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Elon Musk ‘not sure’ Twitter will accept his takeover offer

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It was a classic Elon Musk move: He announced a new show that would radically transform the tech landscape, and took it out on stage and in social media posts, only to make it clear that the show in question wasn’t even close to market.

Only this time, it wasn’t a self-driving taxi, a local robot, or an electric truck that the world’s richest man was promoting. It was a plan to buy Twitter, Musk’s favorite megaphone and a waste of time and, according to him, a public square of vital importance to democracy.

Early Thursday, the CEO of Tesla and SpaceX notified the Securities and Exchange Commission of an attempt to buy Twitter entirely for $54.20 per share, or $43 billion. “Twitter needs to go private,” he wrote in a letter to Brett Taylor, its chairman.

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Within hours, the social media service’s board was reportedly considering strategies to stop it, Wall Street was behaving as if it were another attempt at Musk’s jokes, and Musk himself was admitting that might not happen — even as he leaned on the board. To take his offer directly to the vote of the shareholders.

Musk opened the negotiations by saying his offer was non-negotiable; You will pay contributors an 18% rank premium over the current price. But given that Twitter traded at a 52-week high of $73, it’s a far cry from the kind of offer the company’s board of directors would be hard pressed to reject, analysts say.

“I don’t think this board will come back… yes,” said Brent Thiel, technical analyst at financial services and investment banking firm Jefferies. “We think the offer should be $60 or more” to avoid out-of-control rejections, he said.

Thill speculated that Musk’s inclusion of the marijuana-related number 420 in his bid price per share might have sent the wrong signal, suggesting he’s playing in front of a crowd of fellow humor enthusiasts.

Although it is in a fiduciary duty to consider any offer, Twitter’s board cannot take its offer any more seriously than it itself takes, said Teru Koutainen, chief analyst at wealth management firm Avalon Investment Management.

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“What are the risks of Musk handling this process in a way that could hurt the stock price? What are the risks of never closing the deal?” he said in a direct message on Twitter. “I am deeply skeptical of the board’s acceptance given that the stock price has recently been much higher and the risks associated with Mr. Musk’s volatile public comment are high.”

Traders seem to agree. After a rapid price hike, Twitter shares closed 1.7% lower at $45.08. Usually when a buyer makes such an offer, the stock price immediately rises near the offer price if the traders believe the deal will take place.

In a press release, Tweet said That its board “will review the proposal carefully to determine a course of action that it believes is in the best interests of the company and all of Twitter’s shareholders.” Musk was the same Supposed to join Board of Directors earlier this month but finally offer rejectedwhich would have required him to keep his ownership of the company below 15%.

Musk admitted he may have exaggerated during an onstage interview at the TED conference in Vancouver, Canada, Thursday morning, saying, “I’m not sure I’ll actually be able to get it.” He said he had a plan B but refused to discuss it.

The Wall Street Journal reported that Twitter’s board was discussing the possibility of adopting a so-called birth control pill that would prevent Musk from increasing his current 9.2% stake in the company to more than 15%, making it difficult for him to make a hostile bid. takes over.

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If the board rejects his offer, Till said, “It’s really up to [Musk] where he wants to take it. I think there are really only two doors that I see will happen. The first door says, “Okay, I don’t want to do anything with this team” and sells the position it built, or revisits the “final” bid and says, “Well, that’s not really final.”

Ali El Maghribi, Senior Equity Analyst at Morningstar, installed The likelihood of Twitter agreeing to Musk’s terms is less than 50%. Gary Black, Managing Partner at Future Fund, expressed Similar doubts. The famous billionaire investor Mark Cuban chirp That Twitter “will do everything in its power to not sell.”

Whether Musk has the capabilities to do the deal is another matter. Musk settled fraud charges with federal financial regulators in 2018 after the Securities and Exchange Commission said he used Twitter to advertise that he had secured “secured funding” to make his electric car company private when he didn’t. Musk also delayed filing SEC documents about his Twitter stake and is now facing Shareholder’s suit Although the SEC hasn’t said anything about it.

