X is worth 79% less than when Elon Musk bought it for $44 billion: Report
Elon Musk’s contention in 2022 that he and his fellow investors were overpaying when they bought the social media platform formerly known as Twitter seems to be spot on. Fidelity said the value of its investment in X dwindled by nearly 79%.
Asset managers at Fidelity’s Blue Chip Growth Fund say the value of its investment into X has fallen by 78.7% as of the end of August. The fund invested $19.66 million in the social media company in October 2022. By July of this year, it said its investment was worth $5.5 million. By the end of August, it valued the investment at $4.19 million, according to recent disclosures.
This isn’t the first time the value of the company has been called into question. In October of last year, X issued stock grants to employees at a price of $45 per share. That put the price at around $19 billion.
Meanwhile, the Wall Street Journal said the $13 billion Musk borrowed to buy the company has become the worst buyout situation for banks since the Great Recession.
When banks loan money for takeovers like this one, they typically sell the debt to other investors so they can collect fees instead of it sitting on their books. But banks haven’t been able to do that with the X debt without taking losses because it isn’t making money.
The Twitter loans have hung longer than similar deals in 2008-2009. Banks call loans stuck on their balance sheets “hung.”
While the Great Recession created more hung loans, banks were generally able to offload the debt within a year, something that hasn’t happened in the case of X, according to analysis from Pitchbook LCD.
Despite Musk saying in October 2022 that he and his other investors were “obviously overpaying for Twitter,” seven banks, including Morgan Stanley, Bank of America, and Barclays, still approved the loans.
But it’s not all downside for the banks involved. They’ve been able to rake in massive amounts of interest off the acquisition. Musk previously said he is paying $1.5 billion per year on those loans, which have significantly higher rates than other loans used for acquisitions.
Newsom vetoes controversial California AI safety bill
Gov. Gavin Newsom vetoed a landmark California bill that would have established the nation’s first safety regulations for artificial intelligence. The proposed legislation sought to require AI companies to test their systems, publicly disclose safety measures and provide whistleblower protections.
Proponents of the bill argued that it was a necessary step to address the risks AI poses to infrastructure and public safety, with potential threats ranging from manipulating electric grids to creating chemical weapons.
However, Newsom opposed the bill, stating its strict requirements could hinder innovation by imposing regulations even on low-risk AI systems.
California is home to 32 of the world’s top 50 AI companies.
Newsom expressed concern that the legislation could drive developers out of the state. Instead, he announced a partnership with AI industry leaders to create more flexible safety guidelines.
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While the veto is seen as a win for tech companies, experts warn that it leaves rapidly advancing AI systems unregulated.
Supporters of the bill, including Elon Musk’s X and AI firm Anthropic, argued that it could have introduced much-needed transparency in an industry that remains largely unregulated.
Critics of the bill feared the regulations might discourage investment and development, particularly in open-source software. Despite the veto, similar efforts are already inspiring lawmakers in other states to explore AI safety measures.
California continues to lead AI development, with the state already working to combat election deepfakes, protect Hollywood workers from unauthorized likeness use and prevent AI-driven discrimination in hiring practices.
Meanwhile, the Biden administration has proposed an AI Bill of Rights, but federal legislation regulating the rapidly growing industry has yet to be introduced.
New X report shows platform more compliant with ‘censorship’ under Musk
X, the social media platform formerly called Twitter, has issued its first transparency report since Elon Musk took control of the company. The report details a significant increase in both account suspensions and content moderation actions, reflecting the company’s efforts to enforce its rules more strictly.
During the first half of this year, X suspended nearly 5.3 million accounts, more than triple the 1.6 million accounts suspended in the same period in 2022. The company also reported that over 10.6 million posts were either removed or labeled for violating platform rules, with roughly 5 million falling under its “hateful conduct” category.
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Posts involving violent content accounted for 2.2 million of the removals or labels, while those related to abuse and harassment reached 2.6 million. However, the company did not specify how many posts were taken down compared to those that were only flagged.
