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Under Pressure On Plane Safety, Boeing Is Buying Stressed Supplier Spirit For $4.7 Billion

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Arlington, Virginia  – Boeing has announced plans to acquire crucial supplier Spirit AeroSystems for $4.7 billion, claiming that the acquisition will boost jet quality and safety in the face of increased scrutiny from Congress, airlines, and the Department of Justice.

Boeing formerly controlled Spirit, and the acquisition would reverse a long-standing Boeing strategy of outsourcing critical work on its passenger jets. This technique has been criticized after problems at Spirit hampered the manufacturing and delivery of major Boeing jetliners such as the 737 and 787.

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Boeing |Ap News Image

Under Pressure On Plane Safety, Boeing Is Buying Stressed Supplier Spirit For $4.7 Billion

“We believe this transaction is in the best interests of the flying public, our airline customers, the employees of Spirit and Boeing, our shareholders, and the country as a whole,” Boeing President and CEO Dave Calhoun said in a statement late Sunday.

Safety concerns arose following the January 5 burst of a panel on an Alaska Airlines 737 Max 9 at 16,000 feet (4,876 meters) over Oregon. The Federal Aviation Administration soon announced greater oversight of Boeing and Spirit, which supplied the plane’s fuselage.

There were no significant injuries in the Alaska Airlines door incident, which startled passengers, but the US Justice Department is pressuring Boeing to plead guilty to criminal fraud in connection with two catastrophic airline disasters involving its 737 Max jetliners more than five years ago.

According to three people who heard federal prosecutors outline a planned offer on Sunday, Boeing has until the end of the week to accept or reject the offer. The offer includes the major aerospace corporation agreeing to an independent monitor to oversee its compliance with anti-fraud rules.

In a May court filing, the Justice Department stated that Boeing breached the conditions of a 2021 settlement that allowed the corporation to avoid prosecution for its activities leading up to the Ethiopia and Indonesia crashes, which killed 346 people.

These crashes were caused by a defective sensor in a flight-control system, and the investigation is different from the one into the more recent Alaska Airlines blowout, which involved Spirit.

In 2005, Boeing spun off Spirit, a company based in Wichita, Kansas, unrelated to Spirit Airlines. In recent years, quality issues have arisen, such as fuselage panels that needed to fit together precisely enough and holes that were incorrectly drilled.

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Boeing | AP News Image

Under Pressure On Plane Safety, Boeing Is Buying Stressed Supplier Spirit For $4.7 Billion

Spirit fired its CEO in October and replaced him with Patrick Shanahan, a former Boeing executive who served as temporary defense secretary during the Trump administration.

Things appeared to be going more smoothly until the Alaska Airlines incident. Investigators said a panel used to replace an extra emergency door was removed at a Boeing factory to allow Spirit workers to repair broken rivets, and bolts that keep the panel in place were missing following the repair. It is unclear who removed the bolts and neglected to reinstall them.

Spirit announced in May that it was cutting off approximately 450 workers at its Wichita factory due to a production slowdown following the January event. Its overall workforce numbered just over 13,000.

“Bringing Spirit and Boeing together will enable greater integration of both companies’ manufacturing and engineering capabilities, including safety and quality systems,” Shanahan told the media.

According to the aerospace business, the stock value of the acquisition is $4.7 billion, or $37.25 per share, while the total value of the transaction is roughly $8.3 billion, including Spirit’s most recent declared net debt.

Boeing said its common stock will be exchanged for Spirit shares using a variable formula based on a weighted average of the share price during a 15-day trading period that concludes on the second day before the transaction closes.

The businesses also announced a deal with Airbus to pursue the purchase of Spirit assets associated with the European aerospace firm’s programs. The Airbus agreement will take effect after Boeing’s acquisition of Spirit is completed, according to the two US businesses.

SOURCE – (AP)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Xbox Live Goes Down In Nearly Seven-Hour Outage

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Microsoft’s online gaming and digital media network, Xbox Live, experienced a massive outage Tuesday, and thousands of customers reported issues accessing it.

