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Tag: Twitter Inc

  • Twitter’s Ned Segal confirms exit, changes bio to ‘former CFO and current fan of Twitter’

    Twitter’s Ned Segal confirms exit, changes bio to ‘former CFO and current fan of Twitter’

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    Twitter chief financial officer Ned Segal confirmed his exit from the social media giant on Friday through Twitter.

    Segal changed his bio to “former CFO and current fan of @Twitter” and tweeted that Thursday was his last day, concluding his five-year stint with the company.

     

    He described his journey at Twitter as the “most fulfilling” year of his career. His tweets came hours after Musk indicated the completion of the $44 billion acquisition deal.

    Reportedly Segal and other two executives of Twitter Inc including Indian-origin CEO Parag Agrawal and legal Vijaya Gadde have been fired by the world’s richest man who is not at the helm of the company.

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  • Elon Musk on the hook to pay more than $200 million to 3 fired Twitter execs

    Elon Musk on the hook to pay more than $200 million to 3 fired Twitter execs

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    This story was updated with a more current tally of shares from Twitter’s most recent proxy statement. 

    When Twitter Inc.’s top executives walked out of its San Francisco headquarters Thursday, they may as well have been carrying bags of Elon Musk’s cash.

    Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal and Vijaya Gadde, Twitter’s head of legal policy, received a “golden parachute” clause in Twitter’s
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    merger with Musk’s X Holdings. Musk reportedly fired all three Thursday evening upon officially taking control of the social network in a $44 billion acquisition, and will be obligated to give more than $204 million of it to those three, according to Twitter’s filing with the Securities and Exchange Commission.

    Read more: Elon Musk completes Twitter purchase, fires CEO and other top execs: reports

    Agrawal, Segal and Gadde own roughly 1.2 million shares of Twitter, more than half of that a $34.8 million stake owned by Gadde. The trio’s roughly $65 million stake would be purchased by Musk like any other shareholder’s stock.

    Additionally, a clause in the merger agreement provided accelerated vesting of promised future stock compensation — and that’s where the biggest chunk of money comes in. The “Golden Parachute Compensation” clause in Twitter’s SEC filing — which was the deal approved by Twitter shareholders — shows the trio would automatically vest stock worth $119.6 million as severance if terminated, with the largest payout there going to Agrawal at $56 million.

    They’re also entitled to a year’s salary and health benefits. In 2021, Agrawal had a base pay of $623,000, while Segal and Gadde’s base pay was $600,000 each.

    In total, Gadde is set to walk away from Twitter with the biggest haul: Nearly $74 million. Agrawal and Segal aren’t far behind her, though, at roughly $65 million and $66 million, respectively.

    Twitter shares have rallied 26% over the past month and closed Thursday at $53.70, close to the $54.20 share price Musk, who’s also CEO of Tesla Inc.
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    and the world’s wealthiest individual, agreed to pay in April.

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  • Elon Musk completes Twitter purchase, fires CEO and other top execs: reports

    Elon Musk completes Twitter purchase, fires CEO and other top execs: reports

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    Twitter Inc. is now owned by Elon Musk, with multiple media outlets reporting Thursday night that the long-anticipated sale had officially closed.

    The Wall Street Journal, Washington Post and others reported, based on unnamed sources, that the top executives of Twitter
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    were fired and escorted from the building, including Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal and Vijaya Gadde, head of legal policy, trust and safety.

    Musk himself is expected to assume the role of interim CEO, though in the longer term may appoint someone else, Bloomberg reported early Friday, citing unnamed sources. Twitter did not respond to a request by the publication for comment.

    Also read: Elon Musk on the hook to pay more than $200 million to 3 fired Twitter execs

    The acquisition ends months of legal wrangling after Musk, the billionaire CEO of Tesla Inc.
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    and SpaceX and a frequent Twitter user, offered to buy Twitter in April. After reaching an agreement with Twitter’s board to buy the social media company for $44 billion, Musk tried to back out of the deal and Twitter sued him. He faced a Friday deadline to complete the deal or face trial.

    In a tweet late Thursday night, Musk said only: “the bird is freed.”

    Opinion: Twitter stood up to Elon Musk and won, but will it feel like a win once he owns it?

    Thursday morning, Musk signaled a deal was imminent when he tweeted a statement aimed at assuring advertisers, some of whom might be concerned about his plans for content moderation. Musk has said one of his motivations for buying the platform is related to complaints about censorship, mostly from people who have been banned because they have violated Twitter’s terms of service.

    “Twitter obviously cannot become a free-for-all hellscape, where anything can be said with no consequences!” Musk said in his statement to advertisers Thursday.

    Twitter did not immediately return a request for comment late Thursday.

    The Bloomberg report added that Musk also plans to end lifetime bans for users, meaning former President Donald Trump could return to Twitter, though it’s unclear how soon that could happen, the source said.

    Twitter shares have rallied 26% over the past month, closing Thursday at $53.70, close to the $54.20 share price Musk agreed to pay in April.

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  • AP sources: Musk in control of Twitter, ousts top executives

    AP sources: Musk in control of Twitter, ousts top executives

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    Elon Musk has taken control of Twitter and ousted the CEO, chief financial officer and the company’s top lawyer, two people familiar with the deal said Thursday night.

    The people wouldn’t say if all the paperwork for the deal, originally valued at $44 billion, had been signed or if the deal has closed. But they said Musk is in charge of the social media platform and has fired CEO Parag Agrawal, CFO Ned Segal and Chief Legal Counsel Vijaya Gadde. Neither person wanted to be identified because of the sensitive nature of the deal.

    A few hours later, Musk tweeted, “the bird has been freed,” a reference to Twitter’s logo.

    The departures came just hours before a deadline set by a Delaware judge to finalize the deal on Friday. She threatened to schedule a trial if no agreement was reached.

    Although they came quickly, the major personnel moves had been widely expected and almost certainly are the first of many major changes the mercurial Tesla CEO will make.

    Musk privately clashed with Agrawal in April, immediately before deciding to make a bid for the company, according to text messages later revealed in court filings.

    About the same time, he used Twitter to criticize Gadde, the company’s top lawyer. His tweets were followed by a wave of harassment of Gadde from other Twitter accounts. For Gadde, an 11-year Twitter employee who also heads public policy and safety, the harassment included racist and misogynistic attacks, in addition to calls for Musk to fire her. On Thursday, after she was fired, the harassing tweets lit up once again.

    Musk’s changes will be aimed at increasing Twitter’s subscriber base and revenue.

    In his first big move earlier on Thursday, Musk tried to soothe leery Twitter advertisers saying that he is buying the platform to help humanity and doesn’t want it to become a “free-for-all hellscape.”

    The message appeared to be aimed at addressing concerns among advertisers — Twitter’s chief source of revenue — that Musk’s plans to promote free speech by cutting back on moderating content will open the floodgates to more online toxicity and drive away users.

    “The reason I acquired Twitter is because it is important to the future of civilization to have a common digital town square, where a wide range of beliefs can be debated in a healthy manner, without resorting to violence,” Musk wrote in an uncharacteristically long message for the Tesla CEO, who typically projects his thoughts in one-line tweets.

    He continued: “There is currently great danger that social media will splinter into far right wing and far left wing echo chambers that generate more hate and divide our society.”

    Musk has previously expressed distaste for advertising and Twitter’s dependence on it, suggesting more emphasis on other business models such as paid subscriptions that won’t allow big corporations to dictate policy on how social media operates. But on Thursday, he assured advertisers he wants Twitter to be “the most respected advertising platform in the world.”

    The note is a shift from Musk’s position that Twitter is unfairly infringing on free speech rights by blocking misinformation or graphic content, said Pinar Yildirim, associate professor of marketing at the University of Pennsylvania’s Wharton School.

    But it’s also a realization that having no content moderation is bad for business, putting Twitter at risk of losing advertisers and subscribers, she said.

    “You do not want a place where consumers just simply are bombarded with things they do not want to hear about, and the platform takes no responsibility,” Yildirim said.

    Musk said Twitter should be “warm and welcoming to all” and enable users to choose the experience they want to have.

    Friday’s deadline to close the deal was ordered by the Delaware Chancery Court in early October. It is the latest step in a battle that began in April with Musk signing a deal to acquire Twitter, then tried to back out of it, leading Twitter to sue the Tesla CEO to force him to go through with the acquisition. If the two sides don’t meet Friday’s deadline, the next step could be a November trial that could lead to a judge forcing Musk to complete the deal.

    But Musk has been signaling that the deal is going through. He strolled into the company’s San Francisco headquarters Wednesday carrying a porcelain sink, changed his Twitter profile to “Chief Twit,” and tweeted “Entering Twitter HQ — let that sink in!”

