Microsoft is expanding its relationship with OpenAI, entering what it calls “the third phase of our long-term partnership” with a multiyear, multibillion dollar investment to accelerate AI breakthroughs to ensure these benefits are broadly shared with the world.” Although the companies did not disclose financial terms, Microsoft’s investment was previously reported as $10 billion. The New York Times reports OpenAI is also in talks to complete a tender offer for as much as $300 million (contingent on the number of employees selling stock), “which would value the company at around $29 billion.” Continue reading Microsoft Invests $10 Billion in OpenAI, Valued at About $29B

Meta Platforms on Wednesday began layoffs that will affect 11,000 workers — approximately 13 percent of the company’s workforce of 87,000. Founder and CEO Mark Zuckerberg told the staff via video that “I take full responsibility for this decision,” describing it as “one of the hardest calls I’ve had to make in the 18 years I’ve run the company.” This is the first time mass layoffs have been implemented there. Zuckerberg was described as “downcast” as he discussed the news, saying overly optimistic growth projections led to overstaffing. Continue reading Meta Cuts 13 Percent of Workforce, Eliminating 11,000 Jobs

Adobe announced it plans to purchase rival digital design suite Figma for $20 billion in cash and stock. The news was disclosed as part of its Q3 earnings report, which saw revenue of $4.43 billion, exceeding analysts’ expectations. Despite the healthy cashflow, Adobe says it may have to finance part of the deal, which will have to clear regulatory hurdles in a very pro-competition environment. Founded in 2011, Figma released its first product in 2015, leveraging the WebGL API to create real-time collaborative tools for web-based design teams “working together beyond company walls.” Figma lists Airbnb, Conde Nast and Github among its users. Continue reading Adobe Will Purchase Digital Design Rival Figma for $20 Billion

Twitter’s second quarter revenue of $1.18 billion underperformed 2021 by only one percent but fell short of estimates by more than 10 percent, disappointing Wall Street, which projected revenue of $1.32 billion for the period. Advertising crept up two percent, to $1.08 billion, but overall Twitter had a quarterly net loss of $270 million, largely attributed to recessionary headwinds and uncertainty about Elon Musk’s proposed takeover. In its earnings report, Twitter said its lawsuit against Musk has been granted an expedited trial for October 2022. Continue reading Ad Market and Musk Credited for Twitter’s Missed Earnings

Entertainment and eSports brand FaZe Clan completed a $725 million merger with B. Riley Principal 150 Merger Corp., a special purpose acquisition company (SPAC) and began publicly trading on the Nasdaq stock exchange Wednesday. FaZe Clan currently has around 93 creators with a combined 500 million followers across popular social platforms such as YouTube, TikTok and Twitch. In May, Forbes ranked FaZe Clan the fourth most valuable eSports company, estimating its worth at $400 million. Trading as FAZE, the stock fell nearly 25 percent in its first day of trading. Continue reading Gen Z Brand FaZe Clan Goes Public in $725M SPAC Merger

Trying to assuage fears over what investors are concerned is a limited-growth market, audio streamer Spotify says it plans to hit one billion global monthly average users by 2030. Spotify closed Q1 with 422 million MAUs and 182 million paid subscribers, per Statista. At an Investor Day presentation in New York City this week, CEO Daniel Ek and chief freemium business officer Alex Norström showed slides indicating the company’s goal represents compounded annual growth rates of 26 percent for MAUs, paid subscribers and revenue (on a currency-adjusted basis). To get there, the executives emphasized emerging markets and podcasts. Continue reading Spotify Says One Billion MAUs by 2030 a Path to Profitability

Twitter’s tumbling stock price has spectators second-guessing Elon Musk’s motives in demanding more information for the acquisition deal to proceed. The billionaire’s “best and final” offer of $54.20 per share is now looking like a rich deal for Twitter, which has been hovering at about $38 per share. The Twitter board is understandably intent on keeping the $44 billion offer and $1 billion breakup fee in place, even as Musk tweeted ““this deal cannot move forward” until he sees proof of the company’s claim that spam and bots account for less than 5 percent of users. Continue reading Stock Volatility at Twitter and Tesla Roil Musk’s Buyout Plans

