Musk Threatens to Scrap Twitter Deal; Apple Workers Prepare for First In-Person Union Election

by Hannah Dillon on 7th Jun 2022 in News

In today’s ExchangeWire news digest: billionaire Elon Musk threatens to walk away from his planned purchase of Twitter; Apple store workers in Maryland prepare for their first in-person union election; and the UK’s markets watchdog launches a probe into BT Sport’s joint venture with Warner Bros Discovery.

Musk may abandon Twitter deal over spam accounts

Elon Musk has threatened to abandon his planned takeover of Twitter, alleging that the company has intentionally blocked his efforts to uncover the true extent of spam accounts on the platform.

Musk had previously announced his acquisition of the platform was ‘on hold’ as he believed spam profiles account for significantly more than the 5% of daily users Twitter publicly reports. In a letter addressed to Twitter’s chief legal officer, Musk stated he was entitled to conduct his own measurement of fake accounts, “to enable him to prepare for transitioning Twitter's business to his ownership and to facilitate his transaction financing.”

The letter, penned by Musk’s lawyer Mike Ringler, asserted that the entrepreneur “must have a complete and accurate understanding of the very core of Twitter's business model - its active user base,” and that Twitter’s supposed efforts to prevent this were “a clear material breach of Twitter’s obligations.”

Twitter, meanwhile, has maintained that it “has and will continue to cooperatively share information with Musk to consummate the transaction in accordance with the terms of the merger agreement." The social media company added that it was still committed to the acquisition at the price and terms agreed in April.

The latest development in Musk’s involvement with Twitter raises doubts over whether the business magnate will complete the purchase of the platform. Some analysts believe that Musk may be using this issue to try to renegotiate his USD$44bn (£34bn) offer for the social media platform or as an escape route from the deal entirely.

Should the Tesla-boss follow through on his threat to abandon the deal, he would face a USD$1bn (£798m) break-up fee and the possibility of legal action.

Apple employees set to commence first in-person union election

Employees at an Apple store in Maryland are preparing for their first in-person union election on 15th June, a move that could see the first successful unionisation of the tech giant’s employees.

The Towson-based store employees, who call themselves the Coalition of Organised Retail Employees (CORE), announced their intention to host a union election in May, supported by the International Association of Machinists and Aerospace Workers (IAM). CORE’s steps towards unionisation follow efforts from Apple stores in New York City, and Kentucky, though both are yet to file a petition. Another store in Atlanta was on track to unionise on 2nd June but pulled its election following an aggressive campaign from Apple.

CORE developed as a result of various grievances from staff at the Towson Apple store, including reports of frequent and unannounced policy changes. Workers also raised issues with their compensation, reporting that new staff were often paid more than the employees training them and that their overall wages are inadequate for the work they do.

When asked for comment, a spokesperson for Apple said, “We are fortunate to have incredible retail team members and we deeply value everything they bring to Apple. We are pleased to offer very strong compensation and benefits for full-time and part-time employees, including healthcare, tuition reimbursement, new parental leave, paid family leave, annual stock grants and many other benefits.”

The tech giant, however, has steered focus away from its workers’ efforts to unionise by announcing that it is venturing into ‘buy now, pay later’ (BNPL) purchases. Apple Pay Later, a new feature in Apple Pay, will allow customers to pay for purchases in instalments over a six-week period. Apple’s first foray into BNPL has been rumoured for some time and comes as BNPL purchases were revealed to exceed USD$120bn (£95.7bn) in 2021.

CMA launches antitrust probe into BT & Warner Bros partnership

The Competition and Markets Authority has launched an investigation into a joint venture between Warner Bros Discovery and BT.

The deal, which was announced by BT in May, is set to combine BT Sports and Eurosport in the UK and Ireland in the near future, securing the rights to the Premier League, UFC, Olympic Games, and UEFA Champions League, amongst other sporting properties. BT Sport is anticipated to gain £93m from Warner Bros Discovery as a result of the deal, and is expected to eventually be bought out by the US broadcaster.

The CMA, which announced its probe into the deal on 1st June, is investigating whether the joint venture “will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002.” The UK watchdog will have until 28th July to make a phase one decision as to whether the agreement between BT and Warner Bros Discovery will put rivals, such as Sky Sports, at a disadvantage.

An emailed statement from BT suggests that the telecom giant is unconcerned by the CMA’s probe, explaining, “The CMA routinely looks at any proposed joint venture of this sort, so this is a normal part of the process.”

Warner Bros Discovery shared similar sentiments, according to Reuters.