    And overnight the New York Stock Exchange notified investors that it will suspend trading in shares of Twitter before the opening bell Friday in anticipation of the company going private under Musk.

    Musk is expected to speak to Twitter employees directly Friday if the deal is finalized, according to an internal memo cited in several media outlets. Despite internal confusion and low morale tied to fears of layoffs or a dismantling of the company’s culture and operations, Twitter leaders this week have at least outwardly welcomed Musk’s arrival and messaging.

    Top sales executive Sarah Personette, the company’s chief customer officer, said she had a “great discussion” with Musk on Wednesday and appeared to endorse his Thursday message to advertisers.

    “Our continued commitment to brand safety for advertisers remains unchanged,” Personette tweeted Thursday. “Looking forward to the future!”

    Musk’s apparent enthusiasm about visiting Twitter headquarters this week stood in sharp contrast to one of his earlier suggestions: The building should be turned into a homeless shelter because so few employees actually worked there.

    The Washington Post reported last week that Musk told prospective investors that he plans to cut three quarters of Twitter’s 7,500 workers when he becomes owner of the company. The newspaper cited documents and unnamed sources familiar with the deliberation.

    Musk has spent months deriding Twitter’s “spam bots” and making sometimes contradictory pronouncements about Twitter’s problems and how to fix them. But he has shared few concrete details about his plans for the social media platform.

    Thursday’s note to advertisers shows a newfound emphasis on advertising revenue, especially a need for Twitter to provide more “relevant ads” — which typically means targeted ads that rely on collecting and analyzing users’ personal information.

    Yildirim said that, unlike Facebook, Twitter has not been good at targeting advertising to what users want to see. Musk’s message suggests he wants to fix that, she said.

    Insider Intelligence principal analyst Jasmine Enberg said Musk has good reason to avoid a massive shakeup of Twitter’s ad business because Twitter’s revenues have taken a beating from the weakening economy, months of uncertainty surrounding Musk’s proposed takeover, changing consumer behaviors and the fact that “there’s no other revenue source waiting in the wings.”

    “Even slightly loosening content moderation on the platform is sure to spook advertisers, many of whom already find Twitter’s brand safety tools to be lacking compared with other social platforms,” Enberg said.

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  • Musk lugs sink into Twitter HQ as $44B deal deadline looms

    Musk lugs sink into Twitter HQ as $44B deal deadline looms

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    SAN FRANCISCO — Elon Musk, the billionaire poised to acquire Twitter later this week, strolled into the company’s headquarters Wednesday carrying a porcelain sink and tweeting “Entering Twitter HQ – let that sink in!”

    Musk’s $44 billion deal to take Twitter private faces a Friday deadline, although the video he posted offered no evidence that the acquisition is complete. Twitter and Musk representatives had no comment on that question, although Twitter did confirm that Musk’s video tweet was real. Musk also changed his Twitter profile to refer to himself as “Chief Twit” and his location to Twitter’s San Francisco headquarters.

    The splashy video — a vintage Musk production — also pulled the spotlight back to the world’s richest man and his on-again, off-again pursuit of the social platform.

    The Friday deadline to consummate the deal was ordered by the Delaware Chancery Court in early October. It is the latest step in an epic battle during which Musk signed a deal to acquire Twitter, then tried to back out of it, leading Twitter to sue the Tesla CEO to force him to conclude the deal. If the two sides don’t meet the Friday deadline, the next step could be a November trial.

    Robert Anderson, a law professor at Pepperdine University, said he fully expects the deal to close by Friday’s deadline but didn’t see much substance to Musk’s video. “I don’t see anything unusual about it, other than that he brought a sink,” he said.

    Musk had been expected to visit Twitter this week and is expected to return again Friday if the deal is finalized, according to an internal memo cited in a report by Bloomberg News.

    His apparent enthusiasm about visiting Twitter headquarters stood in sharp contrast to one of his earlier suggestions that the building should be turned into a “homeless shelter” because, he said, so few employees actually worked there.

    The Washington Post reported last week that Musk told prospective investors that he plans to cut three quarters of Twitter’s 7,500 workers when he becomes owner of the company. The newspaper cited documents and unnamed sources familiar with the deliberation. Several hours after posting his sink video, Musk tweeted that he was meeting “a lot of cool people at Twitter today!” He gave no details.

    One of Musk’s biggest obstacles to closing the deal was keeping in place the financing pledged roughly six months ago.

    A group of banks, including Morgan Stanley and Bank of America, signed on earlier this year to loan $12.5 billion of the money Musk needed to buy Twitter and take it private. Solid contracts with Musk bound the banks to the financing, although changes in the economy and debt markets since April have likely made the terms less attractive. Musk even said his investment group would be buying Twitter for more than it’s worth.

    Less clear is what’s happening with the billions of dollars pledged to Musk by investors who would get ownership stakes in Twitter. Musk’s original slate of equity partners included an array of partners ranging from the billionaire’s tech world friends with like-minded ideas about Twitter’s future, such as Oracle co-founder Larry Ellison, to funds controlled by Middle Eastern royalty.

    The more equity investors kick in for the deal, the less Musk has to pay on his own. Most of his wealth is tied up in shares of Tesla, the electric car company that he runs. Since April, he has sold more than $15 billion worth of Tesla stock, presumably to pay his share. More sales could be coming.

    Musk, 51, has shared few concrete details about his plans for the social media platform. While he’s touted free speech and derided spam bots since agreeing to buy the company in April, what he actually wants to do about either remains a mystery.

    Technology analysts have speculated that Musk wants to use Twitter to help create an “everything app” similar to China’s WeChat service, which allows users to do video chats, message, stream video, scan bar codes and make payments.

    Musk’s flirtation with buying Twitter appeared to begin in late March. That’s when Twitter said he contacted members of its board — including co-founder Jack Dorsey — and told them he was buying up shares and was interested in either joining the board, taking Twitter private or starting a competitor.

    Then, on April 4, he revealed in a regulatory filing that he had become the company’s largest shareholder after acquiring a 9% stake worth about $3 billion.

    At first, Twitter offered Musk a seat on its board. But six days later, CEO Parag Agrawal tweeted that Musk would not be joining the board after all. His bid to buy the company quickly followed.

    Inside Twitter, Musk’s offer was met with confusion and falling morale, especially after Musk publicly criticized one of Twitter’s top lawyers involved in content-moderation decisions.

    In July, Musk abruptly reversed course, announcing that he was abandoning his bid to buy Twitter. His stated reason: Twitter hadn’t been straightforward about its problem with fake accounts he dubbed “spam bots.” Twitter sued, and two weeks before a 5-day trial was scheduled to begin, Musk changed his mind again, saying that he wanted to complete the deal after all.

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  • Musk lugs sink into Twitter HQ as $44B deal deadline looms

    Musk lugs sink into Twitter HQ as $44B deal deadline looms

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    SAN FRANCISCO — Elon Musk, the billionaire poised to acquire Twitter later this week, strolled into the company’s headquarters Wednesday carrying a porcelain sink and tweeting “Entering Twitter HQ – let that sink in!”

    Musk’s $44 billion deal to take Twitter private faces a Friday deadline, although the video he posted offered no evidence that the acquisition is complete. Twitter and Musk representatives had no comment on that question, although Twitter did confirm that Musk’s video tweet was real. Musk also changed his Twitter profile to refer to himself as “Chief Twit” and his location to Twitter’s San Francisco headquarters.

    The splashy video — a vintage Musk production — also pulled the spotlight back to the world’s richest man and his on-again, off-again pursuit of the social platform.

    The Friday deadline to consummate the deal was ordered by the Delaware Chancery Court in early October. It is the latest step in an epic battle during which Musk signed a deal to acquire Twitter, then tried to back out of it, leading Twitter to sue the Tesla CEO to force him to conclude the deal. If the two sides don’t meet the Friday deadline, the next step could be a November trial.

    Robert Anderson, a law professor at Pepperdine University, said he fully expects the deal to close by Friday’s deadline but didn’t see much substance to Musk’s video. “I don’t see anything unusual about it, other than that he brought a sink,” he said.

    Musk had been expected to visit Twitter this week and is expected to return again Friday if the deal is finalized, according to an internal memo cited in a report by Bloomberg News.

    The Washington Post reported last week that Musk told prospective investors that he plans to cut three quarters of Twitter’s 7,500 workers when he becomes owner of the company. The newspaper cited documents and unnamed sources familiar with the deliberation. Several hours after posting his sink video, Musk tweeted that he was meeting “a lot of cool people at Twitter today!” He gave no details.

    One of Musk’s biggest obstacles to closing the deal was keeping in place the financing pledged roughly six months ago.