He did not disclose details of how he would fund his purchase of Twitter. Musk’s personal fortune is estimated at $265 billion, but most of it is in Tesla stock. In order to benefit from this wealth, he would need to borrow from his shares as collateral, which could hurt the share price.

Although Musk said making Twitter private would help him serve a “community duty,” Jennifer Edwards, executive director of the Texas Institute for Social Media Research at Tarlton State University, said that having a single person exercising control over one of the world’s largest social networks is troubling. .

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“When a man gains majority ownership of a company like Twitter, the system of checks and balances” that incentivizes platforms to promote the dissemination of accurate information online “may become less effective” than it would be under the management of a public company’s board of directors, Edwards wrote in an email. (Of course, that’s the case at Facebook’s Meta Platforms Inc, where stock watcher Mark Zuckerberg gives him complete control of a much larger platform.)

Jessica Gonzalez, co-CEO of media advocacy group Free press. “He has used Twitter to influence markets for his own benefit. He is just gross. He is an unaccountable billionaire, and making this company private will make them less accountable.”

At the TED event, Musk said he wanted to allow users to edit posts and that the company should be more transparent about who it blocks or puts in “timeout” and why. “The tweets are being promoted and demoted without any idea what’s going on,” he said.

But Musk said after being pressed by host Chris Anderson about how this would work in detail, “I’m not saying I have all the answers here.”

Musk’s interest in Twitter is Mostly ideological Rather than being a lucrative business decision, said Greg Autry, clinical professor of space leadership, politics and business at Arizona State University’s Thunderbird School of Global Management and a leader in the space industry.

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“He’s an outspoken supporter of free speech, and he doesn’t like the model of censorship that ever exists on social media and on Twitter in particular,” he said. “He can do better things with his money if he just wants to make money.”

The Associated Press was used in preparing this report.



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This Carnivore influencer is secretly not a woman

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As for whether he sees a contradiction in having a woman working for him when he calls on women to stay home and have children and homeschool: he doesn’t. “It’s not a contradiction at all,” he wrote. “I talk more about family versus not having one, finding meaning outside of work rather than through it. That goes for men, too.”

For many of his followers, it’s not entirely clear if the account is real or a satire. He explained to BuzzFeed News that it’s a combination of the two. He is honest about the benefits of beef liver, but not breast milk ice cream. “I find that adding some fun, humor and exaggeration helps bring some lightness to such a cruel tribal food world,” said Carnivore Aurelius.

But there are themes and images at play that suggest something beyond just diet advice and jokes. Curtis Dozier, assistant professor of Greek and Roman studies at Vassar College, leads a project called Pharos, which traces and debunks the appropriation of classics and antiquity by the alt-right. Dozier told BuzzFeed News that the use of a Roman statue’s avatar (in this case, Emperor Marcus Aurelius, a follower of a philosophy known as Stoicism) is a visual motif associated with some alt-right or neo-fascist accounts.

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Meet three people whose lives you saved via Twitter

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One evening in May 2010, 20-year-old musician Chris Sheeran went to a band rehearsal before watching the recently released remake A Nightmare on Elm Street in the theater. Then he went to bed in the Allentown, Pennsylvania, apartment he shared with his father, his father’s girlfriend, and his 10-year-old brother.

At about 3 am, he was woken up by a notification on his Palm Pre, an early smartphone that was popular at the time. He set it up to receive text messages when his friends tweeted, and it would play a verse of the song “big swing style” From the metal band The Devil Wears Prada.

“The color inside the room was an infernal amber, with that smoke,” he recalls. “Being in the world of heavy metal, I thought it was my fantasy.” He thought he might still be asleep, having a lucid dream. Then another notification came on his phone. He said, “That’s when I knew I was awake.”