Twitter’s board has accepted billionaire Elon Musk’s offer to purchase the social media company for $44 billion, a financial value that reflects his April 14th offer of $54.20 per share. “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” said Musk, the CEO of Tesla Motors and SpaceX, who earlier revealed a desire to make Twitter a private company. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans.” Continue reading Twitter Accepts Musk’s $44 Billion Offer to Acquire Company

Netflix has confirmed it is considering an ad-supported tier. The news follows speculation at SXSW, and coincides with a quarterly subscriber loss, the company’s first in more than a decade. As a result, “revenue growth has slowed considerably,” reads its Q1 shareholder letter, attributing the lag to “relatively high household penetration” that includes a “large number of households sharing accounts.” Combined with a COVID-induced streaming bubble followed by exploding competition and costs, the landscape has changed, and Netflix is contemplating how to change with it. Continue reading Netflix Considers Advertising Model as Subscribers Dip in Q1

Less than two weeks after announcing he had built up a 9.2 percent stake in Twitter (and more recently turning down an offer to join its board of directors), billionaire CEO of SpaceX and Tesla Motors Elon Musk has made a cash offer of $54.20 a share to purchase the popular social networking service, valuing the company at about $43 billion. “Twitter needs to be transformed as a private company,” Musk wrote in a letter to Twitter chairman Bret Taylor disclosed in an SEC filing. “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder. Twitter has extraordinary potential. I will unlock it.” Continue reading Elon Musk Makes ‘Best and Final’ $43B Offer to Buy Twitter

Subscribers to the premium Twitter Blue will soon be able to test an edit feature, according to Twitter, which says a tweet edit button has for years been its most-requested UI update. Speculation that the feature would be added has run rampant since Elon Musk, a vocal proponent, announced his significant investment in the company. Following news that Musk will join its board, Twitter revealed that it has been working on such a feature since last year and testing will begin in the coming months. However, the feature is somewhat controversial. Continue reading Twitter Will Begin Testing a Controversial Edit Button Feature

Twitter enthusiast Elon Musk revealed he is also a Twitter investor, surprising Wall Street as well as the communications industry with news that he now owns 9 percent of the company’s stock, making him its largest shareholder. As of March 14, his stake stood at 73.5 million shares, valued at $2.9 billion. The revelation sent Twitter stock up 27 percent on Monday, the company’s largest one-day gain on record. The Tesla chief has more than 80 million Twitter followers. The disclosure indicates Musk owns more Twitter shares than the Vanguard Group and company co-founder Jack Dorsey. Continue reading Tesla CEO Elon Musk Becomes Biggest Twitter Shareholder

Pinterest stock spiked in extended trading Thursday after its 2021 earnings results stressed the company’s first full-year of profit, as well as the first year to tick above $2 billion in annual revenue. Pinterest stock rose 28 percent in extended trading on a better than expected Q4. “We took important steps in 2021 with the launch of our foundational technology to deliver a video-first publishing platform,” Pinterest co-founder and CEO Ben Silbermann said, emphasizing that the company would continue to focus on the new initiatives that helped revenue grow 20 percent for Q4 and 52 percent for the year. Continue reading Pinterest Posts Its First Full-Year Profit on Sales of $2 Billion

Twitter has agreed to pay $809.5 million to settle a class-action lawsuit that accused the social media giant of inflating stock value and misrepresenting user data for the benefit of insiders. In an SEC filing this week, Twitter stipulated the final settlement agreement will not “constitute an admission” or finding of liability or wrongdoing. The settlement agreement still needs approval from U.S. District Court for the Northern District of California. The suit originated with a shareholder complaint filed in Q3 2016 and was later consolidated. Continue reading Twitter Will Pay $809.5 Million to Settle Class Action Lawsuit

U.S. regulators have approved a new stock exchange originally introduced to the Securities and Exchange Commission last year by tech entrepreneur Eric Ries, who raised $19 million from VCs for his project. The new Long-Term Stock Exchange (LTSE) will provide tech firms with options to traditional New York exchanges. The “Silicon Valley-based national securities exchange” is “promoting what it says is a unique approach to governance and voting rights, while reducing short-term pressures on public companies,” reports Reuters. Continue reading New Silicon Valley Stock Exchange Is Approved by the SEC