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New Legal Challenges Could Further Impact Elon Musk’s Twitter Takeover Push

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Elon Musk Mulls Tender Offer for Twitter as an Alternative Path to Take Over the App

So as the fifth week of the Elon Musk Twitter takeover drama comes to a close, let’s just check in on how things are progressing.

Oh, it’s bad. Nothing good to see here.

This week, as Musk maintains that his $44 billion takeover offer remains ‘on hold’ due to questions over the accuracy of Twitter’s claim that 5% of its active users are fake, Twitter itself has faced its own drama, connected to the takeover push.

Having already lost several top executives, either directly or indirectly stemming from the pending change in ownership (as well as former CEO Jack Dorsey exiting the company entirely), Twitter is now facing a battle over its board members, with Silver Lake Partners’ Egon Durban resigning from the board after Twitter shareholders blocked his re-election.

Durban was given a Twitter board seat in 2020, following a push by Elliott Management Group to buy up Twitter shares, and force Jack Dorsey out of his position as CEO. Elliott’s view was that Dorsey was underperforming, and it partnered with Silver Lake to put pressure on the company to either improve its bottom line, or accept a change in management.

That lead to Twitter implementing tough new revenue and growth targets, which it recently admitted that it’s not on track to meet.  

In addition to his work with Twitter and various other public companies, Durban has also been a longtime ally of Elon Musk, and earlier this week, Twitter shareholders voted to stop Durban from being re-appointed, in a move that many viewed as a statement of protest, of sorts, from Twitter investors.

But as with all things Elon and Twitter, it’s not that simple – today Twitter itself has refused to accept Durban’s resignation.

In a statement to the SEC, Twitter explained that Durban’s board re-election was likely rejected by shareholders due to him also serving on the board of six other publicly traded companies. Durban has vowed to take a step back from these other commitments, which Twitter says is enough to keep him on its team.

As per Twitter:

“While the Board does not believe that Mr. Durban’s other public company directorships will become an impediment if such engagements were to continue, Mr. Durban’s commitment to reduce his board service commitment to five public company boards by the Remediation Date appropriately addresses the concerns raised by stockholders with regard to such engagements. Accordingly, the Board has reached the determination that accepting Mr. Durban’s Tendered Resignation at this time is not in the best interests of the Company.”

Why does Twitter want to keep Durban on? It’s hard to say – especially given that Musk has noted that he’ll be looking to eliminate Twitter’s board if/when he becomes the platform’s owner.

The inclusion of representatives from key investors, however, may ensure Twitter maintains a level of stability, in case the deal goes south.

And there could be another key reason to maintain the link between Twitter’s board and Musk.

On another front, Twitter shareholders are also mulling a class-action lawsuit against Elon Musk over his Twitter takeover push, based on the allegation that Musk has ‘violated California corporate laws on several fronts’ with his Twitter acquisition commentary, effectively engaging in market manipulation.

As reported by CNBC:

In one potential violation, they claim that Musk financially benefited by delaying required disclosures about his stake in Twitter and by temporarily concealing his plan in early April to become a board member at the social network. Musk also snapped up shares in Twitter, the complaint says, while he knew insider information about the company based on private conversations with board members and executives, including former CEO Jack Dorsey, a longtime friend of Musk’s, and Silver Lake co-CEO Egon Durban, a Twitter board member whose firm had previously invested in SolarCity before Tesla acquired it.”

Maybe that’s why Twitter wants to keep Durban in-house, due to both his past dealings with Musk, which may help ease the deal through, or to assist shareholders in their class action.

Durban’s current participation likely doesn’t hold any additional legal clout in this respect, but there may be some linkage between these two aspects of the increasingly messy Twitter deal.

And yes, there is still a possibility that the Musk takeover may not happen.

Musk himself has repeatedly and publicly vowed that he will not pay for the company unless it can convince him that its data on fake profiles is accurate – though Twitter maintains that there’s no such thing as the deal being ‘on hold’ and it’s continuing to prepare for the final transaction to be approved.

But there may also be other complications, with the SEC now investigating Musk’s conduct in the lead-up to his Twitter takeover push. Add to that his many public criticisms and disclosures, which border on market manipulation (as per the proposed shareholder action) and there could well be a breakpoint for Musk’s Twitter deal, where authorities simply veto the process entirely due to his conduct.

Could that be Musk’s plan? Various analysts have suggested that Musk is looking for a way out of the acquisition, and while the overall sentiment is that Musk will, eventually, be forced to pay-up, and take ownership of the app, there are still some legal cracks that he could explore that could end the transaction.

Which would be a disaster for Twitter.

While investors are unhappy with Musk right now, especially since his various comments and critiques have tanked the stock, Musk walking away would leave Twitter in a much lesser state, with many product leaders gone, and a declining share price that would be difficult to correct, given the various questions raised by Musk about its processes.

Could Twitter get itself back on track, and back to growth, if Musk were to abandon his takeover push?

In essence, Musk walking away would be a big, public statement that Twitter is not a good investment, and as the media hype dies down, that could see interest in the app decline even further, harming growth for, potentially, years to come.

Maybe that, then, is Musk’s real intent here – to harm the company so much that it has no choice but to accept a lower offer price, which could save Elon himself millions in his takeover bid.

Either way, right now, it’s not looking good, and there are many moving parts that must be keeping current Twitter CEO Parag Agrawal up at night.

It still seems like the Elon era is coming, but when, exactly, is a whole other question.

