National

Twitter's board of directors on Tuesday urged shareholders to approve the proposed $44 billion sale of the social media company to Elon Musk.

Why it matters: Musk's proposed takeover of Twitter has remained uncertain as the billionaire has threatened to pull out of the deal, citing concerns over bots and fake accounts.

Musk said Tuesday that there are still a few "unresolved matters" about the deal at the Qatar Economic Forum in Doha.

Driving the news: Twitter's board said in a filing with the U.S. Securities Exchange Commission that it "unanimously recommends that you vote [for] the adoption of the merger agreement."

Musk met with Twitter employees last week for the first time since he launched his bid to acquire the company.

Go deeper... A timeline of the Musk-Twitter deal so far

Twitter board endorses Elon Musk's takeover bid

Musk said Tuesday that there are still a few "unresolved matters" about the deal.

Elon Musk, chief executive officer of Tesla Inc., speaks via video link during the Qatar Economic Forum in Doha, Qatar, on Tuesday, June 21, 2022. 

Elon Musk speaks via video during the Qatar Economic Forum in Doha, Qatar, on June 21. Photo: Christopher Pike/Bloomberg via Getty Images 

Elon Musk

Big Tech

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

Login

Axios Login

Mark Zuckerberg is showing off several prototype mixed reality headsets he says are key to the metaverse future he envisions.

Why it matters: Today's virtual and augmented reality headsets are bulky and lack the comfort, precision and battery life that are needed for the technology to have mainstream appeal.

Meeting with reporters last week, Zuckerberg showed off prototypes that each improve on one limitation of today's optics. One offers resolution approaching 20/20 vision, while another offers a broader range of colors and another reduces distortion using varifocal lenses to make it easier to wear longer.

Holocake 2 is the thinnest and lightest mixed reality prototype that Meta has built, using optical folding (aka pancake optics) and replacing the traditional curved lens with a flat holographic lens.

Butterscotch offers a retinal resolution, that is enough detail to where the eye can't see any distinct pixels. That also means allowing roughly 20/20 vision.

Starburst is a headset that focuses on displaying a high dynamic range, the difference between the brightest and darkest areas.

The big picture: Putting all of these attributes together is key to what Zuckerberg calls the virtual Turing test, the point at which the eyes can naturally assume the virtual world is real.

Between the lines: All the prototypes were still rough around the edges and address one current limitation apiece. And Meta isn't committing to putting any of these concepts into a shipping product any time soon. It has said to expect a high-end headset, codenamed Project Cambria, later this year.

Go deeper: Read our "Pieces of the Metaverse" deep dive.

Meta pursues VR breakthroughs in its labs

CEO Mark Zuckerberg is showing off several new prototype VR headsets.

Meta CEO Mark Zuckerberg tries on the company's Holocake 2 prototype headset.

Meta CEO Mark Zuckerberg tries on the company's Holocake 2 prototype headset. Photo: Meta

Virtual reality

Facebook plans to reorient its news feed yet again, this time to emphasize short video content that's popular across the entire platform, according to a leaked April memo first reported by the Verge Wednesday. 

Why it matters: This is hardly Facebook's first pivot and won't be its last — but the change shows just how seriously Meta, its parent company, is taking the success of TikTok, which uses a similar approach.

How it works: Meta-owned Instagram has found success with its TikTok knock-off, Reels. 

Now the company wants to rebuild the Facebook feed around what it calls a "discovery engine" — an algorithm that will try, like TikTok's, to show you videos and other items it thinks you will like, regardless of whether you follow or are friends with their creators. 

Facebook also plans to move Messenger, its instant messaging service, back inside the main app. It spun Messenger off in 2014. 

Yes, but: The revamp aims to enhance Facebook's appeal to younger users, but it risks alienating the large numbers of existing users who still want to share thoughts and pix with family and friends. 

What they're saying: The memo's author, Tom Alison, head of the Facebook app, told the Verge, "We are always going to prioritize things that you want to share with your friends... I think the main thing that’s going to change is we’re not really going to put too many limitations on when and where we show recommended content.”

