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Twitter board agrees to $44b takeover by Elon Musk

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The board of Twitter has agreed to a US$44 billion takeover offer from billionaire Elon Musk.

In this photo illustration Twitter logo seen displayed on a smartphone screen with Elon Musk Twitter in the background in Chania, Crete Island, Greece on April 23, 2022. )

Musk has suggested a series of changes to Twitter from relaxing its content restrictions to eradicating fake accounts. Photo: AFP

Musk, who made the shock bid less than two weeks ago, has claimed he is the right person to “unlock” the social media firm’s “extraordinary potential”.

He also called for a series of changes from relaxing its content restrictions to eradicating fake accounts.

The firm initially rebuffed Musk’s bid, but it will now ask shareholders to vote to approve the deal.

Musk is the world’s richest man, according to Forbes magazine, with an estimated net worth of US$273.6b mostly due to his shareholding in electric vehicle maker Tesla which he runs. He also leads the aerospace firm SpaceX.

“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,” he said in a statement announcing the deal.

“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.

“Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”

The move comes as Twitter faces growing pressure from politicians and regulators over the content that appears on its platform. It has drawn critics from left and right over its efforts to mediate misinformation on the platform.

In one of its most high-profile moves, last year, it banned former US President Donald Trump, perhaps its most powerful user, citing the risk of “incitement of violence”.

At the time Musk observed: “A lot of people are going to be super unhappy with West Coast high tech as the de factor arbiter of free speech.”

News of Musk’s takeover has been cheered by the right in the US, although Trump on Monday told Fox News he had no plans to rejoin the platform.

The White House declined to comment on the takeover but spokesperson Jen Psaki told reporters: “No matter who owns or runs Twitter, the president has long been concerned about the power of large social media platforms.”

What is Elon Musk’s record on Twitter?

Musk, who has more than 80 million followers on Twitter, has a controversial history on the platform himself.

In 2018, US financial regulators accused him of misleading Tesla investors with his tweets, claims that were resolved in a US$40b settlement and that Musk continues to deny.

And in 2019 he was hit with a defamation suit – which he successfully defeated – after calling a diver involved in rescuing schoolboys in Thailand “pedo guy” on the platform.

On Monday, Musk, who has been known to clash with journalists and block critics, suggested that he saw Twitter as a forum for debate.

“I hope that even my worst critics remain on Twitter, because that is what free speech means,” he wrote just hours before the deal was announced.

Can Musk turn Twitter around?

As part of the takeover, which is expected to close later this year, Twitter’s shares will be delisted and it will be taken private.

Musk has suggested this will give him freedom to make the changes he wants to the business.

Among other ideas, he has suggested allowing longer posts and introducing the ability to edit them after they have been published.

Twitter shares on Monday closed more than 5 percent higher after the deal was announced.

But the price remained lower than Musk’s US$54.20 per share offer, a sign that Wall Street believes he is overpaying for the firm.

Musk has said he did not “care about the economics” of the purchase. However, he will take on a company with a chequered record of financial performance.

Despite its influence, Twitter has rarely turned a profit and user growth, particularly in the US, has slowed.

The company, founded in 2004, ended 2021 with $5b in revenue and 217 million daily users globally – a fraction of the figures claimed by other platforms such as Facebook.

Twitter board chair Bret Taylor said it had fully assessed Musk’s offer and it was “the best path forward for Twitter’s stockholders”.

It is not clear who will lead the company moving forward. Twitter is currently led by Parag Agrawal, who took over from co-founder and former boss Jack Dorsey last November.

But in his offer document, Musk told Twitter’s board: “I don’t have confidence in management.”

Agrawal on Monday said: “Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important.”

How did the deal come together?

Musk’s targeting of Twitter has moved at remarkable speed. It emerged at the beginning of April that he had become the largest shareholder in the firm with a 9.2 percent stake.

He was then invited to join Twitter’s board but turned down the offer before launching a surprise bid for the company on 14 April, saying he wanted to “unlock” its potential as a bastion of freedom of speech.

Twitter tried to fend off his bid, threatening to dilute the shareholdings of anyone who bought more than a 15 percent in the firm. However, its stance shifted after Musk revealed more financial details about his proposed bid.

He has secured US$25.5b of financing for the deal and will take a US$21b stake in the business.

The board unanimously approved the bid, which will now be presented to shareholders for a vote.

– RNZ

Business

Jetstar to charge new fees for using overhead lockers for carry-on

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Jetstar will soon charge customers money for using overhead lockers on its aircraft, with prices starting from $23.

The Qantas-owned budget carrier said it was part of a change in its carry-on model, which included removing its 7-kilogram carry-on weight limit.

It would instead move to a size-based carry-on baggage model and a fee to use the overhead bins.

From 2 February 2027, all Jetstar bookings would include one underseat bag such as a backpack, handbag or laptop.

Those who needed more carry-on baggage would have to pre-purchase what the airline called Priority Carry-on.

The add-on would allow for a second larger bag for the overhead locker, and those passengers would be among the first to board.

Jetstar said the availability of Priority Carry-on would be limited, and would start at $23 one-way on selected flights and vary.

For example, Dunedin to Auckland one-way would start at $23, Christchurch to Wellington one-way would be from $28, and Auckland to Brisbane from $34.

