Could X go bankrupt under Elon Musk
Elon Musk's profane attack on advertisers boycotting X, formerly known as Twitter, has baffled experts. If advertisers keep leaving and don't come back, can X survive?
In April, I sat down with Musk for the first of his many chaotic interviews about his acquisition of X.
He said something that, in hindsight, was rather revealing, but which passed me by at the time.
Talking about advertising, he said: "If Disney feels comfortable advertising children's movies [on Twitter], and Apple feels comfortable advertising iPhones, those are good indicators that Twitter is a good place to advertise."
Seven months later, Disney and Apple are no longer advertising on X - and Musk is telling companies that have left to "Go [expletive] yourself."
The companies paused adverts after an investigation by a US organization, Media Matters for America, flagged ads appearing next to pro-Nazi posts. X fiercely challenged the report, questioning its research methods, and launched a lawsuit against the organization.
In a fiery interview on Wednesday, Musk also used the "b" word - bankruptcy, in a sign of just how much the ad boycott is damaging the company's bottom line.
For a company he bought for $44bn (£35bn) last year, bankruptcy might sound unthinkable. But it is possible.
To understand why, you have to look at how reliant X is on advertising revenue - and why advertisers are not coming back.
Although we don't have the latest figures, last year around 90% of X's revenue was from advertising. It is the heart of the business.
On Wednesday Musk more than hinted at this.
"If the company fails… it will fail because of an advertiser boycott. And that will be what bankrupts the company," he said.
Mark Gay, chief client officer at marketing consultancy Ebiquity, which works with hundreds of companies, says there is no sign anyone is returning.
"The money has come out and nobody is putting a strategy in place for reinvesting there," he says.
On Friday, retail giant Walmart announced it was no longer advertising on X.
After Musk had told advertisers who quit X where to go in Wednesday's interview at the New York Times DealBook Summit, he said something that made advertisers wince even harder.
"Hi Bob", he said - a reference to the chief executive of Disney, Bob Iger.
When Musk puts chief executives "in his crosshairs" like this they will be even more reticent to be involved with X, says Lou Paskalis, of marketing consultancy AJL Advisory.
Jasmine Enberg, principal analyst at Insider Intelligence, adds: "It doesn't take a social media expert to understand and to know that publicly and personally attacking advertisers and companies that pay X's bills is not going to be good for business."
If advertisers are gone for good, what does Musk have?
When I interviewed him in April, it was clear he understood that subscriptions on X were not going to replace advertising money.
"If you have a million people that are subscribed for, let's say, $100 a year-ish, that's $100m. That's a fairly small revenue stream relative to advertising," he told me.
In 2022, Twitter's advertising revenue was around $4bn. Insider Intelligence estimates this year it will drop to $1.9bn.
The company has two major outlays. The first is its staffing bill. Musk has cut X to the bone already, laying off thousands.
The second is servicing the loans Musk took out to buy Twitter, totaling about $13bn. Reuters has reported that the company now has to pay $1.2bn or so in interest payments every year.
If the company cannot service the interest on its loans or afford to pay staff then, yes, X really could go bankrupt.
But that would be an extreme scenario that Musk would surely want to avoid.
He has options. By far the simplest thing for Musk would be to put more of his money in - but it sounds like he doesn't want to do that.
Musk could try to renegotiate with the banks for less onerous interest payments. He could ask, for example, for "payment in kind" interest - where payments are delayed.
But if renegotiation does not work and the banks don't get their money, then bankruptcy could be the only option, and at that point, the banks could try to push for a change in management.
"It would be very messy and complex," says Jared Ellias, a professor of law at Harvard Law School. "And it would be extremely challenging. It would create a lot of news because he would constantly get deposed and have to testify in court."
It could be terrible for Musk's business reputation, and would also impact how Musk could borrow money in the future.
And in a bankruptcy scenario, would X simply stop working?
"I find that to be very hard to believe," says Ellias. "If that happened, it'd be because Elon decided to pull the rug out. But even then, if he were to do that, the creditors would have the option of pushing the company into bankruptcy, getting a trustee appointed, and turning the lights back on," he says.
