SI News

Despite the endless chaos surrounding the Ukraine and Russian war, the world keeps moving and there is no time for rest without new surprises. Elon Musk comes out strong with bold statements regarding the acquisition of Twitter, South Korea sees its new president take office in a new era, and the cryptocurrency market warns investors once again of the dangers of alternate vehicles of investment.

- #Elon Musk’s deal to acquire Twitter is on hold.

On April 14th, Elon Musk offered to buy Twitter for 44 billion dollars, a valuation that prices a share of Twitter at $54.20, 9 dollars above the market value. Elon expressed that he believed that Twitter had huge potential to be a platform for free speech for everyone around the world, but also wanted to make some changes to the way the platform was run. One thing is clear: Elon Musk’s takeover of Twitter is not focused on gains but on shaping Twitter into Musk’s ideal platform for freedom of speech.

Musk’s decision to take over Twitter came about after a little incident involving Musk’s interest in the company. Previously, although Musk had attempted to get a minority stake of 15% of the company to make changes to the company, his plans were halted when the underlying offered him a seat on the board of directors, which restricted him from owning 15% of the company and dictating any changes. Thus, Elon Musk attempted to bypass these restrictions by offering to take over the entire firm. Not only did Elon Musk offer to buy Twitter, but SEC filings showing that Musk had sold 8.4 billion dollars worth of Tesla shares also show his commitment to the takeover. On April 25th, Twitter accepted Elon Musk’s offer at a 44 billion dollar valuation, but the deal is far from over. More recently, Elon Musk has put the deal on hold due to pending details on spam/fake accounts on the platform that has to be cleared up, but also highlights that he is still committed to the deal. In the case that the deal does not go through, Elon Musk will have to pay a 1 billion dollar breakup fee and also faces the risk of being sued for a breach of contract. Time will tell whether this deal is serious or just another of Elon’s memes on Twitter.

- #New President, new office, new housing market.

Yoon Suk-yeol was sworn into office as the new president of South Korea on May 10th. In his inaugural speech, Yoon expressed once more his conservative values and policies: stronger sanctions against North Korea, and closer ties with the United States, among others. And, despite accusations of President Yoon “pandering to widespread sentiment against China as well as an anti-feminist movement led by young South Korean men,” Yoon vowed to stand up for values like freedom and liberal democracy and is set on leaving a good impression on the people (Sang-hun, Choe). One of his first moves as president, a change in the presidential office from the Blue House to the Defense Ministry compound in Yongsan District, displays Yoon’s determination to show the people that he is insistent on delivering change.

Aside from the political frictions that come with Yoon’s inauguration, many have turned to the new president for a hope for change in South Korea’s housing market. South Korea’s housing prices saw the largest surge since the early 2000s last year, and policies regarding the housing market has been a major factor in the presidential election. Yoon’s agenda promises the removal of high capital gains taxes on multiple homeowners, which his party believes would encourage the homeowners to sell their properties and ultimately lead to a more stable real state with lower prices. More recently, however, the housing market has seen the opposite effect due to the anticipation of Yoon’s policy changes; “an 84-square-meter apartment which sold for 2.55 billion won in February listed at between 2.7 and 2.8 billion won” in April (Lee, Ho-Jeong, and Eun-Hwa Han). However, expectations for these policy changes remain relatively high, and Korea may be finally seeing concrete changes to the housing market.

- #From the moon to the ground

Luna, a cryptocurrency, has lost nearly all of its value and collapsed to nearly 0 dollars from an all-time high value of $119. Luna is a cryptocurrency that is affiliated with TerraUSD, also known as UST, which is a stablecoin that stabilizes the price of the underlying to maintain a one-to-one peg with the U.S. Dollar. TerraUSD is able to keep the relative price to the dollar stable through a complex system of minting and burning that involves the burning of Luna cryptocurrency but recently has not been able to maintain the relative price ratio. When TerraUSD’s value fell and become less valued than the dollar, Luna, which is correlated to TerraUSD, quickly fell in price with it.

