gushing about his style.

    “His sincerity in talking about those [AI] fears is very apparent, physically, in a way that just doesn’t communicate on the television screen,” Gary Marcus, a former New York University professor and a self-described critic of AI “hype,” told lawmakers.

    With a relaxed yet serious tone, Altman did not deflect or shy away from lawmakers’ concerns. He agreed that large-scale manipulation and deception using AI tools are among the technology’s biggest potential flaws. And he validated fears about AI’s impact on workers, acknowledging that it may “entirely automate away some jobs.”

    “If this technology goes wrong, it can go quite wrong, and we want to be vocal about that,” Altman said. “We want to work with the government to prevent that from happening.”

    Altman’s candor and openness has captivated many in Washington.

    On Monday evening, Altman spoke to a dinner audience of roughly 60 House lawmakers from both parties. One person in the room, speaking on condition of anonymity to discuss a closed-door meeting, described members of Congress as “riveted” by the conversation, which also saw Altman demonstrating ChatGPT’s capabilities “to much amusement” from the audience.

    Lawmakers have spent years railing against social media companies, attacking them for everything from their content moderation decisions to their economic dominance. On Tuesday, they seemed ready — or even relieved — to be dealing with another area of the technology industry.

    Whether this time is truly different remains unclear, though. The AI industry’s biggest players and aspirants include some of the same tech giants Congress has sharply criticized, including Google and Meta. OpenAI is receiving billions of dollars of investment from Microsoft in a multi-year partnership. And with his remarks on Tuesday, Altman appeared to draw from a familiar playbook for Silicon Valley: Referring to technology as merely a neutral tool, acknowledging his industry’s imperfections and inviting regulation.

    Some AI ethicists and experts questioned the value of asking a leading industry spokesperson how he would like to be regulated. Marcus, the New York University professor, cautioned that creating a new federal agency to police AI could lead to “regulatory capture” by the tech industry, but the warning could have applied just as easily to Congress itself.

    “It seems very very bad that ahead of a hearing meant to inform how this sector gets regulated, the CEO of one of the corporations that would be subject to that regulation gets to present a magic show to the regulators,” Emily Bender, a professor of computational linguistics at the University of Washington, said of Altman’s dinner with House lawmakers.

    She added: “Politicians, like journalists, must resist the urge to be impressed.”

    After years of fidgety evasiveness from other tech CEOs, however, lawmakers this week seemed easily wowed by Altman and his seemingly straight-shooting answers.

    Louisiana Republican Sen. John Kennedy, after expressing frustration with IBM’s Montgomery for providing a nuanced answer he couldn’t comprehend, visibly brightened when Altman quickly and smoothly outlined his regulatory proposals in a bulleted list. Kennedy began joking with Altman and even asked whether Altman might consider heading up a hypothetical federal agency charged with regulating the AI industry.

    “I love my current job,” Altman deadpanned, to audience laughter, before offering to send Kennedy’s office some potential candidates.

    Compounding lawmakers’ attraction to Altman is a belief on Capitol Hill that Congress erred in extending broad liability protections to online platforms at the dawn of the internet. That decision, which allowed for an explosion of blogs, e-commerce sites, streaming media and more, has become an object of regret for many lawmakers in the face of alleged mental health harms stemming from social media.

    “I don’t want to repeat that mistake again,” said Judiciary Committee Chairman Dick Durbin.

    Here too, Altman deftly seized an opportunity to curry favor with lawmakers by emphasizing distinctions between his industry and the social media industry.

    “We try to design systems that do not maximize for engagement,” Altman said, alluding to the common criticism that social media algorithms tend to prioritize outrage and negativity to boost usage. “We’re not an advertising-based model; we’re not trying to get people to use it more and more, and I think that’s a different shape than ad-supported social media.”

    In providing simple-sounding solutions with a smile, Altman is doing much more than shaping policy: He is offering members of Congress a shot at redemption, one they seem grateful to accept. Despite the many pitfalls of AI they identified on Tuesday, lawmakers appeared to thoroughly welcome Altman as a partner, not a potential adversary needing oversight and scrutiny.

    “We need to be mindful,” Blumenthal said, “of ways that rules can enable the big guys to get bigger and exclude innovation, and competition, and responsible good guys such as our representative in this industry right now.”