    A group of banks, including Morgan Stanley and Bank of America, signed on earlier this year to loan $12.5 billion of the money Musk needed to buy Twitter and take it private. Solid contracts with Musk bound the banks to the financing, although changes in the economy and debt markets since April have likely made the terms less attractive. Musk even said his investment group would be buying Twitter for more than it’s worth.

    Less clear is what’s happening with the billions of dollars pledged to Musk by investors who would get ownership stakes in Twitter. Musk’s original slate of equity partners included an array of partners ranging from the billionaire’s tech world friends with like-minded ideas about Twitter’s future, such as Oracle co-founder Larry Ellison, to funds controlled by Middle Eastern royalty.

    The more equity investors kick in for the deal, the less Musk has to pay on his own. Most of his wealth is tied up in shares of Tesla, the electric car company that he runs. Since April, he has sold more than $15 billion worth of Tesla stock, presumably to pay his share. More sales could be coming.

    Musk, 51, has shared few concrete details about his plans for the social media platform. While he’s touted free speech and derided spam bots since agreeing to buy the company in April, what he actually wants to do about either remains a mystery.

    Technology analysts have speculated that Musk wants to use Twitter to help create an “everything app” similar to China’s WeChat service, which allows users to do video chats, message, stream video, scan bar codes and make payments.

    Musk’s flirtation with buying Twitter appeared to begin in late March. That’s when Twitter said he contacted members of its board — including co-founder Jack Dorsey — and told them he was buying up shares and was interested in either joining the board, taking Twitter private or starting a competitor.

    Then, on April 4, he revealed in a regulatory filing that he had become the company’s largest shareholder after acquiring a 9% stake worth about $3 billion.

    At first, Twitter offered Musk a seat on its board. But six days later, CEO Parag Agrawal tweeted that Musk would not be joining the board after all. His bid to buy the company quickly followed.

    Inside Twitter, Musk’s offer was met with confusion and falling morale, especially after Musk publicly criticized one of Twitter’s top lawyers involved in content-moderation decisions.

    In July, Musk abruptly reversed course, announcing that he was abandoning his bid to buy Twitter. His stated reason: Twitter hadn’t been straightforward about its problem with fake accounts he dubbed “spam bots.” Twitter sued, and two weeks before a 5-day trial was scheduled to begin, Musk changed his mind again, saying that he wanted to complete the deal after all.

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  • Apple’s new App Store rules over ‘boosted ads’ provoke Facebook again

    Apple’s new App Store rules over ‘boosted ads’ provoke Facebook again

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    Meta Platforms CEO Mark Zuckerberg speaks at Georgetown University in Washington on Oct. 17, 2019.

    Andrew Caballero-Reynolds | AFP | Getty Images

    Apple recently updated its App Store guidelines with changes that, yet again, impact Facebook’s ad business.

    The new rule, introduced Monday, says that companies like Meta, which owns Facebook and Instagram, can offer apps that allow people to buy and manage advertising campaigns in dedicated apps without using Apple’s payment system, but it considers buying an ad in a social media app to be a digital purchase, from which Apple takes a 30% cut.

    Meta wasn’t happy with the change. A Meta spokesperson told CNBC, “Apple continues to evolve its policies to grow their own business while undercutting others in the digital economy.”

    The episode is the latest skirmish from companies like Meta that feel that Apple has too much power over mobile distribution and the ever expanding and changing rules of Apple’s App Store, which is the only way to install apps on an iPhone.

    Meta and Apple have been battling for years, but the rivalry has grown more heated recently after Apple introduced App Tracking Transparency in the iPhone operating system last year. The privacy feature allows users to decline to offer app developers like Meta a unique device ID that can be used to track ad performance. Meta says the change could cost it $10 billion this year.

    Meta and Apple also appear poised to compete in the world of consumer hardware, after Meta released the Quest Pro headset and Apple has been developing a competing VR headset for years that could reportedly launch next year.

    Apple told CNBC that even before the new guideline the company considered social boosts to be the kind of digital purchase that needed to use Apple in-app purchases, and that the rule is more of a clarification than a new restriction.

    “For many years now, the App Store guidelines have been clear that the sale of digital goods and services within an app must use In-App Purchase,” an Apple spokesman told CNBC. “Boosting, which allows an individual or organization to pay to increase the reach of a post or profile, is a digital service — so of course In-App Purchase is required. This has always been the case and there are many examples of apps that do it successfully.”

    This individual restriction has long been a sticking point, and Meta, back when it was still named Facebook, negotiated with Apple over social media boosts and whether they would fall under Apple’s digital purchase rules, according to The Wall Street Journal.

    Boosting features are offered by several social media companies. But most, like Twitter, already use Apple’s in-app purchase mechanism that lists boosted posts for $9.99 on Apple’s App Store. TikTok sells coins, or a currency used to promote posts, through in-app purchases as well.

    For Meta, it thinks Apple’s recent clarification crosses a line in taking a piece of advertising revenue, not just app sales. Meta points to previous Apple executive statements, some made as part of the Epic Games trial over App Store rules, where it said it didn’t take a cut of ads.

    “Apple previously said it didn’t take a share of developer advertising revenue, and now apparently changed its mind. We remain committed to offering small businesses simple ways to run ads and grow their businesses on our apps,” the Meta spokesperson told CNBC.

    Apple isn’t asking for a cut of every ad served through the Facebook or Instagram apps. But Meta clearly feels targeted by Apple’s increasing power over its platforms, and worries that the company could argue that it deserves a piece of Meta’s total ad sales through its ads manager app, according to The Verge, which first reported Meta’s complaint.

    It’s unclear how big the boost market is. Most big advertisers use dedicated portals or apps to buy ads. Eric Seufert, an ads industry watcher and the founder of Mobile Dev Memo, wrote Monday that he suspects it is a “negligible proportion of revenue” to the social media companies.

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  • How major US stock indexes fared Friday 10/21/2022

    How major US stock indexes fared Friday 10/21/2022

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    Stocks closed higher on Wall Street Friday, notching sizable weekly gains for major indexes.

    The benchmark S&P 500 rose 2.4% Friday, while the Dow Jones Industrial Average and the Nasdaq also gained ground. Social media companies were broadly lower after Snapchat’s parent company issued a weak outlook and the Washington Post reported that Elon Musk plans to slash about three-quarters of the payroll at Twitter after he buys the company.

    The yield on the two-year Treasury note fell to 4.49% on hopes that the Federal Reserve might consider slowing down its future rate increases after making another big hike next month.

    On Friday:

    The S&P 500 rose 86.97 points, or 2.4%, to 3,752.75.

    The Dow Jones Industrial Average rose 748.97 points, or 2.5%, to 31,082.56.

    The Nasdaq rose 244.87 points, or 2.3%, to 10,859.72.

    The Russell 2000 index of smaller companies rose 37.85 points, or 2.2%, to 1,742.24.

    For the week:

    The S&P 500 is up 169.68 points, or 4.7%.

    The Dow is up 1,447.73 points, or 4.9%.

    The Nasdaq is up 538.33 points, or 5.2%.

    The Russell 2000 is up 59.84 points, or 3.6%.

    For the year:

    The S&P 500 is down 1,013.43 points, or 21.3%.

    The Dow is down 5,255.74 points, or 14.5%.

    The Nasdaq is down 4,785.26 points, or 30.6%.

    The Russell 2000 is down 503.07 points, or 22.4%.

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  • Boston Beer, Schlumberger rise; Snap, Twitter fall

    Boston Beer, Schlumberger rise; Snap, Twitter fall

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    Stocks that traded heavily or had substantial price changes Friday: Boston Beer, Schlumberger rise; Snap, Twitter fall

    NEW YORK — Stocks that traded heavily or had substantial price changes Friday:

    Snap Inc., down $3.03 to $7.76.

    The owner of Snapchat gave a lackluster forecast for the fourth quarter.

    Twitter Inc., down $2.55 to $49.89.

    Elon Musk could cut almost 75% of the social media company’s workforce, according to a report.

    CSX Corp., up 46 cents to $27.54.

    The railroad’s third-quarter earnings and revenue beat analysts’ forecasts.

    SVB Financial Group, down $72.43 to $230.03.

    The financial services firm gave investors a disappointing financial forecast.

    Boston Beer Co., up $66.12 to $402.28.

    The brewer of Samuel Adams beer beat Wall Street’s third-quarter revenue forecasts.

    Schlumberger NV, up $4.72 to $50.41.

    The world’s largest oilfield services company beat analysts’ third-quarter financial forecasts.

    American Express Co., down $2.38 to $140.04.

    The credit card giant said it is setting aside hundreds of millions of dollars to cover potential losses as the economy continues to deteriorate.

