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Live Nation Faces a Skeptical Senate

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Live Nation Faces a Skeptical Senate

Two months after Ticketmaster canceled gross sales for Taylor Swift’s upcoming Eras tour, a prime government from its father or mother firm, Reside Nation Leisure, will seem on the Senate on Tuesday to defend the corporate. (Ms. Swift herself isn’t scheduled to point out up.)

Anticipate lawmakers to pepper Reside Nation’s president and C.F.O., Joe Berchtold, with questions on whether or not its grip on ticket gross sales for the live performance and occasions trade — it controls about 70 p.c, by some critics’ reckoning — is just too tight.

“Nonetheless you take a look at it, that’s a monopoly,” Senator Amy Klobuchar, the Minnesota Democrat who chairs the Senate’s antitrust subcommittee, advised Rolling Stone. Critics have accused Reside Nation of utilizing its market dominance to cost excessive charges and of threatening to ice out venues from Reside Nation occasions in the event that they don’t use Ticketmaster. (The Occasions reported in November that the Justice Division was wanting into the corporate.)

Taking over Ticketmaster is a bipartisan affair: Standing beside Ms. Klobuchar in saying a listening to on live performance ticketing final fall was Senator Mike Lee, Republican of Utah. “It strikes me as being form of problematic that they’re the one sport on the town,” Consultant Chip Roy, Republican of Texas, advised The New Republic.

Ticketmaster is not any stranger to criticism over its dominance. In 2019, Ms. Klobuchar and Senator Richard Blumenthal, Democrat of Connecticut, urged the Justice Division to analyze the “damaged” ticket trade.

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Artists have lengthy complained about Ticketmaster’s function. The band Lawrence, whose co-founder, Clyde Lawrence, wrote a Occasions Opinion essay on the subject final 12 months, included the road “Reside Nation is a monopoly” in its 2021 track “False Alarms.” Maybe most famously, Pearl Jam filed an antitrust grievance in opposition to Ticketmaster in 2004 — six years earlier than it merged with Reside Nation — kicking off a federal investigation that finally fizzled.

Reside Nation strongly denies breaking antitrust legislation. After the Swift fiasco, it attributed Ticketmaster’s dominance to “the big hole that exists between the standard of the Ticketmaster system and the subsequent greatest main ticketing system.” It additionally argues that Ticketmaster is way from having a monopoly within the secondary market. (Jack Groetzinger, the C.E.O. of SeatGeek, is scheduled to testify on Tuesday as properly.)

Nonetheless, in accordance with written testimony launched forward of Tuesday’s listening to, Mr. Berchtold of Reside Nation will say that “there are a number of issues we may have carried out higher.” He may even search responsible scalpers’ bots swarming Ticketmaster’s website for finally denying followers the flexibility to purchase tickets for the Swift tour, and he has a letter from the nation star Garth Brooks calling on Congress to make scalping unlawful.

Sam Bankman-Fried gave $400 million to an obscure crypto buying and selling agency. Federal prosecutors are investigating whether or not the funding in Modulo Capital was made with funds belonging to clients of FTX, Bankman-Fried’s bankrupt crypto trade, The Occasions stories. Elevating considerations: Mr. Bankman-Fried’s shut private ties to Modulo, and its founder’s enterprise associate. Neither of the Modulo founders have been accused of wrongdoing; by means of an legal professional, they declined to remark.

The Justice Division will reportedly sue Google over its digital advert dominance. Prosecutors could file a lawsuit as quickly as this week, in accordance with Bloomberg. It might be the division’s second antitrust swimsuit in opposition to Google lately, and a part of a broader crackdown on tech giants.

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One other activist investor reportedly emerges at Salesforce. Jeff Ubben of Inclusive Capital has taken a stake within the enterprise software program large and spoken with its co-founder, Marc Benioff, in accordance with CNBC. That might make the third activist to spend money on Salesforce, after Starboard Worth and Elliott Administration.

Elon Musk says he may have secured funding to take Tesla personal. At a trial over his 2018 effort to purchase the carmaker, Mr. Musk stated that his “funding secured” tweet referred not solely to his perception that Saudi Arabia would assist finance the deal, but in addition to his stake in SpaceX, which he may theoretically have borrowed in opposition to. Beneath questioning, he acknowledged he hadn’t talked about the SpaceX stake in a 2021 deposition.

