Business
Column: Who elected Elon Musk our arbiter of social norms?
Here’s a handy two-step process for taking a thoughtful and judicious approach to the burning social and political issues of our time:
1. Examine closely the position taken by Elon Musk, and;
2. Go the other way.
Musk’s drift — more precisely, his headlong dive — into right-wing orthodoxies has been well-chronicled. He has openly endorsed antisemitic tropes, called for the prosecution of the respected immunologist Anthony Fauci (evidently buying into the right-wing fantasy that Fauci helped create the COVID-19 pandemic), and associated himself with a grotesquely ugly conspiracy theory about the assault on the husband of former House Speaker Nancy Pelosi.
This is the final straw.
— Elon Musk, explaining that California’s pro-transgender law provoked him to relocating his companies to Texas
He reversed policies at X, formerly Twitter, designed to block hate speech, including racist and antisemitic tweets. That has turned the platform into a hive of repulsive partisan commentary.
(Musk blames an imaginary advertisers’ “boycott” for the user decline at X, though the repulsive atmosphere of the platform since his acquisition probably has done more to drive users and advertisers away.)
Musk again put his acrid personal worldview vividly on display with his announcement Tuesday that he would move two of his private companies, Hawthorne-based SpaceX and San Francisco-based X, to Texas.
He made clear that his decision was triggered by Gov. Gavin Newsom’s signing of a law that bars school districts from requiring teachers to notify parents of their children’s gender identity changes. Newsom signed the law on Monday.
“This is the final straw,” Musk posted on X. He described the law as one of “many others” in California “attacking both families and companies.”
A few things about this.
If anything, Musk’s corporate activities point to what is often described as a “whim of iron.” He defends his policies and politics as derived from painstaking consideration based on immutable laws of human behavior, but they don’t hold water on those terms. Instead, they point to the social dangers of endowing self-interested personalities with the money to buy unaccountable influence in conflict with the public interest.
Musk appears to have a real problem with transgender rights. According to the Musk biography by Walter Isaacson, this may have originated with the decision of his eldest child, Xavier, to transition at the age of 16. “I’m transgender, and my name is now Jenna,” she texted a relative. “Don’t tell my dad.”
Jenna followed up with a political awakening that Musk ascribed to her attendance at a private school in California. “She went beyond socialism to being a full communist and thinking that anyone rich is evil,” he told Isaacson. Jenna broke off all contact with him.
Further, as is the case with much of Musk’s worldview, his claim about California’s attacks on families and companies is fundamentally incoherent.
The new California law is the antithesis of an attack on families. It aims to protect the right of parents to seek the most appropriate medical treatments for their children. Anti-transgender activists who have gotten laws enacted in 20 red states interfering with these medical consultations typically characterize them as “parents’ rights” measures, when they’re just the opposite — they interpose right-wing ideologies between these families and their doctors.
That’s the state of play in Texas, the putative new home of SpaceX and X. There, a law that became effective on Sept. 1, 2023, prohibited treatments widely accepted by medical professionals for “gender dysphoria” experienced by adolescents.
These are chiefly the use of puberty blockers to give the patients more time to affirm their gender perception, and once that stage is achieved the use of cross-sex hormones —estrogen for males transitioning to female, and testosterone for females transitioning to male.
The Texas law threatens physicians who violate the law in treating their patients with the loss of their medical license.
A trial judge, ruling in a lawsuit brought by parents of transgender youths and by doctors who treat patients in that position, blocked the law shortly before it was to take effect. The injunction was overturned late last month by the Texas Supreme Court in an 8-1 decision.
The majority made clear that its decision had nothing to do with the weight of medical opinion, which overwhelmingly supported the treatments at issue when undertaken through careful consultation.
The issue at the heart of the debate, asserted Justice James D. Blacklock in a concurring opinion, “is one of philosophy, morality, even religion. The medical debates at issue in this litigation are merely the surface-level consequences of deep disagreement over the deepest of questions about who we are.”
The majority justices ruled that the Legislature was entirely within its rights to place limits on medical practice and parental authority in Texas. They asserted that barring parents from seeking medically indicated treatment of their children’s gender dysphoria was no different from a state law forbidding minors from getting tattoos, even with their parents’ permission.
“Of course,” responded Justice Debra H. Lehrmann, the court’s lone dissenter, “there is nothing remotely medically necessary about tattooing.” Depriving adolescents of gender dysphoria therapies, on the other hand, can be severely injurious to the patient’s physical and mental health.
If Musk thinks that Texas’ policies on parental rights are superior to California’s, he might ask the parents of transgender youths who have been driven out of Texas to seek treatment because of this ignorant and ideologically infected law.
Texas boosters, Musk included, like to describe the state as the coming place for venture investing. The truth is rather different. According to the National Venture Capital Assn., Texas has been mired in also-ran status for at least the last decade, a period in which it has been supposedly booming.
