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    Adam Neumann Wants to Take Over WeWork

    Adam Neumann, the co-working company’s onetime chief, has sought for months to buy the now-bankrupt business, but accuses its current leaders of stonewalling him.Lawyers for Adam Neumann accused WeWork of stonewalling his takeover approach.Shahar Azran/Getty ImagesWeWork’s founder is trying to buy it Adam Neumann shot to fame by turning WeWork into a cultural and business phenomenon, before being ousted from the work space operator in dramatic fashion.But for the past several months, he has been trying to buy the now-bankrupt business — with the help of the hedge fund mogul Dan Loeb, DealBook is the first to report.Neumann’s new real estate company Flow Global is pushing WeWork to consider its takeover approach, according to a letter his lawyers sent to WeWork’s advisers on Monday. Flow which has already raised $350 million from the venture capital firm Andreessen Horowitz, disclosed in the letter that Loeb’s Third Point would help finance a transaction. (Read the letter.)Flow has sought to buy WeWork or its assets, as well as provide bankruptcy financing to keep it afloat.But Flow’s lawyers accused WeWork of stonewalling for months. “We write to express our dismay with WeWork’s lack of engagement even to provide information to my clients in what is intended to be a value-maximizing transaction for all stakeholders,” wrote the lawyers led by Alex Spiro of Quinn Emanuel, who also represents Elon Musk and Jay-Z.It’s the latest twist for WeWork, which over its 14-year history became a symbol of venture capital excess. The company grew rapidly, becoming the biggest tenant in many major cities and attaining a paper valuation of $47 billion. And Neumann — backed by billions from the Japanese tech giant SoftBank — increasingly pitched it as a way to “elevate the world’s consciousness.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Amazon Scraps Deal to Buy Maker of Roomba Amid Regulatory Scrutiny

    Amazon walked away from the $1.7 billion acquisition of iRobot as it faces questions from regulators in the European Union and United States.Amazon said on Monday that it was abandoning plans to buy iRobot, the maker of the self-driving Roomba vacuum, after regulators raised concerns the deal would hurt competition.The announcement is a rare admission of defeat by Amazon, which has in recent years acquired an eclectic mix of companies such as Whole Foods and MGM Studios, and is a sign of how the world’s largest tech companies are being forced to adjust their business practices, products and policies as a result of stiffening regulatory scrutiny globally, particularly in the European Union.In November, E.U. antitrust regulators warned Amazon that they might try to block the deal because it could restrict competition in the market for robot vacuum cleaners. The Federal Trade Commission was also scrutinizing the deal.Amazon, which will pay iRobot a $94 million termination fee, said in a statement that “disproportionate regulatory hurdles” caused it to step away from the deal, which was first announced in 2022. IRobot’s products, which also include robotic mops and air purifiers, were to join a growing list of connected home products made by Amazon, including Ring home security systems and Echo smart speakers.Amazon said that rather than restrict competition, the deal would have given iRobot more resources to compete with other robotics companies.“This outcome will deny consumers faster innovation and more competitive prices, which we’re confident would have made their lives easier and more enjoyable,” David Zapolsky, Amazon senior vice president and general counsel, said in the statement.Amazon is not the only company facing hurdles completing acquisitions. In December, Adobe, the maker of Photoshop and Illustrator, scrapped a $20 billion takeover of Figma, a maker of design collaboration tools, after it was questioned by regulators in the United States, the European Union and Britain.In the European Union, oversight of the tech sector is expected to intensify in the coming months as a new law, the Digital Markets Act, takes full effect with the aim of increasing competition in the digital economy. Last week, Apple announced a slew of changes to comply with the law, including allowing customers to use alternatives to the App Store for the first time.IRobot, a publicly traded company grappling with declining sales and mounting losses, must regroup without the financial backing of Amazon. The company’s stock price has fallen more than 60 percent in the past month as the fate of the deal with Amazon was thrown into doubt.On Monday, iRobot said it would cut approximately 350 jobs, or about 30 percent of its work force, as well as reshuffle its management ranks.“The termination of the agreement with Amazon is disappointing, but iRobot now turns toward the future with a focus and commitment to continue building thoughtful robots and intelligent home innovations,” Colin Angle, the company’s founder, who is stepping down as chief executive, said in a statement.Glen Weinstein, iRobot’s executive vice president and chief legal officer, was appointed interim chief executive. More

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    Trump’s Truth Social Platform Could Struggle to Survive Without New Cash

