WILMINGTON: Elon Musk and Twitter Inc. may reach an agreement to end their litigation in coming days, clearing the way for the world’s richest person to close his $44 billion deal for the social media firm, a source familiar with the matter told Reuters.
Musk, who is also chief executive officer of electric car maker Tesla Inc, proposed to Twitter late on Monday he would change course and abide by his April agreement to buy the company for $54.20 per share, if Twitter dropped its litigation against him.
In their effort to end the litigation, the two sides agreed to postpone the billionaire’s deposition in court scheduled for Thursday, the source said on Wednesday, but negotiations are continuing with a full resolution expected to take more time.
However, Twitter’s legal team was yet to accept any agreement and Chancellor Kathaleen McCormick, the judge on Delaware’s Court of Chancery, earlier in the day said she was preparing for the looming trial.
“The parties have not filed a stipulation to stay this action, nor has any party moved for a stay. I, therefore, continue to press on toward our trial set to begin on Oct. 17, 2022,” McCormick wrote in a Wednesday court filing.
Musk’s proposal on Monday included a condition that the deal closing was pending the receipt of debt financing. The potential agreement would likely remove that condition, said the source, who requested anonymity as the discussions are confidential.
Twitter’s legal team and lawyers for Musk updated the judge on Tuesday with their attempts to overcome mutual distrust and find a process for closing the deal.
Two firms that were interested in partly financing the deal, Apollo Global Management Inc. and Sixth Street Partners, had ended talks to provide up to a combined $1 billion, two sources told Reuters.
An attorney representing a proposed class action against Musk on behalf of Twitter shareholders said in a letter to McCormick that Musk should be required to make a “substantial deposit” in case he again reneges on his commitment to close. He should also be liable for interest delaying the closing of the deal, said the letter from attorney Michael Hanrahan.
Representatives of Musk and Twitter held several unsuccessful talks in recent weeks about a possible price cut to his $44 billion deal to buy the social media platform before he reversed course on Monday, the New York Times reported on Wednesday.
Musk initially sought a discount of as much as 30 percent, according to the report, which was later narrowed to about 10 percent and ultimately rejected by Twitter.
A DISTRACTION
It is not clear what led the Musk legal team to offer to settle, but his scheduled deposition on Thursday in Austin, Texas, was expected to include some tough questioning, which could have given Twitter leverage in talks to close the deal.
Shares of Twitter closed 1.3 percent lower at $51.30 on Wednesday. The stock on Tuesday hit its highest level since Musk and Twitter agreed in April that he would buy the company for $54.20 per share.
Tesla stock ended down 3.5 percent on Wednesday as investors worry that Musk may have to sell more shares in the electric carmaker to fund the Twitter deal and that Twitter could be a distraction for the entrepreneur.
Musk sold $15.4 billion worth of Tesla stock this year, but analysts said he may have to raise an additional $2 billion to $3 billion provided that the rest of his financing remains unchanged.
Musk said in July he was walking away from the takeover agreement because he discovered Twitter had allegedly misled him about the amount of fake accounts, among other claims.
Part of Musk’s case was based on allegations by Twitter whistleblower Peiter “Mudge” Zatko that became public in August, and Musk’s legal team on Wednesday rejected the idea that they had inappropriate talks with Zatko or spoken with him before his concerns became public.
Twitter’s legal team has wanted to investigate if Alex Spiro, a lawyer from legal firm Quinn Emanuel, who has led the case for Musk, communicated with the whistleblower as early as May.
Twitter lawyers were suspicious that Zatko sent an anonymous May 6 email to Spiro. The sender claimed to be a former Twitter employee, offered information about the company and suggested communicating by alternate means.
Spiro said in a filing with the court on Wednesday he never read the email until Twitter brought it to his attention and it appeared to be someone seeking a job. Spiro also said he was unaware of the existence of Zatko’s allegations before they became public on Aug. 23.
Musk, Twitter could reach deal to end court battle, close buyout soon
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Musk, Twitter could reach deal to end court battle, close buyout soon
- Billionaire, after a surprising U-turn on Monday, pledged to finish his proposed $44 billion takeover of Twitter
Media watchdog says journalists should be allowed to cover college protests safely
- Journalists said they have been barred from reporting on events
LONDON: Media watchdog Committee to Protect Journalists has called on authorities to allow journalists covering US college protests to do so “freely and safely.”