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  • One of Asia’s top female entrepreneurs is stepping down at Grab, the ride-hailing company she helped found | CNN Business

    One of Asia’s top female entrepreneurs is stepping down at Grab, the ride-hailing company she helped found | CNN Business

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    Hong Kong
    CNN
     — 

    One of Southeast Asia’s most well-known female entrepreneurs is to step down from her operational roles at Grab, the ride-hailing giant she helped found more than a decade ago.

    Tan Hooi Ling, a former chief operating officer who currently leads the firm’s technology and corporate strategy teams, will move to an advisory role by the end of the year, the company said Thursday. She will also give up her seat on the board.

    Her exit leaves Grab’s Chief Executive Officer Anthony Tan the tough task of reversing years of losses amid increasingly fierce competition in the ride-hailing and food delivery markets, all without the help of the woman who helped him co-found the company in 2012.

    “Grab has been one of the most fulfilling experiences of my life. The impact we create is a reflection of who we are as a team, and I am humbled to have been able to walk alongside Anthony and the many amazing Grabbers who share the same values and work ethic to build something that improves lives in Southeast Asia,” a statement from the company quoted Tan Hooi Ling as saying.

    After being founded as a ride-hailing company by the two Tans – who are both from Malaysia but are unrelated – Grab quickly soared to become Southeast Asia’s most valuable private company. It acquired Uber’s Southeast Asia business in 2018, and has since expanded into a variety of other services, including food delivery, digital payments and even financial services.

    But Grab has faced intensifying competition from Southeast Asia rivals, including Singapore’s Sea Ltd, Indonesia’s GoTo Group, and Berlin-based Delivery Hero’s Foodpanda.

    Grab, which unlike some of its competitors avoided mass layoffs during the coronavirus pandemic, posted an annual loss of $1.74 billion in 2022. That was a 51% improvement on the year before, according to its annual report.

    In 2021, the company merged with a special-purpose acquisition company, or SPAC, backed by Altimeter Capital in a deal that would pave the way for a New York listing and value Grab at nearly $40 billion.

    Before that, Grab had heavyweight backers including Japan’s SoftBank

    (SFTBF)
    and China’s ride-hailing startup, Didi Chuxing.

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  • What the chaos at Twitter means for the future of social movements | CNN Business

    What the chaos at Twitter means for the future of social movements | CNN Business

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    Editor’s Note: The CNN Original Series “The 2010s” looks back at a turbulent era marked by extraordinary political and social upheaval. New episodes air at 9 p.m. ET/PT Sundays.



    CNN
     — 

    When thousands of Egyptians marched through the streets during the Arab Spring of 2011, they had a tool at their disposal that earlier social movements didn’t: Twitter.

    A key group of activists used the platform to form networks and organize protests against the authoritarian regime, while many more demonstrators used it to disseminate information and images from the ground for the rest of the world to see. Months later, organizers from the Occupy Wall Street movement took to Twitter to coordinate protests in New York and beyond.

    Twitter fostered public conversation around the Black Lives Matter movement after the 2014 police killing of Michael Brown in Ferguson, Missouri, and again after the 2020 police killing of George Floyd. It amplified #MeToo in the aftermath of the sexual assault allegations against Hollywood producer Harvey Weinstein, and catapulted other revolutionary movements around the world to global attention.

    “You can’t underestimate the impact of Twitter to social movements,” Amara Enyia, manager of policy and research for the Movement for Black Lives, told CNN.

    Twitter has often been heralded as a democratizing force, bringing previously marginalized voices to the forefront and giving the public a platform to demand accountability from leaders. (It has also enabled the spread of misinformation, extremist ideas and abusive content.)

    But since Elon Musk acquired Twitter last year and the platform plunged into chaos, some organizers and digital media experts have been bracing for the impact that his controversial policy changes and mass layoffs may have on social movements going forward.

    Though Twitter has often been referred to as a public square, some of Musk’s recent moves challenge that description.

    Through Twitter, organizers and political groups have had a level of direct access to policymakers and leaders that wouldn’t have been possible in person, said Rachel Kuo, an assistant professor of media and cinema studies at the University of Illinois, Urbana-Champaign. Verified activists were able to promote certain messages that the algorithm then pushed to the top of users’ feeds, organizers could launch campaigns that caught the attention of high-profile figures and the public could follow along for real-time updates.

    “There are now issues in how people see Twitter as a source of information and a source of political community,” said Kuo, whose research focuses on race, social movements and digital technologies. “It isn’t seen in the same way anymore.”

    Elon Musk's controversial policy changes at Twitter could have implications for social movements, some activists say.

