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Tesla proposes giving Elon Musk $29 billion so he stays CEO

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Tesla approved a restricted stock award of 96 million shares, worth about $29 billion, to “incentivize” the controversial billionaire to remain at the head of the company during a protracted legal battle over his original pay package.

Last year, a Delaware court voided Musk’s pay package, valued at more than $50 billion, arguing that the deal was flawed and unfair to shareholders and that Musk held undue influence over its composition. Shareholders had voted twice to approve the hefty compensation, but the judge still upheld her ruling blocking it. Tesla has appealed the decision to the Delaware Supreme Court.

Now, the company is asking shareholders to approve this new award, arguing that Tesla is on the cusp of becoming a leader in AI and robotics, requiring Musk’s steady hand on the helm. To be sure, Tesla’s position is shakier than ever. Musk’s support for President Donald Trump and his work at the Department of Government Efficiency to fire tens of thousands of federal workers and cancel humanitarian aide programs has spawned a nationwide protest movement and a steep drop in sales. Tesla’s stock has shed more than 20 percent of its value so far this year.

Still, Tesla’s board sees Musk’s continued involvement as essential to the company’s future. Earlier this year, Tesla’s board created a special committee compromised of board chair Robyn Denholm and board member Kathleen Wilson-Thompson to consider new ways to compensate Musk, who the board claims “has not received meaningful compensation for eight years.”

“While we recognize that Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging … we are confident that this award will incentivize Elon to remain at Tesla and focus his unmatched leadership abilities on further creating shareholder value for Tesla shareholders and attracting and retaining talent at Tesla,” Denholm and Wilson-Thompson wrote in a letter to shareholders.

The board noted that if the Delaware courts fully reinstate Musk’s 2018 pay package, the new interim grant would be forfeited or offset so there is “no double dip.” In accepting the new stock, Musk would agree to serve as head of Tesla until 2027. Shareholders will vote on the new deal at their annual meeting, which is scheduled for November 6th.

After years of exponential growth, the sudden reversal in Tesla’s fortune has left many investors and supporters with whiplash. As Musk slid deeper into politics, investors have urged him to stay focused on Tesla and its costly — and questionable — project to build more self-driving cars and humanoid robots. The company rolled out its first robotaxi service in Austin, Texas, last month — although the service fell short of Musk’s earlier predictions. The company’s only new product since 2020, the Cybertruck, has widely been considered a flop. And competition from legacy automakers, especially those in China, has been sapping Tesla’s resources.

Musk is currently Tesla’s largest shareholder, with a 13 percent stake in the company. But the CEO has said he wants more control over the company in order to have more sway over its mission — which this plans aims to produce.

“That is a major concern for me, as I’ve mentioned in the past, and I hope that is addressed at the upcoming shareholders meeting,” Musk said in a recent earnings call, in response to a question about his voting stake. “I want to find that I’ve got so little control that I can easily be ousted by activist shareholders after having built this army of humanoid robots … I’ve mentioned before, I think my control of Tesla should be enough to ensure that it goes in a good direction, but not so much control that I can’t be thrown out if I go crazy.”

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Valve founder Gabe Newell just purchased a superyacht company

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In a post about the change, Oceanco says Newell’s interest in the brand comes from a “lifelong fascination with the sea” and “a deep respect for the people who live and work on it.” Oceanco is based in the Netherlands, and it has changed leadership a few times since its founding in 1987, with private investor Mohammed Al Barwani helming the company for the past 15 years before Newell came along.

As for what Newell plans to do now that he’s the head of a big superyacht builder, Oceanco puts it pretty simply: “His first decision? Leave the team alone. Seriously. Oceanco has vision and integrity, and a culture that actually works. Gabe doesn’t want to fix it, he wants to fuel it.”

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Sengled’s downfall shows the peril of relying on cloud connections for smart home control

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After repeatedly leaving customers without smart control of their lights, Sengled has been booted from Amazon’s Works With Alexa program. As first reported by TechHive, beginning August 1st, Sengled’s Alexa skill for controlling its line of LED lights, plugs, switches, and sensors with your voice and routines is no longer available.

In a statement to The Verge explaining the decision, Amazon spokesperson Lauren Raemhild said, “We hold a high bar for the Alexa experience. Sengled has experienced a series of prolonged outages over the past few months that have not been resolved, preventing customers from being able to use Sengled’s Alexa skill to control their light bulbs.”

The future doesn’t look bright for Sengled, which has been silent since the problems started appearing earlier this summer. There appears to have been no communication to customers from the company (Amazon did reach out to its customers about the outages), and no indication of these issues on its website. Repeated attempts by The Verge to contact Sengled have been met with no response.

If your Sengled bulbs were Wi-Fi, you’re out of luck.

There is some good news. If you own Sengled bulbs that use Zigbee, BLE Mesh, or Matter, rather than Wi-Fi, they can still work with Alexa by bypassing Sengled’s spotty servers and connecting to a compatible Echo speaker or Eero Wi-Fi router (this may require setting them up again). Another option is to connect Zigbee bulbs to third-party platform hubs that support the protocol, such as Home Assistant, Hubitat, or the Aeotec SmartThings hub.