“We know that weighing carry-on bags at the gate can be frustrating for our customers and for our crew,” Jetstar chief executive Stephanie Tully said.

“To make packing easier we’ve decided to remove the 7kg weight limit, so from February, the main thing customers will need to think about is the size of their carry-on.”

Jetstar also detailed its size limits for underseat and overhead bags.

Underseat bags would have to be up to 40 x 30 x 20cm, and overhead bags with Priority Carry-on would have to be up to 56 x 36 x 23cm.

“By giving customers an underseat bag with the option to add Priority Carry-on, we can make better use of overhead locker space, streamline boarding and help more flights depart on time,” Tully said.

“Our new carry-on baggage model provides more choice to customers while helping to keep our fares low. You only pay for what you need – travelling with less means paying less, and you can always add more if you need.”

Jetstar said there were no changes to its checked baggage allowance.

It said customers with existing bookings for travel after 2 February 2027 would be upgraded to include Priority Carry-on at no cost.

Source: RNZ

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Business

Fake ‘New Zealand-based’ sites fool online shoppers

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Consumer New Zealand is warning online shoppers to be extra aware when attempting to buy Kiwi-made following a number of reports about online stores appearing to be local, when in fact they are based overseas.

A website called Mytamariki says it sells products that “support everyday family life in New Zealand”, however the business address and website is listed as being in Hong Kong.

Reviews of the website on Facebook and Trust Pilot have claimed products on the site are also available on AliExpress.

Consumer New Zealand chief executive Jon Duffy told Morning Report websites similar to these are becoming more common.

“Unfortunately they’re on the increase and it is really difficult for consumers to tell the difference sometimes.

“There’s different ways consumers can interact with websites that are pretending to be from New Zealand, but aren’t. It could be directly through a website like the Mytamariki example, but equally through places like Facebook Marketplace, Shopify, and other platforms like that.

“There’s ample opportunity for businesses to claim New Zealand origin, but not actually be from here.”

He says there are some simple things people can do if they are unsure if a business is legitimately based in New Zealand.

“If a business is claiming to be located in a particular location in New Zealand, do a Google Maps check, see if that shopfront is actually there.

“There was a recent example of a business claiming to be based in Arrowtown when it wasn’t, and that took in a number of people, but that business certainly didn’t have its shopfront on the main street of Arrowtown.

“The domain name commissioner, which is part of Internet NZ, registers all .co.nz and .nz domain names. So if a business purports to have a New Zealand domain name, you can look up who’s behind that business through the domain name commissioner.

“And if the website’s appearing to be a .co.nz website but they’re not registered with the domain name commissioner, that is a huge red flag and you shouldn’t deal with them.”

Duffy says it is not as simple as authorities having a website taken down, given the global nature of online retail.

“If a site is actively misleading people and it’s trading through a platform such as Facebook or Shopify, you can complain. Whether they take action, you kind of roll the dice.

“It’s illegal for businesses to mislead consumers in New Zealand, but often these businesses are based overseas. So regulators like the New Zealand Commerce Commission really struggle to do anything about misrepresentations about country origin and things like that when the business is based offshore.”

Duffy said there was a difference between a store being misleading and one being run by scammers.

“Some are just outright scams. They’re looking to take money off you and they never had the product that they said they were going to sell. So that’s out-and-out fraud. But other businesses will misrepresent what they’re selling to you.

“Using that Arrowtown example, it was advertising designer New Zealand-made clothing, but what turned up was cheap, Chinese-made product that didn’t match the description. So you got something, but it certainly wasn’t what you thought you were paying for.

“And then being able to turn around and deal with the website to get a refund as you would get if you were dealing with a genuinely domestically located store, proves very, very difficult.”

“Unfortunately, consumers need to protect themselves, because there’s very little the New Zealand authorities can do,” Duffy said.

Mytamariki has been contacted for comment.

Source: RNZ

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Breaking News

Two seriously injured near Levin after ambulance, gas truck collide

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A St John’s paramedic and a LPG delivery driver have been seriously injured in a crash on State Highway 1, north of Levin.

St John’s area operations manager Gareth Collings said a rapid response unit was caught up in the crash which happened at 10.40 am near Poroutawhao, north of Levin.

“The paramedic in the rapid response unit and the driver of the other vehicle were both treated for serious injuries and transported to Palmerston North Hospital by ambulance. Our thoughts are with those impacted by this incident and we are offering support to our people who were involved,” Collings said.

St John would be “supporting police” investigating the cause of the crash.

A Genesis Energy LPG delivery vehicle was involved in the crash.

A Genesis Energy LPG delivery vehicle was involved in the crash. Photo: RNZ / Samuel Rillstone

Genesis Energy’s Ed Hyde confirmed one of its LPG delivery drivers was involved in the crash.

“Genesis has another vehicle on the way to the scene to collect the LPG cylinders and we will work with emergency services to make the site safe,” Hyde said.

Workers on a nearby site told RNZ they saw a St John vehicle travelling north with flashing lights before the crash.

St John has been approached for comment.

A reporter at the scene said workers unloaded household gas canisters from the bed of a smashed-up truck outside Lewis Farms on SH1.

The truck has lost its front wheels and the damaged cab was resting on the ground.

More than 100 vehicles were backed up at a cordon before traffic was allowed through.

~ RNZ

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