More and more investors have become skeptical of Luna and have started dumping the coin after TerraUSD lost its peg. The mass-selling of Luna was so intense that Binance, one of the largest cryptocurrency exchanges, had “slowness and congestion” due to the “high volume of pending Terra network withdrawal transactions” (Kharpal, Arjun). Furthermore, the cryptocurrency exchange had to suspend the withdrawal of Luna for a few hours during the mass dump. This incident surrounding TerraUSD and Luna brings great skepticism to an already down cryptocurrency market and tests the credibility of investment vehicles.

Whether Elon Musk ultimately goes through with the deal with Twitter or not, there will certainly be changes or repercussions to the bold offers made by Musk. We may also possibly see a directional shift in Twitter’s policies and values. South Korea, in a very similar light, is seeing the introduction of a new leader that comes with new ideologies and policies. These changes leave us curious about what the future may hold. The cryptocurrency market, which has already taken a beating in recent quarters, continues to be disappointed by examples like Luna, which continuously shed a skeptical light on the technology.

Sources (of research and visuals)

Hawkins, Andrew J. “Elon Musk Buys Twitter: All the News You Need on One of the Biggest Tech Deals of All Time.” The Verge, The Verge, 16 Apr. 2022, https://www.theverge.com/23026874/elon-musk-twitter-buyout-news-updates.

Kharpal, Arjun. “Cryptocurrency Luna Now Almost Worthless after Controversial Stablecoin It Is Linked to Loses Peg.” CNBC, CNBC, 13 May 2022, https://www.cnbc.com/2022/05/12/cryptocurrency-luna-now-almost-worthless-after-ust-falls-below-peg.html.

Kim, Sarah. “Korea's New President, Yoon Suk-Yeol, Gets Fresh Start in New Location.” Korea JoongAng Daily, https://koreajoongangdaily.joins.com/2022/05/09/national/politics/Korea-Yoon-Sukyeol-inauguration/20220509230113162.html.

Lee, Ho-Jeong, and Eun-Hwa Han. “Yoon Promises to Deliver on Property Campaign Promises.” Korea JoongAng Daily, https://koreajoongangdaily.joins.com/2022/04/04/business/economy/Yoon-Sukyeol-Real-estate-Moon-Jaein-debacle/20220404192009235.html.

Sang-hun, Choe. “In Korea, a New President in the South Vows a Harder Line on the North.” The New York Times, The New York Times, 10 May 2022, https://www.nytimes.com/2022/05/10/world/asia/south-korea-yoon-president.html.

Sherman, Alex. “Elon Musk Can't Just Walk Away from His Twitter Deal by Paying a $1 Billion Breakup Fee.” CNBC, CNBC, 14 May 2022, https://www.cnbc.com/2022/05/13/elon-musk-cant-just-walk-away-from-twitter-deal-by-paying-1-billion.html.

The Will Smith Oscar slap and Bucha atrocities have been at the center of public interest and controversy over the recent weeks. While the two events vary greatly in nature – one being a scandal in the entertainment industry and the other a major humanitarian crisis – both have sparked debate and intense reactions worldwide. This newsletter provides insight on the events and their outcomes.

# Will Smith Oscar Slap

The Academy Awards, popularly known as the Oscars, were held on March 27 in Los Angeles. During the show, the comedian Chris Rock was on stage as presenter for the Award for Best Documentary. “Jada, I love you, ‘G.I. Jane 2,’ can’t wait to see it,” he commented, comparing Jada Smith’s close-cropped hair to Demi Moore’s buzzcut in the 1997 movie. Jada Smith has alopecia, an autoimmune disorder that can result in hair loss. To this, her husband Will Smith abruptly stormed onstage and slapped Chris Rock. Visibly taken aback and uncomfortable with the situation, Chris Rock replied by saying it was just a joke. However to this, Will continuously shouted for Chris to “keep [his] wife’s name out [his] mouth” along with derogatory remarks. Instead of further reacting to Will’s comments, Chris Rock strived to move the awards along by announcing the nominees for Best Documentary Feature. Shortly after this display of violence, Will Smith was nominated as Best Actor for the film ‘King Richard’. He once again stepped on stage to receive his award.

