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Tag: Parag Agrawal

  • FTC May Take Action Against Twitter and CEO Over Whistleblower Allegations

    FTC May Take Action Against Twitter and CEO Over Whistleblower Allegations

    Federal Trade Commission Chairwoman Lina Khan opened the door to the possibility of new action against Twitter and CEO Parag Agrawal.

    Peiter “Mudge” Zatko is a well-known hacker who previously served as Twitter’s head of security. Zatko was hired by then-CEO Jack Dorsey before being fired by his successor. Zatko came forward in August to blow the whistle about mismanagement at the company, claiming Twitter and its executives had misled investors about the scope of its bot problem, as well as its security issues.

    Even more concerning, Zatko said the company was in violation of its 2011 settlement with the FTC over security issues. Chairwoman Khan is taking those allegations seriously, opening the door to an investigation into Twitter’s compliance with the terms of the settlement.

    “There has absolutely been a problem with companies treating FTC orders as suggestions,” Khan said during a Senate Judiciary subcommittee hearing, according to MarketWatch. “We have a program underway to really toughen that up.”

    Khan also said she was “extremely disturbed” over the allegations and that the agency would be “looking at this closely.”

    Senator Richard Blumenthal pressed Khan on whether the agency would name Agrawal in any action taken against the company, given Zatko’s claims that Agrawal was aware of the issues and Twitter’s alleged deception.

    “Absolutely,” Khan said. “If we have a basis for naming individuals because we find that they meet the legal standard for that we won’t hesitate to do it.”

  • Twitter Whistleblower Lends Weight to Elon Musk’s Claims

    Twitter Whistleblower Lends Weight to Elon Musk’s Claims

    Peiter Zatko, who served as Twitter’s head of cybersecurity, has filed a complaint with federal agencies and bolstered Elon Musk’s claims.

    Zatko is the famous and well-respected hacker who goes by the handle “Mudge.” He served as Twitter’s cybersecurity head from late 2020, when he was hired by then-CEO Jack Dorsey until he was fired by the current CEO at the beginning of 2022. According to The Washington Post, he claims the company and CEO Parag Agrawal is intentionally misleading investors and regulators about the state of its security and its issues with spam bots.

    “Agrawal’s Tweets and Twitter’s previous blog posts misleadingly imply that Twitter employs proactive, sophisticated systems to measure and block spam bots,” the complaint says. “The reality: mostly outdated, unmonitored, simple scripts plus overworked, inefficient, understaffed, and reactive human teams.”

    That statement, as well as the complaint in general, will certainly bolster Elon Musk’s case against Twitter. The tech mogul is trying to back out of his deal to purchase the social media company based on his belief the company is not being truthful about the scope of its spam bot issues. He also claims the company has misled investors.

    Read more: Elon Musk Accuses Twitter of Running a ‘Scheme’

    Zatko also claims to have found multiple instances where Twitter was in violation of a 2011 settlement with the FTC, failing to implement security measures and properly protect users, as it had been ordered to do. While Twitter claims to have complied with its obligations, the sheer number of security breaches the company has faced — not to mention the ease with which the breaches occurred — lends weight to Zatko’s claims.

    “If all of that is true, I don’t think there’s any doubt that there are order violations,” David C. Vladeck told the Post in an interview. Vladeck is now a Georgetown Law professor but previously served as director of the FTC’s bureau of consumer protection when the settlement was reached in 2011. “It is possible that the kinds of problems that Twitter faced eleven years ago are still running through the company.”

    The complaint alleges Twitter has exceptionally poor security policies in place, policies that leave the company, its intellectual property, and its customers vulnerable to bad actors. Roughly 30% of the company’s laptops allegedly would not automatically update software to receive the latest security fixes. Even worse, Zatko says thousands of laptops had full copies of Twitter’s source code on them, a scenario that is a dream come true for hackers. Why waste time trying to penetrate a carefully secured and protected programming repository when stealing one of the thousands of available laptops will yield the same result?

    See also: Elon Musk’s Twitter Cancellation Letter

    “It’s near-incredible that for something of that scale there would not be a development test environment separate from production and there would not be a more controlled source-code management process,” Tony Sager, former chief operating officer at the cyberdefense wing of the National Security Agency, told the Post. “Almost any attack scenario is fair game and probably easily executed.”