A former senior F.B.I. official is charged with serving to a Russian oligarch. Prosecutors accused Charles McGonigal, who oversaw a number of the company’s most delicate counterintelligence operations, of taking cash from Oleg Deripaska in trade for serving to to get him off the U.S. sanctions record. It’s a uncommon accusation in opposition to a senior F.B.I. official.

Microsoft’s determination to speculate one other $10 billion within the firm behind ChatGPT may add to the troubles at Salesforce, which is already coping with activist buyers, a management shake-up and shedding hundreds of staff. Microsoft plans to combine ChatGPT know-how throughout merchandise like electronic mail, slide reveals and spreadsheets.

However DealBook has realized that Microsoft expects this know-how to enhance its software program that manages an organization’s interactions with clients — Salesforce’s most important enterprise.

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Microsoft is doubling down on buyer relations software program. Final 12 months, Microsoft launched an app referred to as Viva Gross sales that automates some buyer relationship administration, or C.R.M., features throughout its merchandise, together with Groups and Outlook. The app can, for instance, routinely write a gathering abstract, which it then makes use of to trace progress on objectives mentioned.

ChatGPT boosts this sector’s income potential for Microsoft. The product “will solely get higher with GPT,” Frank Shaw, a spokesman for Microsoft, stated, including that the know-how may additionally assist curate content material concepts or automate repetitive duties like electronic mail.

The Guggenheim Companions analyst John DiFucci estimates that C.R.M. may ultimately be a $7 billion alternative for Microsoft, up from the roughly $3 billion it brings in right this moment. “I all the time questioned why Microsoft wasn’t a extra main participant — particularly provided that they’ve Outlook, which is form of a C.R.M. system,” he stated.

However Salesforce has a powerful incumbent place. The corporate has been experimenting with its personal synthetic intelligence; its C.E.O., Marc Benioff, is a declared fan of ChatGPT. And for firms that use Salesforce, the prices of switching suppliers are excessive. Nonetheless, Microsoft is a formidable competitor and its merchandise are already ubiquitous in companies.

The addition of A.I. to that arsenal may make its merchandise “extra clever than what Salesforce has right this moment,” in accordance with Sid Nag, an analyst at Gartner. “And Salesforce has to inform the world how they may reply to that.”

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After Google’s father or mother, Alphabet, introduced the most important spherical of job cuts in its historical past, senior executives of the tech large spoke earlier than restive workers to clarify why the corporate had laid off 12,000 of their colleagues so abruptly — and why those that stay shouldn’t lose coronary heart.

Highlights from Monday’s city corridor assembly, in accordance with information stories:

  • It was not possible to offer managers extra warning concerning the cuts, Alphabet’s chief folks officer, Fiona Cicconi, stated: “In a great world, we might have given managers a heads-up, however we have now over 30,000 managers at Google.”

  • High executives may have their bonuses minimize by an unspecified quantity.

  • Ruth Porat, Alphabet’s C.F.O., denied that buyers — together with the activist shareholder TCI, which disclosed a stake within the firm and demanded price cuts — had pushed the layoff selections.

  • Laid-off staff noticed their entry to inside programs minimize instantly out of an abundance of warning, in accordance with Royal Hansen, Google’s vp of safety. The transfer irked some workers.

  • Sundar Pichai, Alphabet’s C.E.O., reminded workers that 2023 can be pivotal as the corporate confronts a number of enterprise challenges. “Will probably be an essential 12 months given the fast developments in A.I.,” he stated, echoing the corporate’s “code-red” warnings about threats like ChatGPT.


Ken Griffin, C.E.O. of the hedge fund, Citadel, on how the GameStop frenzy helped elevate his agency’s profile with potential hires.


Sweeping layoffs, looming regulatory hassle, the prospect of upstarts like ChatGPT inflicting a “code pink” disruption at tech giants — none of those challenges seem to trouble buyers.