The public showed contrasting reactions to Will Smith’s actions. Some defended him saying that he was just standing up for his wife, while others criticized his actions, saying violence cannot be justified in any circumstances. Some stated that he should have been escorted out immediately after his reactions and criticized the Oscars for their lack of intervention. On April 8, the Academy of Motion Pictures Arts and Sciences released an official letter on the issue. It called Will Smith’s behavior “unacceptable and harmful” and announced that the Board of Governors have “decided, for a period of 10 years … Mr. Smith shall not be permitted to attend any Academy events or programs, in person or virtually, including but not limited to the Academy Awards”. Following this, several of Smith’s projects have also been paused or canceled. Bad Boys 4 by Sony and Fast and Loose by Netflix starring Will Smith has currently called off production.

# Massacre by Russian Forces in Bucha, Ukraine

On February 24th, Russian President Vladimir Putin ordered for the invasion of Ukraine. Shortly afterwards, the Ukrainian city Bucha was seized by Russian troops. The occupation lasted for over a month until the troops withdrew on March 31st. Footage and images of the shocking aftermath were soon released: images from Bucha showed hundreds of dead bodies, some with bullet wounds and others burned or in mass graves, in areas which were taken over by Russian forces. The police chief of Kyiv, Ukraine’s capital, announced that “more than 900 civilian bodies had been found in the region, with more than 350 discovered in the suburb of Bucha”. Ukrainian President Volodymyr Zelensky has accused Russia of genocide. Russia flatly denied this accusation, claiming that the footage was staged. Furthermore, on April 18th Putin declared a decree praising the 64th Motor Rifle Brigade, the Russian unit accused by the Ukrainian government for the mass killings in Bucha, for “defending the motherland”.

Russia’s actions have received condemnation worldwide. The U.S. president Joe Biden accused Putin as a “war criminal”. UN Secretary General António Guterres also described the Bucha crisis as “one of the greatest challenges ever to the international order and the global peace architecture, founded on the United Nations Charter”. Martin Griffiths, the UN Emergency Relief Coordinator, is currently tasked to travel to Ukraine and Russia to press for an urgent humanitarian ceasefire.

# Global Responses Against Russia

To date, more than 10 million people have been displaced by Russian forces. UN Secretary General António Guterres announced that this has been the “fastest forced population movement since the Second World War”. According to UNHCR, more than 4.2 million among the displaced populations have fled Ukraine’s borders. The World Health Organization has reported that 86 health and medical facilities have been attacked as of April 2nd. Following such war crimes and human rights infringements, numerous countries and companies have imposed sanctions and penalties against Russia.

The Unites States has imposed economic measures to ban new investment in Russia and has banned the import of Russian gas and oil. All Russian flights have also been banned from the airspace of US, UK, Canada, and the EU. Western countries have also frozen the assets of the Central Bank of Russia. This has caused Russia’s inflation rate to rise by 14%. With mounting pressure for action, renowned multinational corporations have also pulled out from Russia. In the food and drinks sector, McDonald's, Starbucks, Coca-Cola, and Heineken are halting their business in Russia. In retail, companies including L'Oreal, H&M, and Zara have suspended sales. Samsung has also suspended its sales in Russia, and Apple has limited its Maps and Apple Pay services.

From these insights, we can see the progress and outcomes of current events related to the fields of entertainment, human rights, security, international relations, and commerce. Responses to these situations will serve as an example and model when similar circumstances arise in the future. Thus, it would of significance to follow the trajectory of the responses and analyze factors behind their successes and failures.