According to monitoring site Downdetector, user-reported Xbox Live difficulties began to surge at 2:15 p.m. ET Tuesday. At 2:25 p.m., the site had received over 23,000 outage reports, with more than three-fourths indicating login troubles. Some Xbox Live customers reported getting an error message indicating that the service was undergoing “scheduled maintenance.”

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Xbox | XBox Image

Xbox Live Goes Down In Nearly Seven-Hour Outage

Other Microsoft-operated services, such as Minecraft and the Microsoft Store, also received many user issue reports on Downdetector.

The official Xbox Support account on X stated at 2:55 p.m. ET, “We are aware that some users have been disconnected from Xbox Live. We are conducting an investigation!” The notice led visitors to the Xbox status page, which was later modified to indicate that a serious outage of the “Account & Profile” service was reported at 2:07 p.m. ET.

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Xbox

Xbox Live Goes Down In Nearly Seven-Hour Outage

“You may be unable to sign in to your Xbox profile, disconnected while signed in, or experiencing other related issues,” the statement on the Xbox status website read. “Features that require sign-in like most games, apps and social activity won’t be available.”

To play online games and access additional experiences on the Xbox console, Windows PC, and Xbox mobile apps, users must first create an Xbox Live account (which is free).

SOURCE – Variety 

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Verizon must pay $847 million to license the patent.

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(CTN News) – General Access Solutions, the company that owns the patent, has been ordered to collect $847 million from Verizon, a major telecommunications carrier in the United States.

According to the information that was provided by The Register, a federal jury in East Texas ordered Verizon to pay General Access the money that was owing to it.

This was stated in the material. The reason for this was that General Access had broken two patents, which led to this situation. As a consequence of this change.

For General Access, Verizon is now responsible for making payments.

According to the decision that was handed down by the court a week ago, the total amount is comprised of a “reasonable royalty” of $583 million for infringing on US Patent No. 7,230,931 (the ‘931) patent, as well as an additional $264 million for infringing on the other patent, which is 9,426,794 (‘794).

The total amount in question is $583 million. The sum in dispute comprises a total of 583 million dollars. Five hundred and eighty-three million dollars is the entire amount that is under question.

According to the allegations, Verizon has committed a violation of the patents that General Access possesses which pertain to the technologies of 5G and hotspots. These patents are related to the technologies that are accessible to the general public without restriction.

General Access was the purchaser of the patents, which had been developed by Raze Technologies, the firm that had bought them. On the other hand, General Access said that some components of Verizon’s 5G wireless networks, smartphone hotspots, wireless home routers, and MiFi devices are in breach of the company’s intellectual property rights.

Raze Technologies was the company that successfully completed the acquisition of the patents offered by General Access.

2001 was the year that both patent applications were initially submitted to the appropriate authorities. The year in which everything began was the year in question.

In the initial complaint that the firm has submitted, it says that the base station technology that Verizon has been deploying is in violation of the 931 patent that it possesses.

This is stated in the complaint that the company has filed. As an additional point of disagreement, the business asserts that the wireless devices produced by Verizon that are capable of receiving 4G and 5G cell signals are in violation of its ‘794 patent. This is due to the fact that these devices route information to mobile stations by abusing 802.11 WiFi communications protocols. This is an additional contentious factor to consider.

In answer to a question that was posed about the patents, Verizon provided a statement in which it suggested that the patents were invalid due to the fact that there was either no written description or the patents were not “fully enabled.”

Verizon’s response to the inquiry is as follows:

According to the official response, this was the response. On the other hand, the members of the jury did not accept this line of thinking in any manner, shape, or form and refused to accept it in any way.

Verizon disclosed that the company will be appealing the verdict in a statement that was issued to DCD. The statement was sent to provide information about the case.

Despite the fact that we have a great deal of respect for the court system, we are unable to express our agreement with the verdict that was reached by this particular jury. As part of our efforts to reverse the verdict that was handed down today, we are going to file an appeal, and we are also going to continue searching for administrative remedies.