California’s position as the top state in venture funding has never been seriously challenged. In 2023, California VC funds raised $37 billion; Texas ranked seventh, with less than $1.2 billion. Of the top 10 venture deals by value last year, the NVCA reckons, eight involved California companies. The others were located in New York and Washington, D.C. Texas had none.
And in terms of assets under management by firms based in the state, California continues to reign with $644.5 billion as of last year. Texas ranks fifth, at less than $32.5 billion. It was edged out by No. 4 Florida, with $33.6 billion, but the figures for both Florida and Texas are a big drop-off from No. 3, Massachusetts, with $121.7 billion.
It’s not as if Austin, where Musk is hanging his Texas Stetson, offers newcomers a paradisiacal environment. In 2022, TechCrunch dubbed Austin “a city of unicorns and tech giants.” The thrill hasn’t lasted. Recent transplants have found that its boosters’ depiction of a vibrant intellectual climate was oversold. “Austin is where ambition goes to die,” an unhappy California immigrant told Business Insider.
Then there are its punishing summers — 78 days of triple-digit temperatures in 2023 — and soaring housing prices. Although Austin boasts one of the features of tech hubs, a leading research institution in the University of Texas, the state’s partisan political environment has turned increasingly hostile, with bills passed into law this year banning diversity, equity and inclusion (DEI) programs and narrowing faculty tenure protections.
Texas has the most restrictive anti-abortion law in the nation, with an almost total ban and a prohibition even on private health plan coverage of abortions. That hardly makes for an inviting prospect for women of childbearing age or for young families interested in the full range of reproductive healthcare options.
One advantage Texas has over California is something a rich entrepreneur like Musk would appreciate the most: It has no state income tax.
Musk can scarcely claim that his own corporate policies are family-friendly. They are, however, arguably self-destructive. Consider his treatment of thousands of former Twitter employees who were summarily fired after he took over the platform in October 2022 and are suing to receive severance payments, bonuses and other benefits they were promised before the takeover.
The mass firings have given rise to about 2,000 arbitration cases and a dozen class-action lawsuits, according to Shannon Liss-Riordan, a Massachusetts labor lawyer who represents the workers in arbitration and filed the lawsuits.
Among the workers’ claims is that while Musk was working to close his acquisition of Twitter, as it was then known, the company promised employees that they would be entitled to “benefits and severance at least as favorable” as what Twitter provided before the Musk takeover. The promises were made by company executives in a series of all-hands meetings at Twitter headquarters and were written into the merger agreement Musk and Twitter management negotiated in April 2022.
“The promises were made to keep employees from fleeing the company during those chaotic months before Musk closed on the acquisition,” Liss-Riordan told me. “Then after he closed, he just defaulted on that promise.”
Neither Musk nor spokespersons for X or SpaceX could be reached for comment.
Although many if not most of the X employees were required to bring their claims to arbitration, Musk initially refused to pay the arbitration fees that are typically charged to the employer in such cases.
That has frozen the proceedings in more than 800 cases, though not those originating in California, Oregon and Nevada, where employers don’t have the legal ability to refuse. About a third of the 2,000 arbitration claims are in California, Liss-Riordan says.
Leaving aside the ethical implications of a company’s forcing employees into arbitration and then refusing to allow the cases to proceed, Musk’s demand that ex-employees submit to arbitration may be exceptionally more costly for the company than trying to reach a general settlement. Arbitration fees can average $100,000 per case, Liss-Riordan told me; hundreds of millions of dollars in claims may be at issue.
“You have to scratch your head over why Elon Musk has to fight this so hard,” she says. “Would it really be that big a deal to pay the employees what was promised to them? Frankly, it doesn’t seem worth his time.”
Business
Versant launches, Comcast spins off E!, CNBC and MS NOW
Comcast has officially spun off its cable channels, including CNBC and MS NOW, into a separate company, Versant Media Group.
The transaction was completed late Friday. On Monday, Versant took a major tumble in its stock market debut — providing a key test of investors’ willingness to hold on to legacy cable channels.
The initial outlook wasn’t pretty, providing awkward moments for CNBC anchors reporting the story.
Versant fell 13% to $40.57 a share on its inaugural trading day. The stock opened Monday on Nasdaq at $45.17 per share.
Comcast opted to cast off the still-profitable cable channels, except for the perennially popular Bravo, as Wall Street has soured on the business, which has been contracting amid a consumer shift to streaming.
Versant’s market performance will be closely watched as Warner Bros. Discovery attempts to separate its cable channels, including CNN, TBS and Food Network, from Warner Bros. studios and HBO later this year. Warner Chief Executive David Zaslav’s plan, which is scheduled to take place in the summer, is being contested by the Ellison family’s Paramount, which has launched a hostile bid for all of Warner Bros. Discovery.
