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Elon Musk Sells Tesla Shares Worth $6.9 Billion to Avoid Twitter Fire Sale

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Elon Musk sold $6.9 billion (roughly Rs. 54,880 crore) of his shares in Tesla Inc. the billionaire’s biggest sale on record, saying he needed cash in case he is forced to go ahead with his aborted deal to buy Twitter.

“In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock,” Musk tweeted late Tuesday after the sales were disclosed in a series of regulatory filings.

Asked by followers if he was done selling and would buy Tesla stock again if the $44 billion (roughly Rs. 3,49,970 crore) deal doesn’t close, Musk responded: “Yes.”

Tesla’s chief executive officer offloaded about 7.92 million shares on August 5, according to the new filings. The sale comes just four months after the world’s richest person said he had no further plans to sell Tesla shares after disposing of $8.5 billion (roughly Rs. 67,600 crore) of stock in the wake of his initial offer to buy Twitter.

Musk last month said he was terminating the agreement to buy the social network where he has more than 102 million followers and take it private, claiming the company has made “misleading representations” over the number of spam bots on the service. Twitter has since sued to force Musk to consummate the deal, and a trial in the Delaware Chancery Court has been set for October.

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In May, Musk dropped plans to partially fund the purchase with a margin loan tied to his Tesla stake and increased the size of the equity component of the deal to $33.5 billion (roughly Rs. 2,66,460 crore). He had previously announced that he secured $7.1 billion (roughly Rs. 56,470 crore) of equity commitments from investors including billionaire Larry Ellison, Sequoia Capital and Binance.

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“I’ll put the odds at 75 percent that he’s buying Twitter. I’m shocked,” said Gene Munster, a former technology analyst who’s now a managing partner at venture-capital firm Loup Ventures. “This is going to be a headwind for Tesla in the near term. In the long term, all that matters is deliveries and gross margin.”

At the weekend, Musk tweeted that if Twitter provided its method of sampling accounts to determine the number of bots and how they are confirmed to be real, “the deal should proceed on original terms.”

Musk, 51, has now sold around $32 billion (roughly Rs. 2,54,530 crore) worth of stock in Tesla over the past 10 months. The disposals started in November after Musk, a prolific Twitter user, polled users of the platform on whether he should trim his stake. The purpose of the latest sales wasn’t immediately clear.  

Tesla shares have risen about 35 percent from recent lows reached in May, though are still down about 20 percent this year.

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With a $250.2 billion (roughly Rs. 19,90,140 crore) fortune, Musk is the world’s richest person, according to the Bloomberg Billionaires Index, but his wealth has fallen around $20 billion (roughly Rs. 1,59,080 crore) this year as Tesla shares declined.    

-With assistance from Dana Hull.

© 2022 Bloomberg LP


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US Senate Panel Approves Bill Empowering News Organisations to Negotiate With Facebook, Google for Revenue

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The US Senate Judiciary Committee voted Thursday to approve a bill aimed at allowing news organizations to band together to negotiate with Alphabet’s Google and Meta’s Facebook and win more revenue.

The bill passed the committee by a vote of 15 to 7, according to a congressional aide. It must now go to the Senate for their approval. A similar bill is before the US House of Representatives.

The bill is aimed at giving news and broadcast organisations more clout after years of criticism that big tech companies use their content to attract traffic and ad revenue without fairly compensating the publishers, many of which struggle financially.

The bill, led by Democrat Amy Klobuchar, attracted some Republican support, with Senators John Kennedy and Lindsey Graham sponsoring it. Other Democrats, like Senator Alex Padilla, expressed reservations about it.

The bill hit a speed bump earlier this month when Senator Ted Cruz won backing for a plan to include provisions to address what he considers the platforms stifling conservative voices.

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On Thursday Klobuchar won support for an amendment that specified that prices for use of content was the issue.

“The goal of the bill is to allow local news organisations to get compensation when major titans, monopolies like Facebook and Google, access their content,” she said at a committee session to vote on the bill.

Unlike other bills aimed at reining in big tech, some progressive groups oppose this measure, including Public Knowledge, on the grounds that it favors big broadcasters like News Corp, Sinclair, and Comcast/NBCU.

Also opposing the bill are two technology industry trade groups that Facebook and Google belong to: the Computer & Communications Industry Association and NetChoice.

