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Morgan Stanley to Increase Sale of Loans Tied to Musk’s X Amid Strong Demand

Morgan Stanley, leading a group of banks, is set to increase the sale of loans linked to Elon Musk’s social media platform X, following stronger-than-expected demand from investors, according to Bloomberg News on Tuesday. Initially, the banks had planned to sell around $3 billion in loans, but the revised target now stands at up to $5.5 billion, reflecting investor interest that exceeded expectations.

In November, reports indicated that Musk’s rising political influence and connections to former President Donald Trump played a role in improving prospects for the platform, which helped banks manage the debt sale without incurring heavy losses. Morgan Stanley, along with other financial institutions like Bank of America and Barclays, provided Musk with loans in 2022 to support his $44 billion acquisition of X, formerly known as Twitter.

Typically, banks sell such loans to investors shortly after a deal is finalized, but the process has been more challenging in the case of X. Despite this, the latest demand suggests a more favorable outcome for the banks involved.

Amazon Increases Ad Spending on Elon Musk’s X Despite Past Concerns

Amazon is reportedly ramping up its advertising spend on Elon Musk’s social media platform X, according to the Wall Street Journal. This marks a significant shift from the e-commerce giant’s decision to pull much of its advertising from the platform over a year ago due to concerns about hate speech.

The move follows a period of decreased ad spending on X by other major companies, including Apple, which removed its ads in 2023. However, Apple has since engaged in discussions about testing ads on the platform again. Other advertisers, including tech and media companies, also suspended their campaigns after Musk’s endorsement of an antisemitic post, which falsely accused Jewish people of inciting hatred against white people.

Since Musk’s acquisition of the platform, formerly known as Twitter, in October 2022, X has seen a sharp decline in monthly U.S. ad revenue—dropping at least 55% year-over-year each month. Musk has acknowledged the risk of a prolonged advertising boycott, admitting that it could potentially bankrupt the platform.

 

Meta’s ‘Community Notes’ System Reportedly Excludes Paid Advertisements

Meta, the parent company of Facebook, has revealed that its upcoming “Community Notes” feature, which draws inspiration from the model used on Elon Musk’s social media platform X, will not extend to paid advertisements. According to a source familiar with the matter, this new feature is expected to be introduced later this year in the United States. Meta plans to gradually roll out the system over the next few months, with continuous evaluation and adjustments anticipated throughout the year. A spokesperson for Meta emphasized that the company is still refining the product and intends to improve it as it moves forward.

The Community Notes feature is designed to allow users to provide context and additional information on content shared across Meta’s platforms. However, the spokesperson clarified that paid ads will be excluded from this system, meaning that advertisements will not be subject to community-driven fact-checking or clarification in the same way as organic posts. This distinction highlights Meta’s approach to balancing user interaction and the commercial aspects of its platform, ensuring that paid content remains under the purview of the company’s standard advertising policies.

In the context of the upcoming political climate, Meta is undergoing significant changes in how it manages content, particularly related to political discourse. Last week, the company made headlines by discontinuing its US fact-checking program, marking a shift in its approach to moderating political content. Instead, Meta has announced plans to implement the “Community Notes” system to manage the accuracy and context of posts surrounding sensitive topics. This change is seen as part of Meta’s broader efforts to navigate the evolving landscape of content moderation and user-generated information, especially in the run-up to the inauguration of US President-elect Donald Trump.

While the company has confirmed some details about the transition to Community Notes, a Meta spokesperson emphasized that further information beyond what has already been publicly shared remains speculative. As the rollout of this new system continues, it will likely be closely watched, both by users and regulatory bodies, as Meta seeks to address concerns about misinformation while still supporting a diverse range of viewpoints on its platforms.