In line with a statement that was released by a spokesperson for Verizon, this does not imply the fact that the situation has been resolved.

According to Law 360, Ericsson, a Swedish component manufacturer, is also vehemently opposed to the verdict. The business has declared that it will support any challenge that Verizon takes forward, and it has stated that it will defend itself against any other challenge. The company Ericsson is widely recognized as a frontrunner in the business when it comes to the creation of components.

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To navigate the climate proposal, BlackRock employs a new voting policy.

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To navigate the climate proposal, BlackRock employs a new voting policy.

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(VOR News) – The $10.5 trillion money BlackRock manager’s assets will vote differently on shareholder proposals than the funds that have specific climate change mandates. This is BlackRock’s most recent attempt to navigate the political rift over decarbonization.

The world’s biggest asset management said in a statement on Tuesday that clients of funds with a climate focus will now be allowed to voice their opinions aggressively in shareholder resolutions pertaining to decarbonization.

All of BlackRock’s funds are susceptible to climate risk.

Still, funds that follow its recently released “climate and decarbonization stewardship guidelines” will evaluate whether or not companies are really attempting to keep the rise in world average temperature to 1.5 degrees Celsius over pre-industrial levels.

The Paris Agreement, which over 200 nations joined, set this goal as the optimal threshold.

The head of BlackRock, Larry Fink, was a vocal early proponent of integrating sustainability into the investment process. In his letter to investors for the 2020 annual meeting, he raised the topic of climate change, but he has subsequently faced criticism from all sides.

With the new stewardship policy, BlackRock is attempting to reconcile US regulations compelling fund managers to focus on financial returns with the expectations of its clients in Europe and the US, who want the company to promote decarbonization.

In a letter to clients, Joud Abdel Majeid, Global Head of Stewardship at BlackRock, said that the policy will start to apply to 83 funds in the fourth quarter. $150 billion worth of assets are held by these funds, all of which are headquartered in Europe.

Conservatives in the US are starting to push back, denouncing the movement as “woke capitalism.” This is true even if a large number of progressives and investors in Europe favor advancing the effort to limit global warming as quickly as is practical.

The boards of directors of funds with a special responsibility for climate change in the United States and Asia will be asked if they would like to carry out the policy later this year. The climate-related option that BlackRock intends to offer will also be available to clients who invest through independently managed accounts.

“BlackRock will continue to undertake our stewardship responsibilities with a sole focus on advancing clients’ long-term financial returns in line with our benchmark policies,” Abdel Majeid stated.

“BlackRock will continue to handle all other funds.”

As a result, the climate-focused funds might adopt stances on business votes related to fossil fuels and other decarbonization-related issues that are completely at odds with those of the other funds in the group. They will follow BlackRock’s primary criteria for additional environmental, social, and governance considerations in all other cases.

Since the spike in energy prices that coincided with Russia’s full-scale invasion of Ukraine two years ago, BlackRock has been the subject of intense political discourse. Conservatives have tried to limit or boycott the company’s offerings. Simultaneously, proponents of climate change expressed their annoyance at the company’s sharp drop in backing for shareholder resolutions related to the issue.

Since then, the asset manager has claimed that a large number of recently passed shareholder resolutions by businesses were unduly prescriptive and did not support customers’ financial interests.

BlackRock withdrew its support from Climate Action 100+, an investor group founded to motivate companies to combat global warming, at the beginning of this year. Instead of carrying on with global participation, it chose to move membership to its smaller foreign subsidiary.

BlackRock has also implemented a policy that gives institutional clients and some retail investors authority over how their shares are voted on proxy matters.

Investors may choose to entrust BlackRock with their vote or they can choose from over a dozen policies created by proxy advisers Institutional Shareholder Services and Glass Lewis through the “voting choice” scheme.

SEE ALSO:

Google Falling Short Of Important Climate Target, Cites Electricity Needs Of AI

Under Pressure On Plane Safety, Boeing Is Buying Stressed Supplier Spirit For $4.7 Billion

Alibaba will discontinue its data center operations in India and Australia.

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