See also  Elon Musk Allowed to Use Whistleblower Claims in Case Against Twitter, Trail to Start in October

© Thomson Reuters 2022

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Buying an affordable 5G smartphone today usually means you will end up paying a “5G tax”. What does that mean for those looking to get access to 5G networks as soon as they launch? Find out on this week’s episode. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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WhatsApp Working to Keep Iranians Connected Amid Widespread Internet Shutdown Over Nationwide Protests

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Meta Platforms’ WhatsApp said on Thursday that it was working to keep users in Iran connected after the country restricted access to the app and social media platform Instagram.

WhatsApp “will do anything” within its technical capacity to keep the service accessible and that it was not blocking Iranian phone numbers, the messaging service said in a tweet.

We exist to connect the world privately. We stand with the rights of people to access private messaging. We are not blocking Iranian numbers. We are working to keep our Iranian friends connected and will do anything within our technical capacity to keep our service up and running

— WhatsApp (@WhatsApp) September 22, 2022

Iran on Wednesday restricted access to Instagram and WhatsApp, two of the last remaining social networks in the country, amid protests over the death of a woman in police custody, according to residents and internet watchdog NetBlocks.

Last week’s death of 22-year-old Mahsa Amini, who was arrested by morality police in Tehran for “unsuitable attire”, has unleashed anger over issues including freedom in the Islamic Republic and an economy reeling from sanctions.

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Protesters in Tehran and other Iranian cities torched police stations and vehicles earlier on Thursday as public outrage over the death showed no signs of abating, with reports of security forces coming under attack.

On Thursday, the Associated Press reported that the country had imposed a near-total Internet blackout on Wednesday on the fifth day of protests against the government over Amini’s death, after she was held by the country’s morality police for allegedly violating its strictly-enforced dress code.

Previously, a government official had hinted that security concerns might prompt measures to restrict internet access. As previously mentioned, Instagram and WhatsApp were the last major social media networks operating in Iran.

The country currently blocks Facebook, Telegram, Twitter, YouTube, Instagram, and WhatsApp. However, top Iranian officials have access to public accounts on these platforms, while Iranians are able to access these services using virtual private networks and proxies, according to the report.

© Thomson Reuters 2022

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Buying an affordable 5G smartphone today usually means you will end up paying a “5G tax”. What does that mean for those looking to get access to 5G networks as soon as they launch? Find out on this week’s episode. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

See also  Elon Musk Says Doing 'Best' to Boost Birth Rates Amid Reports of Having Twins
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Facebook Whistleblower Frances Haugen Launches ‘Beyond the Screen’ Organisation to Tackle Social Media Harms

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Whistleblower Frances Haugen – a former Facebook engineer who leaked documents suggesting the firm put profits before safety – on Thursday launched an organisation devoted to fighting harm caused by social media.

The new Beyond the Screen nonprofit said that its first project will be to document ways big tech is failing in its “legal and ethical obligations to society” and help come up with ways to solve those problems.

“We can have social media that brings out the best in us, and that’s what Beyond the Screen is working toward,” Haugen said in a statement.

“Beyond the Screen will focus on tangible solutions to help users gain control of our social media experience.”

Haugen last year leaked reams of internal studies showing executives knew of their site’s potential for harm, prompting a renewed US push for regulation.

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Haugen contended the tech titan, which has since rebranded itself as Meta, put profits over safety. Meta has fought back against the accusation.

Haugen’s nonprofit said it will collaborate with groups including Common Sense Media and Project Liberty that share a “commitment to supporting healthier social media.”

Beyond the Screen’s first project “represents a bold, inclusive, and much-needed effort to drive a seismic shift in how social media operates,” Project Liberty founder Frank McCourt said, according to Beyond the Screen’s statement.

“We look forward to working with Frances and her team to launch this new initiative and advance our shared goal of enabling healthier digital communities and stopping harmful business models.”

Since leaving Facebook in 2021, Haugen has advocated in the US and other countries for legislation meant to make social media platforms safer, particularly for young people.

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See also  Tesla Asks Twitter Users to Pick Next Supercharger Location via a Poll

Buying an affordable 5G smartphone today usually means you will end up paying a “5G tax”. What does that mean for those looking to get access to 5G networks as soon as they launch? Find out on this week’s episode. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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