Elon Musk's Twitter saga was wild but what about these other top stories of 2022? We're recounting the biggest stories of the year in Five For Friday.

Simone Del Rosario Business Correspondent

Musk’s Twitter takeover tops 5 biggest business stories of 2022

Dec 30, 2022

Simone Del Rosario Business Correspondent

By Simone Del Rosario (Business Correspondent), Emma Stoltzfus (Editor), Brent Jabbour (Producer)

The last 12 months have been a rollercoaster for business and economic news. Unfortunately, most of us are entering 2023 with a lot less fortune. Here are the biggest stories that dominated 2022 headlines in this week’s Five for Friday.

#5: FTX Scandal

Cryptocurrency was already facing turmoil amid the long crypto winter. Then, the end of the year brought scandal in the sector. It will take months or years to get to the bottom of how FTX founder Sam Bankman-Fried allegedly muddied the finances between the exchange and his hedge fund Alameda Research. Billions in customer and investor funds are missing and Bankman-Fried is facing eight criminal charges and is living with his mom and dad under house arrest.

#4: Inflation nation

Inflation could have been 2022’s word of the year, but for some reason Oxford’s is “goblin mode.” Prices peaked in June, up 9.1% year-over-year, a 4-decade high. Congress tried to deal with it by passing the massive Inflation Reduction Act, which doesn’t immediately reduce inflation. The Federal Reserve also tightened monetary policy while raising interest rates from near zero to above four percent. Inflation still sits well above the Fed’s threshold of 2%.

#3: Disney v. Florida

Disney ended up in the middle of the controversy over Florida’s so-called “Don’t Say Gay” bill. Facing pressure to take a stand from the company’s employees, then-CEO Bob Chapek eventually said the company was against the legislation from the start but had kept quiet in public. Gov. Ron DeSantis, R-Fla., and the state’s legislature retaliated by revoking Disney’s special tax status that allowed the company to operate as its own city. While Chapek was able to weather that storm, he was fired in November after huge losses in streaming. Former Disney CEO Bob Iger swung in to save the day and helm the House of Mouse once again.

#2: Russia’s invasion of Ukraine

Prices were already high when Russia invaded Ukraine in February, which sent energy and commodities prices surging even further. Oil soared over $120 per barrel over the uncertainty, with Russia accounting for around 10% of global supply. The E.U. had an even harder time with skyrocketing energy prices due to its reliance on Russia for natural gas and coal. Wheat prices also spiked since Ukraine accounts for roughly 10% of the world market. It took months for the United Nations to work out a deal with Russia to get Ukrainian exports flowing again.

#1: Twitter Takeover

The Elon Musk Twitter saga has easily been the biggest business story of the year. Let’s take a brief look at what happened. Musk offered to buy Twitter and the board eventually accepted. He then tried to back out of the deal, blaming bots on the platform, and was sued by Twitter. Musk later decided to move forward with the $44 billion deal. He took Twitter private and became the CEO. He orchestrated the Twitter Files, and amid uproar over his “free speech absolutist” approach, he conducted a Twitter poll asking whether he should step down, a move the majority of voters supported. Musk eventually agreed to do so once he finds a successor. All of this has taken its toll on Tesla’s stock, which has plummeted.

Tags: Alameda Research, Bob Chapek, Bob Iger, Cryptocurrency, Disney, Disney World, Don’t Say Gay, Economy, Elon Musk, Federal Funds Target Rate, Federal Reserve, Florida, FTX, Gas prices, Inflation, Inflation Reduction Act, Interest rates, Jerome Powell, Natural gas, Oil, Ron DeSantis, Russia, Russian Oil, Sam Bankman-Fried, Stock Market, Tesla, Twitter, Twitter Files, Ukraine

SIMONE DEL ROSARIO:

WELL IT CERTAINLY HASN’T BEEN BORING. 2022 HAS BEEN A ROLLER COASTER FOR BUSINESS AND ECONOMICS, AND MOST OF US ARE ENTERING THE NEW YEAR WITH A LOT LESS FORTUNE. HERE ARE THE BIGGEST STORIES THAT DOMINATED THIS YEAR’S HEADLINES IN THIS WEEK’S FIVE FOR FRIDAY.