    Musk upended traditional Twitter verification and turned it into a pay-for-play system, leading to the impersonation of government accounts and the spread of fake images. For organizers who opt not to pay the monthly subscription fee for a blue check, that also means a loss of credibility and visibility, Kuo added.

    Twitter, which has cut much of its public relations team under Musk, did not respond to a request for comment.

    Twitter’s role in information-sharing has been disrupted in other ways, too.

    The platform has been plagued by technical glitches after mass layoffs and departures at the company, frustrating many users. People have also reported that the “for you” timeline is showing them content they aren’t interested in.

    As a result of these issues and others, some are leaving Twitter altogether – more than 32 million users are projected to exit the platform in the two years following Musk’s takeover, according to a December 2022 forecast from the market research agency Insider Intelligence. (Twitter reported having 238 million monetizable daily active users last year before Musk acquired it.)

    With fewer people on Twitter, the platform becomes less centralized and the information landscape more fractured, said Sarah Aoun, a privacy and security researcher who works on cybersecurity for the Movement for Black Lives. That makes it harder for activists to connect, exchange tactics and build solidarity in the way they once did.

    Protesters in Cairo gather in Tahrir Square in November 2011.

    Musk’s approach to content moderation has also made Twitter a more hostile environment, Aoun said. Twitter has never been a completely safe space for marginalized voices – women, people of color, LGBTQ people and other vulnerable groups have long been targets of online harassment and abuse – but reports from the Center for Countering Digital Hate and Anti-Defamation League indicate an increase in hate speech on the platform under Musk’s leadership. (Musk has previously pushed back at that characterization by focusing on a different metric.)

    Some are also disillusioned over Musk’s decision to reinstate users who were previously suspended for violating the platform’s rules, including former President Donald Trump and GOP Rep. Marjorie Taylor Greene.

    “The lack of verification, the mass exodus, the inability to coordinate the way that we used to be able to coordinate and the content moderation (gutting) makes it a very difficult platform to be on at the moment,” Aoun said.

    Musk has stepped back as Twitter’s CEO, a role now held by former NBCUniversal marketing executive Linda Yaccarino. But he will maintain significant control over the platform as the company’s owner, executive chairman and chief technology officer.

    The changes at Twitter have prompted some activists and organizers to reassess their relationships with the platform.

    Rich Wallace, executive director of the Chicago-based organization Equity and Transformation (EAT), said that previously, he used to see robust engagement on tweets about social injustice or racial inequity, whether it was from those who agreed with him or didn’t. Now, he finds that substantive posts barely get traction as opposed to tweets he considers more mundane.

    Wallace said his organization, which seeks to build social and economic equity for Black workers in the informal economy, still shares information about community events on Twitter, but the potential to find new allies or engage in meaningful conversation on the platform is largely a thing of the past.

    Twitter is no longer a space for education and community building that it once was, Wallace said. It’s a shift in how he once viewed the platform, but he isn’t especially concerned. For his organization, it simply means a re-emphasis on the grassroots, in-person work they were already doing.

    People raise their fists in June 2020 as they protest the police killing of George Floyd.

    “As organizers, we’ve been creative in how we organize around barriers,” he said. “This is just one of the newer barriers that we have to assess and organize through.”

    As Kuo sees it, the ways that the changes at Twitter will affect organizing and activism will vary widely. Hyperlocal community organizers or those who work with populations that don’t speak English aren’t typically using Twitter in their day-to-day work, and so the recent shifts likely won’t affect them drastically. But she predicts that mid-to-large nonprofit organizations with communications staff might be rethinking their strategy on the platform.

    “It’s very dependent on organizational structure, form, strategies for change and political vision,” Kuo said.

    Enyia said that on a personal level, she finds that she’s engaging with people on Twitter less often and moreso using the platform to keep up with news. But in her advocacy work with the Movement for Black Lives, it remains an important tool.

    “For us, its utility is in the fact that it creates more access points to our policy platform, to the issues that we’re advocating on,” she said. “And in that regard, it’s still very, very useful.”

    When Musk first took over Twitter, some organizers and activists flocked to other alternatives, such as Mastodon or Bluesky (an app backed by Twitter co-founder and former CEO Jack Dorsey).

    Neither appears to be fulfilling the same purpose that Twitter once did, Aoun and others said. Mastodon and Bluesky are decentralized and fewer people are using them, making it more difficult to build community. And while their numbers are growing, they’re still far smaller than Twitter.

