Musk, Twitter could reach deal to end court battle, close buyout soon

The two sides agreed to postpone the billionaire’s deposition in court scheduled for Thursday, but negotiations are continuing with a full resolution expected to take more time. (Shutterstock/File)
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Updated 06 October 2022

Musk, Twitter could reach deal to end court battle, close buyout soon

  • Billionaire, after a surprising U-turn on Monday, pledged to finish his proposed $44 billion takeover of Twitter

WILMINGTON: Elon Musk and Twitter Inc. may reach an agreement to end their litigation in coming days, clearing the way for the world’s richest person to close his $44 billion deal for the social media firm, a source familiar with the matter told Reuters.
Musk, who is also chief executive officer of electric car maker Tesla Inc, proposed to Twitter late on Monday he would change course and abide by his April agreement to buy the company for $54.20 per share, if Twitter dropped its litigation against him.
In their effort to end the litigation, the two sides agreed to postpone the billionaire’s deposition in court scheduled for Thursday, the source said on Wednesday, but negotiations are continuing with a full resolution expected to take more time.
However, Twitter’s legal team was yet to accept any agreement and Chancellor Kathaleen McCormick, the judge on Delaware’s Court of Chancery, earlier in the day said she was preparing for the looming trial.
“The parties have not filed a stipulation to stay this action, nor has any party moved for a stay. I, therefore, continue to press on toward our trial set to begin on Oct. 17, 2022,” McCormick wrote in a Wednesday court filing.
Musk’s proposal on Monday included a condition that the deal closing was pending the receipt of debt financing. The potential agreement would likely remove that condition, said the source, who requested anonymity as the discussions are confidential.
Twitter’s legal team and lawyers for Musk updated the judge on Tuesday with their attempts to overcome mutual distrust and find a process for closing the deal.
Two firms that were interested in partly financing the deal, Apollo Global Management Inc. and Sixth Street Partners, had ended talks to provide up to a combined $1 billion, two sources told Reuters.
An attorney representing a proposed class action against Musk on behalf of Twitter shareholders said in a letter to McCormick that Musk should be required to make a “substantial deposit” in case he again reneges on his commitment to close. He should also be liable for interest delaying the closing of the deal, said the letter from attorney Michael Hanrahan.
Representatives of Musk and Twitter held several unsuccessful talks in recent weeks about a possible price cut to his $44 billion deal to buy the social media platform before he reversed course on Monday, the New York Times reported on Wednesday.
Musk initially sought a discount of as much as 30 percent, according to the report, which was later narrowed to about 10 percent and ultimately rejected by Twitter.
A DISTRACTION
It is not clear what led the Musk legal team to offer to settle, but his scheduled deposition on Thursday in Austin, Texas, was expected to include some tough questioning, which could have given Twitter leverage in talks to close the deal.
Shares of Twitter closed 1.3 percent lower at $51.30 on Wednesday. The stock on Tuesday hit its highest level since Musk and Twitter agreed in April that he would buy the company for $54.20 per share.
Tesla stock ended down 3.5 percent on Wednesday as investors worry that Musk may have to sell more shares in the electric carmaker to fund the Twitter deal and that Twitter could be a distraction for the entrepreneur.
Musk sold $15.4 billion worth of Tesla stock this year, but analysts said he may have to raise an additional $2 billion to $3 billion provided that the rest of his financing remains unchanged.
Musk said in July he was walking away from the takeover agreement because he discovered Twitter had allegedly misled him about the amount of fake accounts, among other claims.
Part of Musk’s case was based on allegations by Twitter whistleblower Peiter “Mudge” Zatko that became public in August, and Musk’s legal team on Wednesday rejected the idea that they had inappropriate talks with Zatko or spoken with him before his concerns became public.
Twitter’s legal team has wanted to investigate if Alex Spiro, a lawyer from legal firm Quinn Emanuel, who has led the case for Musk, communicated with the whistleblower as early as May.
Twitter lawyers were suspicious that Zatko sent an anonymous May 6 email to Spiro. The sender claimed to be a former Twitter employee, offered information about the company and suggested communicating by alternate means.
Spiro said in a filing with the court on Wednesday he never read the email until Twitter brought it to his attention and it appeared to be someone seeking a job. Spiro also said he was unaware of the existence of Zatko’s allegations before they became public on Aug. 23.


