Tech
X has lost 75% of its value since Elon Musk took over
The value of social media platform X has plunged by over 75 per cent compared to when billionaire owner Elon Musk bought it two years ago.
The information comes from a disclosure report for Fidelity’s Blue Chip Growth Fund. As of July, the fund had an equity stake in X worth $5.5 million (€4.96 million).
Originally, Fidelity invested $19.66 million (€17.73 million) when Musk purchased the social media company. Fidelity’s report puts the total valuation of X at $9.4 billion (€8.48 billion). That’s less than a quarter of the $44 billion (about €39.6 billion) Musk paid for it in October 2022.
As X’s financial health continues to worsen, the company has taken cost-saving measures such as moving its main office from San Francisco, California, to Bastrop, Texas. According to the 2020 US census, the town’s total population was just 9,688.
What caused X’s value to decrease?
The value of X’s shares actually increased by about 22 per cent immediately following Musk’s announcement to acquire the company, then known as Twitter.
However, share prices began to fall again following several controversial decisions by Musk: chief among them was the decision to rebrand Twitter to X, changing the company’s name and logo.
Some experts expressed concern with the decision at the time, arguing that the Twitter brand was too recognisable to change.
Musk also completely revamped the platform’s verification system.
Under Twitter, certain prolific users could be verified with a blue stamp next to their names. The verification system was implemented in 2009 after Tony La Russa, then-manager of the St Louis Cardinals, sued Twitter over an account that used his name to mock drunk driving deaths.
After his acquisition of the company, Musk changed verification to be subscription-based. Instead of being given to users at risk of impersonation, blue checks were used for X Premium subscribers who paid a monthly fee.
There were also grey checks that went to government-associated accounts and gold checks that businesses could purchase. The lowest cost for a gold check was originally $1,000 per month, but decreased to $200 in January 2024.
Both the changes of the social media’s verification system and branding caused controversy among users of the platform. One factor that has directly impacted X’s value is the exodus of advertisers who left the platform over concerns about content.
In 2023, Apple, Coca-Cola, and Disney removed paid ads from X after Musk endorsed an anti-semitic post. Other companies pulled advertising due to concerns regarding hate speech and Nazi-related content on X, including the European Commission, Comcast, IBM, and the World Bank.
Why did Musk acquire Twitter?
Musk originally entered negotiations with Twitter in April 2022. He offered a value of $54.20 (€48.89) per share to purchase the company and take it private.
After several days of discussion, Twitter accepted the deal.
However, in July 2022, Musk attempted to break out of the acquisition. He claimed Twitter violated parts of their agreement by refusing to provide account data on spambots and by firing high-ranking employees and one-third of its talent acquisition team.
In response, Twitter sued Musk with the goal of forcing the transaction through. Before the trial happened that October, the billionaire changed his mind and agreed to pay the original price for Twitter’s shares.
Musk remains the owner of X, but appointed Linda Yaccarino as CEO in May 2023. Yaccarino was previously the head of global advertising and partnerships for NBCUniversal.
Tech
YouTube And Meta To Pay $3M Compensation To Girl Who Got Addicted To Their Platforms
A jury in Los Angeles has ruled that tech giants YouTube and Meta are liable for negligence in a closely watched case involving a young woman who said she became addicted to their platforms from childhood.
The panel awarded the plaintiff $3 million in compensatory damages, assigning 70 percent of the liability to Meta. Jurors also determined that both companies could face additional punitive damages, with a decision on that yet to be made.
The lawsuit, filed in 2023, alleged that platforms such as Instagram were deliberately designed to create addictive user experiences, particularly for young audiences. According to court filings, the plaintiff began using YouTube at age six and Instagram at nine.
During the trial, a therapist who treated the woman testified that prolonged social media exposure contributed to significant mental health challenges, including social phobia and body image issues.
Both companies have rejected the verdict. Meta argued that teen mental health is influenced by multiple factors and cannot be attributed to a single platform. YouTube, meanwhile, maintained that its service is not inherently addictive.