    The Bluesky app is seen on a phone and laptop in June 2023.

    In the case of Mastodon, there are privacy and security issues that concern some activists. Because the social network allows users to join different servers run by various groups and individuals, Aoun said “the privacy, security and content moderation is basically as good as the person behind the server.” Twitter – at least before Musk took over – had dedicated privacy and security teams, offering more transparency about how their systems worked.

    Some activists are using popular social networks such as Instagram and TikTok, but the visual nature of those platforms versus the text-based medium of Twitter changes how people are able to interact and engage with each other, Kuo said.

    Twitter has been an incredibly powerful tool for social movements, Enyia said. But ultimately, the platform is just that – a tool.

    “There is no panacea for just the nuts and bolts work that it takes to meet people, to engage people, to organize and talk to people,” Enyia said. “So even if we recognize that social media is a tool, we don’t put all of our eggs in that basket.”

    Social media platforms come and go, and the same could happen to Twitter. So while Enyia’s organization continues to use the platform for its own ends, it’s prepared for a reality in which Twitter is less relevant.

    “We have to stay on top of it to make sure that the tools are serving their purpose as it relates to our work,” Enyia said. “But then we have to be ready to evolve or to move on or to adapt to different tools when it becomes clear that that’s the direction we have to go.”

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  • Chinese tech giant Alibaba announces new chairman and CEO succession plan in major shakeup | CNN Business

    Chinese tech giant Alibaba announces new chairman and CEO succession plan in major shakeup | CNN Business

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    Hong Kong
    CNN
     — 

    Joseph Tsai, executive vice chairman and cofounder of Alibaba Group, will succeed Daniel Zhang as chairman, according to an announcement by the Chinese tech giant on Tuesday.

    This is Alibaba’s second succession in just a few years after founder Jack Ma stepped away in 2019.

    Eddie Wu, chairman of Alibaba’s e-commerce platform Taobao and Tmall Group, will succeed Zhang as chief executive officer and replace him on the company’s board of directors. Both appointments will take effect on September 10, 2023, the company said.

    Following the transition, Zhang will continue to serve as the chairman and CEO of Alibaba’s cloud unit.

    “This is the right time for me to make a transition, given the importance of Alibaba Cloud Intelligence Group as it progresses towards a full spin-off,” Zhang said in the announcement.

    He added that the emergence of generative AI has opened up “exciting new opportunities” for the company’s cloud business.

    Wu, also a cofounder of Alibaba, served as the technology director at the company’s inception in 1999.

    “I am grateful for the trust of the Alibaba Group board of directors and am honored to succeed Daniel as Alibaba’s CEO,” he said.

    “While our current transformation brings in a new corporate organizational and governance structure, Alibaba’s mission remains unchanged.”

    The succession comes just a few months after the internet giant announced its biggest restructuring in its 24-year history.

    The company would split into six separate units, including cloud, e-commerce, logistics, media and entertainment, according to a company statement in March. Each unit would be overseen by its own CEO and board directors, and most of them can pursue separate listings or fundraisings.

    Zhang was appointed by Alibaba as CEO in May 2015, eight years after he joined the company. On September 10, 2019, he replaced Jack Ma as the executive chairman, as Ma retired on his birthday and the 20th anniversary of the company as he had promised.

    Alibaba is China’s largest e-commerce company, boasting more than 900 million active users annually on its Taobao and Tmall platforms. It also operates the country’s biggest cloud computing and digital payment platforms.

    But the company, along with its co-founder Ma, has been at the center of a sweeping crackdown by Beijing in recent years.

    After Ma criticized Chinese financial regulators in a public speech in late 2020, Beijing called off the blockbuster IPO of Ant Group, the affiliate of Alibaba that owns Alipay, at the last minute. The cancellation marked the start of a regulatory onslaught against the country’s internet industry and the private sector, during which Beijing imposed a record fine of $2.8 billion on Alibaba Group for violating antitrust rules.

    Since then, Ma had largely disappeared from public view and retreated further from his companies. He has reportedly spent more time overseas, including in Hong Kong and Japan, home to his friend and Alibaba investor, SoftBank CEO Masa Son.

    But in March, he made a surprising public appearance in mainland China, days before Alibaba announced its major restructuring plan. His return was a symbolic move and probably a “planned media event” by Beijing intended to appease private sector fears, according to analysts.