Flashback: In 2018, amid Trump-era concern that the social network was spreading misinformation, founder Mark Zuckerberg announced Facebook would de-emphasize news, politics and branded content in favor of "meaningful social interactions" with friends and family. 

The big picture: Facebook has already changed its name to Meta and announced it's all in on delivering a virtual-reality-based future in the form of the metaverse. 

It will need the profits from its Facebook platform to fund that expensive long-term vision, and can't afford to see its social network lose primacy to a rival. 

Facebook's next pivot: make its feed more like TikTok's

A leaked plan says the social network will start emphasizing popular content from people you don't follow.

Illustration of a blue flag with the Facebook "f" logo on it 

Facebook

Media Trends

Axios Media Trends

Top 25 global advertisers by revenue

Data: GroupM; Chart: Simran Parwani/Axios

Five of the world's largest tech companies owned more than half (53%) of all global ad revenues last year, up from 46% last year.

Why it matters: Macroeconomic factors like inflation and rising wages are making it harder for new entrants to disrupt the ad market, analysts explain in the latest midyear ad forecast from GroupM.

The world's top 25 advertisers now account for 74% of global advertising spend, up from 68% last year and just 43% in 2016.

While Chinese companies continue to grow their portion of the ad market, they are mostly focused on capturing domestic dollars, with TikTok being the notable exception.

The big picture: Ten years ago, the top five advertisers were mostly U.S. media companies: Google, Viacom and CBS, News Corp and Fox, Comcast and Disney.

At the time, they only took up 20% of the global ad market, per the report.

While digital has made the ad market more accessible to a wider array of companies than ever, it's also grown the pie significantly in favor of very large firms.

What's next: The global ad market is expected to grow by 8.4% this year (excluding U.S. political advertising), a slightly lower forecast than what experts initially predicted for 2022.

Yes, but: Publishers shouldn't panic. It's a "deceleration, not a decline," said Brian Wieser, global president of business intelligence at GroupM.

"Recession shouldn’t be the base case for what to expect here."

5 tech giants own over half the global ad market

Macroeconomic factors like inflation and rising wages are making it harder for new entrants to disrupt the ad market.

Advertising

Media

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

Right now, Apple's system for connecting your iPhone to your auto, CarPlay, merely takes over a car's entertainment functions — but soon Apple intends to provide a pervasive interface controlling everything from the dashboard and the temperature controls to mapping and music.

Driving the news: The sneak peek at the future of CarPlay occupied less than three minutes of Apple's keynote on Monday — but it was arguably the most significant reveal of this year's developer conference.

How it works: Apple's demo showed CarPlay stretching across multiple displays, from the infotainment screen to the main instrument cluster, handling functions including fuel levels, speed, temperature control and radio — all things it doesn't do currently.

The list of auto companies working with Apple on the next generation of CarPlay include Land Rover, Mercedes-Benz, Porsche, Nissan, Ford, Lincoln, Audi, Jaguar, Acura, Volvo, Honda, Renault, Infiniti and Polestar. 

Apple confirmed that the new CarPlay,  like the current version, will only show you the Apple-designed interface when connected to an iPhone, with a user's personal information and preferences stored on the device.

Yes, but: There is no guarantee all of those companies plan to use CarPlay as expansively as in Apple's Monday demo. Many carmakers were circumspect when queried by The Verge.

Apple did say vehicles using the new CarPlay "will start to be announced late next year."

The big picture: Apple's vehicle efforts go well beyond CarPlay. 

The company has a significant team focused on autonomous vehicles, though both the vision and the people have shifted over time. The company has received permission to test AVs in California,.

The software interface from CarPlay could well be used in conjunction with the autonomous technology if Apple does in fact ever produce its own car.

Be smart: Carmakers have to steer carefully to avoid turning over too much control to Apple or rival Google, which has also shown interest in moving further into vehicle software. 

Google has a deal with Volvo, for example, for its flavor of Android to natively power the infotainment system in future vehicles.

For the car makers, Apple CarPlay (along with Google's Android Auto) have proven to be popular features, often must-haves when people buy a new car. 