As crypto collapses in US, is Middle East going through digital renaissance?

Updated 01 December 2022

As crypto collapses in US, is Middle East going through digital renaissance?

  • NFT startups in region seem to think so

DUBAI: OasisX, the nascent curated multichain non-fungible token marketplace, which aims to drive adoption of NFTs in the Middle East and North Africa region is embracing Web3 in several ways integrating NFTs, blockchain, and cryptocurrencies within its platform.

Jimi Ibrahim, one of the co-founders of the company, who has described the new iteration of the internet as a digital renaissance, said: “Web3 has four pillars: Blockchain as a secure infrastructure, tokens like NFTs for proof of ownership and provenance, cryptocurrencies for store of value and transactions, and the metaverse, which is a combination of augmented reality and virtual reality.”

The adoption of Web3, however, has witnessed a slowdown as cryptocurrency and NFT scams have become rampant in markets such as the US. Despite the promise of a more secure internet, cryptocurrencies can be used and abused for fraudulent activities, as evidenced by the recent FTX scandal.

Founded by Sam Bankman-Fried in 2019, FTX is a cryptocurrency exchange, that rose to popularity thanks to celebrity endorsements and an aggressive marketing strategy.

In November, the crypto news site CoinDesk published the balance sheet of Alameda Research, a crypto investing firm also owned by Bankman-Fried, showing that Alameda held a large amount of a digital currency created by FTX called FTT.

“While there is nothing per se untoward or wrong about that, it shows Bankman-Fried’s trading giant Alameda rests on a foundation largely made up of a coin that a sister company invented, not an independent asset like a fiat currency or another crypto,” the article said.

However, if the value of the FTT were to drop, Alameda would essentially be at risk of insolvency.

The article set in motion a series of legal actions against Bankman-Fried, FTX, and the celebrities who promoted the crypto exchange, resulting in one of the biggest financial scandals.

The incident has slowed down the adoption of crypto, diminished faith in the industry, and cost a lot of people a lot of money. Although Ibrahim noted that it had “hurt the industry,” he pointed out that it had acted as a purge of sorts.

He said: “Foul play has to be shed light on, and such players have to be removed from the playing field so that the environment is much more safe and secure for natural growth.” He added that, ultimately, was the future where “decentralized finance is going to change the world for the better.”

The global NFT industry alone reached a market capitalization of $41 billion by the end of 2021, according to blockchain data company Chainalysis.

The space was also growing to include non-fungible assets, Ibrahim said, which would see it extending into the real world. For example, the real estate and NFT industries have been merging with several properties being sold as NFTs.

In February, US-based real estate company Propy sold an NFT-backed property, a 2,164-square-foot house in Florida, for $653,000 with the winning bidder receiving a NFT as proof of the home’s ownership.

“This is the future we’re looking to tap into, facilitate and expedite because it only makes sense to secure everything on the blockchain,” Ibrahim added.

OasisX aims to bring a new layer of security and accessibility to the world of NFTs in the MENA region for both artists and businesses.

Ibrahim along with co-founders Najib Khanafer and Ramzi Mneimneh started working on the platform more than one year ago and officially launched it at the NFT LB event in Lebanon in September.

The event featured the work of 23 artists, half of which were sold out during the event, as well as served as a platform for panel discussions, movie screenings, and AR and VR experiences.

The company’s marketplace features only vetted artists, unlike platforms such as OpenSea, which avoids any “bogus projects,” Ibrahim said.