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Solar Flares Or Sabotage? Internet Theories On Today’s Massive Cell Phone Outage

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Solar Flares Or Sabotage? Internet Theories On Today's Massive Cell Phone Outage

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Massive cell phone outages across America are being reported today by customers of AT&T, Cricket Wireless, Verizon, T-Mobile, Consumer Cellular, Boost Mobile, US Cellular, and Straight Talk Wireless, according to data from Downdetector, an online platform that monitors connectivity. That story and more news you need to read today, inside.

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Meta Expands Access to Instagram’s Creator Marketplace

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Meta Expands Access to Instagram’s Creator Marketplace

Meta has announced that it’s finally expanding access to its Creator Marketplace tool, which will give more businesses the capacity to search for creators to work with on their Instagram campaigns.

Meta first launched its Creator Marketplace back in 2022, enabling U.S.-based brands to search and connect with relevant platform influencers based on a range of qualifiers, including focus topics, follower counts, location, etc.

And now, businesses in the following regions will also be able to access the tool:

  • Canada
  • Australia
  • New Zealand
  • United Kingdom
  • Japan
  • India
  • Brazil

In addition to this, Meta also says that Chinese export brands will also be invited to connect with onboarded creators in countries outside of China.

Which is interesting, considering Meta’s tenuous history with the CCP’s “Great Firewall”, but the deal here relates to Chinese businesses operating in regions outside of their homeland, which is somewhat separate to Meta’s internal dealings.

In addition to expanding access, Meta’s also rolling new machine learning-based recommendations within Creator Marketplace, which will use Instagram data to help brands more easily discover creators who are the best fit for their campaigns.

Instagram Creator Marketplace

As you can see in this example, the new recommendations will highlight accounts that have strong engagement rates in your niche, have mentioned your brand in the past, or have produced good results for similar businesses.

That could make it easier to find the right fit, or at the least, to give you more options to consider in your process.

Branded Content collaborations can be highly effective on IG, by using the established expertise and experience of creators who have already built a following in the app, and know what works, to boost your promotions.

By working with the right creators, with connection to your target audience, you can secure valuable endorsement within key communities, which can help to germinate your branding in the right communities.

Brands can check out Instagram’s creator marketplace in Meta Business Suite, with access coming to these new regions shortly.



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X Faces Restrictions in India and Pakistan Amid Government Orders for Content Removals

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New Report Finds That X May Be Inflating its Ad Performance Results

X is facing new challenges in both India and neighboring Pakistan, with the Indian Government calling on X to censor specified accounts to counter unrest, and Pakistani officials seemingly blocking access to X altogether, amid accusations of vote rigging in its recent election.

Firstly, in India. As confirmed by X, the Indian Government has issued a new order for X to ban users that it has identified as prompting civil disobedience.

As per X:

“The Indian government has issued executive orders requiring X to act on specific accounts and posts, subject to potential penalties including significant fines and imprisonment. In compliance with the orders, we will withhold these accounts and posts in India alone; however, we disagree with these actions and maintain that freedom of expression should extend to these posts.”

X says that even though it is moving to fulfill these orders, it will also continue to challenge the Indian Government’s bans through whatever legal means it has available.

It’s not the first time that the Indian Government has demanded specific censorship from the platform, with both X and previous Twitter management being called upon to remove certain comments and users who’ve gone against official rulings.

Last year, X was forced to remove a BBC documentary that was critical of Indian Prime Minister Narendra Modi after it was banned in the nation, which many used as an example to highlight X’s inability to uphold its own free speech approach.  

Twitter, meanwhile, was served with a non-compliance notice in 2021 for refusing to action similar account takedown demands from the Indian Government. In that instance, which directly related to civil unrest, India threatened to shut down Twitter entirely in response, while it also suggested that the company’s Indian staff could face up to seven years jail time for failing to comply.

As such, Twitter was effectively forced to action India’s requests, in order to protect its staff (note: The Indian Government has denied that any such threats occurred).

Both incidents serve as reminders of how authoritarian regimes will look to control mass communication platforms, like Twitter and X, in order to manage messaging, and combat noncompliance.

Pakistan, too, has a long history of seeking to control social platforms, though more notably due to “inappropriate content”, as opposed to what users are saying. Pakistan, which is a Muslim country, has banned various apps, at different times, in response to concerns about content, though in this latest instance, it does seem to be taking a leaf out of India’s book in using bans to quell civil unrest.

X will now have to find a way to maintain an adequate balance between adhering to such requests, while upholding its own “free speech” ethos, though X owner Elon Musk has been clear from the start that his free speech push will not go beyond the bounds of local laws in each region.

So while Twitter has challenged India’s requests in the past, and X has vowed to seek further legal clarification around the same, it will be aligning with the Indian government’s requests, and removing users and content in line with their requirements.

Does that mean that X isn’t willing to stand its ground on its much lauded open speech approach?

No, not when the alternative is to see X banned entirely, which would eliminate all speech for the impacted individuals, and reduce all protests against government action.

And no matter what your opinion of X may be, it is still a highly influential platform, in many ways, which is why officials are still looking to control the discussion in the app.

Though the bigger for question for Elon specifically is how such actions could impact his other businesses.

Tesla is still working to get into the emerging Indian market, which could become a huge sales opportunity for the company. Tesla’s been working with the Indian Government to enact new concessions on import duties, in order to bring its vehicles to market, and it’d be interesting to know whether Indian officials have used such as a lever to pressure action at X.

Based on what we know, it does seem like X would have little choice either way, but it’s another consideration in this instance, which could cause some uncomfortable internal discussions around the same.



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