He inhaled the smoke and realized the building was on fire. Remembering what he had learned in school, he threw himself on the ground to get fresh air. He crept to his bedroom door, and when he opened it he encountered thick black smoke.

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“Some slight panic started creeping in,” he said, adding that the first thing on his mind was that he needed to get two other people into the apartment at the time — his little brother and his father’s girlfriend — outside safely.

Sheeran ran to their doors and banged hard, but they didn’t get up. Struggling for air, he ran out of the apartment, and on the street he saw two men calling 911. Once he caught his breath, he crawled back into the building and managed to get his brother and his father’s girlfriend out.

Then his thoughts turned to the other people in the building. “I ran back to alert the neighbors who were upstairs, only to be greeted by this guy who was so upset that I woke him up,” Sheeran recalls. And he’s like, ‘What’s going on? I just remember yelling at him: “Fire, get everyone out!” Then everything changed between us.

Then try to wake up the family upstairs. Although he didn’t make it, they survived after the firefighters forced their way to their apartment.

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In the wake of mass layoffs, tech workers are reconsidering their futures

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When Quinn switched from the video game industry to a tech company in 2019, job security was a big part of the reason.

Quinn, who asked that his last name be withheld to avoid hurting future employment prospects, said the gaming world has been “feast and famine,” with people hiring and firing all the time. A traditional software role — working on learning and development in a customer service company — seemed like a safer bet.

Quinn, now 28, wasn’t alone. For years, a job at a large Silicon Valley company was one of the plumpest gigs Americans could find. Even after all the rhetoric in the early 2010s about making the world a better place began to ring hollow in the wake of scandals at Facebook, Uber, and other companies, a killer combination of high wages, plentiful perks, flexible management, and the San Francisco Bay Area. A campus lifestyle fond Many beginners in their careers.

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The pandemic seemed to bear this hypothesis. When everyone’s life suddenly migrated online, software giants saw their inventory soar and tech workers enjoyed the luxury of programming from the living room sofa.

Quinn’s decision to enter the industry seemed prescient at the time. “It gave me a strong sense of security and stability that wasn’t really there in hindsight,” he said.

In November, Cowen was laid off, as part of a wave of powerful tech companies Cut jobs and implement a hiring freeze That started last summer and has picked up steam through late 2022 and into this year.

Since January 1st, hordes of employees have been put into Amazon’s shredder (18,000 Layoffs), Microsoft (10,000 Layoffs), Salesforce (8000 Layoffs) and Google (12,000 Layoffs). These cuts came on the back of previous circumcisions in Meta (11,000 Layoffs in November) and Snap (1300 Layoffs in August), as well as on Twitter, which is fade for other reasons.

The industry-wide downturn has caused many tech workers—no longer enjoying the close attention of an industry desperate to attract the best and brightest talent—to re-evaluate their careers just as Quinn once did.

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Where they go now could reshape the industry for decades to come.

“One person’s loss is another’s gain,” said Dan Ives, a technical analyst and general manager at Wedbush Securities. Highly skilled developers and software engineers will not be out of work for long, Ives said, and the companies that attract them are likely to be at the forefront of exciting new sectors such as artificial intelligence, electric vehicles, cloud storage and cybersecurity. “I think it’s a repositioning of technology.”

Ives said the cuts come on the heels of rapid, unsustainable hiring over the past five years. “Now, the clock has struck midnight for overgrowth, [and] You see the tech CEOs taking off the band-aid.”

It’s a moment with Notable similarities to the bursting of the dotcom bubble in the early 2000s, when an incomplete version of the internet economy was reduced to a haze before the eyes of investors amid the collapse of Pets.com and other frothy Web 1.0 projects.

Still, that crumbling empire provided the raw materials for the next 20 years of technology, Ives said, by injecting a group of talented software engineers back into the market. He said these recent layoffs could have the same effect.

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“I view it as a reshuffling and a change in click order, rather than a sign of darker times,” said the analyst.