    Robert Half International Inc., down $6.83 to $73.01.

    The staffing firm’s third-quarter earnings and revenue fell short of analysts’ forecasts.

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  • Twitter shares slump after report that the U.S. mulls national-security reviews for some of Elon Musk’s ventures

    Twitter shares slump after report that the U.S. mulls national-security reviews for some of Elon Musk’s ventures

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    Shares of Twitter plunged in premarket trade on Friday after a report Biden administration officials are considering subjecting some of Elon Musk’s ventures to national-security reviews.

    Twitter
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    shares plunged 9% to $47.64 in premarket trade, below the $54.20 per share buyout price.

    Bloomberg News reported late Thursday that some U.S. officials have become concerned in recent weeks by Musk’s Russia-friendly tweets and his threat to cut off Starlink satellite internet service to Ukraine. The Tesla
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    and SpaceX CEO’s pending $44 billion acquisition of Twitter has also reportedly drawn concerns because of its foreign investors, including a Saudi prince, Binance Holdings — a crypto exchange that was initially based in China — and Qatar’s sovereign wealth fund.

    Citing anonymous sources familiar with the matter, Bloomberg said discussions are still in the early stages and officials are trying to figure out what regulatory tools are available to them. One option could be a national-security review by the Committee on Foreign Investment in the United States, the report said.

    Separately, Bloomberg also reported late Thursday that Musk’s lawyers and bankers are preparing paperwork for the Twitter deal to be completed ahead of a Oct. 28 deadline, and that relations between Musk and Twitter have turned cordial rather than adversarial.

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  • Report: Elon Musk plans to cut 75% of Twitter workforce

    Report: Elon Musk plans to cut 75% of Twitter workforce

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    SAN FRANCISCO — Elon Musk plans to lay off most of Twitter’s workforce if and when he becomes owner of the social media company, according to a report Thursday by The Washington Post.

    Musk has told prospective investors in his Twitter purchase that he plans to cut nearly 75% of Twitter’s employee base of 7,500 workers, leaving the company with a skeleton crew, according to the report. The newspaper cited documents and unnamed sources familiar with the deliberations.

    San Francisco-based Twitter and a representative for Musk attorney Alex Spiro did not immediately respond to messages seeking comment.

    While job cuts have been expected regardless of the sale, the magnitude of Musk’s planned cuts are far more extreme than anything Twitter had planned. Musk himself has alluded to the need to cull some of the company’s staff in the past, but he hadn’t given a specific number — at least not publicly.

    “A 75% headcount cut would indicate, at least out of the gates, stronger free cash flow and profitability, which would be attractive to investors looking to get in on the deal,” said Wedbush analyst Dan Ives. “That said, you can’t cut your way to growth.”

    Ives added that such a drastic reduction in Twitter’s workforce would likely set the company back years.

    Already, experts, nonprofits and even Twitter’s own staff have warned that pulling back investments on content moderation and data security could hurt Twitter and its users. With as drastic a reduction as Musk may be planning, the platform could quickly become overrun with harmful content and spam — the latter of which the Tesla CEO himself has said he’ll address if he becomes owner of the company.

    After his initial $44 billion bid in April to buy Twitter, Musk backed out of the deal, contending Twitter misrepresented the number of fake “spam bot” accounts on its platform. Twitter sued, and a Delaware judge has given both sides until Oct. 28 to work out details. Otherwise, there will be a trial in November.

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  • Report: Elon Musk plans to cut 75% of Twitter workforce

    Report: Elon Musk plans to cut 75% of Twitter workforce

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    SAN FRANCISCO — Elon Musk plans to lay off most of Twitter’s workforce if and when he becomes owner of the social media company, according to a report Thursday by The Washington Post.

    Musk has told prospective investors in his Twitter purchase that he plans to cut nearly 75% of Twitter’s employee base of 7,500 workers, leaving the company with a skeleton crew, according to the report. The newspaper cited documents and unnamed sources familiar with the deliberations.

    San Francisco-based Twitter and a representative for Musk attorney Alex Spiro did not immediately respond to messages seeking comment.

    While job cuts have been expected regardless of the sale, the magnitude of Musk’s planned cuts are far more extreme than anything Twitter had planned. Musk himself has alluded to the need to cull some of the company’s staff in the past, but he hadn’t given a specific number — at least not publicly.

    “A 75% headcount cut would indicate, at least out of the gates, stronger free cash flow and profitability, which would be attractive to investors looking to get in on the deal,” said Wedbush analyst Dan Ives. “That said, you can’t cut your way to growth.”

    Ives added that such a drastic reduction in Twitter’s workforce would likely set the company back years.

    Already, experts, nonprofits and even Twitter’s own staff have warned that pulling back investments on content moderation and data security could hurt Twitter and its users. With as drastic a reduction as Musk may be planning, the platform could quickly become overrun with harmful content and spam — the latter of which the Tesla CEO himself has said he’ll address if he becomes owner of the company.

    After his initial $44 billion bid in April to buy Twitter, Musk backed out of the deal, contending Twitter misrepresented the number of fake “spam bot” accounts on its platform. Twitter sued, and a Delaware judge has given both sides until Oct. 28 to work out details. Otherwise, there will be a trial in November.

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  • Officials: Musk seeks US funds for Ukraine satellite network

    Officials: Musk seeks US funds for Ukraine satellite network

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    WASHINGTON (AP) — The Defense Department has gotten a request from SpaceX and Tesla CEO Elon Musk to take over funding for his satellite network that has provided crucial battlefield communications for Ukrainian military forces since almost the beginning of its war with Russia, U.S. officials said Friday.

    The officials, who spoke on condition of anonymity to discuss a sensitive matter not yet made public, said the issue has been discussed in meetings and senior leaders are weighing the matter. There have been no decisions.

    In a statement later Friday, Pentagon spokeswoman Sabrina Singh said, “We can confirm the Department received correspondence from SpaceX about the funding of Starlink, their satellite communications product in Ukraine. We remain in communication with SpaceX about this and other topics.”

    During a Pentagon briefing, she declined to provide any details about the communication or say to whom the correspondence was sent and when the communications with Musk began.

    Musk began sending Starlink satellite dishes to Ukraine just days after Russia invaded in February. On Feb. 28, Ukrainian Vice Prime Minister Mykhailo Fedorov tweeted a photo of the first Starlink kits arriving on the back of a truck.

    “You are most welcome,” Musk tweeted back.

    Musk’s generosity was hailed by Ukrainians and seen as a game changer in war tactics — the Russians could try to cut Ukrainian ground communications but it could not control space.

    The Starlink system of more than 2,200 low-orbiting satellites has provided broadband internet to more than 150,000 Ukrainian ground stations. Early Friday, Musk tweeted that it was costing SpaceX $20 million a month to support Ukraine’s communications needs.

    In addition to the terminals, he tweeted that the company has to create, launch, maintain and replenish satellites and ground stations.

    CNN was the first to report the Musk request.

    The Starlink satellite internet’s vital role in Ukraine’s defense cannot be overstated. It has, for example, assisted front-line reconnaissance drone operators in targeting artillery strikes on key Russian assets. A senior military official on Friday made it clear that the U.S. believes the system has proven exceptionally effective on the battlefield. The official spoke on condition of anonymity to provide U.S. assessment of the Ukrainian battlefield.

    In a tweet on Friday, Ukrainian presidential adviser Mikhail Podolyak said Ukraine will find a solution to keep Starlink working.

    “Let’s be honest. Like it or not, @elonmusk helped us survive the most critical moments of war. Business has the right to its own strategies,” he tweeted. “We expect that the company will provide stable connection till the end of negotiations.”

    In response to multiple questions during the briefing, Singh said the Pentagon was working with the Ukrainian Defense Ministry. “We know that there is this demand, and (satellite communications) capability … is needed and we want to be able to ensure that there are stable communications for the Ukrainian forces and for Ukraine.”

    The request from the world’s richest man to have the Pentagon take over the hundreds of millions of dollars he says the system is costing comes on the heels of a Twitter war between Musk and Ukrainian President Volodymyr Zelenskyy. And in tweets overnight Musk referred to the friction, suggesting it may affect his decision to end his company’s largesse in funding the systems.

    In a Twitter exchange last week, Musk argued that to reach peace Russia should be allowed to keep the Crimean Peninsula, which it seized in 2014. He also said Ukraine should adopt a neutral status, dropping a bid to join NATO.

    Musk also started a Twitter poll asking whether “the will of the people” should decide if seized regions remain part of Ukraine or become part of Russia.