In a previous blog post from April 2023, X noted that it had required users to take down 6.5 million pieces of content in the first half of 2022, marking a 29% rise from the latter part of 2021.
Musk’s leadership has faced criticism, with some accusing him of turning the platform into a more chaotic and toxic space. He has sparked controversy by sharing conspiracy theories and clashing with political figures and world leaders. Additionally, X remains banned in Brazil after a conflict between Musk and a Brazilian Supreme Court judge over free speech, misinformation and far-right accounts.
X said it relies on a combination of machine learning and human moderators to enforce its rules. Automated systems are tasked with flagging or taking action on problematic content, which is then reviewed by human moderators if needed. The company added that posts violating its policies made up less than 1% of the total content on the platform.
When Musk sought to acquire Twitter in 2022, he expressed a desire to transform it into a “platform for free speech.” Since completing the purchase in October 2022, Musk has overseen substantial changes, including firing much of the staff. These changes have contributed to the steady departure of many celebrities, public figures, organizations and users from the platform.
Elon Musk says Mars colony possible under Trump, unlikely under Harris
Elon Musk said that humanity will never reach Mars if Vice President Kamala Harris wins the presidency. Musk claimed he would take families to Mars to build a colony there, but it would only be possible if former President Donald Trump is reelected.
Musk has been vocal on his platform X in his support for Trump, officially endorsing him the day of an assassination attempt on the former president. Over the past few weeks, Musk connected the successes of his SpaceX program to the potential for a second Trump term.
Unless there is significant government reform, laws & regulations will keep getting worse every year until every great endeavor, from high-speed rail between our cities to making life multiplanetary, is effectively illegal.
Trump supports a government efficiency commission to…
“Unless there is significant government reform, laws and regulations will keep getting worse every year until every great endeavor, from high-speed rail between our cities to making life multiplanetary, is effectively illegal,” Musk posted after the debate between Trump and Harris. “Trump supports a government efficiency commission to allow great things to be done; Kamala does not. We will never reach Mars if Kamala wins.”
SpaceX plans to launch about five uncrewed Starships to Mars in two years.
If those all land safely, then crewed missions are possible in four years. If we encounter challenges, then the crewed missions will be postponed another two years.
Musk expressed that the growing bureaucratic landscape would destroy the Mars program, and a potential colony there. He also said it would doom humanity if a Democratic administration takes over.
Former President Trump stated that he wants Musk to lead a “government efficiency” commission if he is reelected in November. It’s a position Musk expressed interest in. At a recent rally in North Carolina, Trump mentioned his plans to collaborate with Musk on Mars missions.
“Elon, get those rocket ships going because we want to reach Mars before the end of my term,” Trump said.
The Harris campaign has not responded to Musk’s claims. While her campaign website does not mention space policies, the Democratic Party platform introduced at the DNC last month commits to furthering space exploration, supporting NASA and working to send Americans back to the moon and Mars.
While Musk predicts setbacks for SpaceX if Harris is elected, NASA’s timeline for Mars exploration remains set for the 2030s. SpaceX has announced plans to send five uncrewed Starship missions to Mars within the next two years.
Elon Musk’s X reverses stance with Brazil, will now comply with court orders
Elon Musk’s social network, X, has reversed its stance and begun complying with court orders in Brazil. The decision comes after weeks of defiance that led to the platform being blocked in the country.
After three weeks of resistance, X’s legal team announced that the company has removed accounts deemed a threat to Brazil’s democracy and paid fines imposed by the Supreme Court. The move comes as the platform seeks to lift the block that has made it inaccessible to Brazilian users.
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Musk had previously criticized the court’s orders and vowed not to comply, sparking a backlash when the platform was blocked last month. The situation prompted Brazilian users to migrate to alternative social media platforms such as Bluesky and Threads.
In a related matter, Brazil’s Supreme Court has fined another Musk-controlled company, Starlink, $2 million to cover fines levied against X. Since 2019, Brazil has enforced strict regulations on online speech, ordering the removal of more than 300 accounts.