The catch: Automakers fear that letting Apple or Google control more of a car's interface could over time move more of the value of the vehicle to its software. 

That would leave the hardware makers with most of the hard work around safety and less of the profit, as the tech companies take a greater revenue share. 

Flashback: Before the iPhone, there were lots of different kinds of phones, and most of the revenue and profits went to the hardware companies. In the intervening years, most of the profits have gone to operating-system owners Apple and Google.

Apple also has a history of starting out as a partner, then turning into a rival.

In 2004, it partnered with Motorola to include iTunes on the company's phones. Meanwhile, it was developing the iPhone, which eventually decimated Motorola's business.

The bottom line: Mark Fields, then the CEO of Ford, acknowledged the dilemma to me in a 2015 interview.

"At the end of the day we don’t want to end up as the handset business," Fields said.

Apple's car vision extends far beyond music

A sneak peek showed Apple's in-car software controlling everything from the speedometer to temperature controls.

The next generation of CarPlay, as shown by Apple at WWDC2022

The next generation of CarPlay, as shown by Apple at WWDC2022. Photo: Apple

Apple

Column / Signal Boost

Apple's long product-release game

The giant is taking its time in unveiling long-rumored augmented reality goggles.

Photo of an iPhone lock screen shifting from one preset to another with a user's thumb poised above

Apple showed off small improvements to the iPhone, like personalized lock screens, at its developer conference. Image: Apple's WWDC keynote video 

Apple on Monday unveiled its new iPhone operating system, iOS 16, which now includes a "Safety Check" feature that enables users to quickly limit who has access to their personal information.

Why it matters: Many "smart" devices can be double-edged swords that enable domestic abusers to exert further control over their family members. 

The big picture: Apple's "Safety Check" feature allows people to quickly disable shared passwords, location and other information, Axios' Ina Fried writes.

In a press release Monday, Apple described the new feature as a "privacy tool" that can help "users whose personal safety is at risk from domestic or intimate partner violence by quickly removing all access they’ve granted to others."

The feature enables users to quickly sign out of iCloud on all their devices, limit messaging to only the device they have with them, reset privacy permissions, and manage which people and apps have access to their personal information. 

What they're saying: "Many people share passwords and access to their devices with a partner," Katie Skinner, a privacy engineering manager at Apple, said at the conference, CNET reported.

"However, in abusive relationships, this can threaten personal safety and make it harder for victims to get help," she added.

Go deeper: Everything Apple unveiled at WWDC 2022

Apple launches "Safety Check" feature for users facing domestic violence

Apple describes the feature as a "privacy tool" that can help users whose personal safety is at risk.

Apple CEO Tim Cook, speaking at WWDC 2022

Apple CEO Tim Cook, speaking at WWDC 2022. Photo: David Paul Morris/Bloomberg via Getty Images

Apple used its annual developer conference on Monday to debut a new MacBook Air powered by an updated M2 chip. It also detailed iOS 16, the next iPhone operating system, as well as updates coming to CarPlay, Apple Watch and Apple Pay.

Why it matters: Apple uses its developer conference to lay out where it is headed with its key products, largely by detailing coming changes to the underlying operating systems for the iPhone, iPad, Mac and other products.

Between the lines: Apple didn't provide any hints about its mixed reality headset, which isn't expected to ship until next year.

Apple announced a new, second-generation Apple-designed processor to power future Macs. Apple says the M2 chip can deliver up to 18% better performance or use less power to deliver the same amount of performance.

The first Mac to get the new chip will be a redesigned MacBook Air with a larger 13.6-inch display, along with a MagSafe charger and improved 1080p camera for video calls. 

The 2.7-pound laptop will start at $1,199 and be available next month in four shades. The existing MacBook Air will remain in the lineup at a lower price.

The M2 will also be available next month on a new model of the 13-inch MacBook Pro and starts at $1,299. 

Apple also previewed Ventura, the next version of MacOS. Among its features is Stage Manager, designed to help people better manage multiple open windows. Another new feature makes it easier to wirelessly use an iPhone as a Webcam while doing video conferencing on a Mac.