    In a sarcastic response, Zelenskyy posted a Twitter poll of his own asking “which Elon Musk do you like more?”: “One who supports Ukraine” or “One who supports Russia.” Musk replied to Zelenskyy that “I still very much support Ukraine, but am convinced that massive escalation of the war will cause great harm to Ukraine and possibly the world.”

    Andrij Melnyk, the outgoing Ukrainian ambassador to Germany, responded to Musk’s original tweet with an obscenity.

    It’s not clear how much of the cost of deploying Starlink satellite uplinks in Ukraine has been covered by U.S. funding. In April, the U.S. Agency for International Development said it had delivered 5,000 of the terminals. The Pentagon had no response to that question.

    Musk’s commitment to spend $44 billion to purchase Twitter “has to factor into his decision that he can no longer afford to do this for free,” said retired Army Maj. Gen. John Ferrari, a non-resident senior fellow at the American Enterprise Institute.

    Musk’s request that the Pentagon begin to pick up the tab comes as the Space Force and Pentagon have been looking at how commercial vendors will play a role in national security. Musk’s threat to withdraw highlights the risk of leaning too much on commercial capabilities, Ferrari said.

    “Commercial vendors always get to change their mind, ” Ferrari said, adding that the reliance on Starlink to provide communications for Ukraine also serves as a reminder that the Pentagon has to expand this service beyond SpaceX, he said.

    “The government needs many vendors for key capabilities, of course that often means more money, but it is an insurance policy and insurance costs money,” Ferrari said.

    In March, commander of U.S. Space Command Army Gen. James Dickinson said that having vendors provide needed capabilities, such as Maxar’s satellite imagery of stalled Russian convoys, has become essential, because it frees up limited military satellite assets to focus on other things.

    In his tweets, Musk also raised a question that various vendors and the Pentagon are considering as space becomes a more critical part of wartime operations: If a commercial vendor is assisting the U.S. and is targeted, does the U.S. owe it protection?

    “We’ve also had to defend against cyberattacks & jamming, which are getting harder,” Musk tweeted.

    ____

    Associated Press writer Frank Bajak in Lima, Peru, contributed to this report.

    ___

    This story has been corrected to reflect that Elon Musk is CEO of Tesla, not the founder of the electric vehicle maker.

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  • Meet the judge who tamed the Musk-Twitter trial

    Meet the judge who tamed the Musk-Twitter trial

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    This Jan. 4, 2019 photo shows Delaware Chancellor Kathaleen St. Jude McCormick. Refereeing a $44 billion court fight that pits the world’s richest man against one of its most influential social networking sites is surely a daunting task, but McCormick, presiding over the case has never backed away from a challenge. Billionaire Elon Musk has been battling Twitter Inc. in Delaware’s Court of Chancery since Musk announced in July 2022, that he wanted to scuttle an agreement to acquire the social media giant for $54.20 a share. (Eric Crossan via AP)
    This Jan. 4, 2019 photo shows Delaware Chancellor Kathaleen St. Jude McCormick. Refereeing a $44 billion court fight that pits the world’s richest man against one of its most influential social networking sites is surely a daunting task, but McCormick, presiding over the case has never backed away from a challenge. Billionaire Elon Musk has been battling Twitter Inc. in Delaware’s Court of Chancery since Musk announced in July 2022, that he wanted to scuttle an agreement to acquire the social media giant for $54.20 a share. (Eric Crossan via AP)
    This Jan. 4, 2019 photo shows Delaware Chancellor Kathaleen St. Jude McCormick. Refereeing a $44 billion court fight that pits the world’s richest man against one of its most influential social networking sites is surely a daunting task, but McCormick, presiding over the case has never backed away from a challenge. Billionaire Elon Musk has been battling Twitter Inc. in Delaware’s Court of Chancery since Musk announced in July 2022, that he wanted to scuttle an agreement to acquire the social media giant for $54.20 a share. (Eric Crossan via AP)

    This Jan. 4, 2019 photo shows Delaware Chancellor Kathaleen St. Jude McCormick. Refereeing a $44 billion court fight that pits the world’s richest man against one of its most influential social networking sites is surely a daunting task, but McCormick, presiding over the case has never backed away from a challenge. Billionaire Elon Musk has been battling Twitter Inc. in Delaware’s Court of Chancery since Musk announced in July 2022, that he wanted to scuttle an agreement to acquire the social media giant for $54.20 a share. (Eric Crossan via AP)

    This Jan. 4, 2019 photo shows Delaware Chancellor Kathaleen St. Jude McCormick. Refereeing a $44 billion court fight that pits the world’s richest man against one of its most influential social networking sites is surely a daunting task, but McCormick, presiding over the case has never backed away from a challenge. Billionaire Elon Musk has been battling Twitter Inc. in Delaware’s Court of Chancery since Musk announced in July 2022, that he wanted to scuttle an agreement to acquire the social media giant for $54.20 a share. (Eric Crossan via AP)

    DOVER, Del. (AP) — A lawyer for billionaire Elon Musk had barely begun speaking during a recent hearing when the Delaware judge presiding over Twitter’s lawsuit against Musk abruptly cut her off.

    “Skip the rhetoric and go to the meat,” Chancellor Kathaleen St. Jude McCormick said bluntly.

    The judge’s tone that day illuminates the no-nonsense approach she brings as the first woman to lead Delaware’s 230-year-old Court of Chancery. The court is America’s go-to venue for high-stakes disputes involving some of the world’s biggest companies, many of which call Delaware their legal home.

    This court fight between the world’s richest man and the influential social platform could easily have become a circus, particularly given Musk’s penchant for chaos. That hasn’t happened largely thanks to McCormick, who’s been a judge for only four years. She has set firm deadlines, reined in over-the-top attorney requests and kept the case moving briskly.

    Musk has been battling Twitter since he announced in July that he wanted to scuttle an agreement to acquire the social media giant for $44 billion. Twitter sued Musk, seeking a court order of “specific performance” directing him to consummate the deal.

    McCormick recently ordered a temporary halt in the case after Musk indicated that he would go ahead with the transaction, but she also warned that she will schedule a November trial if Musk doesn’t close the deal by Oct. 28.

    The judge, whose humble demeanor belies her professional confidence, does not like the spotlight. After joining the court, McCormick admitted that she didn’t fully appreciate how everything she wrote or said would receive intense scrutiny.

    McCormick now seems unfazed that court observers and legal pundits are not only watching her every move, but sometimes pretending to know what she is going to do and why.

    “The world will have to wait for the post-trial decision,” she wrote in a September ruling, indirectly acknowledging the public spotlight on the case.

    From an early age, McCormick, 43, has demonstrated that she can adapt and persevere when faced with challenges.

    She was born in Dover, Delaware’s capital city, and raised with her two older brothers a few miles north in the town of Smyrna. Her mother taught English; her father taught history and coached Smyrna High School’s football team.

    “Katie” McCormick thought she, too, would become a teacher, even serving as president of the Delaware Future Educators of America, among other student organizations

    McCormick also was a tough athlete who played fastpitch softball and ran track despite having extreme scoliosis, an abnormal curvature of the spine that was apparent from birth and which required her to wear a brace at times. In 1995, when she was 15, McCormick underwent spinal fusion surgery.

    Two years later, as a 17-year-old senior, McCormick was the recipient of a scholarship awarded each year to a downstate athlete who had overcome a physical disability. A photograph from the awards banquet that night shows a smiling McCormick, in a white dress with paisley trim, standing between then-U.S. Sen. Joe Biden and former NFL quarterback Joe Theisman.

    “Some days were just a little harder than others, but I had faith it would all work out for the best,” McCormick said at the time, noting that other children she would meet during her hospital trips faced more severe problems.

    McCormick became the first Smyrna High student to attend Harvard University, where she majored in philosophy.

    McCormick, with a deep and eclectic interest in music, played in an Irish folk band while at college. She also became involved in a student-run legal aid program that helps low-income people in the Boston area. That experience helped pique her interest in the law, leading her to the University of Notre Dame law school.

    McCormick, who has long viewed the law as a path to serve others, spent her summers working in Northern Ireland for firms specializing in human rights work and international conflict resolution. After graduation, she looked homeward, taking a job with the Community Legal Aid Society, where she worked on housing issues.

    “Her academic record stood out. She was a Delaware native,” said CLASI executive director Dan Atkins, who recruited McCormick. “That was not typical for us, so that was cool.”

    After two years at CLASI, financial considerations involving the birth of her second child propelled McCormick into private practice. She later admitted that she felt “defeated” by the move because she had wanted to pursue a service-oriented path. Still, she developed a passion for business litigation, as well as for expedited proceedings like the fast-track schedule she ordered in the Twitter lawsuit.

    “Her return to public service with the court makes sense. She’s come full circle,” said Atkins, who noted that, in addition to corporate litigation, the Court of Chancery also handles equally important matters such as trusts and estates, guardianships and real estate disputes.