X has now hired new legal representation to ensure compliance with Brazilian laws, marking a significant shift in the company’s strategy.
Brazil’s Supreme Court confirmed X’s actions in a filing on Saturday, Sept. 21, but noted that the company has yet to submit the required paperwork. The court has given X five days to provide additional documentation.
Americans trust Elon Musk’s X as little as US government
In a recent digital privacy survey, Elon Musk’s platform X, formerly known as Twitter, ranked last among major tech companies in terms of public trust. The data revealed that only 28% of Americans said they trust X — a figure equal to the percentage of respondents who trust the U.S. government.
Other tech giants, such as Amazon and Google, fared much better in the survey. Seventy percent of respondents expressed trust in Amazon, while 65% indicated they trust Google.
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TikTok, another platform facing scrutiny over data security and potential ties to China, scored just above X, with 29% of respondents saying they trusted the app.
Reuters
The low trust in X follows a series of controversies since Musk’s $44 billion acquisition of the platform. His restructuring of content moderation policies, mass layoffs in the trust and safety departments, and his own often provocative posts have drawn widespread criticism.
As public trust in X continues to decline, questions remain about how these controversies will impact the platform’s future.
Secret Service investigates Elon Musk’s controversial X post
The Secret Service launched an investigation into Elon Musk’s X post, which made a controversial comparison between assassination attempts on political figures. Musk wrote the post after a second assassination attempt on former President Donald Trump Sunday, Sept. 15.
Musk posted in response to another user’s post that read: “Why they want to kill Donald Trump?”
Musk responded with: “And no one is even trying to assassinate Biden/Kamala,” alongside a “thinking face” emoji.
The tech mogul quickly deleted the comment and acknowledged his error, saying there were challenges with conveying humor without context in plain text.
The investigation raised questions about the interpretation of online speech, particularly when it involves high-profile individuals and references to political leaders.
A Secret Service spokesperson confirmed the agency is aware of Musk’s post, emphasizing its protocol to investigate all threats related to the people it protects.
The White House called the post irresponsible rhetoric. Musk, who endorsed Trump in the upcoming election, chalked it up to a joke.
Creator of Kamala Harris parody video sues California over ‘deepfake’ ban
A conservative commentator who used artificial intelligence to create a parody video of Vice President Kamala Harris is suing California, arguing that recent laws banning AI-generated political content violate his constitutional rights. Christopher Kohls, known online as “Mr. Reagan,” filed the lawsuit after Gov. Gavin Newsom signed legislation aimed at curbing the spread of digitally altered deepfakes in political campaigns.
The lawsuit claims the laws infringe on Kohls’ First Amendment and 14th Amendment rights, asserting that political satire, whether created by AI or traditional methods, is a protected form of free speech.
In July, Kohls posted a video that mimicked Harris’ voice using AI, portraying her as “the ultimate diversity hire” in a mock campaign ad. The video quickly went viral after it was shared by X owner Elon Musk without being labeled as parody.
Newsom, who criticized the video, vowed to act swiftly to ban such AI-altered content, citing concerns over the potential for misinformation to influence elections.
On Tuesday, Sept. 17, he signed laws targeting fraudulent campaign materials, including those generated with artificial intelligence.
Kohls’ lawsuit challenges these laws, claiming that the state is attempting to make political satire illegal and restrict his ability to use AI in his content. He argues that the laws could suppress free expression in political discourse, especially as AI becomes more commonly used in media.
Legal experts say the case could set a precedent for how AI-generated content is regulated in future elections and whether existing free speech protections extend to digital parodies.
Newsom’s office has not yet commented on the lawsuit.
Suspect in Trump apparent assassination attempt went undetected for 12 hours
New details emerge on the suspect in the second apparent assassination attempt on Donald Trump, including how long he went undetected near the former president’s golf club. And Sean ‘Diddy’ Combs has been arrested on federal charges. We have the latest on what’s ahead for the hip hop mogul. These stories and more highlight your Unbiased Updates for Tuesday, Sept. 17, 2024.
