Kalakshar US

Universal Music Group (UMG) is threatening to pull all of its music from TikTok today following a breakdown in negotiations over royalties, the company wrote in an open letter. That would mean TikTok creators would lose access to songs from stars including Taylor Swift, Billy Eilish, The Weeknd, Drake and others. 

With UMG’s deal with TikTok set to expire, the sides have reportedly been in negotiations for the past year. Such deals are worth billions annually to music publishing firms and are typically negotiated every few years. Universal is the world’s largest record label, and if does pull it’s music from TikTok, it would be the first time this has happened in recent memory.

Universal said TikTok wanted to pay a “fraction” of the rate paid by other social media sites. “As our negotiations continued, TikTok attempted to bully us into accepting a deal worth less than the previous deal, far less than fair market value and not reflective of their exponential growth.” 

In its own post, TikTok said that it serves as a valuable marketing tool for artists and publishers. “Despite Universal’s false narrative and rhetoric, the fact is they have chosen to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent.”

TikTok also benefits greatly from access to Universal’s catalog and being cut off from access to ultra-popular artists like Taylor Swift would be a blow to creators and users. TikTok’s Chinese parent ByteDance has more than 3 billion monthly active users and made $29 billion in revenue in a single quarter ending June 2023, according to The Financial Times. Warner Bros. Music, the number three record label behind Sony Music and UMG, recently struck a deal with TikTok. 

Universal said it does “not underestimate what this will mean for artists and their fans” but that it will not shirk its responsibilities. “TikTok’s tactics are obvious: use its platform power to hurt vulnerable artists and try to intimidate us into conceding to a bad deal that undervalues music and shortchanges artists and songwriters as well as their fans.” The company added that payments from TikTok amount to “only about 1 percent of our total revenue.”

This article originally appeared on Engadget at https://www.engadget.com/universal-music-threatens-to-pull-songs-from-tiktok-over-payment-terms-101528365.html?src=rss 

Samsung has failed to recover from the sharp decline in profit it experienced in 2022. In its latest earnings report, the Korean company has reported KRW 258.94 trillion ($194 billion) in annual revenue and KRW 6.57 trillion ($4.9 billion) in operating profit for the fiscal year of 2023. Those are markedly smaller numbers than the previous fiscal year’s, especially the latter’s — Samsung posted an operating profit of KRW 43.38 trillion ($35 billion) for 2022, which was already $6.9 billion smaller than the year before due to the weak demand for its chips and smartphones. According to The Wall Street Journal, these numbers represent Samsung’s weakest earnings in over a decade. 

The company says its memory business showed signs of recovery, but not enough to stop it from incurring KRW 2.18 trillion ($1.63 billion) in operating losses for the fourth quarter of 2023. Its visual display and digital appliances division also posted KRW 0.05 trillion ($37.5 million) in operating losses despite TV sales doing well in the fourth quarter due to the holiday season. Samsung’s mobile business showed a a decline in sales and profit quarter-on-quarter, as well, due to lower smartphone sales and “the fading of new-product effects” from previous flagship models. 

For the first quarter of 2024, Samsung’s game plan is to improve its profits “by increasing sales of high value-added products,” such as components meant for generative AI products. It expects stronger demand for its chips in the PC and mobile sectors this year, but it admits that its earnings may not significantly recover soon because its customers are still downsizing their inventories. Samsung has high hopes for the Galaxy S24 series, though, and believes the devices’ AI capabilities can help its mobile business achieve a a double-digit growth in 2024. The Galaxy S24 phones have already started shipping with prices starting at $800 for the most basic version and at $1,300 for the S24 Ultra. 

This article originally appeared on Engadget at https://www.engadget.com/samsungs-annual-profits-continued-to-decline-in-2023-090500640.html?src=rss 

In 2018, Tesla awarded Elon Musk a $56 billion pay package that helped propel him to the top of world’s richest lists. Now, a judge in Delaware has rendered the deal between the company and the CEO to be invalid and called the compensation an “unfathomable sum” that’s unfair to shareholders. As initially seen and reported by Chancery Daily on Threads, the court of Chancery in Delaware has released its decision on the lawsuit filed by Richard Tornetta. The Tesla shareholder accused the automaker of breaching its fiduciary duty by approving a package that unjustly enriches its chief executive.

Judge Kathaleen McCormick wrote in the decision that Musk “enjoyed thick ties” with the directors who were in charge of negotiating his pay package on behalf of Tesla, which means there “was no meaningful negotiation over any of the terms of the plan.” The judge also talked about how Musk owned 21.9 percent of the automaker when the package was negotiated. That gave him “every incentive to push Tesla to levels of transformative growth,” because he stood to gain $10 billion for every $50 billion in market capitalization increase. 

“Swept up by the rhetoric of ‘all upside,’ or perhaps starry eyed by Musk’s superstar appeal, the board never asked the $55.8 billion question: Was the plan even necessary for Tesla to retain Musk and achieve its goals?” the judge wrote in the court document. As The Washington Post notes, she ruled that Tornetta is entitled to a “rescission” and has ordered Tesla and its shareholders to carry out her decision and undo the deal. Musk’s camp, however, can still appeal her ruling. 

Musk has sold some of his Tesla stocks to help pay for his acquisition of Twitter, now X, from the time his pay package was approved. At the moment, he owns around 13 percent of Tesla, though he recently said that he wants 25 percent control over the company before he’s comfortable growing it to be a leader in AI and robotics. 

In response to the court’s decision, Musk tweeted: “Never incorporate your company in the state of Delaware.” He also posted a poll asking followers whether Tesla should change its state of incorporation to Texas, where its physical headquarters are located. 

This article originally appeared on Engadget at https://www.engadget.com/elon-musks-56-billion-tesla-pay-package-has-been-tossed-out-by-the-court-074235803.html?src=rss