    “I bet you she gives those cases every bit of her attention that she gives the Twitter case,” he said. “I guarantee it.”

    McCormick is no humorless legal robot, however. In the introduction to her article in a law school journal, she poked fun at the supposed “misspelling” of her first name, Kathaleen, which she shares with her mother and grandmother. She explained that the unusual spelling was attributable to her great-grandmother, not the journal’s staff.

    On the Chancery Court, where judges sometimes cite historic, literary and even pop-culture references in their rulings, McCormick’s opinions tend to be comparatively prosaic and direct. Presented with the opportunity, however, she, too, can turn a phrase. A ruling last year in a lawsuit involving the cannabis industry opened with a reference to a Grateful Dead song.

    In another ruling last year, McCormick noted that, “Julia Child is rumored to have once said: ‘A party without a cake is just a meeting.’” In that case, she ordered a private equity firm to acquire a cake decorating company even though the buyers had “lost their appetite” for the deal after signing it. Such an order of specific performance is the same type of relief sought by Twitter against Musk.

    The icing on that particular cake? One week after that ruling, McCormick, who was appointed a vice chancellor in 2018 when the court expanded from five judges to seven, was promoted to chancellor.

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  • Musk has a ‘super app’ plan for Twitter. It’s super vague

    Musk has a ‘super app’ plan for Twitter. It’s super vague

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    Elon Musk has a penchant for the letter “X.” He calls his son with the singer Grimes, whose actual name is a collection of letters and symbols, “X.” He named the company he created to buy Twitter “X Holdings.” His rocket company is, naturally, SpaceX.

    Now he also apparently intends to morph Twitter into an “everything app” he calls X.

    For months, the Tesla and SpaceX CEO has expressed interest in creating his own version of China’s WeChat — a “super app” that does video chats, messaging, streaming and payments — for the rest of the world. At least, that is, once he’s done buying Twitter after months of legal infighting over the $44 billion purchase agreement he signed in April.

    There are just a few obstacles. First is that a Musk-owned Twitter wouldn’t be the only global company in pursuit of this goal, and in fact would probably be playing catch-up with its rivals. Next is the question of whether anyone really wants a Twitter-based everything app— or any other super app — to begin with.

    Start with the competition and consumer demand. Facebook parent Meta has spent years trying to make its flagship platform a destination for everything online, adding payments, games, shopping and even dating features to its social network. So far, it’s had little success; nearly all of its revenue still comes from advertising.

    Google, Snap, TikTok, Uber and others have also tried to jump on the super app bandwagon, expanding their offerings in an effort to become indispensable to people as they go about their day. None have set the world on fire so far, not least because people already have a number of apps at their disposal to handle shopping, communicating and payments.

    “Old habits are hard to break, and people in the U.S. are used to using different apps for different activities,” said Jasmine Enberg, principal analyst at Insider Intelligence. Enberg also notes that super apps would likely suck up more personal data at a time when trust in social platforms has deteriorated significantly.

    Musk kicked off the latest round of speculation on Oct. 4, the day he reversed his attempts to get out of the deal and announced that he wanted to acquire Twitter after all. “Buying Twitter is an accelerant to creating X, the everything app,” he tweeted without further explanation.

    But he’s provided at least a little more detail in the past. During Tesla’s annual shareholder meeting in August, Musk told the crowd at a factory near Austin, Texas, that he thinks he’s “got a good sense of where to point the engineering team with Twitter to make it radically better.”

    And he’s dropped some strong hints that handling payments for goods and services would be a key part of the app. Musk said he has a “grander vision” for what X.com, an online bank he started early in his career that eventually became part of PayPal, could have been.

    “Obviously that could be started from scratch, but I think Twitter would help accelerate that by three to five years,” Musk said in August. “So it’s kind of something that I thought would be quite useful for a long time. I know what to do.”

    But it’s not clear that WeChat’s success in China means the same idea would translate for a U.S. or global audience. WeChat usage is almost universal in China, where most people never had a computer at home and skipped straight to going online by mobile phone.

    Operated by tech giant Tencent Holding Ltd., the platform has made itself a one-stop shop for payments and other services and is starting to compete in entertainment. It is also a platform for health code apps the public is required to use prevent the spread of the coronavirus.

    China has 1 billion internet users, and nearly all of them go online by mobile phone, according to the government-sanctioned China Internet Network Information Center. Only 33% use desktop computers at all — and mostly in addition to mobile phones. Tencent says WeChat had 1.3 billion users worldwide as of the end of June.

    Tencent and its main Chinese competitor, e-commerce giant Alibaba Group, aim to make apps that offer so many services that users can’t easily switch to another app. They’re not the only ones.

    WeChat has added video calls and other message features as well as shopping, entertainment and other features. Government agencies use it to send out health, traffic and other announcements. WeChat’s payment function, meanwhile, is so widely used that coffee shops, museums and some other businesses refuse cash and will take payment only through WeChat or the rival Ant app.

    There is no comparable app in the U.S., despite tech companies’ efforts.

    It’s worth remembering that Musk’s grand visions don’t always work out the way he appears to expect. Humans are nowhere near colonizing Mars and his promised fleet of robotaxis remains about as far from reality as the metaverse.

    Twitter’s user base is also tiny relative to those at its social-platform competitors. While Facebook, Instagram and TikTok all passed the 1 billion mark long ago, Twitter has about 240 million daily users.

    “Musk would not only have to overcome the hurdle of convincing consumers to change how they behave online, but also that Twitter is the place to do it,” Enberg said.

    __

    Associated Press Writer Joe McDonald contributed to this story.

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  • Musk has a ‘super app’ plan for Twitter. It’s super vague

    Musk has a ‘super app’ plan for Twitter. It’s super vague

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    Elon Musk has a penchant for the letter “X.” He calls his son with the singer Grimes, whose actual name is a collection of letters and symbols, “X.” He named the company he created to buy Twitter “X Holdings.” His rocket company is, naturally, SpaceX.

    Now he also apparently intends to morph Twitter into an “everything app” he calls X.

    For months, the Tesla and SpaceX CEO has expressed interest in creating his own version of China’s WeChat — a “super app” that does video chats, messaging, streaming and payments — for the rest of the world. At least, that is, once he’s done buying Twitter after months of legal infighting over the $44 billion purchase agreement he signed in April.

    There are just a few obstacles. First is that a Musk-owned Twitter wouldn’t be the only global company in pursuit of this goal, and in fact would probably be playing catch-up with its rivals. Next is the question of whether anyone really wants a Twitter-based everything app— or any other super app — to begin with.

    Start with the competition and consumer demand. Facebook parent Meta has spent years trying to make its flagship platform a destination for everything online, adding payments, games, shopping and even dating features to its social network. So far, it’s had little success; nearly all of its revenue still comes from advertising.

    Google, Snap, TikTok, Uber and others have also tried to jump on the super app bandwagon, expanding their offerings in an effort to become indispensable to people as they go about their day. None have set the world on fire so far, not least because people already have a number of apps at their disposal to handle shopping, communicating and payments.

    “Old habits are hard to break, and people in the U.S. are used to using different apps for different activities,” said Jasmine Enberg, principal analyst at Insider Intelligence. Enberg also notes that super apps would likely suck up more personal data at a time when trust in social platforms has deteriorated significantly.

    Musk kicked off the latest round of speculation on Oct. 4, the day he reversed his attempts to get out of the deal and announced that he wanted to acquire Twitter after all. “Buying Twitter is an accelerant to creating X, the everything app,” he tweeted without further explanation.

    But he’s provided at least a little more detail in the past. During Tesla’s annual shareholder meeting in August, Musk told the crowd at a factory near Austin, Texas, that he thinks he’s “got a good sense of where to point the engineering team with Twitter to make it radically better.”

    And he’s dropped some strong hints that handling payments for goods and services would be a key part of the app. Musk said he has a “grander vision” for what X.com, an online bank he started early in his career that eventually became part of PayPal, could have been.

    “Obviously that could be started from scratch, but I think Twitter would help accelerate that by three to five years,” Musk said in August. “So it’s kind of something that I thought would be quite useful for a long time. I know what to do.”

    But it’s not clear that WeChat’s success in China means the same idea would translate for a U.S. or global audience. WeChat usage is almost universal in China, where most people never had a computer at home and skipped straight to going online by mobile phone.

    Operated by tech giant Tencent Holding Ltd., the platform has made itself a one-stop shop for payments and other services and is starting to compete in entertainment. It is also a platform for health code apps the public is required to use prevent the spread of the coronavirus.

