Newspaper says Twitter negotiates with Musk, Netflix model in check and what matters in the market

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Talks between Twitter and Musk advance, says newspaper

Negotiations between Twitter and Elon Musk involving the purchase of the platform have advanced and a deal could happen as soon as this week, according to the Wall Street Journal.

Also according to the newspaper, the two sides met this Sunday (24), but there is still no guarantee that they will close a deal.

Understand: The talks came after shareholders pressured the chain’s board of directors to sit at the table with the billionaire. They claimed that the network could get a better offer than the $43 billion offered by the Tesla owner.

• He stated that $25.5 billion would come from loans with a group of banks led by Morgan Stanley, while others $21 billion would be of your personal fortune.

What is known so far: after buying 9% of Twitter shares, Musk made a proposal on the 14th to acquire the social network for $54.20 a share in cash. Twitter shares closed the US$ 48.93 last Friday (22).

• He said that the offer to take the company private, which would be its “best and only”, was the way for the social network to have effective changes. Musk has been a critic of the platform’s content moderation policies.

Netflix model in check

Are Netflix’s negative results, which sent the streaming leader’s shares down more than 40%, a sign that its business model may have reached a limit? Some analysts believe so.

Understand: Since 2012, when Netflix started producing its own content, the budget for this area has grown exponentially.

• In a scenario of market liquidity, investors supported the streaming pioneer’s strategy, based on the “winner takes all” thesis.

• This concept is widely applied to technology companies. The promise is that not generating a profit in the first moment can make sense if the company becomes sovereign in its sector. The bloodletting in Netflix papers puts this thesis in check, says columnist Marcos de Vasconcellos.

• The problem is that, given the success of Netflix’s actions in recent years, it has gained other weighty competitors, who have also spared no resources to gain market share.

In numbers: the expectation is that American media groups, together, will invest more than $100 billion (R$ 473 billion) in content this year. One of them is WarnerMedia, which decided to close CNN Plus a month after its launch.

• Netflix alone accounts for more than $17 billion (R$ 80.4 billion) of this total.

• The streaming pioneer’s shares have been in freefall since late last year. In November, she was evaluated at $300 billion (R$ 1.41 trillion), while on Friday it reached $97 billion (R$ 459 billion) in market value.

Bill Ackman jumps off the boat: one of the most renowned managers in the US sold his fund’s stake in Netflix three months after he bought a slice of US$ 1.1 billion (R$ 5.2 billion) in the company. The damage was approx. US$ 400 million (R$ 1.9 billion).

Digital currency vs privacy

The digital currency projects developed by central banks, the CBDC (Central Bank Digital Currency), have advanced around the world, including in Brazil.

At the same time, questions arise about the privacy of citizens in the face of a currency regulated by a government agency.

What explains: the initiative is seen as a response to the popularization of bitcoin and other cryptocurrencies, which are decentralized and make it difficult for governments to regulate.

Experts point out that, if on the one hand the projects can be used to prevent money laundering and tax evasion, on the other hand full transparency given to the State can generate abuse of power by an authoritarian government.

Is here? BC’s guidelines on the digital real establish that all privacy and security principles and rules determined by legislation are guaranteed.

• The authority’s idea is that only the information necessary for the conduct of operations is revealed to the participants in the transaction.

Around the world: CBDCs are studied by 87 countries (representing more than 90% of global GDP) today. Nine have already launched their projects, and among the largest economies, the most advanced is China.

• The digital yuan was piloted during the Winter Olympics and today the wallets are now available for download in app stores.

• The question is whether the Chinese will set aside the payment systems of giants AliPay (Alibaba) and WeChat Pay (Tencent), which account for most transactions carried out in China.

queue for jets

Brazilian millionaires and billionaires are after jets, but they are not finding them.

The boom in demand and the well-known nodes in the global supply chain have made prices soar and the waiting list for a new aircraft to be up to three years.

What explains: demand grew in the wake of the good moment of the Brazilian stock exchange at the end of 2020 until the second quarter of 2021. During this period, many companies made an IPO (public offering of shares) and the partners of these startups saw a lot of money coming into the account.

• On the other hand, global production was hampered by the delay in the delivery of components, especially those with greater technological capacity, given the bottlenecks generated by the pandemic.

• As the offer was not enough, part of the demand was for used cars, a phenomenon similar to that observed in the automobile industry. It is not uncommon for used jets to have a higher price than a new one, precisely because of the possibility of prompt delivery.

In numbers: the jet fleet in Brazil has increased 8.5% between February 2021 and February 2022, going from 680 to 738 units. In all, the country has over 16,000 private aircraft, which include jets, planes, turboprops and helicopters.

Expensive: in addition to the price of the aircraft, which is around approx. $7 million (R$ 32.4 million) for the models preferred by Brazilians, there are maintenance costs. spinning around BRL 100 thousand monthly, are cited as reasons for regret for the purchase decision.