The Nasdaq Composite has gained 8.6 p.c thus far this 12 months. Traders have been shopping for tech shares within the perception that inflation is easing sufficient for the Fed to start slowing the tempo of its rate of interest will increase.

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Tech titans are among the many best-performing shares in 2023, with the FANG+ Index — which incorporates such tech giants as Amazon, Apple, Meta and Netflix — up 14.8 p.c in 2023, on tempo for its greatest month since August 2020.

However the rally may hit hassle as quickly as Tuesday. Microsoft will report earnings after markets shut, the primary of the massive tech firms to take action. Traders might be paying shut consideration to its full-year outlook for any indicators of a pickup in clients’ I.T. spending. Earlier than the current rally, analysts had been slicing their earnings forecasts for tech firms, speculating {that a} slowing financial system would crimp revenues and earnings.

Some warn that the January rebound may fade — and quick. “Traders mustn’t assume that the simple occasions available in the market are coming again,” David Bahnsen, chief funding officer of the Bahnsen Group, a wealth administration agency, wrote in an investor notice on Monday. “We anticipate enhanced volatility” because the prospect of a recession nonetheless looms.

Offers

  • The activist investor Elliott Administration has reportedly taken an enormous stake in a Japanese conglomerate that makes elements for electrical autos and smartphone screens. (FT)

  • Saudi Arabia’s sovereign wealth fund is alleged to have explored a bid final 12 months to purchase Formulation 1 automobile racing, which it had valued at greater than $20 billion. (Bloomberg)

  • The Qatar Funding Authority doubled its stake in Credit score Suisse to turn into the financial institution’s second largest shareholder. (FT)

Coverage

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  • The Supreme Court docket has requested the Biden Administration to weigh in on the constitutionality of social media legal guidelines in Florida and Texas, most likely delaying a last ruling till 2024. (NYT)

  • “Depleted Beneath Trump, a ‘Traumatized’ E.P.A. Struggles With Its Mission.” (NYT)

  • Dangling tax breaks, a cluster of U.S. states try to lure European green-tech corporations throughout the Atlantic. (FT)

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Anita Hill-led Hollywood Commission wants to change how workers report sexual harassment

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Anita Hill-led Hollywood Commission wants to change how workers report sexual harassment

In the wake of movie mogul Harvey Weinstein’s 2020 rape trial, a survey of nearly 10,000 workers by the Anita Hill-led Hollywood Commission revealed a sobering result: Few people believed perpetrators would ever be held accountable.

The vast majority, however, were interested in new tools to document incidents and access resources and helplines.

Four years later, the Hollywood Commission is trying to make that request a reality.

On Thursday, the nonprofit organization launched MyConnext, an online resource and reporting tool that will allow workers at five major entertainment business organizations to get help with reporting incidents of harassment, discrimination and abuse.

Homepage of MyConnext.

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(MyConnext)

The website allows those entertainment industry employees to speak with a live ombudsperson, create time-stamped records and submit those reports to their employer or union. (Any entertainment worker can access the site’s resources section to learn more about what it means to report an incident and understand complicating factors such as mandatory arbitration.)

So far, the commission has partnered with the Directors Guild of America, the Writers Guild of America, certain U.S.-based Amazon productions, all U.S.-based Netflix productions and film/TV producer the Kennedy/Marshall Co., founded by filmmakers Kathleen Kennedy and Frank Marshall. The International Alliance of Theatrical Stage Employees is expected to join later this year, according to the commission.

MyConnext is not intended to replace any of these organizations’ individual reporting platforms. Rather, it’s designed to provide an additional option and serve as a one-stop shop for workers seeking help or resources. The commission did not say what the initiative cost.

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One key feature of the MyConnext reporting platform is called “hold for match,” which allows a worker to fill out a record of an incident and instructs the system not to send the report to one of the partner organizations until another report about the same person is detected. At that time, both reports will be sent.

“It is very difficult for an individual to come forward,” said Hill, president of the Hollywood Commission, which was founded in October 2017 to help eradicate abuse in the entertainment industry. “Let’s say, for example, Harvey Weinstein: It was very difficult to prove a case when there was only one person because there was a tendency to turn it into a so-called ‘he-said, she-said’ situation.”