AS IF CRYPTO WASN’T ALREADY HAVING THE LONGEST WINTER EVER, THE END OF THE YEAR BROUGHT THE SCANDAL OF THE YEAR. WE’RE JUST SCRATCHING THE SURFACE NOW ON HOW FTX FOUNDER SAM BANKMAN FRIED ALLEGEDLY MUDDIED THE FINANCES BETWEEN THE CRYPTO EXCHANGE AND HIS HEDGE FUND. BUT BILLIONS IN CUSTOMER AND INVESTOR FUNDS ARE MISSING AND SBF IS FACING EIGHT CRIMINAL CHARGES AND IS UNDER HOUSE ARREST AT MOM AND DAD’S.

INFLATION COULD’VE BEEN THE WORD OF 2022, ALONG WITH THE PHRASE, “SETTING A NEW 4-DECADE HIGH,” WHICH I WAS FORCED TO SAY MONTH AFTER MONTH. PRICES FINALLY PEAKED IN JUNE, UP 9.1 PERCENT FROM THE YEAR PRIOR. CONGRESS TRIED TO DEAL WITH IT BY PASSING A MASSIVE SPENDING BILL DUBBED THE INFLATION REDUCTION ACT THAT DOESN’T IMMEDIATELY REDUCE INFLATION, AND THE FED OPENED ITS TOOLBOX, TIGHTENING MONETARY POLICY WHILE RAISING INTEREST RATES FROM NEAR ZERO TO ABOVE 4 PERCENT. AND STILL, THE INFLATION RATE’S THREE TIMES HIGHER THAN IT SHOULD BE.

DISNEY ENDED UP IN THE MIDDLE OF THE FIRESTORM OVER FLORIDA’S SO-CALLED “DON’T SAY GAY” BILL. FACING PRESSURE FROM EMPLOYEES, CEO BOB CHAPEK SAID THE COMPANY WAS AGAINST THE LEGISLATION AFTER FIRST STAYING MUM. THEN GOVERNOR DESANTIS RETALIATED BY REVOKING DISNEY’S SPECIAL TAX STATUS THAT ALLOWED THE HOUSE OF MOUSE TO OPERATE AS ITS OWN CITY. SEEMS CHAPEK FROM THIS POINT ON WAS ON BORROWED TIME. HE GOT THE BOOT IN NOVEMBER AFTER HUGE LOSSES IN STREAMING AND FORMER CEO BOB IGER SWUNG IN TO SAVE THE DAY.

PRICES WERE ALREADY ON THE “WAY TOO HIGH” END OF THE METER WHEN RUSSIA INVADED UKRAINE IN FEBRUARY, SENDING ENERGY AND COMMODITIES PRICES SOARING. OIL TOUCHED WELL OVER $120 A BARREL OVER THE UNCERTAINTY, WITH RUSSIA ACCOUNTING FOR AROUND 10% OF GLOBAL SUPPLY. THE E-U GOT IT EVEN WORSE BECAUSE OF ITS RELIANCE ON RUSSIA FOR NATURAL GAS AND COAL. AND WHEAT PRICES ALSO SPIKED SINCE UKRAINE ACCOUNTS FOR ABOUT 10% OF THE WORLD MARKET. IT TOOK MONTHS FOR THE U-N TO BROKER A DEAL WITH RUSSIA TO GET EXPORTS FLOWING AGAIN.

THE WHOLE ELON MUSK TWITTER SAGA IS A BIT MUCH. HE MADE AN OFFER TO BUY TWITTER, THE BOARD ACCEPTED, HE TRIED TO BACK OUT, GOT SUED, AND THEN DECIDED TO GO THROUGH WITH THE $44 BILLION DOLLAR DEAL. MUSK TOOK IT PRIVATE, BECAME CEO,RELEASED THE TWITTER FILES, AND AMID UPROAR OVER HIS “FREE SPEECH ABSOLUTIST” APPROACH HE DID A TWITTER POLL ASKING WHETHER HE SHOULD STEP DOWN. HE WAS VOTED OFF THE ISLAND AND AGREED TO DO SO ONCE HE FINDS HIS SUCCESSOR. OH AND ALL OF THIS CAUSED TESLA STOCK TO PLUMMET.

WHEW, WE COULD HAVE DONE 5 WACKY THINGS ELON MUSK HAS DONE ALONE. HOPEFULLY I’LL BE SAYING HIS NAME A LITTLE LESS NEXT YEAR. HAPPY NEW YEAR EVERYONE. THAT’S FIVE FOR FRIDAY. I’M SIMONE DEL ROSARIO. IT’S JUST BUSINESS.