The obvious solution to all these problems for X is to simply find another revenue stream - and fast. Musk is certainly trying.
He has launched a new audio and video call service. Last month he streamed himself playing video games - he hopes X can compete with apps like Twitch.
He wants X to become the "everything app", covering everything from chat to online payments.
According to the New York Times, which got hold of the pitch deck Musk was giving to investors last year, X was supposed to bring in $15m from a payments business in 2023, growing to about $1.3bn by 2028.
X is also sitting on a huge treasure trove of data, and its vast archive of conversations can be used to train chatbots. Musk believes this data is vastly valuable.
So X does have potential.
But in the short term, none of these options plug the hole advertisers have left.
It's why Musk's profane outburst was so baffling to many.
"I don't have any theories that make sense," Paskalis says. "There is a revenue model in his head that eludes me."
Source- BBC
Spotify to axe 1,500 workers to cut costs
Swedish music-streaming giant Spotify has announced it is cutting 17% of its workforce, about 1,500 jobs, as the company seeks to clamp down on costs.
Chief executive Daniel Ek said he had made the "difficult" decision with economic growth slowing "dramatically".
Spotify employs about 9,000 people, and Mr Ek said "substantial action to rightsize our costs" was needed for the company to meet its objectives.
He added he understood the cuts would be "incredibly painful for our team".
"I recognize this will impact several individuals who have made valuable contributions", Mr. Ek said. "To be blunt, many smart, talented, and hard-working people will be departing us."
Spotify cut staff earlier this year but these plans dwarf those previous announcements.
In its latest results, Spotify reported a profit of €65m (£55.7m) for the three months to September - its first quarterly profit for more than a year - helped by price rises and higher subscriber numbers.
The tech company has been expanding worldwide as it seeks to reach a billion users by 2030.
It currently has 601 million of them, up from 345 million at the end of 2020.
Mr Ek said that given the recent "positive" results, the job cuts being announced "will feel surprisingly large" for many people.
He said Spotify had considered making smaller reductions during 2024 and 2025, but decided that more drastic action was needed to improve the company's finances.
Since it launched, Spotify has spent a lot of money on growing the business and securing exclusive content, such as podcasts created by the likes of Michelle and Barack Obama as well as the Duke and Duchess of Sussex.
The deal with Harry and Meghan cost a reported $25m (£19.7m) and saw just 12 episodes delivered over two and a half years before the deal ended in June.
Commenting on podcast content, Mr Ek told the BBC in September: "The truth of the matter is some of it has worked, some of it hasn't."
The company will start informing affected employees on Monday. Employees will get about five months of severance pay, holiday pay, and healthcare coverage for the severance period.
Spotify will also offer immigration support to employees whose immigration status is connected with their employment.
These job losses are the latest in a series of layoffs announced in the tech industry, which has cut tens of thousands of jobs following a boom during Covid pandemic lockdowns.
British telecom group BT said in May that it would axe up to 55,000 jobs by the end of the decade.
Tech giants Meta and Microsoft also revealed plans to reduce their workforce by as many as 10,000 employees this year.
Online retail giant Amazon announced it was cutting over 18,000 jobs worldwide and Google's parent company Alphabet announced cuts of around 12,000 people.
Smaller firms have also felt the pinch with Yahoo and LinkedIn both announcing cuts this year too.
Apple however seems to have bucked the trend, announcing that it would be hiring some staff in the AI sector.
Source- BBC
Toyota will 'not give up' on combustion sports cars
Toyota's GR performance division plans to use hydrogen to keep its combustion-engined sports cars on the road – but infrastructure shortcomings prevent it from being an immediate solution.
The GR division, which has its roots in Toyota's Gazoo Racing motorsport operation, currently sells four cars: the GR Supra, the GR86, the GR Yaris, and, in the US, the GR Corolla, each of which is powered by a petrol engine.
