Category: All news

How Audiences in Authoritarian Countries Can Bypass Censorship

Russia is clamping down on news and the internet. Overseas media organizations and activists are finding new ways in.
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Twitter Opts for ‘Poison Pill’ to Repel Elon Musk Takeover 

Twitter’s board of directors on Friday voted unanimously to use a tactic called a “poison pill” to fend off Elon Musk’s attempt to take over the company.

In such a defensive tactic, all Twitter shareholders except Musk could buy more shares at a discount. This would dilute the world’s richest person’s stake in the company and prevent him from recruiting a majority of shareholders supporting his move.

If Musk’s ownership in Twitter grows to 15% or more, the poison pill would go into effect.

Musk, who earlier this week was revealed as the company’s largest individual shareholder, with 9.2% of the shares, later offered more than $43 billion, or $54.20 a share, to purchase the entire company.

Musk’s offer would provide a substantial premium over Twitter’s current stock price of just more than $45 a share.

Free-speech concern expressed

When Musk made his offer, he lamented the company’s stance on free speech.

“I believe free speech is a societal imperative for a functioning democracy,” Musk said in the filing. “I now realize the company will neither thrive nor serve this societal imperative in its current form.”

But instead of putting Musk’s offer up for a vote with Twitter shareholders, the company’s board said Friday that it would instead offer its shareholders a chance to buy even more shares at a steep discount, effectively diluting the price of the stock.

The plan “will reduce the likelihood that any entity … gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium,” the company said.

The Twitter board’s plan will be effective for one year.

As rumors of a poison pill action circulated Thursday, Musk speculated via Twitter on what might happen.

“If the current Twitter board takes actions contrary to shareholder interests, they would be breaching their fiduciary duty,” he wrote. “The liability they would thereby assume would be titanic in scale.”

One analyst, Dan Ives of Wedbush Securities, told the New York Post that the board’s move was a “defensive measure,” adding that shareholders would not likely view it positively.

“We believe Musk and his team expected this poker move, which will be perceived as a sign of weakness, not strength, by the Street,” Ives told the Post.

Josh White, a former financial economist for the Securities and Exchange Commission, told BBC that Musk’s negotiation tactics might not be the “right approach” if Musk wants to acquire the company.

“I actually think if he was truly serious about the takeover attempt, he would have started at a price and left the window open for negotiation,” White said.

Twitter ‘storm’?

Edward Rock, who teaches corporate law and governance at New York University’s law school, also had doubts about whether Musk was serious about buying Twitter.

As Rock told NPR, Musk can show he is serious by revealing how he plans to finance the takeover, which he did not show in his SEC filing, or launch a proxy contest to replace Twitter board members in response to its poison pill.

If Musk fails to do so, Rock said, “he’s not going to acquire the company, and people can just write it off like some of his other Twitter storms.”

Some information for this report came from The Associated Press.
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Ransomware Attacks: Hackers Endanger Critical US Infrastructure    

Even before Russia’s invasion of Ukraine, U.S. officials warned about cyberattacks originating in Russia against critical American infrastructure. Now, U.S. security agencies are increasingly cracking down on the networks used by cybercriminals, including for ransomware attacks. Dino Jahic has the story, narrated by Anna Rice. 
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Musk Spells Out How He Would Change Twitter

Hours after announcing his $43 billion hostile takeover bid for Twitter, business magnate Elon Musk laid out some of his goals for the social media giant, including an edit button that would let users amend ill-considered tweets.

Musk made the comments on the concluding day of the annual TED Conference in Vancouver. In a question-and-answer session, he said Twitter is the global town square and an important and inclusive area for free speech.

He said he has enough assets to cover the $43 billion purchase himself but did not divulge details of how he expects to finance the attempted takeover. If necessary, he said, he has a “Plan B” for acquiring the company.

Musk said if successful, he will make Twitter’s algorithms open source, introduce an edit button for people to change their tweets and will work to “ban the bot armies,” or automated computer programs, from the platform. The edit option will be available for only a limited time after a tweet is sent, he said.

In answering questions from TED head curator and organizer Chris Anderson, Musk also said that when tweets are changed, all retweets and likes to the original message will be deleted.

Musk also indicated that under his control, Twitter would be more reluctant to delete tweets that are of questionable taste or veracity and that when in doubt, he would allow a tweet to exist. But the platform would follow the laws of the different countries where it exists, he said.

Musk also was harshly critical of the San Francisco office of the U.S. Securities and Exchange Commission, describing its staff as “those bastards.” The comment came in reference to fraud charges brought by the SEC regarding some 2,018 tweets that Musk sent claiming he had the funding to take his Tesla electric car company private.

In the settlement, Musk was forced to resign as chairman of Tesla, issue a $40 million payout to shareholders and have a lawyer approve his future tweets about the company. Musk said financial institutions forced him into the agreement, as if the SEC had been “holding a gun to your child’s head.” He agreed only to save the company, he said.