Anyone can create and sell NFTs on OpenSea. Since the platform does not vet artists, many fraudulent NFTs end up on it. Earlier this year, OpenSea reported that more than 80 percent of the items on the platform were plagiarized works, fake collections, and spam.

“We want to keep the art community safe and secure with the right projects,” Ibrahim added.

Available in English and Arabic, the platform currently has 250 vetted artists and aims to grow into the biggest MENA-based marketplace. It also works with galleries through a referral program where the gallery receives a royalty over the first sale of any artist that gets onboarded and vetted on the platform.

It only charges 2 percent in transaction fees — among the lowest in the industry — because “artists should make the most of the sale of their hard work,” Ibrahim said. That was also why, he added, the company would never remove royalties.

Often, the technical skills needed to create NFTs can serve as a barrier to entry for both artists and brands. The company, therefore, created LaunchX, an NFT generator powered by artificial intelligence.

Recognizing that there are some still wary of NFTs and cryptocurrencies, the company has integrated options such as paying through credit cards, to make it more accessible.

The entire process is secured through a smart contract on the blockchain. Ibrahim said it was more secure than using traditional banking, especially in countries such as Lebanon, where the banking system was a shambles leaving many unable to use credit cards.

It was almost impossible to corrupt information on the blockchain making it more secure than traditional transaction methods used in Web2, he added.

Despite resistance and reluctance, Ibrahim forecasted that Web3, and cryptocurrencies, would become the norm in the next five to 10 years with people using it just as seamlessly as they use debit and credit cards today.
 


Spotify Wrapped reveals the 2022 soundtrack to Saudi lives

Updated 01 December 2022

Spotify Wrapped reveals the 2022 soundtrack to Saudi lives

  • The annual campaign reveals the most-streamed songs, artists and podcasts in the Kingdom over the past 12 months
  • Canadian superstar The Weeknd topped the list of the most popular artists in Saudi Arabia, followed by Taylor Swift and K-Pop group BTS

DUBAI: Audio streaming service Spotify has released its annual Wrapped campaign, which includes a roundup of the most popular artists, songs, albums and podcasts streamed in each country over the past year, as well as a personalized experience for each user based on their own activity on the platform during that time.

“Wrapped is such an exciting time of the year where we celebrate the role music and podcasts play in soundtracking our lives,” said Mark Abou Jaoude, Spotify’s head of music.

“This year, once again, we saw how open Saudi listeners are to different genres of music and it was great to see local artists making huge splashes.”

Canadian superstar The Weeknd topped the list of the most-streamed artists in Saudi Arabia, followed by Taylor Swift and K-Pop group BTS. Another Canadian, Drake, was fourth, followed by veteran rapper Eminem. Billie Eilish, The Neighbourhood, Justin Bieber, Imagine Dragons and Lana Del Rey completed the top 10.

Local artists experienced a growth in listeners, Spotify said, with Abdullah Al-Farwan the most-streamed Saudi performer in the country, followed by Abdul Majeed Abdullah and Sheilat artist Badr Al-Ezzi.

Spotify reported that there has been a massive growth in the popularity of Sheilat, lyrically driven folkloric songs, in recent years. According to 2021 data from the company, 80 percent of Sheilat listeners on the platform stream the music while they are gaming. This year, the top 10 list of most-streamed Saudi artists included a higher number of Sheilat singers, including Ghareeb Al-Mukhles, Fahad bin Fasla, Abdullah Al-Mukhles, and Mohammed bin Grman, alongside popular household names such as Abdul Majeed Abdullah, Mohammed Abdu and Rashed Al-Majed.

Most-streamed Saudi artists in Saudi Arabia

Abdullah Al-Farwan

Abdul Majeed Abdullah

Badr Al-Ezzi

Ghareeb Al-Mukhles

Mohammed Abdu

Rashed Al-Majed

Khaled Abdul Rahman

Fahad Bin Fasla

Abdullah Al-Mukhles

Mohammed Bin Grman

In terms of the year’s most-popular songs, “Ya Ibn Khamash” by Mohammed Al-Najm is the most-streamed Khaleeji track in Saudi Arabia this year. Assala Nasri and Badr Al-Ezzi each have two songs in the top 10: “Henain” and “Al-Sourah” from the former, and “Kalemni” and “Zikrayat” from the latter.

