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Musk’s blistering Twitter post goes to memorialize the College of Business case study By Reuters

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© Reuters. FILE PHOTO: Elon Musk, Twitter logos, and US dollar bills seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

By Andres Gonzalez, Svi Herbst Baylis, and David Randall

LONDON/NEW YORK (Reuters) – Elon Musk’s saga of Twitter’s $44 billion takeover comes with all the drama needed to be immortalized in case studies of future industry leaders, as the billionaire’s intermittent pursuit of a social media platform and unique management style make for an unparalleled union.

The CEO of electric car maker Tesla (NASDAQ::Inc) took a turn by proposing to buy Twitter at the agreed-upon price after spending months trying to get out of the deal, just as the Delaware court was preparing to rule on the showdown.

“This is unique in many cases,” said Arturo Press, professor of finance and director of the Center for Global Competitiveness IMD. “It’s definitely a business school case study. Because it’s about poison pills, breakup fees, lawsuits, hostility.”

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While there are examples of aggressive or aggressive takeovers such as AOL-Time Warner and Sanofi-Aventis-Genzyme, the world’s richest man – who has long used his Twitter account to push for more freedom of speech – is working to impose his will. in another company.

Joshua White, a professor at Vanderbilt University, said Musk’s attempt to take control of Twitter is a “gift to professors and students,” calling the situation “unprecedented.”

unique style

“Honestly I hate doing things,” Musk wrote in a text message to Twitter CEO Parag Agrawal in the lead-up to an offer to the company, according to legal documents related to the battle.

He wrote, “I don’t think anyone should be anyone’s boss,” while another noted that they could “interact better with engineers who are able to do hard-core programming than with program managers/MBA types.”

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While the messages reflect his unusual style of running the business, controlling Twitter means managing it, at least initially. Musk said he will take over as CEO but only until he finds a new CEO with experience in the media industry.

“What’s to come is not clear,” said Donna Hetcherich, a professor at Columbia Business School.

Musk did not respond to a request for comment on the company’s management challenges following this controversial deal. Twitter declined to comment.

Academics and analysts say Musk should focus on restructuring the social media company’s business model after second-quarter revenue slumped amid a court battle and a weak digital advertising market.

Musk has hinted at his desire to turn Twitter into what he called an “everything app” like China’s popular WeChat app that offers everything from banking to chatting. Analysts said that would be difficult, especially in the US where multiple consumers are already well served.

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It remains to be seen if Musk pulls it off. What analysts and academics can agree on is that a great deal of energy and momentum could be drained by what they expect from a major change among Twitter employees and senior management.

Musk spent months criticizing the company’s management and complaining about salaries, what he saw as political bias and automated ‘bot accounts’ – which he believes far exceed Twitter’s estimates.

Speaking to employees directly in June, he said there was a need to “rationalize staffing and expenditures” while emphasizing that employees, who currently have relative freedom to choose where they work, should lean toward office work.

One thing is for sure: Musk will get a lot of attention and scrutiny as he discovers how Twitter works. Experts say success or failure will be an instant class in business school.

“I’m really looking forward to the ending,” Bryce said. “So I can teach this case in class.”

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Volkswagen delays decision on gigafactory in Eastern Europe, by Reuters

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© Reuters. FILE PHOTO: The Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York City, US, April 13, 2022. REUTERS/Brendan McDiarmid

PRAGUE/FRANKFURT (Reuters) – Volkswagen has delayed its decision on where to build a giant electric car battery plant in Eastern Europe until after 2022, citing economic uncertainty and rising energy prices in the region.

“Volkswagen AG (OTC:) and its battery subsidiary Powerco are constantly evaluating suitable locations for its next giant plant in Europe,” the automaker said in an email Thursday.

“There is no pressure to act because we are taking more time to decide given the current circumstances,” she said. “At present, there is no impact on the planned start of construction or start of production.”

The European Union fears a mass exodus of investment to the United States in light of the generous subsidies for green energy provided by companies under the law to reduce inflation, just as energy prices in Europe recorded record levels with the continued lack of securing supplies for next year.