Legal experts expect both companies to appeal the decision, setting the stage for a potentially influential battle over the responsibility of tech platforms in safeguarding young users.
Tech
Google acquires energy company Intersect for $4.75 billion
Google is acquiring energy infrastructure company ‘Intersect’ for $4.75 billion (approximately 7 trillion Korean won) to secure the power needed for its AI (artificial intelligence) data centers. The move aims to address the power issue, the biggest hurdle in expanding data centers. Google, which developed the ‘Gemini’ AI, is a so-called ‘AI full-stack’ company equipped with all AI-related technologies and services, including AI chips and cloud (virtual servers). The strategy is to directly manage the energy infrastructure needed to actually operate AI as well.
Reuters reported on the 22nd (local time) that Google is acquiring Intersect for $4.75 billion in cash. Google already holds a minority stake in Intersect, and through this acquisition, it will also secure the gigawatt (GW)-level energy and data center projects that Intersect is developing and constructing. Intersect is expected to be responsible for building Google’s data center power infrastructure in the U.S., based on its technology linking power generation facilities and power grids.
Sundar Pichai, CEO of Google and Alphabet, said, “Intersect will enable us to build power infrastructure more quickly and flexibly in line with the increasing demand for AI data centers,” adding, “It will also be an important partner in strengthening America’s energy innovation and technological leadership.”
Bloomberg reported that Intersect’s energy assets currently in operation or under construction in the U.S. amount to $15 billion (approximately 22.2 trillion Korean won).
◇Google increasing energy investments
Google has recently been increasing its investments in the energy sector. Although the company possesses AI chips (TPUs), Gemini, and search and cloud services, stable energy supply is essential to support these businesses.
To this end, Google is also investing in nuclear power technology. In October of last year, it signed a long-term cooperation agreement with small modular reactor (SMR) startup ‘Kairos Power’ to secure up to 500 MW (megawatts) of power. It is noted as the first case among big tech companies to publicly declare securing SMR-based power. Additionally, in August, Google and Kairos Power announced plans to build the next-generation SMR ‘Hermes 2’ in Oak Ridge, Tennessee. The goal is to commence operation in 2030.
Google is also restarting previously shut-down nuclear power plants to secure energy. In October, it announced that it will collaborate with ‘NextEra Energy’ to restart the Duane Arnold Nuclear Generating Station in Iowa, which was closed in 2020. The target restart period is between 2028 and 2029.
Google is also investing in renewable energy such as geothermal power. Since 2023, it has been supplying power to data centers through geothermal power generation with ‘Fervo Energy’ in Nevada, U.S.
Google is also actively investing in next-generation energy technologies that are not yet commercialized. In 2022, it made a large-scale investment in ‘TAE Technologies,’ which possesses nuclear fusion technology. Nuclear fusion power generation is a technology that applies the principle of energy creation in the sun, combining atomic nuclei to produce energy. It is called the ‘dream energy’ because it has abundant fuel resources, emits no carbon, and, unlike conventional nuclear power plants, does not produce high-level nuclear waste. However, it is assessed that more time is needed for commercialization due to technical challenges. Recently, TAE Technologies has accelerated the commercialization of fusion energy by merging with Trump Media Group (TMTG).
Tech
“I Lost $1.2 Million To Hackers On One Of My Apps. I Caught One Of The Hackers, And Instead Of Handing Him Over To The Police, I Employed Him To Work For Me.”- BLord
Anambra Born tech entrepreneur and businessman Linus Williams, popularly known as BLord, has shared an unusual story about how he handled a major cyberattack on one of his applications.
According to BLord, he lost $1.2 million to hackers who infiltrated one of his digital platforms. In the course of tracking the incident, he successfully identified one of the individuals involved in the breach.
Rather than handing the suspect over to security agencies, BLord said he made a strategic decision: he employed the hacker.
He explained that the hacker’s skills, though misapplied, were exceptional and could be redirected towards strengthening his company’s cybersecurity systems.
BLord noted that the decision was driven by a desire to turn a negative experience into an opportunity for growth and to better secure his business infrastructure.
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