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Elon Musk’s Startups Could Be Silver Lining for Bankers Burned by Twitter Deal

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Wall Street’s top investment banks that stand to lose lucrative fees from Elon Musk abandoning his $44 billion (roughly Rs. 3,52,400 crore) acquisition of Twitter Inc hope the start-ups backed by the world’s richest person will make up for the lost business. Musk has been one of Wall Street’s biggest patrons, doling out nearly $500 million (roughly Rs. 4,000 crore) in fees to investment banks such as Goldman Sachs Group Inc and Morgan Stanley since 2000, mostly for work on Tesla Inc, according to an estimate by Refinitiv.

This estimate does not include Musk’s privately held start-ups SpaceX, Neuralink and The Boring Company. Bankers said these companies have paid tens of millions of dollars in investment banking fee revenue over the years for their capital raisings.

The bankers, who spoke about their business prospects with Musk on condition of not being identified, said they would pursue some of these opportunities, including roles in any initial public offerings these companies may pursue down the line.

Goldman Sachs and Morgan Stanley did not immediately respond to a request for comment.

According to an earlier regulatory filing, Twitter’s financial advisors Goldman Sachs and JPMorgan Chase would receive fees amounting to a total of $133 million (roughly Rs. 1,100 crore).

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According to estimates from Refinitiv, Morgan Stanley and the other financial advisors stand to make over $55 million (roughly Rs. 440 crore) from advising Musk, while the banks providing acquisition financing would stand to receive anywhere between $150 million (roughly Rs. 1,200 crore) to $200 million (roughly Rs. 1,600 crore).

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This is not the first time bankers have been let down by Musk in an acquisition. He also reneged on his plan to take Tesla private for $72 billion (roughly Rs. 5,77,200 crore) in 2018 after publicly announcing that he had the “funding secured”.

SpaceX was most recently valued at a whopping $125 billion (roughly Rs. 10,02,100 crore), making it one of the world’s most richly valued private companies. It is expected to go public at a significantly higher valuation, according to IPO bankers and lawyers.

SpaceX did not immediately respond to a request for comment.

To be sure, there is no guarantee that banks will lose out on the fees. This is because Twitter has sued Musk in a Delaware court to force him to complete the deal.

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© Thomson Reuters 2022


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Facebook, Instagram Integration Improved With Deeper Account Centre Integration by Meta

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Facebook and Instagram are set to offer better integration as parent company Meta announced it is testing a deeper integration across both platforms. The firm has revealed two updates that include a new user interface for the Accounts Center feature across mobile and Web platforms, and a redesigned login and onboarding experience on its mobile apps. The tests include two new features that are intended to make it easier for users to switch between and create new accounts and profiles on Facebook and Instagram. The company is also testing allowing users to receive notifications for both Facebook and Instagram profiles in the same place.

In an announcement on its blog, Meta revealed that the new interface is currently in testing and allows existing users who have added their Instagram and Facebook credentials to the same Account Center, to switch between the two apps without navigating to their phone’s home screen, multitasking menu, or app drawer. Meanwhile, a redesigned mobile login and onboarding experience being tested allows iOS and Android users to sign in or create multiple accounts from a single Instagram or Facebook credential.

Meta also confirmed that existing security features will continue to apply to the updates that include blocking unrecognized devices from using interoperating login credentials for Instagram and Facebook accounts that have the two-factor authentication feature turned on for either of the accounts.

Users will also be notified of any account activity across Facebook and Instagram accounts on a single Accounts Center section including the creation of a newly linked Facebook or Instagram account, according to the company.

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Meta says it is now testing the new user interface on iOS, Android, and the Web while the login and onboarding workflow redesign is being tested on iOS and Android. The company adds that both features are being tested across the globe. The new features are “currently limited to Facebook and Instagram,” Meta said.

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The updates have arrived post the introduction of Meta accounts in August of this year and a recently reported downturn in both revenue and user growth for the American social-media giant.


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Instagram Story Time Limit Increased to 60 Seconds: Report

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Instagram is reportedly increasing the time limit for Instagram Stories to 60 seconds, from the earlier limit of 15 seconds. Previously, Instagram Stories that were longer than 15 seconds would be broken up into separate segments. The social media company is said to have begun testing the change with select users towards the end of last year. Earlier this month, Instagram rolled out parental supervision tools and Family Center in India. Meta had announced the parental supervision tools and the Family Center tool back in March. The company was recently slapped with EUR 405 million (roughly Rs. 3,200 crore) fine for violating strict European Union data privacy rules.

According to a recent report by TechCrunch, Instagram confirmed that it is increasing the time limit of Instagram stories to 60 seconds from the earlier limit of 15 seconds. Previously, if a user had posted a video longer than 15 seconds, it used to get broken up into smaller segments. This made the process of uploading videos to Instagram Stories more challenging, including tagging and mentioning other users.

As mentioned earlier, Instagram is said to have begun testing the new change with select users towards the end of last year.

Earlier this month, Instagram also rolled out parental supervision tools and Family Center in India. The Family Center is a place for parents and guardians to access supervision tools and resources from leading experts. These tools will let them see the screen time spent by their kids on Instagram and impose time limits. The new parental controls are part of Meta’s attempts to protect children who actively use its social media apps.

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Instagram was recently slapped with a EUR 405 million (roughly Rs. 3,200 crore) fine for violating strict European Union data privacy rules. The Meta-owned social media platform was found mishandling the personal information of teenagers. Ireland’s Data Protection Commission’s investigation revealed that Instagram displayed the personal information of users between the age of 13 and 17 years. Instagram’s parent Meta said it disagrees with the way the fine was calculated and has expressed its desire to appeal the fine imposed by the regulator.

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Elon Musk, Twitter CEO Parag Agrawal Said to Postpone Depositions Ahead of Upcoming Trial

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Tesla CEO Elon Musk won a reprieve from questioning by Twitter lawyers Monday, according to several press reports. The billionaire had been scheduled to give a deposition in his high-stakes court fight with Twitter over whether he has to follow through with his agreement to buy the social platform for $44 billion (roughly Rs. 3,37,465 crore).

Instead, Musk’s questioning was postponed to a future date. Twitter CEO Parag Agrawal, who was also scheduled to face Musk lawyers on Monday, likewise postponed his deposition, according to a person who was briefed on the matter.

The Musk postponement was reported by Bloomberg, Reuters and the Wall Street Journal, all of which attributed the information to anonymous sources.

News of the postponements fueled a brief rally in Twitter shares, which jumped 5.4 percent to $43.03 (roughly Rs. 3,500), apparently on hopes of a settlement in the case. That enthusiasm waned later in the day. Twitter shares closed Monday at $41.58 (roughly Rs. 3,300), eight cents higher than they opened.

Court watchers said that such postponements are not unusual ahead of major pretrial hearings. A hearing on several significant pretrial motions is scheduled for Tuesday.

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Both men were expected to answer questions posed by opposing lawyers ahead of an October trial that will determine who is at fault for the seeming collapse of Musk’s Twitter bid, not to mention who owes whom large sums of money as a result. The trial is set to begin October 17 in Delaware Chancery Court, where it’s scheduled to last just five days.

Musk, the world’s richest man, agreed in April to buy Twitter and take it private, offering $54.20 (roughly Rs. 4,180) a share and vowing to loosen the company’s policing of content and to root out fake accounts. In July, he attempted to back out of the deal, leveling a number of charges at Twitter as justification for his action.

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Twitter subsequently sued Musk to force him to complete the acquisition.


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