References

Whitten, Sarah. “Will Smith Banned from Attending the Oscars for 10 Years after Slapping Chris Rock on Stage.” CNBC, CNBC, 9 Apr. 2022, https://www.cnbc.com/2022/04/08/will-smith-banned-from-attending-the-oscars-for-10-years-after-slapping-chris-rock-on-stage.html.

Barrera, Daniela. “Fast and Loose: Was the Netflix Movie Starring Will Smith Movie Canceled?” Diario AS, 12 Apr. 2022, https://en.as.com/latest_news/fast-and-loose-was-the-netflix-movie-starring-will-smith-movie-canceled-n/.

“Bucha Murders: German Report Says Russian Troops Discussed Killings.” BBC News, BBC, 7 Apr. 2022, https://www.bbc.com/news/world-europe-61028380.

Bearak, Max. “In Bucha, the Scope of Russian Barbarity Is Coming into Focus.” The Washington Post, WP Company, 7 Apr. 2022, https://www.washingtonpost.com/world/2022/04/06/bucha-barbarism-atrocities-russian-soldiers/.

Halpert, Madeline. “Putin Honors Army Unit Accused of Bucha Killings.” Forbes, Forbes Magazine, 18 Apr. 2022, https://www.forbes.com/sites/madelinehalpert/2022/04/18/putin-honors-army-unit-accused-of-bucha-killings/?sh=711947902162.

“Ukraine: Un's Guterres Joins Call for Bucha War Crimes Probe.” United Nations, United Nations, https://news.un.org/en/story/2022/04/1115522.

“Which Companies Are Pulling out of Russia?” BBC News, BBC, 11 Mar. 2022, https://www.bbc.com/news/business-60571133.

“What Sanctions Are Being Imposed on Russia over Ukraine Invasion?” BBC News, BBC, 11 Apr. 2022, https://www.bbc.com/news/world-europe-60125659.

Photo References

Will Smith banned from Oscars for 10 years over slap – BBC News https://www.bbc.com/news/world-us-canada-61018821

Workers have been removing civilians' bodies found on the streets of Bucha into body bags – Getty Images https://www.bbc.com/news/world-europe-61028380

EU extends sanctions against Russia for six months over violating Ukraine's territorial integrity – QIRIM News https://qirim.news/en/kryimskie-tataryi-en/eu-extends-sanctions-against-russia-for-six-months-over-violating-ukraine-s-territorial-integrity/

There have been numerous changes due to the post corona world and the Russian war. To survive in the flow of change, economic subjects are struggling to make the strategy of survival. Content company Disney starts to directly approach consumers' real life. Matching platform Tinder uses noble techniques and collaborates with non-profit organizations. Nations keep a Russia oil sanction rule. From this newsletter, we can get the insight of these tactics.

# Disneys’s content distribution strategy and view

Disney’s entertainment business starts with children’s delightful contents, but it has been expanding its border with IRL(abbreviation of in real life) business. Starting from the popular service with the retail crowd, Disney expanded its park division into Asia to the launch of a multibillion dollar streaming service. Disney also has substantial value in every aspect of media and entertainment. And now, Disney results in two main segments: “Media and Entertainment Distribution,” and “Parks, Experiences and Products.” Briefly introduce two mainstream, Media and Entertainment applies to the production and release of content on screens both large and small. Parks, Experiences and Products represents all of the Disney experiences you can have IRL.

To analyze two main sectors, Disney owns an 80% stake in network and broadcasting company. These streaming platforms include ESPN, ABC Television Network and eight television stations, FX, the National Geographic branded television network, Marvel Entertainment, and its IP portfolio. IRL products include amusement park industry and leisure service. Disney’s golden goose was powerhouse ESPN, but its subscription number is tumbling. Much of Disney’s growth prospects are anchored to its massive investments in the direct-to-consumer (DTC) space. Disney has to make the DTC route for ESPN to get the next chapter of the growth. With the post corona society, the future of sports programming will extend to “sports betting, gaming and the metaverse. And this is the Disney’s elastic DTC.