    China has 1 billion internet users, and nearly all of them go online by mobile phone, according to the government-sanctioned China Internet Network Information Center. Only 33% use desktop computers at all — and mostly in addition to mobile phones. Tencent says WeChat had 1.3 billion users worldwide as of the end of June.

    Tencent and its main Chinese competitor, e-commerce giant Alibaba Group, aim to make apps that offer so many services that users can’t easily switch to another app. They’re not the only ones.

    WeChat has added video calls and other message features as well as shopping, entertainment and other features. Government agencies use it to send out health, traffic and other announcements. WeChat’s payment function, meanwhile, is so widely used that coffee shops, museums and some other businesses refuse cash and will take payment only through WeChat or the rival Ant app.

    There is no comparable app in the U.S., despite tech companies’ efforts.

    It’s worth remembering that Musk’s grand visions don’t always work out the way he appears to expect. Humans are nowhere near colonizing Mars and his promised fleet of robotaxis remains about as far from reality as the metaverse.

    Twitter’s user base is also tiny relative to those at its social-platform competitors. While Facebook, Instagram and TikTok all passed the 1 billion mark long ago, Twitter has about 240 million daily users.

    “Musk would not only have to overcome the hurdle of convincing consumers to change how they behave online, but also that Twitter is the place to do it,” Enberg said.

    ——

    Associated Press Writer Joe McDonald contributed to this story.

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  • Musk has a ‘super app’ plan for Twitter. It’s super vague

    Musk has a ‘super app’ plan for Twitter. It’s super vague

    [ad_1]

    Elon Musk has a penchant for the letter “X.” He calls his son with the singer Grimes, whose actual name is a collection of letters and symbols, “X.” He named the company he created to buy Twitter “X Holdings.” His rocket company is, naturally, SpaceX.

    Now he also apparently intends to morph Twitter into an “everything app” he calls X.

    For months, the Tesla and SpaceX CEO has expressed interest in creating his own version of China’s WeChat — a “super app” that does video chats, messaging, streaming and payments — for the rest of the world. At least, that is, once he’s done buying Twitter after months of legal infighting over the $44 billion purchase agreement he signed in April.

    There are just a few obstacles. First is that a Musk-owned Twitter wouldn’t be the only global company in pursuit of this goal, and in fact would probably be playing catch-up with its rivals. Next is the question of whether anyone really wants a Twitter-based everything app— or any other super app — to begin with.

    Start with the competition and consumer demand. Facebook parent Meta has spent years trying to make its flagship platform a destination for everything online, adding payments, games, shopping and even dating features to its social network. So far, it’s had little success; nearly all of its revenue still comes from advertising.

    Google, Snap, TikTok, Uber and others have also tried to jump on the super app bandwagon, expanding their offerings in an effort to become indispensable to people as they go about their day. None have set the world on fire so far, not least because people already have a number of apps at their disposal to handle shopping, communicating and payments.

    “Old habits are hard to break, and people in the U.S. are used to using different apps for different activities,” said Jasmine Enberg, principal analyst at Insider Intelligence. Enberg also notes that super apps would likely suck up more personal data at a time when trust in social platforms has deteriorated significantly.

    Musk kicked off the latest round of speculation on Oct. 4, the day he reversed his attempts to get out of the deal and announced that he wanted to acquire Twitter after all. “Buying Twitter is an accelerant to creating X, the everything app,” he tweeted without further explanation.

    But he’s provided at least a little more detail in the past. During Tesla’s annual shareholder meeting in August, Musk told the crowd at a factory near Austin, Texas, that he thinks he’s “got a good sense of where to point the engineering team with Twitter to make it radically better.”

    And he’s dropped some strong hints that handling payments for goods and services would be a key part of the app. Musk said he has a “grander vision” for what X.com, an online bank he started early in his career that eventually became part of PayPal, could have been.

    “Obviously that could be started from scratch, but I think Twitter would help accelerate that by three to five years,” Musk said in August. “So it’s kind of something that I thought would be quite useful for a long time. I know what to do.”

    But it’s not clear that WeChat’s success in China means the same idea would translate for a U.S. or global audience. WeChat usage is almost universal in China, where most people never had a computer at home and skipped straight to going online by mobile phone.

    Operated by tech giant Tencent Holding Ltd., the platform has made itself a one-stop shop for payments and other services and is starting to compete in entertainment. It is also a platform for health code apps the public is required to use prevent the spread of the coronavirus.

    China has 1 billion internet users, and nearly all of them go online by mobile phone, according to the government-sanctioned China Internet Network Information Center. Only 33% use desktop computers at all — and mostly in addition to mobile phones. Tencent says WeChat had 1.3 billion users worldwide as of the end of June.

    Tencent and its main Chinese competitor, e-commerce giant Alibaba Group, aim to make apps that offer so many services that users can’t easily switch to another app. They’re not the only ones.

    WeChat has added video calls and other message features as well as shopping, entertainment and other features. Government agencies use it to send out health, traffic and other announcements. WeChat’s payment function, meanwhile, is so widely used that coffee shops, museums and some other businesses refuse cash and will take payment only through WeChat or the rival Ant app.

    There is no comparable app in the U.S., despite tech companies’ efforts.

    It’s worth remembering that Musk’s grand visions don’t always work out the way he appears to expect. Humans are nowhere near colonizing Mars and his promised fleet of robotaxis remains about as far from reality as the metaverse.

    Twitter’s user base is also tiny relative to those at its social-platform competitors. While Facebook, Instagram and TikTok all passed the 1 billion mark long ago, Twitter has about 240 million daily users.

    “Musk would not only have to overcome the hurdle of convincing consumers to change how they behave online, but also that Twitter is the place to do it,” Enberg said.

    ——

    Associated Press Writer Joe McDonald contributed to this story.

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  • Musk has a ‘super app’ plan for Twitter. It’s super vague

    Musk has a ‘super app’ plan for Twitter. It’s super vague

    [ad_1]

    Elon Musk has a penchant for the letter “X.” He calls his son with the singer Grimes, whose actual name is a collection of letters and symbols, “X.” He named the company he created to buy Twitter “X Holdings.” His rocket company is, naturally, SpaceX.

    Now he also apparently intends to morph Twitter into an “everything app” he calls X.

    For months, the Tesla and SpaceX CEO has expressed interest in creating his own version of China’s WeChat — a “super app” that does video chats, messaging, streaming and payments — for the rest of the world.. At least, that is, once he’s done buying Twitter after months of legal infighting over the $44 billion purchase agreement he signed in April.

    There are just a few obstacles. First is that a Musk-owned Twitter wouldn’t be the only global company in pursuit of this goal, and in fact would probably be playing catch-up with its rivals. Next is the question of whether anyone really wants a Twitter-based everything app— or any other super app — to begin with.

    Start with the competition and consumer demand. Facebook parent Meta has spent years trying to make its flagship platform a destination for everything online, adding payments, games, shopping and even dating features to its social network. So far, it’s had little success; nearly all of its revenue still comes from advertising.

    Google, Snap, TikTok, Uber and others have also tried to jump on the super app bandwagon, expanding their offerings in an effort to become indispensable to people as they go about their day. None have set the world on fire so far, not least because people already have a number of apps at their disposal to handle shopping, communicating and payments.

    “Old habits are hard to break, and people in the U.S. are used to using different apps for different activities,” said Jasmine Enberg, principal analyst at Insider Intelligence. Enberg also notes that super apps would likely suck up more personal data at a time when trust in social platforms has deteriorated significantly.

    Musk kicked off the latest round of speculation on Oct. 4, the day he reversed his attempts to get out of the deal and announced that he wanted to acquire Twitter after all. “Buying Twitter is an accelerant to creating X, the everything app,” he tweeted without further explanation.

    But he’s provided at least a little more detail in the past. During Tesla’s annual shareholder meeting in August, Musk told the crowd at a factory near Austin, Texas, that he thinks he’s “got a good sense of where to point the engineering team with Twitter to make it radically better.”

    And he’s dropped some strong hints that handling payments for goods and services would be a key part of the app. Musk said he has a “grander vision” for what X.com, an online bank he started early in his career that eventually became part of PayPal, could have been.

    “Obviously that could be started from scratch, but I think Twitter would help accelerate that by three to five years,” Musk said in August. “So it’s kind of something that I thought would be quite useful for a long time. I know what to do.”

    But it’s not clear that WeChat’s success in China means the same idea would translate for a U.S. or global audience. WeChat usage in almost universal in China, where most people never had a computer at home and skipped straight to going online by mobile phone.

    Operated by tech giant Tencent Holding Ltd., the platform has made itself a one-stop shop for payments and other services and is starting to compete in entertainment. It is also a platform for health code apps the public is required to use prevent the spread of the coronavirus.

