Microsoft announces $52.7 billion in Q2 revenue amid plans to layoff 10,000 workers

Like many big tech companies, Microsoft is preparing for the worst after announcing plans to lay off 10,000 employees in the upcoming third quarter. It turns out that the company’s second quarter was a mixed bag: It earned $52.7 billion in revenue, whi…

Elon Musk says his SpaceX shares would’ve funded his plan to take Tesla private

Elon Musk said he could’ve sold his SpaceX shares to take Tesla private when he took the witness stand again to defend his 2018 “funding secured” tweets in a lawsuit filed by the automaker’s shareholders. According to CNBC, Musk proclaimed: “SpaceX stock alone meant ‘funding secured’ by itself. It’s not that I want to sell SpaceX stock but I could have, and if you look at the Twitter transaction — that is what I did. I sold Tesla stock to complete the Twitter transaction. And I would have done the same here.” He didn’t say how many of his shares he’d have to sell, however, to be able to fund the transaction. 

The plaintiffs’ lawsuit is based on Musk’s infamous 2018 tweets in which he said he was “considering taking Tesla private at $420.” He even said that he already had “[f]unding secured.” Musk first took the stand for this particular case last week to defend himself against the plaintiffs’ accusations that the tweets he made cost them significant financial losses. Tesla’s shares temporarily stopped trading after those tweets and remained volatile in the weeks that followed. He said at the time that just because he tweets something “does not mean people believe it or will act accordingly.”

This time, Musk reiterated his previous claim that he had an agreement with Saudi Arabia’s Public Investment Fund to take Tesla private. He told the court that the country was “unequivocal” in its support of the transaction, which ultimately didn’t go through. According to Bloomberg, the court discussed his communication and eventual falling out with Saudi fund governor Yasir Al-Rumayyan regarding the deal. A text exchange was reportedly presented to the jury, wherein Musk accused Al-Rumayyan of backing out of their handshake agreement. The Saudi official responded that he didn’t have sufficient information to be able to commit to the buyout and called Musk’s public announcement of their discussions “ill advised.”

The plaintiffs’ lawyer also asked Musk what many of us were probably wondering: If the $420 share price in his tweets was made as a joke in reference to marijuana. Apparently, it wasn’t a joke, and he chose it “because it reflected about a 20 percent premium on Tesla’s stock price.” Musk is expected to testify again on Tuesday, so we’ll likely hear more details about his failed bid to convert Tesla into a private entity. 

As Bloomberg notes, the judge in this case had already determined that his tweets were “objectively false and reckless.” However, the plaintiffs still have to prove that Musk knew his tweets were misleading and that his tweets caused their losses to win the case. Musk and Tesla previously had to pay the Securities and Exchange Commission $20 million each to settle a separate lawsuit over the same tweets, accusing him of making “false and misleading statements” that could be constituted as fraud. The CEO said on the stand that he told the SEC about SpaceX and that the plaintiffs’ lawyer “deliberately exclud[ed] that from jurors.”

Netflix co-founder Reed Hastings steps down as co-CEO

One of streaming’s most influential figures is stepping away from the spotlight. Netflix co-creator Reed Hastings is stepping down as the company’s co-CEO. Ted Sarandos, who has been co-CEO since July 2020, will share the reins with newly promoted operations chief Greg Peters. The change takes effect today. Hastings says he’ll remain involved as Executive Chairman, serving as a “bridge” between the board of directors and the new CEOs.

The departing leader characterized the move as a long-expected transition. Sarandos and Peters have “increasingly” managed the company for the past two and a half years, Hastings says. This was merely the “right time” to implement a succession that has been in development for years, he adds. Sarandos is credited with leading Netflix’s move into original content, while Peters has been key to forming partnerships and helming the company’s push into gaming.

Hastings’ departure comes as Netflix seems to be slowly recovering from a grim 2022. It lost subscribers for the first time in over a decade, and blamed a combination of fiercer competition, limited opportunities to grow and widespread account sharing. In its just-issued fourth quarter earnings report, however, it reported adding 7.66 million new customers, reaching a total of 230.75 million subscribers. That appears to have come at the expense of profit (Netflix made just $55 million in net income), but it’s a marked turnaround from the first half of 2022.

Netflix says the end-of-year performance beat its forecast, and that it’s “pleased” with the early performance of its $7 ad-supported plan. The company isn’t saying how many customers are subscribed to this lower-priced tier. Instead, it credits the better-than-expected results to a strong content lineup that includes the Knives Out sequel Glass Onion, Harry & Meghan and the Addams Family spinoff Wednesday.

The company is cautiously optimistic about the first quarter of 2023. It believes it will see a “modest” boost to its subscriber base, and plans to roll out paid account sharing “more broadly” later in the period. In that sense, Hastings is leaving at a good moment for the business he helped create. While Netflix isn’t back to its peak form, it’s in a more stable position that could provide its new leadership with a better start.

Shell is buying EV charging company Volta for $169 million

Oil and gas company Shell is buying electric vehicle charging operator Volta for $169 million through a subsidiary. The deal, which the companies expect to close in the first half of this year, amounts to 86 cents per share, around 18 percent more than Volta’s closing price on Tuesday.

Volta’s board of directors approved the deal unanimously, though it still requires the green light from shareholders. It’s subject to regulatory approval and other closing conditions too. Shell will provide loans to Volta to give it a hand through the closing of the transaction. On September 30th, Volta had $15.6 million in cash and cash equivalents, compared with $262.2 million at the end of 2021.

“While the EV infrastructure market opportunity is potentially enormous, Volta’s ability to capture it independently, in challenging market conditions and with ongoing capital constraints, was limited,” Volta interim CEO Vince Cubbage said in a statement. “Both Volta and Shell have a demonstrated ability to meet the changing needs of customers, and this acquisition will bring that experience together to provide the options that are needed as more drivers choose electric.”

The company has more than 3,000 charging stations across the US and a handful in Europe, typically at grocery stores and malls. For a few years, its DC fast charging stations were free to use for up to 30 minutes, with advertising and sponsorships helping to cover the costs. However, it shifted its DC fast chargers to a paid model last year. Volta’s more than 2,000 L2 chargers are still free to use. After the deal closes, “there will be no immediate change in driver experience,” the companies said.

Odd as it may seem that an oil company is buying an EV charging network, it isn’t the first time Shell has done so. It snapped up UK network Ubitricity in 2021 for an undisclosed sum. Last year, Hertz and BP announced plans to set up a charging network in the US.