Toyota recently revealed the FT-Se concept as a preview of GR's first EV and has detailed several initiatives on which it's working to ensure that electric sports cars are suitably engaging. However, it hasn't put a timeframe on their arrival and has voiced no plans to phase out its petrol cars.
Now GR manager Masahito Watanabe has said that all-out electrification isn't a priority for the sub-brand, pointing to Toyota's highly publicized efforts in recent years to develop hydrogen-combustion technology as a potential lifeline for its piston engines.
"We still think the internal combustion engine has some potential and, as we do so, we will of course be trying to comply with all the applicable rules according to the regions in each country," he said.
"But we don't want to give up. It's not over just yet, because if you look at the internal combustion engine, there's still hydrogen combustion that can be a part of that zero-emission line-up, so I think that's going to continue.
"As you see in the [FT-Se], we still see high possibility for battery EVs, but what we want to do is pursue the multi-pathway [approach] that we've been seeing in motorsports and sports cars in general."
Toyota’s multi-pathway approach manifests in a product plan that includes 15 battery electric cars by 2026 but still leans heavily on hybrid technology in a bid to provide maximum choice for consumers.
It also remains committed to hydrogen fuel cell technology, although is shifting its FCEV focus from passenger cars to heavy goods vehicles, as well as ships and power storage.
The potential for hydrogen to play a role in Toyota’s sports car strategy is clear too.
Watanabe said: "We still believe that there's a lot of potential to be had from the hydrogen combustion engine itself. But we know that the infrastructure is woefully insufficient. This is a common issue across many different countries and we completely appreciate that.
"What that means is that we won't be able to commercialize hydrogen combustion engines right at this moment. But look at some of the movements put forward in Europe, the US, and Japan. And this isn't just governments; private companies are working towards increasing the hydrogen infrastructure.
"So we're looking out for that. What we want to do in the end is provide as many options as possible to our customers. So we will continue to develop the hydrogen internal combustion engine as part of that."
Watanabe didn't give any clues as to what a new combustion-engined GR car could look like, nor when it might arrive.
A new version of the GR Supra was spotted testing at the Nürburgring recently and widely reported to be a hardcore 'GRMN' variant equipped with the 454bhp straight six from the BMW M2. But when asked for confirmation of these reports, Watanabe went only so far as to suggest the spotted prototype is some sort of "evaluation model".
He did, however, reiterate Toyota's aim to eventually build a road-going version of Gazoo Racing's upcoming GT3-spec race car, shown in concept form last year. "But at this moment, I can't say anything about when."
Gazoo's new GT3 racer is set to hit the track in 2026, and the road-going version is reported to be in line to succeed the Lexus RC F coupé. No details of its engine have yet been revealed.
Source- AUTOCAR
Word of the year 2023 is 'rizz' after Tom Holland interview fueled
"Rizz", meaning romantic appeal, has been chosen as the Oxford 2023 word of the year.
A team of experts and tens of thousands of public votes selected 'rizz' as the word which most captures 2023.
And, if you don't already know, it's used (mainly by Gen Z) to describe someone's ability to attract a romantic partner.
The slang term beat seven other contenders to win word of the year, including Swiftie which is, of course, the word used to describe fans of Taylor Swift.
Recorded uses of the word 'rizz' have increased dramatically this year, peaking in June when Spider-Man actor Tom Holland was asked about his 'rizz' in a widely shared interview.
He answered: "I have no rizz whatsoever."
According to the Oxford University Press, "rizz" is defined as style, charm, or attractiveness; the ability to attract a romantic or sexual partner.
It is thought to be a shortened version of the word charisma.
It's unusual to take the middle part of a word for its shortened form. Other examples include 'fridge' (from refrigerator) and 'flu' (from influenza).
And if you can't get enough of it as a noun, you can also use it as a verb by using the phrase 'rizz up', which means to attract or seduce someone.
Experts from Oxford University Press said the shortlist of eight words and phrases was chosen to most reflect the mood, ethos, or preoccupations of the last year.