    Truth Social, the online platform at the core of Trump Media, has had challenges attracting advertising revenue.Former President Donald J. Trump’s social media company is running on fumes and could be at risk of folding if it doesn’t find new funds in a hurry.In a regulatory filing this week, auditors for Trump Media & Technology Group expressed doubt about the company’s ability to continue as a “going concern” without new financing. The filing also made clear that Trump Media desperately needs to complete its long-delayed merger with a cash-rich shell company so that it can tap $300 million in cash, especially if its flagship online platform, Truth Social, has any chance of surviving.The document, which offers the first detailed look at Trump Media’s finances, was filed with regulators as part of the company’s pending deal with Digital World Acquisition Corporation, the publicly traded shell company it agreed to merge with in 2021.If the transaction goes through, it could value Trump Media at $1 billion based on Digital World’s share price of $16.60. Yet, the rich valuation is no guarantee that the company, which largely relies on advertising revenue from Truth Social — and Truth Social itself — will be a viable business. Trump Media had little cash on hand by the end of June, and it has exhausted most of the $37 million in private financing it has raised since 2021, according to the filing.“Contrary to the relentless mainstream media campaign peddling false information about Truth Social, we’ve given millions of Americans their voices back using technology operated at a fraction of the cost of the Big Tech platforms,” Shannon Devine, a spokeswoman for Truth Social, said in a statement. Ms. Devine added that “Truth Social continues to move forward toward completing its merger, which we believe will enable important new ventures for the company.”Since its founding, Truth Social has been a personal megaphone for Mr. Trump, who uses the platform frequently to rail against his critics as he makes another run for president and confronts an array of criminal and civil lawsuits. The platform is popular with some of his most ardent supporters. But on any given day, much of the advertising on the platform comes from weight loss products, gold coins and “natural cures” for a variety of medical ailments.During the first six months of this year, Trump Media took in just $2.3 million in advertising revenue, according to the filing.“Truth Social is obviously not surviving on ad dollars,” said Shannon McGregor, a professor of journalism and media at the University of North Carolina who has studied social media platforms. “And the ads that are being sold are not robust or sustainable.”The former president’s platform of choice remains a relative minnow in the social media universe. This year, the Truth Social app has been downloaded three million times, according to Sensor Tower, a data provider. By comparison Elon Musk’s X, formerly known as Twitter, has been downloaded 144 million times and Meta’s Threads has been downloaded 171 million times in the nearly five months since it debuted.In all, Truth Social has been downloaded seven million times since its launch in early 2022, according to Sensor Tower.Mr. Trump has 6.5 million followers on Truth Social, compared with the 87 million he had on Twitter when he was prohibited from posting on the platform after the Jan. 6, 2021, attack on the Capitol. Mr. Musk, after buying Twitter, let Mr. Trump return to the platform, but the former president has posted only one message on X.Ms. McGregor said other social media platforms had tried to increase their audience reach by reaching deals with media personalities and influencers who bring with them a ready made group of followers.If the merger is completed, Trump Media would have the cash on hand to retain the services of conservative media influencers. But Ms. McGregor said some people might be reluctant to join a platform that was so identified with Mr. Trump, whose political future remained uncertain.“What is the future vision for a platform that is built on being a microphone for one person,” is the obvious question for any social media influencer who might be thinking of joining Truth Social, she said.The glimmer of good news for Mr. Trump is that this week’s filing of the updated merger document is an indication the deal with Digital World is moving along after being held up for nearly two years because of a regulatory investigation.The filing of a revised prospectus was one of the requirements Digital World had agreed to as part of an $18 million regulatory settlement it reached this summer with the Securities and Exchange Commission. The settlement resolved an investigation into an allegation that Digital World had flouted securities rules governing special purpose acquisition companies by engaging in early merger talks with Trump Media before its I.P.O.Trump Media, in a post on Truth Social, called the filing of the revised merger document “a major milestone toward completing our merger.”The push to complete the merger comes as Mr. Trump’s real estate business in New York is being threatened by Attorney General Letitia James’s civil fraud lawsuit against the former president, his adult sons and their family business. In September, a New York judge considering the challenge ruled that Mr. Trump had committed fraud by inflating the value of some of his real estate assets and stripped him of control over some of his signature properties.For the past several weeks, the same judge has been hearing testimony from witnesses — including Mr. Trump — to determine what kind of ultimate punishment should be meted out.With the future of some of his real estate business on shaky ground, Trump Media suddenly has become a more important piece of the former president’s business empire and calculating his personal net worth. If the merger is completed, Mr. Trump, as chairman, stands to become the single largest shareholder of Trump Media.The company’s possible $1 billion valuation after the merger is a far cry from the roughly $10 billion price tag investors had given the deal shortly after it was announced in October 2021. Still, it is significantly higher than the $5 million to $25 million valuation Mr. Trump had put on Trump Media in a financial disclosure form this year. More

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    Video Game Workers at Microsoft and Activision Take Steps to Unionize