Most-streamed Khaleeji songs in Saudi Arabia

“Ya Ibn Khamash” by Mohammed Al-Najm

“Kalemni” by Badr Al-Ezzi

“Henain” by Assala Nasri

“Al-Sourah” by Assala Nasri

“Ghazal Ma Yensady” by Abdul Majeed Abdallah

“Shoft El-Nejoum” by Lamiya Almalki

“Qalby Jobarny” by Yasser Abdul Wahab

“Ashofak Kil Youm” by Mohamed Abdu

“Adaaj Oyoun” by Majd Al-Raslani

“Zikrayat” by Badr Al-Ezzi

 

Most-streamed songs in Saudi Arabia

“Another Love” by Tom Odell

“As It Was” by Harry Styles

“Middle of the Night” by Elley Duhe

“Enemy” by Imagine Dragons featuring J.I.D.

“Heat Waves” by Glass Animals

“Sweater Weather” by The Neighbourhood

“After Dark” by Mr. Kitty

“Close Eyes” by DVRST

“Save Your Tears” by The Weeknd

“Industry Baby” by Lil Nas X featuring Jack Harlow

A number of educational, motivational and cultural podcasts also proved very popular with Spotify listeners in Saudi Arabia this year, including “Kanabet El-Sebt,” “Finjan” and “Podcast Tanafuss.”

Most popular podcasts in Saudi Arabia:

Kanabet El-Sebt

Finjan

Podcast Tanafuss

Abajoura

Sa7eb

E7tiyal

Al-Salfah

Jinayah

Sokrat

Areeka

Spotify users can access their personalized Wrapped experience on the platform’s mobile app now.
 


Leading media outlets urge US to end prosecution of Julian Assange

Updated 29 November 2022

Leading media outlets urge US to end prosecution of Julian Assange

  • Guardian, NYT, Le Monde, El País and Der Spiegel editors and publishers said the indictment threatens freedom of the press.

WASHINGTON: The United States should end its prosecution of Julian Assange, leading media outlets from the United States and Europe that had collaborated with the WikiLeaks founder said on Monday, citing press freedom concerns.
“This indictment sets a dangerous precedent, and threatens to undermine America’s First Amendment and the freedom of the press,” editors and publishers of the Guardian, the New York Times, Le Monde, Der Spiegel, and El País said in an open letter.
Assange is wanted by US authorities on 18 counts, including a spying charge, related to WikiLeaks’ release of confidential US military records and diplomatic cables. His supporters say he is an anti-establishment hero who has been victimized because he exposed US wrongdoing, including in conflicts in Afghanistan and Iraq.
Monday marked 12 years since those media outlets collaborated to release excerpts from over 250,000 documents obtained by Assange in the so-called “Cablegate” leak.
The material was leaked to WikiLeaks by the then-American soldier Chelsea Manning and revealed the inner workings of US diplomacy around the globe. The documents exposed “corruption, diplomatic scandals, and spy affairs on an international scale,” the letter said.
In August, a group of journalists and lawyers sued the CIA and its former director, Mike Pompeo, over allegations the intelligence agency spied on them when they visited Assange during his stay in Ecuador’s embassy in London.
Assange spent seven years in the embassy before being dragged out and jailed in 2019 for breaching bail conditions. He has remained in prison in London while his extradition case is decided. If extradited to the United States, he faces a sentence of up to 175 years in an American maximum security prison.
His legal team has appealed to the High Court in London to block his extradition in a legal battle that has dragged on for more than a decade.
“Publishing is not a crime,” the media outlets said in their letter on Monday.