Source- Sky News
Premier League agrees record £6.7bn domestic TV rights deal
The Premier League has agreed a new record £6.7bn domestic television deal for Sky and TNT to show up to 270 live games a season.
The deal includes the BBC continuing to show highlights on Match of the Day.
The top flight said the deal, which covers the four years from the 2025-26 season, is the "largest sports media rights deal ever concluded in the UK".
The Saturday 3 pm blackout will remain in place, but every 2 pm Sunday kick-off will be televised.
The BBC's deal includes MOTD2 and Football Focus plus additional digital rights for its online platforms.
Sky has been awarded four of the five packages and will show a minimum of 215 matches a season including Saturday 5.30 pm kick-offs, Sunday 2 pm and 4.30 pm kick-offs, plus evening games on Mondays and Fridays and three midweek rounds.
TNT will show a minimum of 52 matches a season including all 12.30 pm kick-offs on Saturdays and two midweek match rounds.
Sky Sports will also broadcast all 10 matches on the final day of each season.
Amazon, which shows 20 matches per season under the league's current deal, has not secured rights in the new agreement.
This is the first time the Premier League has been through a tender process for its rights since 2018.
The current £5bn domestic TV rights deal, which expires at the end of the 2024-25 season, was allowed to be extended because of the Covid-19 pandemic.
The Premier League said the new deal will "provide financial certainty for clubs throughout professional football until at least 2029".
"The outcome of this process underlines the strength of the Premier League and is a testament to our clubs, players, and managers who continue to deliver the world's most competitive football in full stadiums, and to supporters, who create an unrivaled atmosphere every week," said Premier League chief executive Richard Masters.
Barbara Slater, Director, of BBC Sport, said: "Match Of The Day remains enduringly popular with audiences and this new agreement with the Premier League is brilliant news for football fans all over the UK.
"For almost 60 years it has been the UK's most discussed football programme, delivering a complete digest of the weekend's action and this enhanced deal with more digital content means we can tell the story of the Premier League every day across BBC Sport platforms."
Even though they are selling significantly more games for marginally more money, the Premier League will be privately satisfied with the figures given they believe additional growth in TV revenues over the medium term will come from the overseas market.
This announcement solidifies Sky's position as the main Premier League broadcaster partner, keeps TNT in the mix, and will deliver more digital content to BBC Sport, which is part of its overall strategy in a period when it will also show highlights of the Champions League.
We are still to see the true emergence of streaming platforms as a player in the market for weekly content, with Amazon - who this week will screen 10 matches - dropping out after the Premier League opted to put its five-midweek rounds into their packages, rather than selling them off individually, as was the case when they last properly negotiated its domestic TV rights in 2018.
The Premier League has confirmed the intention to screen all Sunday 2 pm games, most of which involve clubs playing in either the Europa League or Europa Conference League the previous Thursday.
There is no wholesale switch to Saturday or Sunday nights, which had been feared, although there are some weekend matches that have been sold as part of the packages that do not have timeslots. It remains to be seen what happens with them. In Italy, two matches are routinely played with different kick-off times on Fridays and Mondays.
TNT retaining the 12.30 pm kick-off slot on a Saturday points towards Sky continuing the current trend of screening EFL matches at that time.
However, there is no additional space created for the Women's Super League, which is why there have been suggestions it might benefit from using the 3 pm 'blackout' slot.
Source- BBC
China trials visa-free travel for six countries
China is trialing visa-free travel for citizens from France, Germany, Italy, the Netherlands, Spain, and Malaysia for a year, its foreign ministry said.
From December 30 November 2024, ordinary passport holders from these countries can do business or travel in China without a visa for up to 15 days.
This is to help "promote China's high-quality development and opening up", spokeswoman Mao Ning said on Friday.
Currently, most travelers need a visa to enter China.
The rare examples of those exempt include citizens of Singapore and Brunei, who are entering China for business, tourism, family visits, and transit for no more than 15 days.
It was only in March that China began issuing all types of visas again, for the first time since the coronavirus pandemic broke out in December 2019.
Tens of millions of international visitors came to China each year prior to the pandemic.