The 50-year-old entrepreneur, who also runs SpaceX and the Boring Company, announced the $43 billion takeover bid for Twitter just hours before arriving in Vancouver.

Last week, he purchased 9.2% of the company’s stock but subsequently turned down a seat on the company’s board of directors, which would have limited the amount he could own to 14.9%.

Musk said 2016 to 2018 were the worst years of his life, as Tesla encountered problems with the production of the Model 3. He said he now knows more about manufacturing than anybody on Earth after sleeping on the floors of assembly plants to work out the problems.

He also talked about building sustainable energy from wind, solar, hydro and geothermal, and repeated his support of nuclear power. He briefly talked about further developing robotic intelligence, saying the first robots to help people in everyday life are not far off. Musk said the robots will be affordable, but it should not be possible to update them remotely like computers or his Tesla vehicles.

Besides making these announcements in Vancouver, Musk has a personal tie to the city. The musician Grimes, whose real name is Claire Elise Boucher, is the mother of his two youngest children and grew up in the city, where she has family.
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Elon Musk Offers to Buy Twitter 

Businessman Elon Musk has offered to buy Twitter, saying the social media giant “needs to be transformed as a private company.”

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk said in the filing. “However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”

The founder of Tesla and SpaceX is already Twitter’s largest shareholder, owning more than 9% of the company. A regulatory filing showed he offered $54.20 per share to buy the rest.

That price would value the company at about $43 billion and represents a 38% premium above the stock’s closing price on April 1, the last trading day before Musk bought his 9%.

“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” Musk said.

Twitter acknowledged the offer and will analyze if Musk’s proposal is in the best interest of shareholders.

After Musk’s large share ownership was revealed, Twitter offered him a seat on the company’s board, but that had a stipulation limiting the amount of stock Musk could own.

After appearing to accept the board seat, Musk then declined.

Some information for this report came from The Associated Press and Reuters.
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Russian Netflix Users Sue Streaming Giant for Leaving Market – RIA

Russian users of Netflix NFLX.O have launched a class action lawsuit against the streaming giant for leaving the Russian market, demanding 60 million roubles ($726,000) in compensation, the RIA news agency reported on Wednesday. 

Netflix Inc said in March that it suspended its service in Russia and had temporarily stopped all future projects and acquisitions in the country as it assessed the impact of Moscow’s invasion of Ukraine.

“Today, a law firm representing the interests of Netflix users filed a class action lawsuit against the American Netflix service with the Khamovnichesky District Court of Moscow,” RIA cited law firm Chernyshov, Lukoyanov & Partners as saying. 

“The reason for the lawsuit was a violation of Russian users’ rights due to Netflix’s unilateral refusal to provide services in Russia.” 

Netflix did not immediately respond to a request for comment. 

Scores of foreign companies have announced temporary shutdowns of stores and factories in Russia or said they were leaving for good since Moscow began what it calls “a special military operation” in Ukraine on February 24. Ukraine and the West say Russia launched an unprovoked war of aggression against its neighbor. 

($1 = 82.62 roubles) 
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Former Executive Gets Prison for $1 Billion Solar Fraud

A former energy executive in California who took part in $1 billion solar power fraud that bilked Warren Buffett’s company and many others was sentenced Tuesday to six years in federal prison and ordered to pay $624 million in restitution.

Robert A. Karmann, 55, of Clayton was the chief financial officer for DC Solar, a company based in Benicia in the San Francisco Bay Area that sold mobile solar generator units mounted on trailers.

The company marketed the generators between 2011 and 2018 as being able to provide emergency power for cellphone companies or to provide lighting at sporting and other events.

But the company executives started telling investors they could benefit from federal tax credits by buying the generators and leasing them back to DC Solar, which would then provide them to other companies for their use, prosecutors said.

The generators never provided much income, and prosecutors say the company ran a Ponzi scheme, in which early investors were paid with funds from later investors.

The company eventually stopped building the mobile generators altogether, and prosecutors say a least half the company’s claimed 17,000 generators didn’t really exist.

Among those suckered by the business were Buffett’s Berkshire Hathaway Inc.

DC Solar founder Jeff Carpoff was sentenced last November to 30 years in prison and ordered to pay $790.6 million in restitution for conspiracy to commit wire fraud and money laundering.

His wife, Paulette Carpoff, 47, has pleaded guilty to federal charges and will be sentenced in May.

Prosecutors said the Carpoffs used the money to buy and invest in 32 properties, more than 150 luxury cars, a subscription to a private jet service, a semipro baseball team, a NASCAR race car sponsorship and a suite at the new Las Vegas Raiders stadium.

One other man was sentenced to three years in prison last year and three others pleaded guilty to criminal charges and await sentencing.
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Elon Musk Accused of Breaking Law While Buying Twitter Stock

Elon Musk’s huge Twitter investment took a new twist Tuesday with the filing of a lawsuit alleging that the colorful billionaire illegally delayed disclosing his stake in the social media company so he could buy more shares at lower prices.