    The Post interviewed more than a dozen current and former employees for context. While some did say the company deployed extensive measures to fight spam, many agreed with much of Zatko’s complaint regarding the general state of security and dysfunction within the company.

    For his part, Zatko sees blowing the whistle on Twitter as the final step in completing the job he was hired to do.

    “This would never be my first step, but I believe I am still fulfilling my obligation to Jack and to users of the platform,” Zatko said. “I want to finish the job Jack brought me in for, which is to improve the place.”

  • Twitter CEO Shakes Up Executive Team Ahead of Musk Buyout

    Twitter CEO Shakes Up Executive Team Ahead of Musk Buyout

    Twitter CEO Parag Agrawal has made changes to his executive team, getting rid of two top executives.

    Kayvon Beykpour, GM of Consumer, announced in a tweet that Agrawal had asked him to leave:

    “The truth is that this isn’t how and when I imagined leaving Twitter, and this wasn’t my decision. Parag asked me to leave after letting me know that he wants to take the team in a different direction.” — Kayvon Beykpour (@kayvz) — May 12, 2022

    According to The Verge, Bruce Falck, GM of Revenue, announced in a now deleted tweet that he too was let go.

    Twitter spokesperson Adrian Zamora confirmed the changes to The Verge, saying: “We can confirm that Kayvon Beykpour and Bruce Falck are leaving Twitter. Jay Sullivan is the new GM of Bluebird and interim GM of Goldbird. Effective this week, we are pausing most hiring and backfills, except for business critical roles. We are pulling back on non-labor costs to ensure we are being responsible and efficient.”

    The last couple of months have been among Twitter’s most tumultuous, and these latest changes would seem to indicate the tumult is far from over.

  • Twitter Accepts Offer, Elon Musk Will Be New Owner

    Twitter Accepts Offer, Elon Musk Will Be New Owner

    Twitter has officially accepted Elon Musk’s offer to buy the company, marking one of the biggest changes the social media platform has undergone.

    Elon Musk has simultaneously been one of Twitter’s biggest fans and critics, culminating in an offer to buy the company for $54.20 per share. After initially fighting back, even adopting a “poisoned pill” strategy, the company has relented and accepted Musk’s offer.

    The agreement was struck at Musk’s offer price, putting the deal’s value at approximately $44 billion. The price is a 38% premium over the stock’s closing price on April 1, 2022, one day before Musk’s 9% stake in the company was made public. Ultimately, that premium was too much for the board to ignore.

    “The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing,” said Bret Taylor, Twitter’s Independent Board Chair. “The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders.”

    Once the deal is completed, Musk plans on taking the company private, which will make it easier for him to reshape the company in his image.

    “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” said Musk. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spam bots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”

    At this time it’s unclear what, if any, role current CEO Parag Agrawal will have moving forward, although he expressed his pride and support for the company.

    “Twitter has a purpose and relevance that impacts the entire world,” Agrawal said. “Deeply proud of our teams and inspired by the work that has never been more important.”

  • Elon Musk Makes a $41 Billion Bid For Twitter

    Elon Musk Makes a $41 Billion Bid For Twitter

    Elon Musk’s end-game is now in full view, with the tech mogul offering $41 billion to purchase the social media platform.

    It’s been a tumultuous couple of weeks for Twitter as Musk has raised question after question about how the platform should be run. Musk then purchased nearly 10% of the company, making him its largest shareholder. Twitter ultimately offered Musk a seat on the board, which he initially accepted, in an effort to prevent him from owning more than 14.9%, before Musk changed course and rejected the offer.

    Musk has now informed his Twitter followers that he has made an offer to purchase the company:

    I made an offer

    Elon Musk (@elonmusk), April 14, 2022

    According to the SEC document Musk links, he offered $54.20 per share, a 54% premium over the January 28, 2022 Common Stock closing price.

    It remains to be seen if Twitter will accept the deal, but Elon Musk has certainly made life more complicated for CEO Parag Agrawal and company.