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Sweden’s Northvolt said in October that it may prioritize expanding battery plants in the United States over Europe in light of Europe’s energy landscape.

In an interview on Tuesday, Volkswagen (ETR:) brand chief Thomas Schaefer said energy prices in Europe make it difficult for shareholders to justify to shareholders why the automaker is building a battery plant there.

“If you have the option of building a battery plant in Europe, where electricity costs 15 cents a kilowatt-hour, but you can get it in China or America for 2-3 cents, we’re not in a position under financial corporation law to say we’ll do that,” Schaefer said. Here in solidarity.

“This is a hot topic and people often underestimate the complexity of it going forward here,” he added.

The Eastern European plant will be the fourth under former CEO Herbert Diess’ plan to build six such sites with partners across Europe by the end of the decade.

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The sites under study include the Czech Republic, Hungary, Poland and Slovakia.

Skoda Auto, Volkswagen’s Czech unit, said in October that it expected the parent company to make a decision on the site by the end of 2022.

However, Volkswagen’s new chief Oliver Blum is putting much of his predecessor’s legacy under the microscope, overhauling the company’s software strategy and reevaluating the factories that make the models.

It began looking for sites for its first large-scale factory outside Europe, in Canada.

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Tesla is preparing to bring out the short Model Y in China as demand fades

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Tesla (TSLA) – Get a free report China will suspend production of its Model Y sedan during the last week of the year, reports said Friday, adding to concerns about weak demand in the world’s largest auto market.

Reuters reported on Friday that the Model Y production suspension will begin December 25 and run through January 1, according to a company note, and will eventually reduce production of the sedan by about 30% from November levels.

The move would be the first time Tesla has voluntarily reduced production levels since the factory opened in 2018, despite Covid restrictions and scheduled maintenance that curtailed production earlier this year.

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Telecom Italia piques investor interest as government reviews network options, by Reuters

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© Reuters. FILE PHOTO: The Team logo is seen at the company’s headquarters in Rome, Italy on November 22, 2021. REUTERS/Yara Nardi/File Photo

Written by Elvira Polina and Giuseppe Fonte

Milan (Reuters) – Telecom Italia BIT 🙂 (TIM) is exploring investor interest in buying its assets, sources familiar with the matter said on Friday, as officials within Italy’s right-wing government seek agreement on how to fix the debt-laden company’s problems. The Italian government said last month that it would seek to identify the “best market-friendly options” by the end of the year to counter ailing TIM, and laid out a planned bid for the group’s telephone network by state lender CDP.

The discussed multi-billion dollar deal, part of a broader project to create a unified Italian network company with CDP’s broadband unit Open Fiber, was a focal point of CEO Pietro Labriola’s strategy to split TIM into several units and cut €25 billion ($26.4 USD) . billion) debt pile.

Labriola is looking to prepare for any outcome of the talks within the government. Three informed sources told Reuters that the executive had been working privately with US fund KKR recently. The sources said the US fund, which already owns a stake in TIM’s last-mile network and had a bid to take over TIM as a whole that was rejected this year, recently renewed interest in tightening its grip on TIM’s terrestrial network. TIM has also made contacts with other potential investors interested in buying into its domestic service operations, including French telecoms group Iliad and Poste Italiane, the sources said.

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Any deal involving foreign investors and TIM assets would be subject to government scrutiny under “golden power” regulation, which gives Rome the possibility to block the deal.

According to sources, at least two have expressed interest in TIM’s Brazil-listed subsidiary TIM SA. However, in Labriola’s view, selling a unit that generates about 30% of the group’s underlying profit could be dangerous to TIM’s credit rating, unless it comes up with an excellent rating, according to People. Telecom Italia, KKR, Poste and Iliad all declined to comment.

Discussions within Prime Minister Giorgia Meloni’s administration focus on how to take control of TIM’s precious landline network, an asset considered strategic. The government has not yet started talks with TIM stakeholders – including major investor Vivendi (OTC:). Raising cash to reduce debt and shore up its finances is key for TIM, which has been under pressure for years in its highly competitive domestic market and hit by multiple credit rating downgrades to junk territory over the past year.

($1 = 0.9475 euros)

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