The complaint in New York federal court accuses Musk of violating a regulatory deadline to reveal he had accumulated a stake of at least 5%. Instead, according to the complaint, Musk didn’t disclose his position in Twitter until he’d almost doubled his stake to more than 9%. The lawsuit alleges that the strategy hurt less-wealthy investors who sold shares in the San Francisco company in the nearly two weeks before Musk acknowledged holding a major stake.

Musk’s regulatory filings show that he bought a little more than 620,000 shares at $36.83 apiece on Jan. 31 and then continued to accumulate more shares on nearly every single trading day through April 1. Musk, best known as CEO of the electric car maker Tesla, held 73.1 million Twitter shares as of the most recent count Monday. That represents a 9.1% stake in Twitter.

The lawsuit alleges that by March 14, Musk’s stake in Twitter had reached a 5% threshold that required him to publicly disclose his holdings under U.S. securities law by March 24. Musk didn’t make the required disclosure until April 4.

That revelation caused Twitter’s stock to soar 27% from its April 1 close to nearly $50 by the end of April 4’s trading, depriving investors who sold shares before Musk’s improperly delayed disclosure the chance to realize significant gains, according to the lawsuit filed on behalf of an investor named Marc Bain Rasella. Musk, meanwhile, was able to continue to buy shares that traded in prices ranging from $37.69 to $40.96.

The lawsuit is seeking to be certified as a class action representing Twitter shareholders who sold shares between March 24 and April 4, a process that could take a year or more.

Musk spent about $2.6 billion on Twitter stock — a fraction of his estimated wealth of $265 billion, the largest individual fortune in the world. In a regulatory filing Monday, Musk disclosed he may increase his stake after backing out of an agreement reached last week to join Twitter’s board of directors.

Jacob Walker, one of the lawyers that filed the lawsuit against Musk, told The Associated Press that he hadn’t reached out to the Securities and Exchange Commission about Musk’s alleged violations about the disclosure of his Twitter stake. “I assume the SEC is well aware of what he did,” Walker said.

An SEC spokesperson declined to comment.

The SEC and Musk have been wrangling in court since 2018 when Musk and Tesla agreed to pay a $40 million fine t o settle allegations that he used his Twitter account to mislead investors about a potential buyout of the electric car company that never materialized. As part of that deal, Musk was supposed to obtain legal approval for his tweets about information that could affect Tesla’s stock price — a provision that regulators contend he has occasionally violated and that he now argues unfairly muzzles him.

Musk didn’t immediately respond to a request for comment posted on Twitter, where he often shares his opinion and thoughts. Alex Spiro, a New York lawyer representing Musk in his ongoing dispute with the SEC, also didn’t immediately respond to a query from The Associated Press. 
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Companies and Celebrities Jump into NFT Craze

The world of nonfungible tokens, or NFTs is getting a boost from companies and celebrities, who are making the digital products. But the nascent technology comes with risks. Tina Trinh reports.
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Twitter’s Top Shareholder Elon Musk Decides Not to Join Board

Twitter Inc’s biggest shareholder, Elon Musk, has decided not to join its board, Chief Executive Parag Agrawal said late on Sunday. 

Musk, who calls himself a free-speech absolutist and has been critical of Twitter, disclosed a 9.1% stake on April 4 and said he plans to bring about significant improvements at the social media platform. 

His appointment to the board was to become effective on Saturday and would have prevented him from being a beneficial owner of more than 14.9% of common stock. 

But “Elon shared that same morning that he will no longer be joining the board,” Agrawal said in a note on Twitter. “I believe this is for the best. We have and will always value input from our shareholders whether they are on our Board or not. Elon is our biggest shareholder and we will remain open to his input,” Agrawal said. 

Musk limited his response to a face with hand over mouth emoticon on Twitter. Tesla did not immediately respond to an email sent to the company seeking a comment from Musk. 

News of Musk taking a board seat had some Twitter employees panicking over the future of the social media firm’s ability to moderate content, company insiders told Reuters. 

Before taking a stake, Musk ran a Twitter poll asking users if they believed Twitter adheres to the principle of free speech. 

A day after becoming the largest shareholder, he launched another poll asking users if they want an edit button, a long-awaited feature on which the social media platform has been working. 

The Tesla boss also asked users in a poll if Twitter’s headquarters should be converted into a homeless shelter, a plan backed by Amazon.com Inc’s founder Jeff Bezos. 

On Saturday, he suggested changes to Twitter Blue premium subscription service, including slashing its price, banning advertising and giving an option to pay in the cryptocurrency dogecoin. 

Twitter shares, which soared 27% on April 4 after Musk disclosed his stake, has lost 7.5% since then to Friday’s close. 

“There will be distractions ahead, but our goals and priorities remain unchanged,” Agrawal said in his Sunday note. 

“Let’s tune out the noise, and stay focused on the work and what we’re building.” 
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