Suspect in apparent assassination attempt went undetected for 12 hours
Authorities said the suspect in this past weekend’s apparent assassination attempt on former President Donald Trump went undetected near Trump’s golf club in West Palm Beach, Florida for 12 hours before being noticed by a Secret Service agent. The suspect was caught pointing a rifle through the bushes.
The agent fired at the suspect, 58-year-old Ryan Wesley Routh, who fled the scene only to be taken into custody a short time later. A local sheriff’s office released body camera video showing his arrest.
Routh was charged Monday, Sept. 16, with possession of a firearm as a convicted felon and possession of a firearm with an obliterated serial number. He did not enter a plea during an appearance in a federal courtroom.
In a Monday afternoon press conference, Secret Service Acting Director Ron Rowe, Jr. said Routh did not fire any shots at the agent and never had Trump in his line of sight.
Rowe and the FBI agent in charge, Jeffrey Veltri, said so far, there is no evidence showing the suspect knew Trump would be golfing that day. Veltri went into detail about the suspect’s criminal past.
“In 2002, as the United States attorney mentioned, the subject was charged and convicted in North Carolina for possession of a weapon of mass destruction,” Veltri said. “Law enforcement checks also revealed that from 1997 to 2010, the subject had numerous felony charges for stolen goods. I can also share with you that he was the subject of a previously closed 2019 tip to the FBI where it was alleged he was a felon in possession of a firearm.”
Veltri said the FBI passed along that information to authorities in Hawaii, where Routh lived. Rowe told reporters Trump’s plans to play golf on Sunday were “off-the-record” – meaning it was not part of the former president’s official schedule.
As new questions emerge about the Secret Service’s effectiveness following the second assassination attempt in just over two months, Rowe defended his agents, saying they were “rising for this moment.”
“Yesterday afternoon, this country was reminded of the heightened and dynamic threat environment that the United States Secret Service and its protectees face on a daily basis,” Rowe said. “Immediately following the assassination attempt of former President Donald J. Trump on July 13th, the Secret Service moved to increase assets to an already enhanced security posture for the former president.”
Rowe said the “highest levels of protection” were in place for the former president – as directed by President Joe Biden – including “counter-sniper team elements.”
Speaking to reporters on his way to an event in Philadelphia Monday, Biden said the Secret Service “needs more help.” A White House official said President Biden spoke to Trump on the phone Monday, conveying his relief that the former president was safe.
During an appearance on the social media site X Monday night, Trump spoke about hearing the gunshots fired by the Secret Service. He said the agent did a “fantastic job” and joked that he “would have liked to have sank that last putt.”
Routh’s next court appearance is set for Sept. 23 for a pre-detention hearing. His arraignment is scheduled for Sept. 30. Routh remains in custody as authorities continue their investigation.
Sean ‘Diddy’ Combs arrested on federal charges in New York
Hip hop mogul Sean ‘Diddy’ Combs was arrested on federal charges on Monday night. Sources close to the matter tell media outlets Diddy was not expecting the arrest.
Homeland Security took him into custody at the Park Hyatt Hotel on 57th Street in Manhattan.
It’s not yet clear what federal charges he’s facing. The indictment is expected to be unsealed Tuesday, Sept. 17, at his arraignment.
Combs is facing multiple sexual assault lawsuits and has been the subject of a federal human trafficking probe in the last year, which is why Homeland Security is involved. His lawyers said he has been cooperating with investigators.
Former lead engineer felt pressure to get ‘Titan’ ready
Tuesday is day two of the Coast Guard’s hearing into the Titan submersible implosion that killed all five people on board.
Monday, we learned one of the last messages sent from the doomed vessel, indicated there were no concerns. It read “all good here.” That text message was shown during a recreation of the submersible’s trip to the Titanic wreckage at the bottom of the Atlantic Ocean in June 2023.