    Since then, Ma has shown up in public more frequently, with a more visible focus on researching and teaching. In April, the University of Hong Kong announced that Ma would join its business school for the next three years.

    Last week, Ma gave his first lecture as a visiting professor to the University of Tokyo, according to a statement from the university.

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  • Microsoft faces off against US government over Activision deal, with top execs set to testify | CNN Business

    Microsoft faces off against US government over Activision deal, with top execs set to testify | CNN Business

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    CNN
     — 

    Microsoft

    (MSFT)
    and the video game giant Activision Blizzard

    (ATVI)
    will face off Thursday against the US government in a high-stakes battle over one of the largest technology acquisitions in history.

    The showdown in federal court will have the CEOs of both companies taking the stand to defend their $69 billion merger against claims that the combination could violate US antitrust law and harm millions of consumers.

    The outcome of the fight will shape the future of the multibillion-dollar games industry. It will also impact enormously popular gaming franchises such as “Call of Duty” and “World of Warcraft,” which Activision owns and would be transferred to Microsoft under the deal.

    Also testifying will be the top financial executives from both companies; senior leaders from Microsoft’s Xbox division; the CEO of Microsoft Gaming, Phil Spencer; and a vocal critic of the deal, Sony gaming CEO Jim Ryan.

    The days-long affair begins Thursday and is scheduled to run through next week.

    In bringing the case, the Federal Trade Commission is asking a US district court judge for an injunction that would temporarily halt the deal. That would keep the companies from closing their merger, at least until the FTC’s in-house court rules in a separate proceeding on whether the acquisition is anticompetitive.

    But this week’s fight over a preliminary injunction may prove decisive for the deal as a whole. Microsoft has said that a victory for the FTC at this stage “will effectively block the transaction” overall.

    In this hearing, the FTC does not need to prove that the deal is anticompetitive. It just needs to show that the agency would be likely to succeed in doing so if the case moves ahead, and that otherwise its ability to enforce US antitrust law would be harmed.

    The clash comes as Microsoft and Activision face down a contractual July 18 deadline to consummate the deal. Failure to close, or any permanent court order to block the merger, could force Microsoft to pay a $3 billion breakup fee to Activision, according to the deal’s terms.

    The FTC lawsuit has put Microsoft under the harshest antitrust scrutiny in the US in more than two decades. It also could be a crucial test for the FTC at a time when it’s trying to rein in the tech industry broadly, with mixed success.

    In its initial challenge to the merger in its in-house court last year, the FTC alleged the deal would harm competition by turning Microsoft into the world’s third-largest video game publisher — allowing it to raise video game prices with impunity, restrict Activision titles from rival platforms and harm game quality and player experiences on consoles and gaming services.

    Some of those concerns have also been raised internationally. The UK government has challenged the acquisition, and the New Zealand government on Tuesday warned that the deal could be anticompetitive.

    Microsoft has sought to address the concerns by hammering out multi-year licensing agreements with competitors such as Nintendo and Nvidia to ensure that their platforms will continue to receive popular titles if the deal goes through.

    The company has also put forth an 11-point pledge to keep its platforms open, a commitment that applies not only to the Activision Blizzard deal but to virtually all of Microsoft’s gaming business going forward.

    Last month, Microsoft said the European Union would require it to license Activision games “automatically” to competing cloud gaming services as a condition of allowing the merger to proceed in the EU. That commitment, Microsoft said, “will apply globally and will empower millions of consumers worldwide to play these games on any device they choose.”

    Although EU regulators have said the concession addresses their concerns, officials in the US and the UK are continuing with their legal opposition to the deal.

    The standoff particularly focuses attention on FTC Chair Lina Khan, a tech industry critic who has argued for litigating difficult cases and for introducing novel legal theories to help adapt US antitrust law to the digital age.

    Khan won a significant victory last year when the FTC forced Nvidia to abandon its attempted acquisition of the chipmaker Arm. The deal would have combined two companies in adjacent industries in what is known as a vertical merger, a type of deal that is rarely blocked in the United States.

    But Khan also suffered a setback when the FTC unsuccessfully tried to block Facebook-parent Meta from acquiring Within Unlimited, a virtual reality startup. The FTC had argued that the acquisition was an attempt by Meta to quash competition in the nascent VR industry, but earlier this year, a federal judge declined to issue a preliminary injunction of the kind the FTC now seeks against Microsoft. The FTC dropped its case against Meta soon after.