Among the features coming to the iPhone is the ability to edit or recall recently sent messages, along with an improved lock screen with streamlined notifications and easier ways to track live events, such as following a basketball game, listening to music or keeping tabs on an Uber ride.

Apple is also offering a "buy now, pay later" feature, allowing people to pay for Apple Pay purchases with four equal payments over six weeks, notably with no interest and no fees.

The Wallet app is also being updated to make it easier to share digital keys as well as proof of age and identity. Those who are in a state that supports a digital ID card will be able to share proof to other apps that they are over a certain age, without having to share all their personal information.

A new “safety check” feature allows people to quickly disable shared passwords, location and other information, such as when a person is leaving an abusive relationship.

A preview version of iOS 16 will be made available to developers immediately, with a public beta planned for next month. The final version will come this fall as a free update for those with an iPhone 8 or later.

The iPad will get tablet-specific features in its version of iOS 16, including improved collaboration options in apps like Pages and Keynote. Apple also previewed a new brainstorming app, called FreeForm, coming later this year to iPad (as well as iPhone and Mac). Apple is also bringing over a bunch of features from the Mac, such as systemwide undo and redo.

Apple gave a sneak peek at a new version of CarPlay that can control more of a vehicle's features, such as changing the temperature. Automakers will also be able to integrate CarPlay with the main instrument cluster that displays speed and other information.

The watch's sleep tracking app will be able to measure stages of sleep, potentially amping up the competition with dedicated trackers like Google's Fitbit and Oura.

Users can also more easily track the medications they are taking, including getting reminders and information on drug interactions. The feature also works on iPhones.

Go deeper: Three things to watch at Apple's developer conference

Apple debuts lighter, M2-powered MacBook Air

It also detailed iOS 16, the next iPhone operating system and key updates to CarPlay and Apple Watch

Apple CEO Tim Cook, speaking at WWDC 2022. Screenshot: Axios, via YouTube

Closer

Axios Closer

The head of Amazon's consumer business, Dave Clark, is leaving July 1, Amazon announced in a regulatory filing Friday.  

Why it matters: Clark, who reports directly into CEO Andy Jassy, has helped to build Amazon's logistics operations into the powerhouse that it is now.

As of the end of 2021, Amazon had more than 400 fulfillment centers globally, 160 sortation centers, 1,000 delivery stations, 260,000 drivers, and 100 aircraft in its Amazon Air cargo fleet.

What he's saying: "Twenty-three years ago, I took what felt like a big personal bet when I joined Amazon out of grad school. We were a small company with only six fulfillment centers that year, but growing fast," Clark wrote in a note posted on Twitter.

"I've had an incredible time at Amazon but it’s time for me to build again. It's what drives me," he tweeted.

The big picture: This is the second big executive exit in Big Tech this week, following news that Sheryl Sandberg, Meta's chief operating officer, is stepping down from Facebook's parent company after 14 eventful years.

What to watch: As of Friday, Amazon had not named a replacement.

The company is "trying to be thoughtful in our plans for Dave’s succession and any changes we make. I expect to be ready with an update for you over the next few weeks," Jassy wrote.

Amazon is inching closer to being able to send you everything, from any store

New book unpacks Amazon retail chief's ruthless journey to the top

Amazon consumer guru Dave Clark to step down

This is the second big executive exit in Big Tech this week.

Then-President Barack Obama with Amazon executive Dave Clark amid yellow bins

Then-President Barack Obama with Amazon executive Dave Clark in 2013. Photo: MANDEL NGAN/AFP via Getty Images.

Amazon

Microsoft is announcing today that it won't stand in the way of company employee efforts to unionize, putting it in stark contrast to other tech companies.

Why it matters: The announcement comes amid a growing movement to unionize parts of the tech workforce, and as Microsoft seeks to close a deal to purchase Activision Blizzard, some units of which have pursued unionization.

"We’re not asking our employees to go form a union, but we will meet people where they are at," Microsoft president Brad Smith told Axios.

Driving the news: In a just-published blog post, Smith said that the company is "committed to creative and collaborative approaches with unions when employees wish to exercise their rights and Microsoft is presented with a specific unionization proposal."