But if your bulbs were Sengled’s Wi-Fi ones, you’re out of luck. These won’t connect to Alexa, although they will still work with Sengled’s app, for as long as Sengled’s servers are still running. Users have started reporting problems there, too. All of which goes to show that relying on cloud services to turn your lights on is a fragile solution.

This is a story we’ve seen too often in the smart home. Just last month, Belkin shuttered its WeMo smart home business, and the smart home graveyard is littered with other examples: iHome, Revolv, Staples Connect, Lowes’ Iris, Best Buy’s Insignia, and more.

A common thread with these shutdowns is that the products relied on cloud servers. At one time, it was easier and less expensive for a company to develop a cloud-based controller than a local system, as they don’t require a hub or bridge and can be simpler to set up and use.

However, companies have to maintain those servers, as well as API connections to smart home platforms and voice assistants like Alexa and Google Assistant, which can be costly and resource-intensive. When the business model no longer pans out, history shows us that if they can’t sell it, companies just shut it down.

This brings me to my best piece of advice to anyone buying a smart home device today, especially something as integral as lighting: make sure it has the option of local control. That way, if the company goes under or stops providing the service you signed up for, then your device will still keep working (in some fashion). Plus, locally controlled devices tend to be faster, as they don’t have to wait for a response from a server.

Relying on cloud services to turn your lights on is a fragile solution.

As noted, some Sengled bulbs don’t rely on a cloud connection and instead can work locally in your home. Thanks to a connection via local protocols like Apple’s HomeKit or Zigbee, some products from those companies listed above also still work, even though their servers are gone.

That’s one of the reasons why the new Matter standard is so crucial to the smart home. While it has had its problems, Matter is built on the foundations of HomeKit, Zigbee, and other technologies. It’s an entirely local protocol, communicating to a Matter controller (hub) in your home, not to a company’s cloud.

While Matter ecosystems such as Apple Home, Google Home, Amazon Alexa, and Home Assistant can connect to the cloud to give control when you’re away from home and enable other features like voice assistants, that’s a layer on top of Matter. If a device like a smart bulb supports Matter, either over Wi-Fi or Thread, you don’t need the internet to turn on the lights. And, if the manufacturer’s server dies, your device won’t.

Matter isn’t the only option here. Devices that work over Zigbee, Z-Wave, BLE and BLE Mesh, and local Wi-Fi, also offer local control. But the standardization of Matter, its wide industry support, and its use of non-proprietary IP-based protocols Matter and Thread all broaden its overall compatibility and should make it more futureproof.

The situation with Sengled is just the latest reminder that for a truly reliable smart home, look for local control. While the cloud offers benefits, it should be part of your solution for a smarter home, not the only one.

Developed by Apple, Amazon, Google, Samsung, and others, Matter is an open-sourced, IP-based connectivity software layer for smart home devices. It works over Wi-Fi, Ethernet, and Thread.

Thread is a low-power, wireless mesh protocol. It operates on the same 2.4GHz spectrum as Zigbee and is designed for low-power devices, such as sensors, light bulbs, plugs, and shades. IP-based, Thread devices can communicate directly with each other, the internet, and with other networks using a Thread Border Router.

Today, Matter supports most of the main device types in the home, including lighting, thermostats, locks, robot vacuums, refrigerators, dishwashers, dryers, ovens, smoke alarms, air quality monitors, EV chargers, and more.

A smart home gadget with the Matter logo can be set up and used with any Matter-compatible ecosystem via a Matter controller and controlled by more than one ecosystem with a feature called multi-admin.

Amazon Alexa, Google Home, Samsung SmartThings, Apple Home, Home Assistant, Ikea, and Aqara are among the well-known smart home companies supporting Matter, along with hundreds of device manufacturers.

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IGN hit by layoffs as parent company Ziff Davis cuts costs

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“The company has told us that the reason for this layoff stems from a Ziff Davis-mandate to cut costs despite several quarters in a row of year-over-year revenue increases, to which IGN Entertainment responded by coming for our members’ jobs,” the guild says. “This is perplexing to us, as we are told again and again that IGN Entertainment has had a tremendously successful year thus far thanks to their hard work.”

An employee in the engineering department was also laid off, Hunter Paniagua, a representative of the Pacific Media Workers Guild, which represents the IGN Creators Guild, tells The Verge.

Ziff Davis didn’t immediately reply to a request for comment. Last year, across all of Ziff Davis, the company employed approximately 3,800 people, according to an SEC filing.

Last year, IGN acquired the website portfolio of Gamer Network, which includes publications like Eurogamer, Gamesindustry.biz, and Rock Paper Shotgun. Terms of that deal weren’t disclosed at the time.

“The company has not responded to the union’s questions about whether its budget for future acquisitions is being reconsidered as a cost-saving measure alongside these other apparently necessary personnel cuts,” the IGN Creators Guild says.

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