  • Hostile Takeover In the Making? Elon Musk Rejects Twitter Board Seat

    Hostile Takeover In the Making? Elon Musk Rejects Twitter Board Seat

    Elon Musk has rejected a seat on Twitter’s board, opening the door for a potential hostile takeover of the social media company.

    The last week has been a trying one for Twitter, with the Tesla CEO calling out the platform, posting polls about possible features, and even asking if his followers thought Twitter should be replaced. Musk purchased a nearly 10% stake in the company, making him the largest shareholder and sparking fears he might engage in a hostile takeover. Twitter ultimately offered Musk a seat on the board, a seat that would have prohibited him from owning more than 14.9%. Despite initially accepting the offer, Musk has reject the seat.

    Twitter CEO Parag Agrawal disclosed the news in a tweet:

    “Team,

    “Elon Musk has decided not to join our board. Here’s what I can share about what happened.

    “The Board and I had many discussions about Elon joining the board, and with Elon directly. We were excited to collaborate and clear about the risks. We also believed that having Elon as a fiduciary of the company where he, like all board members, has to act in the best interests of the company and all our shareholders, was the best path forward. The board offered him a seat.

    “We announced on Tuesday that Elon would be appointed to the Board contingent on a background check and formal acceptance. Elon’s appointment to the board was to become officially effective 4/9, but Elon shared that same morning that he will no longer be joining the board. I believe this is for the best. We have and will always value input from our shareholders whether they are on our Board or not. Elon is our biggest shareholder and we will remain open to his input.

    “There will be distractions ahead, but our goals and priorities remain unchanged. The decisions we make and how we execute is in our hands, no one else’s. Let’s tune out the noise, and stay focused on the work and what we’re building.”

    Only time will tell what Musk is planning. Without the constraints of being a board member, it’s entirely possible the tech mogul will make a play for ownership of the company.

    Agrawal seems to know there’s still a rough road ahead, if his comment about ‘tuning out the noise’ is any indication.

  • Elon Musk Joining Twitter Board in Bid to Block a Takeover

    Elon Musk Joining Twitter Board in Bid to Block a Takeover

    Elon Musk’s Twitter saga continues unabated, with the tech mogul joining the board in a bid to prevent a takeover of the company.

    Musk is an avid Twitter user, but that hasn’t stopped him from being critical of the company and advocating for change. He recently posted a poll asking if Twitter should be replaced, saying “the consequences of this poll will be important.”

    Musk followed up by purchasing nearly 10% of the company’s stock, making him the largest single shareholder. Twitter wants to make sure its largest shareholder doesn’t become the majority shareholder, striking a deal to make Musk a board member, according to an SEC filing:

    For so long as Mr. Musk is serving on the Board and for 90 days thereafter, Mr. Musk will not, either alone or as a member of a group, become the beneficial owner of more than 14.9% of the Company’s common stock outstanding at such time, including for these purposes economic exposure through derivative securities, swaps, or hedging transactions.

    Twitter CEO Parag Agrawal welcomed Musk in a tweet of his own:

    I’m excited to share that we’re appointing @elonmusk to our board! Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.

    — Parag Agrawal (@paraga), April 5, 2022

    Musk responded with promises of change:

    Looking forward to working with Parag & Twitter board to make significant improvements to Twitter in coming months!

    Elon Musk (@elonmusk), April 5, 2022

    Only time will tell if Musk will be successful in changing how Twitter does things, but our money is on this saga being far from over.

  • It’s Official: Jack Dorsey Steps Down as Twitter CEO

    It’s Official: Jack Dorsey Steps Down as Twitter CEO

    Jack Dorsey has stepped down as Twitter CEO and will be leaving the company within a few months.

    News broke Monday morning that Dorsey was expected to step down as CEO, although CNBC’s sources did not say why or when. Dorsey confirmed the news in a tweet Monday.

    In his tweet, Dorsey says Parag Agrawal is replacing him, effective Monday. Dorsey said he believes every company should be able to stand on its own, without the leadership or influence of its founders.

    In harmony with that belief, Dorsey says he will stay on the board only though the remainder of his current term, which is set to expire around May. After that, he will leave the company, giving Agrawal room to lead how he sees fit.