For three years, China imposed some of the world's strictest COVID curbs, with travel restrictions, numerous lockdowns, and frequent testing requirements.
Its zero-Covid policy, which hit the economy hard, was only lifted last December.
Source- BBC
Chipmaker Broadcom completes $69bn deal to buy VMware
Computer chipmaker Broadcom has completed its $69bn (£55bn) acquisition of cloud computing firm VMware, wrapping up one of the biggest takeover deals in the technology sector.
The deal was scrutinized by regulators around the world ahead of the last clearance from China.
There were concerns it could be affected by US-China tensions.
The approval follows a meeting between Presidents Joe Biden and Xi Jinping at the APEC summit in the US last week.
American company Broadcom - headquartered in San Jose, California - designs, develops, and supplies semiconductor chips while it also offers infrastructure software solutions.
VMware - also an American company with headquarters in Palo Alto, California- develops virtualization software that allows a user to run a virtual computer on a physical computer to increase the efficiency of the computer system.
Broadcom's president and chief executive officer, Hock Tan, said they were excited to bring together their teams to build "the world's leading infrastructure technology company".
Together, they hope to create private and hybrid cloud environments where users can run "apps anywhere".
To complete the deal, the firm has sought and received legal merger clearances in Australia, Brazil, Canada, China, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, and the UK.
Shares in VMWare will now cease to be traded on the New York Stock Exchange (NYSE), according to the company.
The US and China have been engaged in a trade war since 2018 when the then US President Donald Trump imposed tariffs and other trade barriers on China.
Advanced chips, which are used in everything from cars, and smartphones to fighter jets, have been the most recent hot commodity.
Last month, China hit back at the Biden administration's decision to impose new restrictions on their exports.
However, the two leaders who met during the APEC summit managed to agree on a number of issues ranging from tackling climate change together to resuming military communication.
Despite President Biden calling President Xi "a dictator", China's state-owned media hailed it as a "historic" summit that would be a "new starting point" for their relations.
Broadcom has been caught up in tensions between the world's two biggest economies.
In 2017, the firm announced what would have been the largest-ever takeover deal for rival Qualcomm.
But four months later, it was blocked by Mr Trump after US national security officials warned that a deal could help China overtake America in the race to develop 5G technology.
Weeks later, Broadcom decided to move to relocate to the US from Singapore.
Source- BBC
Rapper Sean 'Diddy' Combs accused of rape in new lawsuit
Mr Combs recently settled a sexual assault suit brought by R&B singer and former partner Casandra "Cassie" Ventura.
A representative for the rapper called the latest allegations "made up and not credible".
"This is purely a money grab and nothing more," the spokesperson said in a statement to the BBC on Thursday.
In the lawsuit, the plaintiff, Joi Dickerson-Neal, says that she knew Mr Combs - who also goes by the stage name Puff Daddy and P Diddy - through acquaintances. She had also appeared in one of his music videos.
According to the complaint, on 3 January 1991, she "reluctantly" agreed to meet Mr. Combs at a Harlem restaurant where she worked, and he "pushed [her] to keep him company as he attended to a few things in the city".
She says that during that time she was drugged by the rapper "resulting in her being in a physical state where she could not independently stand or walk".
He later drove her to the place he was staying, where he sexually assaulted her, according to the lawsuit.
She says she later learned he secretly filmed the encounter and showed it to a number of other people.
The lawsuit describes how after the alleged assault her life went into a "tailspin" - she struggled with her mental health and soon dropped out of college.
The legal action came hours before the New York Adult Survivors Act - which allows alleged victims of sex crimes to sue after the statute of limitations has lapsed - ends on 24 November.
"Our client has not been able to escape the continuing impact of the harm Combs caused her many years ago," said Jonathan Goldhirsch, one of the plaintiff's lawyers, in a statement.
"Through the Adult Survivors Act, she can avail herself to the courts to finally seek justice."
A representative for Mr Combs said: "This last-minute lawsuit is an example of how a well-intentioned law can be turned on its head. Ms Dickerson's 32-year-old story is made up and not credible."