Warner Bros. Discovery has agreed to sell itself to Netflix in an $82.7-billion deal.
The market’s distaste for cable channels has been playing out in recent years. Paramount found itself on the auction block two years ago, in part because of the weight of its struggling cable channels, including Nickelodeon, Comedy Central and MTV.
Management of the New York-based Versant, including longtime NBCUniversal sports and television executive Mark Lazarus, has been bullish on the company’s balance sheet and its prospects for growth. Versant also includes USA Network, Golf Channel, Oxygen, E!, Syfy, Fandango, Rotten Tomatoes, GolfNow, GolfPass and SportsEngine.
“As a standalone company, we enter the market with the scale, strategy and leadership to grow and evolve our business model,” Lazarus, who is Versant’s chief executive, said Monday in a statement.
Through the spin-off, Comcast shareholders received one share of Versant Class A common stock or Versant Class B common stock for every 25 shares of Comcast Class A common stock or Comcast Class B common stock, respectively. The Versant shares were distributed after the close of Comcast trading Friday.
Comcast gained about 3% on Monday, trading around $28.50.
Comcast Chairman Brian Roberts holds 33% of Versant’s controlling shares.
Business
Ties between California and Venezuela go back more than a century with Chevron
As a stunned world processes the U.S. government’s sudden intervention in Venezuela — debating its legality, guessing who the ultimate winners and losers will be — a company founded in California with deep ties to the Golden State could be among the prime beneficiaries.
Venezuela has the largest proven oil reserves on the planet. Chevron, the international petroleum conglomerate with a massive refinery in El Segundo and headquartered, until recently, in San Ramon, is the only foreign oil company that has continued operating there through decades of revolution.
Other major oil companies, including ConocoPhillips and Exxon Mobil, pulled out of Venezuela in 2007 when then-President Hugo Chávez required them to surrender majority ownership of their operations to the country’s state-controlled oil company, PDVSA.
But Chevron remained, playing the “long game,” according to industry analysts, hoping to someday resume reaping big profits from the investments the company started making there almost a century ago.
Looks like that bet might finally pay off.
In his news conference Saturday, after U.S. Special Forces snatched Venezuelan President Nicolás Maduro and his wife in Caracas and extradited them to face drug-trafficking charges in New York, President Trump said the U.S. would “run” Venezuela and open more of its massive oil reserves to American corporations.
“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during a news conference Saturday.
While oil industry analysts temper expectations by warning it could take years to start extracting significant profits given Venezuela’s long-neglected, dilapidated infrastructure, and everyday Venezuelans worry about the proceeds flowing out of the country and into the pockets of U.S. investors, there’s one group who could be forgiven for jumping with unreserved joy: Chevron insiders who championed the decision to remain in Venezuela all these years.
But the company’s official response to the stunning turn of events has been poker-faced.
“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” spokesman Bill Turenne emailed The Times on Sunday, the same statement the company sent to news outlets all weekend. “We continue to operate in full compliance with all relevant laws and regulations.”
Turenne did not respond to questions about the possible financial rewards for the company stemming from this weekend’s U.S. military action.
Chevron, which is a direct descendant of a small oil company founded in Southern California in the 1870s, has grown into a $300-billion global corporation. It was headquartered in San Ramon, just outside of San Francisco, until executives announced in August 2024 that they were fleeing high-cost California for Houston.
Texas’ relatively low taxes and light regulation have been a beacon for many California companies, and most of Chevron’s competitors are based there.
Chevron began exploring in Venezuela in the early 1920s, according to the company’s website, and ramped up operations after discovering the massive Boscan oil field in the 1940s. Over the decades, it grew into Venezuela’s largest foreign investor.
The company held on over the decades as Venezuela’s government moved steadily to the left; it began to nationalize the oil industry by creating a state-owned petroleum company in 1976, and then demanded majority ownership of foreign oil assets in 2007, under then-President Hugo Chávez.
Venezuela has the world’s largest proven crude oil reserves — meaning they’re economical to tap — about 303 billion barrels, according to the U.S. Energy Information Administration.
But even with those massive reserves, Venezuela has been producing less than 1% of the world’s crude oil supply. Production has steadily declined from the 3.5 million barrels per day pumped in 1999 to just over 1 million barrels per day now.
Currently, Chevron’s operations in Venezuela employ about 3,000 people and produce between 250,000 and 300,000 barrels of oil per day, according to published reports.
That’s less than 10% of the roughly 3 million barrels the company produces from holdings scattered across the globe, from the Gulf of Mexico to Kazakhstan and Australia.
But some analysts are optimistic that Venezuela could double or triple its current output relatively quickly — which could lead to a windfall for Chevron.
The Associated Press contributed to this report.
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
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