AlamyThere have been a lot of big events in the business world this year, including soaring profits, major corporate bankruptcies and lawsuits.
Amid economic uncertainty, international political tensions and ongoing leadership changes, 2023 has brought us some big business events that have shaped our year and will set the stage for the coming months.
February: TikTok bans expand globally
By 2023, several governments around the world Use prohibited The Chinese government has banned Chinese tech company ByteDance's TikTok on devices, citing security concerns about sharing data with the Chinese government. In 2023, such bans spread rapidly.
In February, European Commissionthe European Parliament and the Council of the EU have all imposed bans on the use of TikTok on government employee devices. Canada as wellrequired the app to be removed from federal devices. EnglandNew Zealand and Denmark have also taken similar measures, and more than a dozen countries now have partial or full bans in place.
In late February, the U.S. government Employees were given 30 days to uninstall TikTok. Laws have been enacted banning smartphones from work devices, with more than half of U.S. states now enacting similar bans, and universities and private companies following suit.
March and May: Three US banks fail
The reasons why the banks failed varied, but their collapse triggered a crisis of consumer confidence in the US banking system in an economy where inflation was already soaring. The US government took steps to quell the panic, including providing emergency aid and guarantees to customers who exceeded the FDIC's insurance limits. These financial institutions It will be “perfect.”
By May, the crisis seemed all but over. But some Americans Banks remain vulnerable to sudden interest rate hikesThey are also sitting on huge amounts of cash amid an uncertain economic climate. Regulators are taking steps to prevent similar collapses in the future, including strengthening scrutiny of risk management.
AlamyMay: Writers Guild of America's “strike summer” begins
Trade unions have been extremely active this year. Across the UKFor example, workers in sectors such as transportation, health care, law and education have gone on strike in large numbers to demand higher wages, better working conditions and future job security in a changing technological environment.
The summer is a particularly active time, with the Writers Guild of America (WGA), which represents more than 10,000 American screenwriters, clashed with the Motion Picture and Television Producers Union over contract termsIt was not the union's first strike, It continued until September – 148 days, significantly longer than the 100-day strike in 2007. The Hollywood Actors Guild (Sag-Aftra) showed up in solidarity in July and began demanding their own contract improvements shortly thereafter.
The scale of the collective action was astounding, Workers' gains after negotiationsIn many cases, workers around the world have gained unprecedented wage increases and job security, especially in an environment of rising living costs and rapid technological advances.
May: NVIDIA's market cap reaches $1 trillion ($797 billion)
This is a key indicator of where analysts think the business is headed. Nvidia makes about three-quarters of the chips. The company works in the field of computers that power generative artificial intelligence, and its rapid rise reflects a shift in the tech environment around the world as investors bet big on an AI boom.
AlamyIn October 2022, after many rounds of negotiations, Elon Musk signs deal to buy Twitter, $44 billion (£35.1 billion)The takeover started out hostile, and within a few weeks the company had begun laying off nearly half its workforce. It was a stunning way to cap a tumultuous year for Twitter, and only laid the groundwork for what came next.
Since then, Musk's ownership has been the subject of significant controversy and financial turmoil. In October, the value of X fell to less than half of its purchase price. The platform has not only lost users, but tens of millions of dollars in advertising revenue. Musk responded to the decline by saying: November 23rd: Interview with Andrew Ross Sorkin of DealBookbillionaire launched a blasphemous attack Blame the brands that have withdrawn.
A new problem has arisen for Musk and his X. In late December, the EU formally banned The platform broke the rules In areas such as combating false information and illegal content.
September: Rupert Murdoch steps down
After a turbulent year, 92-year-old Rupert Murdoch He announced that he would resign As chairman of the board of directors of News Corporation and Fox Succession Wind BattleMurdoch's son, Lachlan, became chairman of both companies in addition to his role as CEO and chairman of the board of Fox.
In April, Rupert Murdoch Fox News settles defamation lawsuit The billionaire global media mogul, who received $787.5m (£620m) in damages from voting machine maker Dominion over its coverage of the 2020 presidential election, is stepping down at a crucial time in the run-up to the 2024 US election. LachlanWhose His management style is similar to his father's..
AlamyOctober: FTX’s Sam Bankman Freed goes on trial
In October 2023, former billionaire Bankman Freed and several employees of FTX and crypto hedge fund Alameda Research went on trial on charges including wire fraud, securities and commodities fraud, and money laundering. Several employees pleaded guilty. Bankman Freed on trial After a month of testimony in New York City, Bankman Freed, 31, He was quickly convicted of all seven charges. He is facing charges and awaiting sentencing.
Bankman Freed's conviction has left a stain on the cryptocurrency industry, as FTX was a household name. Other companies in the industry have tried to move forward, but it has proven difficult. Investors are skeptical and largely unwilling to inject capital into the industry. Regulators are keeping a close eye on As for what happens next.
Another issue undermining trust is the resignation of Changpeng Zhao (CZ), CEO of the large international cryptocurrency exchange Binance, in November, shortly after Bankman Fried’s guilty plea. Zhao pleaded guilty to money laundering offences.The US government has ordered him to pay a fine of $50 million (£39.8 million) and he could face up to 18 months in prison, possibly longer.
October: Microsoft acquires Activision Blizzard
Despite the US Federal Trade Commission's (FTC) attempt to block Microsoft's acquisition of video game developer Activision Blizzard, the $68.7bn (£54.7bn) deal went ahead. Closed in OctoberAs Microsoft's biggest acquisition everThe move strengthens the company's power and profile in the gaming industry.
But perhaps more importantly, the completion of the deal deals a blow to the Biden administration's broader plan to fight mergers and acquisitions that could lead to higher prices for consumers. The merger, worth $170 billion (£135.4 billion), was completed.Questions remain about whether President Biden's antitrust efforts are working.
In December, the FTC again The legality was challenged But antitrust lawyers say they expect a big uphill battle on appeal.
AlamyNovember: WeWork files for bankruptcy
Global co-working giant WeWork was once valued at $47bn (£37.4bn) Filed for bankruptcy The protection was lifted on November 6. Shares plummeted, and the troubled company's valuation fell to Under $50 million (£41 million)The dramatic drop in stock prices had been expected for years after the company's failed IPO in 2019, but experts still saw the company's decline as a shock.
While WeWork's bankruptcy was largely due to a flawed business model that relied on excess real estate ownership, it leaves the coworking industry with a question: Does anyone still want these spaces? Job trend experts and industry entrepreneurs both say yes.Even in hybrid working arrangements, people still want to connect, and increasing industry revenues suggest demand is sustained.
December: Purdue Pharma settlement appealed to U.S. Supreme Court
At the end of the year, a high-profile case against Purdue Pharma, the US manufacturer of OxyContin, reached the Supreme Court. Currently under review Whether to allow a multi-billion dollar bankruptcy plan to go ahead.
If this were to happen, the Sackler family, who own the pharmaceutical companies, would be immune from any future civil liability. March 2022 Agreement To pay out his personal share of $6 billion (£4.78 billion). The outcome of the case could set a precedent for how US companies can use bankruptcy law to protect themselves from civil lawsuits. Debates are ongoing and a decision is likely to drag on into 2024.
If 2023 is any indicator of the business environment in 2024, there will be a lot to look out for in the new year.