    Microsoft has remained neutral during a labor organizing bid as the Xbox maker seeks regulatory approval for its Activision acquisition.A few months after Microsoft announced plans to acquire the video game maker Activision Blizzard, the tech giant said it would remain neutral if Activision workers sought to unionize once the deal went through. Now, a major union is testing Microsoft’s appetite for organizing at a company it already owns.A group of more than 300 employees at ZeniMax Media, a Maryland-based video game maker owned by Microsoft, has begun voting on whether to form the company’s only union in the United States.The vote, among quality assurance employees at ZeniMax, which includes prominent studios like Bethesda Game Studios, is taking place under an informal agreement in which Microsoft is staying neutral. Workers can sign a union authorization card, as some began doing last month, or weigh in anonymously for or against unionization on an electronic platform that opened on Friday.The process will conclude at the end of the month and is more efficient than a typical union election, which is overseen by the National Labor Relations Board and can involve legal wrangling over the terms of the election.The same day that voting began at Microsoft, a group of workers in quality assurance, or Q.A., at an Activision-owned studio near Albany, N.Y., won a union vote, 14 to 0. That result followed a successful union vote in May by about two dozen Q.A. workers at an Activision studio in Wisconsin, a first for a major North American video game maker. Activision’s planned acquisition by Microsoft, for about $70 billion, is facing antitrust review by regulators.The organizing campaigns at both companies have been under the auspices of the Communications Workers of America, which also represents employees at telecom companies like Verizon and media companies like The New York Times.Together, the developments appear to add momentum to a wave of union organizing over the past year at previously nonunion companies like Amazon, Starbucks and Apple. The recent campaigns also suggest that video game workers, who for years have complained of long hours, low pay, and sexual harassment and discrimination, may be increasingly receptive to unionization.More on Big TechMicrosoft: The company’s $69 billion deal for Activision Blizzard, which rests on winning the approval by 16 governments, has become a test for whether tech giants can buy companies amid a backlash.Apple: Apple’s largest iPhone factory, in the city of Zhengzhou, China, is dealing with a shortage of workers. Now, that plant is getting help from an unlikely source: the Chinese government.Amazon: The company appears set to lay off approximately 10,000 people in corporate and technology jobs, in what would be the largest cuts in the company’s history.Meta: The parent of Facebook said it was laying off more than 11,000 people, or about 13 percent of its work forceA 300-worker union would be “quite groundbreaking” and could propel Q.A. workers, and even other game workers like developers, to unionize at other large studios, said Johanna Weststar, an associate professor at Western University in Ontario who studies labor in the industry.A Microsoft spokeswoman said that the organizing campaign was “an example of our labor principles in action” and that the company remained “committed to providing employees with an opportunity to freely and fairly make choices about their workplace representation.”The union campaign at Microsoft would affect Q.A. workers at several gaming studios that are a part of ZeniMax Media, including Bethesda, which makes hit franchises like The Elder Scrolls and Fallout.Microsoft, which makes the Xbox series of consoles, acquired ZeniMax for $7.5 billion, a splashy pandemic purchase that helped it compete against rival Sony and its PlayStation consoles, as well as broaden the appeal of Xbox Game Pass, its video game subscription service. The deal closed last year.The first new major, exclusive-to-Xbox game stemming from that purchase, Starfield, is expected to be released next year by Bethesda. Some of the workers who test it may do so as union members.Three ZeniMax employees said that while helping to make video games was a job they had once dreamed of, their Q.A. roles had taken a toll.Victoria Banos, who has worked at one of the company’s studios in Maryland for over four years, said many of her co-workers endured a ritual known as “crunch” a few times each year. It involves working shifts longer than 10 hours during the week and several hours on Saturday, sometimes for weeks in a row, to ensure that a game works properly before the company releases it.“You’re expected to drop whatever you have going on in your life and work whenever they need you to,” said Ms. Banos, who works on The Elder Scrolls Online. She added that ZeniMax had recently made these overtime hours voluntary, but that many employees still felt pressure to work them.She estimated that her hourly wage of $25.50 left her tens of thousands of dollars below what she would earn annually if she performed a similar job at a different kind of software company — like one that makes financial or security software.Other gaming industry Q.A. testers have echoed these points, citing crunch as a continuing problem and arguing that the industry gets away with paying them less because of the allure of its products and the idea that they should be happy to earn an income playing games. Workers say the mind-numbing process of repeatedly testing specific actions for glitches is far different from playing a game for fun.Some ZeniMax workers also said they preferred more liberal policies on working from home, and they complained that the company’s method of allocating training opportunities, additional responsibility and promotions was often arbitrary or opaque. They said they hoped a union would help create more transparent policies.Andrés Vázquez, who has been based at a ZeniMax studio in the Dallas area for more than seven years, said he had yet to be promoted to the next job level, senior Q.A. tester, even though some co-workers who joined the company around the same time had been promoted beyond that level. Whenever he has raised the issue with managers or human resources officials, he said, “I get corporate lip service.”The Microsoft spokeswoman said the company was talking to employees to ensure that they were not taking on too much work, but she did not comment on the other concerns.Still, the workers praised Microsoft for following through on its promise of neutrality. Unlike workers at Starbucks and Amazon, they say, they have not been summoned to meetings in which supervisors seek to dissuade them from unionizing, and they do not feel that the company has retaliated against them for trying to form a union. (Starbucks and Amazon have denied accusations of retaliation.)“It’s been an incredible weight lifted off our shoulders,” said Autumn Mitchell, another Q.A. employee based in Maryland, who has worked on Starfield, the forthcoming game.Workers at the studio near Albany also cited concerns over pay and hours in their decision to unionize, as well as accusations of harassment and discrimination at the company.Amanda Laven, a Q.A. employee involved in the union campaign at the studio, said workers were frustrated that the company had tried to stop their union election on the grounds that it involved only Q.A. workers rather than the whole studio. The National Labor Relations Board had rejected Activision’s attempts to stop the union election at its Wisconsin studio on similar grounds, but the company appealed to the labor board in this case as well.“It’s just a stall tactic,” Ms. Laven said in an interview before the vote count.An Activision spokesman said that the company’s operations in New York and Wisconsin were “very different” in their setup and that it believed the entire Albany studio should be eligible to vote. The spokesman said the company was “considering various legal options,” including seeking to overturn the election.Activision workers seeking to unionize could find the company more receptive in the future.In June, Microsoft announced an agreement with the Communications Workers of America in which it pledged to stay neutral if any of Activision’s U.S. employees sought to unionize after it completed its acquisition. Activision has about 7,000 employees in the country, most of whom are eligible to unionize.Microsoft had a motive for seeking the neutrality agreement: The politically powerful communications workers union had raised questions about the acquisition, which regulators were vetting. The union said its concerns about the acquisition had been resolved after it reached the neutrality agreement.The company hinted at the time that it would extend the neutrality agreement to current Microsoft employees, saying it was prepared to “build on” the deal. The union essentially tested that proposition when it sought to organize Q.A. workers at ZeniMax, and Microsoft followed through.Microsoft may have had an additional reason to take a neutral stance. Showing that it has a healthy relationship with organized labor could help the company navigate the acquisition under the union-friendly Biden administration as scrutiny of the deal intensifies.As if to underscore the point, the union’s president, Chris Shelton, met with the chairwoman of the Federal Trade Commission in October and urged regulators not to block the deal.Karen Weise More