With this feature, however, employers could potentially recognize a pattern of abuse. And that, Hill said, could be a game changer.

“We ultimately hope that [the tool] will elevate the level of accountability, and accountability is ultimately what I think everybody wants,” said Hill. The commission led the 2020 survey, along with a follow-up survey this year that found a similar desire for harassment reporting resources.

“Information, really, is power,” said Hill.

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Advocates say such resources have become even more crucial amid what they describe as a pullback in Hollywood’s promised efforts to create a more inclusive industry for women. Fears of backsliding escalated after Weinstein’s New York sex assault conviction was overturned last month by a state appeals court, which ordered a new trial. Weinstein’s conviction in California remains.

“What’s so important even now, in light of the reversal of a conviction, is making sure that individuals who have suffered harm get to choose what makes the most sense for them,” said Malia Arrington, executive director of the Hollywood Commission. “You need to be informed about what all of your different choices may mean to make sure that you’re entering into whatever path with eyes wide open.”

With that in mind, the platform has a multipronged approach. The resources section helps workers understand their options, including the general process for filing a complaint, as well as where to access counseling and emotional or employment support.

Members of the participating organizations also have access to a secure platform through MyConnext that lets them record an incident — regardless of whether they submit it as an official report — send anonymous messages, speak with an independent ombudsperson and submit reports of abuse.

Speaking with an advocate allows workers to get their questions answered confidentially and by a live human, said Lillian Rivera, the ombudsperson who is employed by MyConnext.

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“It’s a human that’s going to listen to folks, who’s going to be nonjudgmental, who is going to be supportive and is going to be able to point people toward all of their options, and really put the power in the hands of the worker so they can make the decision that’s best for them,” Rivera said.

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Boeing's Starliner capsule stuck on ground after helium leak

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Boeing's Starliner capsule stuck on ground after helium leak

After years of delays, Boeing’s Starliner capsule was set to take off early this month with two astronauts aboard — and now the flight to the International Space Station has been put on hold indefinitely following a series of setbacks.

The original May 6 launch was scuttled hours before takeoff due to a balky rocket valve. It was rescheduled first for May 10 and then a second time for Friday, when it was decided to replace the valve on the Atlas V rocket.

All systems seemed go until yet another problem cropped up, this time with the capsule. A helium leak was detected coming from the spacecraft’s propulsion system.

After two more delays, officials with NASA, Boeing and United Launch Alliance, the rocket maker, said late Tuesday that the flight would be postponed indefinitely — a sequence of events that Boeing didn’t need.

“It’s embarrassing that Boeing was on the verge of launching this mission, and now we do not even have a time for when they are planning to launch,” said Laura Forczyk, executive director of space industry consultancy Astralytical. “On the other hand, we have waited years for this launch, so what’s another couple of weeks. They are relying on this mission to go very smoothly.”

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NASA said Tuesday that it is still reviewing flight safety issues and would “share more details once we have a clearer path forward.”

The delays are particularly nettlesome for the Arlington, Va., aerospace giant because it’s years behind SpaceX in launching a crewed capsule to service the space station.

Both companies were given multibillion-dollar contracts in 2014 to develop the craft, and since 2020 Elon Musk’s Hawthorne company has ferried eight operations crews to the base — while Boeing has managed only two unmanned flights.

The companies were chosen by NASA after the agency had to rely on the Russian program to send U.S. astronauts to the station when the space shuttle program was ended in 2011.

Boeing has reportedly had to eat $1.5 billion in Starliner cost overruns, and it can ill afford a failure with astronauts aboard, especially after the two crashes of its 737 Max 8 jets and a door plug that blew out of a 737 Max 9 flight this year on its way to Ontario International Airport in San Bernardino County.

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“Boeing has so much to prove. They’re just about four years behind SpaceX,” Forczyk said. “They need to make sure they have all their ducks lined up in a row.”

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In final round of gig drivers' fight over Prop. 22, California Supreme Court to decide if it stays

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In final round of gig drivers' fight over Prop. 22, California Supreme Court to decide if it stays

The California Supreme Court appears poised to uphold Proposition 22, the voter initiative that allows Uber, Lyft and other gig economy companies to classify their ride hail and delivery drivers as independent contractors rather than as employees.