It came not long before the watercraft imploded, leaving all five people on board dead, including Stockton Rush — the co-founder of OceanGate, the company that owned the Titan.
The lead engineer for the vessel testified at Monday’s hearing saying he felt pressured by Rush to get it ready for the trip.
Former OceanGate Engineering Director Tony Nissen testified he stopped the submersible from going to the Titanic in 2019, telling Rush it was “not working like we thought it would.” Nissen was fired that year.
OceanGate’s co-founder, former operations director, and former scientific director are also supposed to testify in the hearing, which is expected to last about two weeks.
Meta bans Russian state media over ‘foreign interference activity’
Facebook and Instagram parent company Meta has banned Russian state media broadcaster RT, along with several other Kremlin-controlled outlets. Meta accuses them of using deceptive tactics to covertly influence operations online.
Before it was banned on Monday, RT had 7.2 followers on Facebook and one million on Instagram.
Meta’s move comes days after the Justice Department announced charges against two RT employees for funneling nearly $10 million into a U.S. company to create and promote content aligning with Russian interests.
Amazon ending remote work starting next year
Almost five years after the COVID-19 pandemic swept and ravaged the nation, as well as the world, and led to many people working from their homes, Amazon is ending remote work. Starting next year, corporate employees will be required to be back in the office five days a week.
This is the latest update to Amazon’s rules regarding remote work. Last year, the company changed its policy to mandate employees come back to the office at least three days a week.
Amazon has supposedly been marred by an inability to get things done with lots of meetings and layers of approval. CEO Andy Jassy called out that culture in a note to workers saying there are “pre-meetings for the pre-meetings for the decision meetings, a longer line of managers feeling like they need to review a topic before it moves forward.”
Jordan Chiles files appeal after being stripped of bronze medal
Chiles’ first individual Olympic medal was rescinded after the Court of Arbitration for Sport ruled that her coach filed an inquiry during the floor exercises, which propelled Chiles to third place. But it was a few seconds too late.
Chiles has now appealed her case to the Federal Supreme Court of Switzerland.
The United States Olympic and Paralympic Committee supports Chiles and said they are determined to see she gets the recognition she deserves.
Does EU content moderation law impact free speech in America?
Does a European Union law regulating online content impact free speech in America? House Judiciary Committee Chairman Jim Jordan, R-Ohio, is concerned the law might have an impact and he is going to receive a briefing from the European Commission on the subject.
It all started with the interview between Elon Musk and Donald Trump on X in August. Just before the interview, European Commission member Thierry Breton sent an open letter to Musk urging him to take what he called “effective mitigation measures” against harmful content that could incite “violence, hate and racism.”
Breton said the EU’s Digital Services Act has a due diligence requirement, and because X has approximately 100 million users in the EU, what he calls harmful content from Trump could spillover even though it originated in the United States.
He also reminded Musk that there are ongoing proceedings against X under the Digital Services Act and that any “illegal content” in the Trump interview could be relevant to those proceedings.
Jordan accused the European Commission of trying to intimidate, threaten or coerce Musk.
“Your threats against free speech do not occur in a vacuum, and the consequences are not limited to Europe,” Jordan wrote in a letter to Breton. “The harms caused by EU-imposed censorship spill across international borders, as many platforms generally maintain one set of content moderation policies that they apply globally.”
Jordan also rejected Bretton’s statements to the committee that “the DSA does not regulate content” and that he would “never interfere in the American democratic process.”
Jordan explained his philosophy on censorship.
“To oppose censorship of so-called ‘disinformation’ is not to defend or to endorse the content,” Jordan said. “It is to respect the right and the ability of citizens to consume content and to make decisions about what speech is persuasive, what is truthful, and what is accurate.”
“To oppose censorship is to acknowledge that a government with the authority to define disinformation will inevitably do so in a way that benefits those in power at the expense of the truth,” Jordan continued.
Jordan accepted Bretton’s offer to brief the committee on the subject. Their staff are working on scheduling.