Switch on the so-called FAANG COMPANIES – Facebook (now Meta), Amazon, Apple, Netflix, Google – an integral part of a larger trend in which tech workers are disillusioned with many of Silicon Valley’s biggest employers, most of whom have at this point caused In the emergence of defects in reputation if not outright scandals.

Some workers may now, now laid off and with their golden handcuffs clipped, take the opportunity to find jobs more in line with their values.

said John Chadfield, secretary at United Tech and the Allied Workers Union in Britain. “It’s not just ambition anymore.”

Some software engineers now expect to prioritize working for smaller companies that can offer them remote working flexibility, four-day work weeks and a better quality of life, Chadfield predicted. Others will switch to flexible Uber freelance work.

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But the upcoming shifts may be more radical than simply moving employees from big tech companies to smaller, leaner firms. It is sometimes said that every company is now a software company, given how pervasive technology is in every aspect of the economy, and many non-tech companies still have good reasons to hire people that traditional technology companies just laid off.

Chadfield said he has recently seen technical workers take on roles in government agencies and NGOs.

“They don’t run for cover; many of them don’t need to take anything that comes their way,” he said of tech workers. “They fill open market gaps well and pick where they go.”

Allstate insurance company recently pointed out It plans to hire laid-off tech workers to help boost its technology capabilities. Provided by the Department of Veterans Affairs Similar overtures.

The current turmoil at traditional big tech companies is not representative of tech professions in general, which now span a wide range of sectors, including health care and banking, said one of the engineering directors, Jess — who was let go from a San Francisco software company in December.

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“Every company has an app, they have a website, they have a service,” said Jess, who withheld his last name because he is actively looking for work. “You might see an expansion of what it means to work in technology, and what it means to work in engineering.”

A job in technology isn’t necessarily “in a place with a sled and a ball pit,” he said, referring to the popular summer camp atmosphere in which many Silicon Valley companies grew up before the pandemic.

However, some college graduates are still drawn to the tech giants despite the newfound lack of job security available.

Allison, an undergraduate studying computer science in the Bay Area, said she accepted an offer at a FAANG company for two defense industry opportunities in Pennsylvania and Idaho.

“It’s better to apply for a place that gives you $250,000 and be laid off in 6 months… than to go to Idaho and get $100,000,” she said. “I am willing to accept the risk to get a lot more money.”

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She said some of her friends, who had previously trained in technology at companies outside the traditional tech ecosystem, were still pursuing full-time jobs at larger companies. Again, push is the drive.

But not everyone is so lucky to get a job before graduation, she said. Many of her friends sent hundreds of requests, some even settling for internships, with no response.

Particularly affected by the pull are non-technical tech workers — those who don’t write code or possess other engineering skills — said Natalia Nedzvetskaya, a UC Berkeley doctoral student who studies tech employee activism.

“The majority of these layoffs affect people [working in] Recruit or serve clients in these companies,” Nedzhvetskaya said.

She said many tech companies also rely on temporary or contract workers who — even in boom times — face vastly less stable working conditions than their full-time counterparts.

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“The Google more than 50% Nedzhvetskaya said, “And if these people are not rehired, or if their contract is canceled before its completion date, that does not register as a layoff.”

For Quinn — a tech worker who switched from video games to software in 2019, only to be laid off late last year — changing economic winds have forced him to reconsider his commitment to the tech industry.

Although he initially thought he would simply find a similar job at another tech company after being laid off from customer service, he has since struggled to repeat what he lost. He said many companies’ applications in the past few months were nearing their final steps, only for a sudden hiring freeze to put him back into the search process.

Quinn is now looking for roles in healthcare, game and app development, and even mortgage notarization — that is, sectors that use technology but whose employers are not tech companies per se. He said he wasn’t sure if he was “dead” to stay in traditional technology. He added that many of his colleagues are asking themselves the same thing.

“I think everyone I talk to, at least, has a soul-searching moment: ‘Well, is that what I thought?’” Quinn said. “Am I aloof from all these economic transformations?”

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