    China has 1 billion internet users, and nearly all of them go online by mobile phone, according to the government-sanctioned China Internet Network Information Center. Only 33% use desktop computers at all — and mostly in addition to mobile phones. Tencent says WeChat had 1.3 billion users worldwide as of the end of June.

    Tencent and its main Chinese competitor, e-commerce giant Alibaba Group, aim to make apps that offer so many services that users can’t easily switch to another app. They’re not the only ones.

    WeChat has added video calls and other message features as well as shopping, entertainment and other features. Government agencies use it to send out health, traffic and other announcements. WeChat’s payment function, meanwhile, is so widely used that coffee shops, museums and some other businesses refuse cash and will take payment only through WeChat or the rival Ant app.

    There is no comparable app in the U.S., despite tech companies’ efforts.

    It’s worth remembering that Musk’s grand visions don’t always work out the way he appears to expect. Humans are nowhere near colonizing Mars and his promised fleet of robotaxis remains about as far from reality as the metaverse.

    Twitter’s user base is also tiny relative to those at its social-platform competitors. While Facebook, Instagram and TikTok all passed the 1 billion mark long ago, Twitter has about 240 million daily users.

    “Musk would not only have to overcome the hurdle of convincing consumers to change how they behave online, but also that Twitter is the place to do it,” Enberg said.

    ——

    Associated Press Writer Joe McDonald contributed to this story.

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  • Tesla stock had its worst week since March 2020 during a ‘very intense 7 days’ for Elon Musk

    Tesla stock had its worst week since March 2020 during a ‘very intense 7 days’ for Elon Musk

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    Elon Musk

    Mike Blake | Reuters

    Tesla shares dropped nearly 16% during what CEO Elon Musk called a “very intense 7 days indeed” to one of his 108 million followers on Twitter.

    Tesla shares closed at $265.25 on Friday, Sept. 30. At market’s close one week later, Tesla shares were trading at $223.07, a decline of nearly 16%. It was the worst week for the stock since Mar. 2020, when the Covid-19 pandemic began to grip the U.S., shutting down businesses and public life.

    Over the weekend, Tesla reported electric vehicle production and delivery numbers that did not meet analysts’ expectations.

    On Monday, Musk proceeded to stir up a political firestorm by opining about how he thought Russia’s brutal invasion of Ukraine should be resolved.

    After that, public records revealed that Musk had informed the Delaware Chancery Court that he would complete a $44 billion acquisition of Twitter in October, a deal he had been trying to evade for months.

    Tesla deliveries and AI Day

    Musk on Russia

    On Monday, Musk posted a Twitter poll gauging support for what he claimed was a likely outcome of the seven-month conflict between Russia and Ukraine.

    He suggested new UN-supervised votes in Ukraine on whether certain divisions of the democratic nation under siege should join Russia. He also suggested Ukraine should cede Crimea to Russia, and that the nation should then remain “neutral” rather than aligning with either NATO or Russia.

    The Kremlin praised Musk, but he drew sharp criticism from many others including Ukraine President Zelenskyy, Ukraine ambassador to Germany Andrij Melnyk, South Carolina Senator Lindsay Graham and anti-Putin human rights activist and former chess champion Garry Kasparov.

    Kasparov, who sought to block Putin’s rise to power and was jailed and beaten for his activism before fleeing the country, described Musk’s plan as a “repetition of Kremlin propaganda.”

    Twitter deal back on

    On the upside…

    Despite his volatile week, Musk at least notched a historic professional achievement at his re-usable rocket venture, SpaceX. The company launched four people to the International Space Station from Cape Canaveral, Florida on Wednesday.

    The mission is SpaceX’s fifth operational crew launch for NASA to date and the company’s eighth human spaceflight in just over two years. One of the people to fly with SpaceX on this latest mission is Russian cosmonaut Anna Kikina.

    Musk also boasted about the start of production of the years-delayed Tesla Semi, a heavy-duty all-electric truck, and promised that the company would deliver some of the trucks to Pepsi by Dec. 1.

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  • Dow books 630-point drop after strong jobs data rattles investors, but stocks cement weekly gains

    Dow books 630-point drop after strong jobs data rattles investors, but stocks cement weekly gains

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    U.S. stocks finished sharply lower Friday, but still booked their best weekly gains in a month, after September jobs data showed an unexpected fall in the unemployment rate that’s anticipated to reinforce the Federal Reserve’s resolve to keep tightening monetary policy.

    Investors also weighed a profit warning at a leading microchip maker ahead of next week’s increase in quarterly earnings results.

    What happened
    • The Dow Jones Industrial Average
      DJIA,
      -2.11%

      fell 630.15 points, or 2.1%, ending at 29,296.79, but off the session low of 29,142.66.

    • The S&P 500
      SPX,
      -2.80%

      dropped 104.86 points, or 2.8%, closing at 3,639.66.

    • The Nasdaq Composite
      COMP,
      -3.80%

      shed 420.91 points, or 3.8%, to finish at 10,652.40.

    Stocks posted back-to-back losses, trimming weekly gains, but recorded their best weekly gains since Sept. 9, according to Dow Jones Market Data.

    Read: Will the stock market be open on Columbus Day?

    What drove markets

    Stocks recorded sharp losses Friday after the Labor Department said the U.S. economy added 263,000 jobs in September, while the unemployment rate declined to 3.5% from an August reading of 3.7%. Average hourly earnings rose 0.3%.

    Still, a powerful rally earlier in the week boosted all three major stock indexes to weekly gains, a departure from three straight weekly losses, according to Dow Jones Market Data.

    “It’s manic. We are all on edge,” said Kent Engelke, chief economic strategist at Capitol Securities Management, of the sharp market swings.

    “Any piece of good news is a cause for an explosive rally,” Engelke said by phone. On the flip side, he pegged technology-based trading “in an illiquid and emotional market” as exacerbating Friday’s selloff.

    “It’s a reflection that people have re-entered the mind-set that the Fed is going to be raising rates at a rapid clip, probably for longer than what they might have suspected at the start of the week,” said Robert Pavlik, a senior portfolio manager at Dakota Wealth Management, by phone.

    Pavlik expects the Fed to keep tightening financial conditions to try to head off inflation. “But once we turn the corner, and the economy slows down, the Fed probably will be more aggressive in cutting rates on the way down.”

    In addition, the Fed has been “draining liquidity from the system at a remarkable pace,” wrote Rick Rieder, BlackRock’s chief investment officer of global fixed income, in a Friday client note, while pointing to an astounding $1.3 trillion decline in the central bank’s balance sheet since the December 2021 peak.

    Pavlik at Dakota Wealth said he anticipates the Fed will start slowing interest rate hikes by mid-next year, which likely means continued pressure for the stock market, particularly with a backdrop of big oil-price
    CL00,
    +5.37%

    gains this week after global crude producers voted to cut monthly production and with the U.S. dollar’s
    DXY,
    +0.44%

    surge this year against a basket of rival currencies.

    U.S. crude oil prices climbed for a fifth day in a row on Friday to settle at $92.64 a barrel, while booking at 16.5% weekly gain.

    New York Fed President John Williams said Friday that benchmark interest rates likely need to hit 4.5% over time. The Fed’s policy rate now sits in a 3%-3.25% range, up from a zero-0.25% range a year ago.

    The benchmark 10-year Treasury rate
    TMUBMUSD10Y,
    3.889%

    climbed to 3.883% Friday, as the key metric used to gauge the affordability of credit for businesses, household and the economy posted 10 straight weeks of gains, according to Dow Jones Market Data.

    Read: Bond markets facing historic losses grow anxious of Fed that ‘isn’t blinking yet’

    Investors continued to hope for relief on the inflation front and will be monitoring next week’s release of the September consumer-price index, as well as corporate earnings season as it picks up.

    Companies in focus
    • Twitter Inc.
      TWTR,
      -0.43%

      shares fell 0.4% Friday after a judge delayed a looming trial between the company and Elon Musk to allow the Tesla Inc.
      TSLA,
      -6.32%

      CEO more time to close his $44 billion acquisition of the social media platform.

    • Besides the jobs report, investors weighed a profit warning from microchip maker Advanced Micro Devices Inc. AMD, which said the PC market weakened significantly during the quarter. AMD shares fell 13.9%, and rivals including Nvidia Corp. NVDA and Intel Corp. INTC also closed lower.

    • U.S. cannabis stocks were choppy Friday, with the AdvisorShares Pure US Cannabis ETF
      MSOS,
      -2.80%

      ending lower, following steep gains earlier in the week after President Joe Biden said the U.S. would consider de-scheduling cannabis from its current position as a Schedule 1 narcotic under federal law.

    —Steven Goldstein contributed reporting to this article

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