Smith stressed that the company is focused on a collaborative relationship with all employees, whether unionized or not. "Our employees will always have direct access to this company’s senior leaders," he said. "They don’t need to form a union to be heard."

At the same time, Smith said that it is inevitable that unions will touch more businesses. "We don’t need to make contentious things that can be handled more amicably," he said in the interview.

Between the lines: Microsoft has been evaluating its stance toward unions for several months, Smith said, saying that the Activision Blizzard deal was among many factors that led the company to explore the issue more deeply.

Quality Assurance workers at Activision-owned Raven Software recently voted to form a union. The vote followed a strike within Raven that lasted nearly seven weeks.

While Microsoft told Axios in March it would not stand in the way of Activision Blizzard recognizing a union, Xbox head Phil Spencer said last week that he would recognize Raven's union once the deal closes.

"It’s a good time to step back and recognize there is a lot we can learn from not just business leaders but labor leaders," Smith said.

The big picture: Other large tech companies have been less open to union efforts.

Amazon has used a variety of tactics to try to convince warehouse workers to vote against unionization, with mixed results. Workers at one Staten Island facility voted in favor of a union, potentially Amazon's first, while those at a nearby facility voted against forming one.

Apple has also been resisting recent efforts by retail workers to unionize. Apple's retail and HR head Dierdre O'Brien warned workers in a leaked video: “I worry about what it would mean to put another organization in the middle of our relationship."

Our thought bubble: What Microsoft is saying shouldn't actually be that radical. Employees have the legal right to form unions, a fact which Smith notes in his blog post.

"We respect this right and do not believe that our employees or the company’s other stakeholders benefit by resisting lawful employee efforts to participate in protected activities, including forming or joining a union," Smith said in the blog.

In the interview, though, Smith said Microsoft was simply doing what it felt was right for itself, not trying to push the industry as a whole. "I don’t think it is our role to tell other companies what to do."

Yes, but: Labor leaders are hoping to see other's follow in Microsoft's footsteps.

"We know labor and management can be true partners in a company’s success, and it’s important for companies to respect workers’ rights," AFL-CIO president Liz Shuler said in a statement. "Microsoft’s collaborative approach to working with its employees who seek to organize is a best practice that we look forward to seeing implemented at Microsoft and other companies."

Microsoft pledges to work with employee unions

"We’re not asking our employees to go form a union, but we will meet people where they are at," Microsoft President Brad Smith told Axios.

Photo collage of Brad smith and an image of data

Photo Illustration: Sarah Grillo/Axios. Photo: By Cody Glenn/Sportsfile for Web Summit via Getty Images

Labor unions

Facebook CEO Mark Zuckerberg took to his own platform to reject claims made by a former employee in testimony before Congress on Tuesday.

Why it matters: Facebook whistleblower Frances Haugen urged Congress earlier Tuesday to regulate the tech giant, accusing Facebook of putting profit before user well-being.

Facebook also took volleys of criticism from senators at a Senate Commerce subcommittee hearing last week on its research into Instagram's impact on young girls.

What he's saying: The Facebook founder insisted in the post, which he said was previously shared within the organization, that Haugen's testimony "doesn't reflect the company we know."

"We care deeply about issues like safety, well-being and mental health," he continued. "It's difficult to see coverage that misrepresents our work and our motives."

Of note:  Zuckerberg said the notion "that we prioritize profit over safety and well-being" at the heart of Haugen's testimony is "just not true."

He pointed to a major change to Facebook's News Feed to "show fewer viral videos and more content from friends and family," and said Facebook did this "knowing it would mean people spent less time on Facebook, but that research suggested it was the right thing for people's well-being."

Zuckerberg suggested the company welcomed oversight and "advocated for updated internet regulations for several years now." 

"If we wanted to ignore research, why would we create an industry-leading research program to understand these important issues in the first place? ... If we wanted to hide our results, why would we have established an industry-leading standard for transparency and reporting on what we're doing?"

Zuckerberg rebuts Facebook whistleblower testimony

"It's difficult to see coverage that misrepresents our work and our motives," he wrote.

All Big Tech stories