“Journalists — including student journalists who have been thrust into a national spotlight to cover stories in their communities — must be allowed to cover campus protests without fearing for their safety,” said Katherine Jacobsen, the CPJ’s US, Canada and Caribbean program coordinator.
“Any efforts by authorities to stop them doing their jobs have far-reaching repercussions on the public’s ability to be informed about current events.”
Tensions have escalated between pro-Palestinian demonstrators and law enforcement during recent protests at universities across the US.
On Tuesday night, New York police equipped with anti-riot gear forcibly entered Columbia University’s Hamilton Hall, a focal point of the protests, resulting in the arrest of approximately 300 pro-Palestinian students.
Meanwhile, student journalists at the University of California in Los Angeles reported being assaulted and exposed to gas during violent clashes. In Northern California, local journalists covering college demonstrations were detained and arrested by police.
The CPJ said at least 13 journalists had been arrested or detained since the start of the Israel-Hamas war on Oct. 7 and 11 have been assaulted while covering related protests in the US.
Those arrested include FOX 7 reporter Carlos Sanchez, who was shoved to the ground last month while covering a protest at the University of Texas in Austin. He is currently facing two misdemeanor charges.
Universal Music Group artists to return to TikTok after new licensing pact
- New deal to restore label’s song to platform, increase artists’ protection from AI
- Universal Music says TikTok accounts for 1 percent of its annual revenue in 2023
LONDON: Universal Music Group and TikTok said on Thursday they had reached a new licensing agreement that will restore the label’s songs and artists to the social media platform as well as give musicians more protections from artificial intelligence.
TikTok began removing Universal’s content from its app after their licensing deal expired in January and the two sides failed to reach agreement on royalties, AI and online safety for TikTok’s users.
Describing their new pact as a multi-dimensional deal, the companies said they were working “expeditiously” to return music by the label’s artists to TikTok, and also said they would team up to realize new monetization opportunities from TikTok’s growing e-commerce capabilities.
They will “work together on campaigns supporting UMG’s artists across genres and territories globally,” the two firms said in a joint statement.
The short video app is a valuable marketing and promotional tool for the music industry. TikTok is where 16- to 19-year-olds in the United States most commonly discover music, ahead of YouTube and music streaming services such as Spotify , according to Midia Research.
“Roughly a quarter of US consumers say they listen to songs they have heard on TikTok,” said Tatiana Cirisano, Midia’s senior music industry analyst.
However, Universal Music claimed its artists and songwriters are paid just a fraction of what it receives from other major social media platforms.
The music label says TikTok accounts for 1 percent of its annual revenue or about $110 million in 2023. YouTube, by contrast, paid the music industry $1.8 billion from user-generated content in the 12 months ending in June 2022, according to Midia.
In a move that may well have eroded its bargaining power, Taylor Swift, one of Universal Music’s biggest acts, allowed a selection of her songs to return to TikTok as she promoted her latest album, “The Tortured Poets Department.”
Swift owns the copyrights to her recordings through her 2018 deal with Universal and can control where her songs are available, according to the Financial Times.
As licensing negotiations resumed in recent weeks, AI remained a major point of contention. Universal has claimed TikTok is “flooded” with AI-generated recordings, including songs that users create with the help of TikTok’s AI songwriting tools.
In Thursday’s deal, TikTok and Universal said that they would work together to ensure AI development across the music industry will protect human artistry and the economics that flow to those artists and songwriters.
“TikTok is also committed to working with UMG to remove unauthorized AI-generated music from the platform, as well as (developing) tools to improve artist and songwriter attribution,” the statement said.
Concerns about AI have grown in the creative community. In April, a non-profit group called the Artist Rights Alliance published an open letter urging the responsible use of the technology. The group of more than 200 musicians and songwriters called on technology companies and digital music services to pledge not to deploy AI in a way that would “undermine or replace the human artistry of songwriters and artists or deny us fair compensation for our work.”
The deal comes amid questions over TikTok’s long-term future in the United States. President Joe Biden signed legislation last week that gives TikTok’s Chinese owner, ByteDance, 270 days to sell its US assets. TikTok has vowed to file suit to challenge the legislation, which it calls a ban.
More than 170 million Americans use its video service, according to TikTok. Globally, it has more than 1.5 billion monthly active users, according to research firm Statista.