This is the second sexual assault lawsuit brought against Mr Combs this month.
Ms Ventura accused the music mogul of rape and sex trafficking in a federal lawsuit filed last week. She alleged that the rap producer raped and beat her over 10 years starting when she was 19 and he was 37.
The two reached a settlement a day after the suit was filed.
Mr Combs had denied Ms Ventura's claims and his lawyer said the decision to settle was not an admission of wrongdoing.
Source- BBC
27 September 2023 TCI POST CABINET MEETING STATEMENT
Her Excellency the Governor, Dileeni Daniel-Selvaratnam, chaired the 25th meeting of Cabinet on Wednesday 27 September 2023 at the Premier’s Office on Providenciales.
All Members were present except Hon. Malcolm and the Attorney General.
At this meeting Cabinet:
· Approved recommendations proposed by the Turks and Caicos Commonwealth Parliamentary Association to amend the Retiring Allowance (Legislative Service) Ordinance, and amendments to transport and travel policies.
· Approved a 50% remission of Share Transfer Duty Payable by Hadley Investments II Ltd in its acquisition of C.B. Holdings Limited.
· Approved the terms of a settlement between the TCIG and Holiday Villages (Providenciales) Ltd DBA Club Med in relation to an outstanding tax amount.
· Received an update on the current state of the Turks and Caicos Islands 2023 Census.
· Approved amendments to the National Insurance Board (NIB) and National Health Insurance Plan (NHIP) to facilitate the implementation of the National Insurance Shared Services Project.
· Approved virements from the Space Planning Project for the purchase and installation of a new air conditioning system for the Hon. Hilly A. Ewing Building and funding to facilitate an offer on a parcel of land for a new NIB office complex on Providenciales.
· Approved the appointment of Mrs. Romaine Misick-Smith as Chief Executive Officer to the National Health Insurance Plan for a period of three months, or until a permanent CEO is appointed, with effect from 21 September 2023.
· Approved the designation of the Notary Public Training course offered by the Turks and Caicos Islands Community College in collaboration with the Eugene Dupuch Law School in Nassau, Bahamas, to provide training for Notaries Publics as the prescribed training referenced in the Notary Public Ordinance 2020.
· Approved the TCIAA hiring temporary hires on a fixed term basis for a period of three months to complete repair and maintenance works scheduled for FY2023/2024.
· Approved for:
a) All functions of the Collector of Customs and the Director of Immigration are to be vested in the Director General.
b) Enabling language to be inputted into the legacy legislation frameworks and the drafting of a new Ordinance to give the TCI Border Force the sole responsibility for the administration of the Customs & Immigration Department Ordinance.
c) The updating of the reporting structure in the relevant Ordinances enabling the Director General to report directly to the Minister responsible for the Turks & Caicos Islands Border Force.
d) The updating of the reporting structure in the relevant Ordinances enabling the Director of Inland & Director of Ports to report directly to the Director General.
e) The amending of the Customs Ordinance to give enabling powers to Immigration Officers to act in the capacity of Customs Officers by amending the Customs Ordinance.
19 September 2023 TCI POST CABINET MEETING STATEMENT
Her Excellency the Governor, Dileeni Daniel-Selvaratnam, chaired the 24th meeting of Cabinet on Tuesday 19 September 2023 at the Premier’s Office on Grand Turk.
All Members were present except the Hon. Otis Morris.
At this meeting Cabinet:
· Approved Supplementary Estimates for 2023-24.
· Received an update on work to enhance compliance with OECD blacklisting.
· Approved the appointment of Ms. Vanessa Hall as Secretary to the TCI National Wealth Fund Board (NWF) for a period of 3 years.
· Approved the Financial Intelligence Agency (Amendment) Bill and for it to be forwarded to the House of Assembly.
· Approved the Criminal Law (Amendment) Bill and for it to be forwarded to the House of Assembly.
· Considered recommendations concerning the Anti-Money Laundering regime and assessment of Virtual Asset Providers (VASP) activity.