Good morning. Our current geopolitical tensions have finally reached one of the James Bond bottles.
Ransomware attack in August o The Stoli Group, which makes the Soviet vodka once known as Stolichnaya, disabled several internal systems and helped push its American subsidiaries into bankruptcy. (No financial data, no debt repayment. No debt repayment…)
The company, which changed its name in 2022 to protest Russia’s invasion of Ukraine, doesn’t expect to be back online until early next year. As 007 says in View of the murder: “Vodka, quite shaken. And one microchip.” — Andrew Nusca
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Zuckerberg seeks ‘active role’ in Trump administration tech talks
Meta is working hard to please Donald Trump before returning to the White House.
In a recent press briefingthe company’s chief executive, Nick Clegg, said CEO Mark Zuckerberg wants “an active role in the discussions that every administration needs to have about maintaining America’s leadership in the technology sphere.”
Clegg—a former British deputy prime minister—also said that Matt “went a little overboard” when he moderated content related to the pandemic on its media platforms, which include Facebook, Instagram and Threads. Trump has repeatedly accused the company and its colleagues on social networks of anti-conservative censorshipdespite evidence to the contrary.
This is not the first time Meta has flattered Trump. After the company became a political target in 2020, Zuckerberg told Fox News that “Facebook shouldn’t be the arbiter of the truth about everything people say online.”
Why such a change in tone from the years when Meta was dragged through congressional hearings about rampant misinformation on its platforms? Because it’s better than a presidential punching bag.
As Clegg told Axios last year on Trump’s return to office after a two-year suspension: “It’s not great for business to be, you know, drawn into and embroiled in controversy.”
Tesla made ‘fatal flaws’ in legal arguments for Elon Musk’s pay package
A renewed attempt to give Tesla CEO Elon Musk a pay package now estimated at $100 billion was closed by the judge this week.
Tesla tried to reverse the previous decision to cut Musk’s salary. After losing the trial, the company held a new shareholder vote on the payment in an attempt to overturn the court’s ruling and pay Musk what Tesla’s board said he was rightfully owed; almost 3 out of 4 shareholders were in favor.
The court, however, did not. Tesla’s arguments were “creative” but unpersuasive, Delaware Chancellor of the Exchequer Kathaleen McCormick wrote in the 101-page decision, with “at least four fatal errors.” (Tesla he says he will appeal.)
Flaws: Tesla had no basis to overturn the outcome of the court decision based on the evidence he created after the trial was held; Tesla Can’t Raise Common Law Ratification Defense After Post-Trial Opinion Overturning Musk’s Pay Package; Tesla did not adhere to the established legal framework for securing shareholder ratification for Musk’s pay; and Tesla made multiple materially misleading or inaccurate statements to investors.
Each of the flaws was enough to compromise the movement, McCormick wrote, but “taken together, they pack a powerful punch.” — Amanda Gerut
David Ellison is preparing for major changes at Paramount
More details are emerging about what will happen at the combined Skydance Media and Paramount Global after their merger closes next year.
David Ellison, the 41-year-old son of Oracle co-founder Larry, who will become CEO of Paramount, allegedly plans to “major changes” that include management reorganization, downsizing and consolidation of TV networks, and investments in streaming.
Paramount currently has three co-CEOs: George Cheeks, Chris McCarthy and Brian Robbins; the latter two are expected to emerge.
Paramount makes most of its earnings from cable networks Comedy Central, MTV and Nickelodeon, but they are in secular decline. The legendary movie studio that gave its name to the corporate parent is reportedly unprofitable.
Ellison previously said he would not sell Paramount Pictures or broadcast gem CBS. However, he is reportedly ready to sell some of the company’s prime properties in Los Angeles and New York.
It is also reportedly interested in taking dramatic steps to bolster the Paramount+ streaming service, including deeper integration with Paramount-owned Pluto and partnerships with rivals Peacock and Max.
The deal is expected to close in late March or early April and still requires FCC approval because it involves the transfer of broadcast licenses.
TikTok is dismantling the pro-Russian influence network in Romania
TikTok has taken down a network of accounts that secretly campaigned for Calin Georgescu, the candidate who came out of nowhere and won the first round of the recent presidential election in Romania.
Georgescu’s early victory (he still has to face liberal Elena Lasconi in a runoff on Sunday) was a huge upset — he is a far-right, anti-NATO conspiracy theorist and a big fan of Vladimir Putin and Donald Trump.
Many suspected that Moscow had connections with a wave of glances that independent videos on TikTok received before the first survey—52 million views in four days, which is impressive in a country of 19 million.
TikTok vowed that Georgescu had received no special treatment, but EU lawmakers were still furious, and the company on Tuesday he said he destroyed two sets of accounts that gathered support for him.
“It’s important that we have an authentic experience on the platform,” said TikTok head of transparency Brie Pegum. “We take it very seriously.” —David Meyer
China bans exports of critical minerals used in technology to the US
China on Tuesday banned, with immediate effect, exports of the critical minerals gallium, germanium and antimony to the United States.
Gallium and germanium are used in semiconductors; the latter is also used in infrared technology, fiber optic cables and solar cells. Antimony is used in bullets, missiles, night vision goggles and nuclear weapons.
The directive also calls for a tighter review of how graphite, another export product with heavy use in electric batteries, is used in the US
The move was not unexpected. Beijing, the world’s leading exporter of these minerals, began imposing restrictions on mineral exports last year due to national security concerns. The latest enforcement measures are strictly limited to the US market and a clear escalation of trade tensions before President-elect Donald Trump returns to the White House.
There are concerns that China could go further and restrict exports of nickel or cobalt, both of which are major components of rechargeable batteries found in electronic devices; such a move could prompt a spike in prices and many countries outside the US to seek their own supplies.
More information
—Who will be the next CEO of Intel? Lip-Bu Tan from Cadence Design, Matt Murphy from Marvell combined.
—Walmart completes $2.3 billion acquisition of Vizi. Coming soon: a bigger ad job.
—Meta is chasing nuclear deals. It has published a new RFP seeking 1 to 4 gigawatts.
—Salesforce’s third-quarter revenue beat estimates to 9.44 billion dollars. He also brightened his outlook for Q4.
—China’s generative AI users reach 230 million. Baidu’s Ernie Bot leads the group.
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