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  • Call of Duty to remain on Playstation following Activision Blizzard Microsoft merger | CNN Business

    Call of Duty to remain on Playstation following Activision Blizzard Microsoft merger | CNN Business

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    CNN
     — 

    Microsoft

    (MSFT)
    has signed an agreement with Sony

    (SNE)
    to ensure “Call of Duty” remains available on PlayStation after Microsoft

    (MSFT)
    closes its $69 billion Activision Blizzard

    (ATVI)
    merger, the tech giant said Sunday.

    The agreement could resolve long-standing complaints by Sony that the merger — which aims to make Microsoft the third-largest video game publisher in the world — threatens competition. Sony didn’t immediately respond to a request for comment.

    “We are pleased to announce that Microsoft and @PlayStation have signed a binding agreement to keep Call of Duty on PlayStation following the acquisition of Activision Blizzard,” said Phil Spencer, Microsoft’s Xbox head, in a tweet. “We look forward to a future where players globally have more choice to play their favorite games.”

    Sony had been among the loudest critics of the acquisition. Addressing the company’s concerns about the continued availability of “Call of Duty,” one of the industry’s most popular franchises, could help Microsoft overcome any remaining opposition to the deal and usher it to a conclusion.

    In response to competition concerns from regulators around the world, Microsoft had already signed multiyear licensing agreements with rival companies including Nintendo and Nvidia, among others, to ensure Microsoft would not be able to restrict Activision titles from users of those businesses’ platforms and consoles.

    On Sunday, Microsoft did not disclose the duration of the agreement with Sony.

    “From Day One of this acquisition, we’ve been committed to addressing the concerns of regulators, platform and game developers, and consumers,” said Microsoft President Brad Smith in a tweet. “Even after we cross the finish line for this deal’s approval, we will remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before.”

    During a five-day hearing last month in federal court, Microsoft executives including CEO Satya Nadella testified properties such as “Call of Duty” would not be restricted from competitors following the deal’s close.

    Last week, US District Judge Jacqueline Scott Corley wrote in her opinion the US government had “not shown it is likely to succeed on its assertion the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets.”

    Microsoft faces a contractual deadline of July 18 to close the merger with Activision, though the companies could mutually seek to extend that time frame.

    Last week, Microsoft won two successive court victories when a federal district court and a US appeals court declined to temporarily block the merger from being consummated. The Federal Trade Commission had argued a preliminary injunction was necessary to prevent video game consumers from being immediately harmed by the deal, which regulators said would enable Microsoft to withhold “Call of Duty” and other popular titles from competing consoles and cloud gaming services.

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  • Microsoft and Activision extend their deal deadline | CNN Business

    Microsoft and Activision extend their deal deadline | CNN Business

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    Washington
    CNN
     — 

    Microsoft and Activision have mutually agreed to extend their merger deadline by three months in the face of ongoing negotiations with the UK government that could allow the $69 billion acquisition to close, the two companies announced on Wednesday.

    The announcement highlights the commitment by both companies to complete the deal after back-to-back court defeats for US regulators who had challenged the merger.

    The new contractual deadline for consummating the deal will be October 18, the companies said. The previous deadline was July 18.

    “Together with @Activision, we are announcing the extension of our merger agreement to 10/18 to provide ample time to work through the final regulatory issues,” Brad Smith, Microsoft’s vice chair and president, said in a Twitter post on Wednesday.

    If the companies fail to close by Aug. 29, Microsoft could be asked to pay a breakup fee of $3.5 billion, an increase of $500 million over the previously agreed-upon sum, according to a filing from Activision with the Securities and Exchange Commission. If the deal fails to close by Sept. 15, the breakup fee could increase to $4.5 billion, the filing said.

    In addition, according to the filing, if the companies fail to complete their merger and Microsoft is forced to pay the breakup fee, the companies also agreed that beginning on Oct. 18 Microsoft would have to pay Activision “100% of all proceeds or other payments for games” that belong to Activision.

    Following a federal judge’s decision last week in the US not to block the acquisition from closing, Microsoft announced a deal with the UK’s Competition and Markets Authority (CMA) to suspend litigation over the merger. The move is intended to give both sides time to reach agreement on how the acquisition might be altered to address competition concerns in that country.