# Tinder collaborated with the data organization

Tinder is opening up new possibilities for digital communication at a time when offline meetings have become difficult due to the COVID-19 crisis. In general, Tinder is viewed as a dating app that only allows one-time encounters. Tinder's role goes beyond simply arranging meetings between opposite sexes. It also helps you meet "mentor-mentee" relationships that want to get help in your career or club members who share hobbies in the same field. As a result of analyzing the cases of Tinder users, there were various stories, such as reuniting with old friends or establishing friendships with actual industry workers. In order to expand the service, Tinder also hosted "Swipe Night," an interactive content, in September around the world, including Korea. Through this management strategy, Tinder is becoming a human platform that opens up new human relationships and communication possibilities beyond just dating apps. Tinder is also gaining ground in the Korean market. Korea is a society in which surrounding human relationships are formed mainly by reference groups. It's so hard to get new contacts, so there's a lot of demand for "Tinder" as a social network app.

Along with the expansion of services, Tinder is strengthening its security system using data and AI technology. Regarding artificial intelligence services, AI was introduced for photo authentication. A blue check is displayed next to the user profile that has been authenticated. The blue check is used to ensure that user profile is real when matched with the other party. Tinder has also partnered with Garbo, a background check platform. Using public information gathered by the non-profit personal data check platform Garbo, Tinder will now give its users a free look into partner's pasts, with a focus on arrests and convictions for cert.

# Russia’s Ukraine attack and oil supply sanction

Russia unpredictably attacked Ukraine, and Russian exports of oil supply yield 8% of the global supply. Russian oil shipments are interrupted, and it marked one of the largest supply disruptions since World war Ⅱ. It led to notable moves by major countries. Oil shock reshaped consumer spending, made a burden on financial markets and strained government budgets in dozens of countries. Analysts made a conclusion of stagflation that the 20$ shock of oil prices would diminish 0.6% of GDP growth in Europe, and 0.3 % of the US and China.

Europe and the US are discussing the possibility of banning Russian oil imports. They face the need for finding the alternative oil supply nation. US diplomats have reached out to the Venezuelan regime and Saudi Arabia. Us is asking these countries to increase oil production. In addition to government sanction action, traders at companies are shunning Russian crude oil. For example, Finnish refiner Neste has announced it shifted to non-Russian sources of crude. And fear of running afoul of allied sanctions on Russia also caused the “self-sanctioning”. China is the leading country of self-sanctioning. The largest two state-owned banks decline to finance new expenditures of Russian oil. The result of sanctioning could idle 3 million to 4 million barrels a day of Russian oil. Its amount is approximately 70 percent of Russia's total crude exports, according to the Oxford Institute for Energy Studies.

From these insights, we can learn the flow of changes and strategies to face the flow.Socialize platform has a duty to protect users by data collection and machine learning. To overcome the stagflation caused by the Russian War, nations start to find dispensable energy sources. Media companies change their way to get breakthroughs in growth. All of these are linked to survival of the changes.

Sources:

Baker, Kendall. “ESPN's Grip on Cable TV Loosens as Streaming Strategy Surges.” Axios, Jared Whalen, 8 Dec. 2021, https://www.axios.com/espn-streaming-subscribers-cable-disney-a01c04d2-32e1-417b-a3a4-2c4e31dae1b6.html.

“Commemorates 150 Year History - Disney Magic Comes to NYSE in IPO.” Goldman Sachs, https://www.goldmansachs.com/our-firm/history/moments/1957-disney-ipo.html.

Perez, Sarah. “Tinder Rolls out in-App Access to Background Checks, Powered by Nonprofit Garbo.” TechCrunch, TechCrunch, 9 Mar. 2022, https://techcrunch.com/2022/03/09/tinder-rolls-out-in-app-access-to-background-checks-powered-by-nonprofit-garbo/.

“What Sanctions Are Being Imposed on Russia over Ukraine Invasion?” BBC News, BBC, 15 Mar. 2022, https://www.bbc.com/news/world-europe-60125659.

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