As justices on the state’s top court heard arguments Tuesday afternoon on the constitutionality of the law, their line of questioning suggested they were not persuaded by the argument put forth by those challenging the law: that it should be overturned because it interferes with the state Legislature’s authority to provide workers’ compensation protections to drivers.

The justices, however, appeared to be open to a compromise of sorts offered up by Michael Mongan, solicitor general at the California Department of Justice, in which the state Legislature would amend Proposition 22 to allow drivers access to workers’ compensation benefits.

How the justices ultimately rule will have enormous implications for the delivery and ride hail companies that have argued that their ability to operate in California depends on the law’s survival, as well as the million-plus people in the state who drive for them.

Under the law, drivers are considered to be their own employers, a designation that frees the companies they drive for from having to provide benefits that traditional employees in the state are entitled to, such as overtime, sick leave and a minimum wage.

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Uber, Lyft, DoorDash and other companies poured upward of $200 million into a campaign to sway voters in favor of Proposition 22 on the ballot in 2020. It passed with 59% of the vote.

At the hearing Tuesday, Scott Kronland, the attorney representing the union and drivers that brought the lawsuit challenging Proposition 22, reasserted the legal theory he’s used throughout as the case has wound its way through lower courts: The California Constitution has given the Legislature “unlimited” power to regulate workers’ compensation for more than a century.

Justices, however, immediately challenged him, asking why the will of voters, or “initiative power,” shouldn’t be given equal weight.

“What is your evidence that in 1918, when this was adopted, the voters didn’t have in mind the initiative power?” asked Justice Goodwin Liu, referring to the year voters gave lawmakers the authority over workers’ compensation.

“Isn’t the initiative power equal to the Legislature?” Chief Justice Patricia Guerrero asked.

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Kurt Oneto, an attorney representing the industry coalition backing Proposition 22, said he is cautiously optimistic the state’s highest court will uphold the law.

“We are confident,” Oneto said. “The court was asking questions around whether or not they could just issue an opinion clarifying the validity of Prop. 22, or whether they should go a step further and discuss the Legislature’s ability or lack thereof to amend Prop. 22 to provide workers’ compensation benefits.”

Kronland declined to speculate on the outcome. “It was a lively oral argument,” he said.

The court must issue its ruling within 90 days of Tuesday’s hearing.

Nicole Moore, one of a group of drivers who rallied outside the Earl Warren Building in San Francisco, where the hearing was held, said the back-and-forth between justices and lawyers was “disempowering and honestly confusing” because it didn’t address the heart of drivers’ concerns: pay and benefits.

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“It didn’t feel like justice in that room. The state has to make a decision, if it’s OK to have huge numbers of people managed by algorithms and AI make less than what is possible to live,” Moore said.

In a statement, Uber spokesperson Ramona Prieto said, “Forced employment would be devastating for the thousands of drivers and couriers who turn to Uber for flexible work and the millions of Californians who would see major service reductions and cost increases — or lose ridesharing and food delivery entirely.”

The ride hail companies have considered pulling out of states before. Both Uber and Lyft threatened to stop operating in Minnesota after the state announced a statewide minimum wage for drivers, although they retracted that threat after reaching a compromise with state officials. Earlier this month, Massachusetts’ highest court heard arguments over whether to allow an industry-backed ballot measure similar to Proposition 22 to go before voters in November.

Veena Dubal, a law professor at UC Irvine who has studied pay issues in the gig economy, said that if Proposition 22 is allowed to stand, companies would double down on efforts to legalize the business model “all over the world, not just in other states.”

Lorena Gonzalez, head of the California Labor Federation and a former California assemblywoman, said if Proposition 22 is upheld in whole or in part, labor groups and lawmakers “have a responsibility” to explore other avenues for improving drivers’ working conditions, whether through collective bargaining efforts or amendments giving drivers access to workers’ compensation.

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“We knew going in the disposition of most courts is to allow an initiative to stand. What gets carved out or clarified, we have to use to make the world better for rideshare and delivery drivers,” Gonzalez said.

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