    “The recent decision in the U.S. and approvals in 40 countries all validate that the deal is good for competition, players, and the future of gaming,” a company spokesperson said. “Given global regulatory approvals and the companies’ confidence that CMA now recognizes there are remedies available to meet their concerns in the UK, the Activision Blizzard and Microsoft boards of directors have authorized the companies not to terminate the deal until after October 18. We’re confident in our next steps and that our deal will quickly close.”

    In a memo to employees, Activision CEO Bobby Kotick thanked staff for their patience.

    “I know many of you have questions about our merger with Microsoft,” Kotick wrote. “I am happy to share that based on our continued confidence in closing our deal, the Activision Blizzard and Microsoft boards have mutually agreed not to terminate the deal until after October 18.”

    Kotick added: “This merger is great for players, workers, and our business, and it will create opportunities to compete against companies with large talent pools, strong IP and complete control of their markets. Our merger is cleared to close in over 40 countries already, and we remain confident in resolving any remaining regulatory concerns in the UK.”

    In a memo to employees, Microsoft’s Xbox head Phil Spencer reiterated his hopes of bringing “more games to more players everywhere.”

    “While we can technically close in the United States due to recent legal developments, this extension gives us additional time to resolve the remaining regulatory concerns in the UK,” Spencer wrote in his email.

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  • Google-parent stock drops on fears it could lose search market share to AI-powered rivals | CNN Business

    Google-parent stock drops on fears it could lose search market share to AI-powered rivals | CNN Business

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    CNN
     — 

    Shares of Google-parent Alphabet fell more than 3% in early trading Monday after a report sparked concerns that its core search engine could lose market share to AI-powered rivals, including Microsoft’s Bing.

    Last month, Google employees learned that Samsung was weighing making Bing the default search engine on its devices instead of Google’s search engine, prompting a “panic” inside the company, according to a report from the New York Times, citing internal messages and documents. (CNN has not reviewed the material.)

    In an effort to address the heightened competition, Google is said to be developing a new AI-powered search engine called Project “Magi,” according to the Times. The company, which reportedly has about 160 people working on the project, aims to change the way results appear in Google Search and will include an AI chat tool available to answer questions. The project is expected to be unveiled to the public next month, according to the report.

    In a statement sent to CNN, Google spokesperson Lara Levin said the company has been using AI for years to “improve the quality of our results” and “offer entirely new ways to search,” including with a feature rolled out last year that lets users search by combining images and words.

    “We’ve done so in a responsible and helpful way that maintains the high bar we set for delivering quality information,” Levin said. “Not every brainstorm deck or product idea leads to a launch, but as we’ve said before, we’re excited about bringing new AI-powered features to Search, and will share more details soon.”

    Samsung did not immediately respond to a request for comment.

    Google’s search engine has dominated the market for two decades. But the viral success of ChatGPT, which can generate compelling written responses to user prompts, appeared to put Google on defense for the first time in years.

    In March, Google began opening up access to Bard, its new AI chatbot tool that directly competes with ChatGPT and promises to help users outline and write essay drafts, plan a friend’s baby shower, and get lunch ideas based on what’s in the fridge.

    At an event in February, a Google executive also said the company will bring “the magic of generative AI” directly into its core search product and use artificial intelligence to pave the way for the “next frontier of our information products.”

    Microsoft, meanwhile, has invested in and partnered with OpenAI, the company behind ChatGPT, to deploy similar technology in Bing and other productivity tools. Other tech companies, including Meta, Baidu and IBM, as well as a slew of startups, are racing to develop and deploy AI-powered tools.

    But tech companies face risks in embracing this technology, which is known to make mistakes and “hallucinate” responses. That’s particularly true when it comes to search engines, a product that many use to find accurate and reliable information.

    Google was called out after a demo of Bard provided an inaccurate response to a question about a telescope. Shares of Google’s parent company Alphabet fell 7.7% that day, wiping $100 billion off its market value.

    Microsoft’s Bing AI demo was also called out for several errors, including an apparent failure to differentiate between the types of vacuums and even made up information about certain products.

    In an interview with 60 Minutes that aired on Sunday, Google and Alphabet CEO Sundar Pichai stressed the need for companies to “be responsible in each step along the way” as they build and release AI tools.

    For Google, he said, that means allowing time for “user feedback” and making sure the company “can develop more robust safety layers before we build, before we deploy more capable models.”

    He also expressed his belief that these AI tools will ultimately have broad impacts on businesses, professions and society.

    “This is going to impact every product across every company and so that’s, that’s why I think it’s a very, very profound technology,” he said. “And so, we are just in early days.”

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