Comedian Stephen Colbert defends pro-Palestine college campus demonstrators after Trump attack
- Comedian said protests should be allowed to continue as long as they are peaceful
- Trump claimed 2017 white nationalist rally in Charlottesville was ‘nothing’ in comparison to pro-Palestine college protests
LONDON: American comedian Stephen Colbert has defended pro-Palestinian college campus demonstrators, countering recent criticism from former President Donald Trump.
Last week, Trump likened the student rallies to the 2017 white nationalist rally in Charlottesville, Virginia, claiming the latter was “nothing” in comparison.
On his “Late Show” segment, Colbert expressed solidarity with the protestors who are urging their institutions to cut ties with companies profiting from the conflict in Gaza.
The host said that peaceful protests “should be allowed,” rebuking Trump for “downplaying one of the darkest chapters in American history.”
He added: “Now even if you don’t agree with the subject of their protests, as long as they are peaceful, students should be allowed to protest. It’s their First Amendment right.”
The former “The Colbert Report” star criticized the response of both university officials and law enforcement to recent events at Columbia University, denouncing the use of heavily armed police and threats to call in the National Guard as a “classic de-escalation tactic.”
Trump, however, praised law enforcement’s handling of the situation, commending New York City’s police force.
Colbert’s remarks coincided with the deployment of riot police at Columbia University’s Hamilton Hall, resulting in the arrest of numerous pro-Palestinian students who had occupied the building.
The raids drew condemnation from advocacy groups such as Jewish Voice for Peace and UN Special Rapporteur Francesca Albanese. New York City’s mayor reported the arrest of 282 students.
Subsequent clashes between pro-Palestinian groups, counter-protestors, and law enforcement erupted at other campuses across the US.
Meanwhile, Brown University in Rhode Island reached an agreement with protesters on Tuesday, marking what appears to be the first time a US college has agreed to vote on divestment in response to the protests.
Like Digital & Partners opens new office in Saudi Arabia
- Digital transformation agency expands with Riyadh premises
DUBAI: Like Digital & Partners, an independent digital transformation agency with offices in Dubai and London, has announced the opening of premises in Riyadh to mark its expansion into the Kingdom.
The move comes a month after the agency partnered with business expansion platform AstroLabs to extend its footprint in the region.
The new office in Riyadh will underscore its commitment to the region, it said in a statement.
Like Digital & Partners aims to create new jobs primarily in the fields of project management and user interface design. It plans to employ 10 to 15 staff members at its Riyadh office by the end of 2025.
Specializing in the hospitality industry, the agency has worked with resorts such as Atlantis and One&Only One Za’abeel. It aims to leverage this expertise and experience in the Kingdom, which is seeing an influx of new hotels and resorts, the agency said.
Karl Escritt, CEO of Like Digital & Partners, said: “As we continue our rapid expansion into the GCC (Gulf Cooperation Council) market and beyond, we are delighted to lay down roots in Riyadh, Saudi Arabia.
“Having dedicated years to nurturing our business in the Kingdom and developing our knowledge and expertise of the market, we are looking forward to further strengthening our ties and servicing new clients.”
Publicis Sapient appoints new managing director for Saudi Arabia
- Ashwaq Al-Shathri will be based in Riyadh, oversee company’s business growth in the Kingdom
DUBAI: Publicis Sapient, a digital business transformation company, has announced the appointment of Ashwaq Al-Shathri as country managing director for Saudi Arabia.
The appointment reflects the importance of the Kingdom and the Middle East for Publicis Sapient, the company said.
Based in the company’s Riyadh office, Al-Shathri will be responsible for accelerating business growth in Saudi Arabia and building the operational business and community.
She will lead the teams responsible for digital business transformation in the region, leveraging the company’s strategy, product, experience, engineering and data, and artificial intelligence capabilities.
Nigel Vaz, CEO of Publicis Sapient, said: “We’re committed to supporting KSA’s technology-driven transformation and realization of Vision 2030, while also, ultimately, helping position KSA as a leader in digital innovation on the global stage.”
Al-Shathri’s appointment “will directly contribute to our continued business growth as we scale our expertise in the Middle East to better serve our clients and their customers and help them transform digitally,” said Srinivas Devulapalli, managing director of Publicis Sapient MENA (Middle East and North Africa).
Publicis Sapient is the digital business transformation hub of Publicis Groupe with 20,000 people and over 53 offices worldwide. Its global clients include Marriott, Goldman Sachs, McDonald’s, and Walmart, while regional clients include Omantel, Diriyah Gate, and Miral.