Fox News reporter deletes inaccurate video after being challenged by Arab News reporter on TikTok

Updated 29 November 2022

Fox News reporter deletes inaccurate video after being challenged by Arab News reporter on TikTok

  • American sports reporter Jenny Taft said, ‘I just had to go through a special gate in Qatar for ladies only. Um, I don’t feel that special,” while pulling a sarcastic and smug face
  • Lama Alhamawi explained that gender-segregated gates reflect respect for personal boundaries, and that journalists have a responsibility not to spread misinformation or biased rhetoric

LONDON: A Fox Sports reporter whose post on TikTok poked fun at gender-segregated entrances and security-searches at World Cup venues in Qatar deleted her video after being challenged by an Arab News reporter on Monday.

“I just had to go through a special gate in Qatar for ladies only. Um, I don’t feel that special,” Jenny Taft of Fox Sports said in the video while pulling a sarcastic and smug face.

Arab News reporter Lama Alhamawi took the opportunity to explain to Taft the reason for this and promptly put the American reporter firmly in her place.

“As a fellow reporter, as a fellow journalist that’s years younger than you, that’s traveled to different countries covering various topics around the world, I’m going to give you some advice,” Alhamawi said.

“As journalists, we have a responsibility to uphold. We have a responsibility to do our due diligence to fully understand and investigate a topic before spreading any information, misinformation or biased rhetoric, as you did in this video.

“Now, let’s talk about the special gate you talked about … It’s a matter of one word that perfectly explains the special gate: respect. It’s a matter of respecting someone’s boundaries, their beliefs, their religious beliefs. A woman does not want to be searched by men, a man does not want to be searched by a woman.

“It’s a matter of respecting someone’s religious beliefs and boundaries and making them feel comfortable as they’re entering this country. Now, you hinted at the idea that it was based on discrimination or sexism. But it’s far from that: It’s a level of respect. The best word to describe it is respect.

Alhamawi told Taft it is about providing a level of respect and not aimed at being discriminatory. 

“Now, judging by the way you conducted your video and executed it, that’s a word that’s foreign to you and something that you maybe don’t quite understand.”

Alhamawi garnered praise and support for calling out the veteran sports journalist.

“Absolutely spot on! I’m sick of seeing ignorant people judge,” one user wrote.

“Thank you Lama, for shedding light on this and for replying to it the best way possible,” said another.

Someone else wrote: “Beautifully said. Thank you for educating everyone with such grace.”

Following Alhamawai’s video and the barrage of supportive comments it attracted, Taft deleted her video.


Former Shahid exec launches regional production company The Yard Films

Updated 29 November 2022

Former Shahid exec launches regional production company The Yard Films

  • Jakob Mejlhede Andersen co-founded the business, which will be based in Dubai and Abu Dhabi, with former Shine International CEO Camilla Hammer
  • The executive team also includes Phil Rostom, a 15-year veteran of the industry in the Middle East and North Africa

DUBAI: Jakob Mejlhede Andersen, former chief content officer of MBC’s streaming platform Shahid, has teamed up with former Shine International CEO Camilla Hammer to launch The Yard Films, a regional production and development company.

The executive team behind the business, which will be based in Dubai and Abu Dhabi, also includes Phil Rostom, an industry veteran who has worked across the Middle East and North Africa for more than 15 years.

The founders said the new company will develop and produce original scripted and non-scripted content for local and international markets, targeted in particular at millennial and Gen Z audiences.

Andersen, who was involved in the production of more than 200 Nordic and Arabic scripted and non-scripted projects during his tenures at Shahid and Stockholm-based streaming service Viaplay, said: “It’s our ambition to produce and deliver groundbreaking content for the buoyant Arabic streaming market.”

“We aim to work in partnerships with the excellent local creative scene across the entire MENA region.”

Hammer said that the company’s team believes “in partnerships within the region and internationally.”

She added: “There is a wealth of stories across the Middle East that have a strong interest not only from local but also international platforms.”

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