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    Elon Musk Takes a Page Out of Mark Zuckerberg’s Social Media Playbook

    As Mr. Musk takes over Twitter, he is emulating some of the actions of Mr. Zuckerberg, who leads Facebook, Instagram and WhatsApp.Elon Musk has positioned himself as an unconventional businessman. When he agreed to buy Twitter this year, he declared he would make the social media service a place for unfettered free speech, reversing many of its rules and allowing banned users like former President Donald J. Trump to return.But since closing his $44 billion buyout of Twitter last week, Mr. Musk has followed a surprisingly conventional social media playbook.The world’s richest man met with more than six civil rights groups — including the N.A.A.C.P. and the Anti-Defamation League — on Tuesday to assure them that he will not make changes to Twitter’s content rules before the results of next week’s midterm elections are certified. He also met with advertising executives to discuss their concerns about their brands appearing alongside toxic online content. Last week, Mr. Musk said he would form a council to advise Twitter on what kinds of content to remove from the platform and would not immediately reinstate banned accounts.If these decisions and outreach seem familiar, that’s because they are. Other leaders of social media companies have taken similar steps. After Facebook was criticized for being misused in the 2016 presidential election, Mark Zuckerberg, the social network’s chief executive, also met with civil rights groups to calm them and worked to mollify irate advertisers. He later said he would establish an independent board to advise his company on content decisions.Mr. Musk is in his early days of owning Twitter and is expected to make big changes to the service and business, including laying off some of the company’s 7,500 employees. But for now, he is engaging with many of the same constituents that Mr. Zuckerberg has had to over many years, social media experts and heads of civil society groups said.Mr. Musk “has discovered what Mark Zuckerberg discovered several years ago: Being the face of controversial big calls isn’t fun,” said Evelyn Douek, an assistant professor at Stanford Law School. Social media companies “all face the same pressures of users, advertisers and governments, and there’s always this convergence around this common set of norms and processes that you’re forced toward.”Mr. Musk did not immediately respond to a request for comment, and a Twitter spokeswoman declined to comment. Meta, which owns Facebook and Instagram, declined to comment.Elon Musk’s Acquisition of TwitterCard 1 of 8A blockbuster deal. More