What happens when a former president, a tech billionaire, and a social media empire collide? You get a legal showdown that ends in a hefty $25 million payout, a Mar-a-Lago dinner, and a touch of Silicon Valley diplomacy.
The Billionaire, the Ban, and the Big Payout
Former President Donald Trump and Meta®, the parent company of Facebook® and Instagram®, have settled a federal lawsuit over Trump's suspension from the platforms following the Jan. 6, 2021 Capitol riots. The deal, first reported by The Wall Street Journal, includes a $25 million payment from Meta; $22 million of which will go toward Trump's presidential library. The remaining sum will cover legal costs and compensate other plaintiffs involved in the suit.
Meta, for its part, isn't admitting any wrongdoing. The company maintains that Trump's suspension was due to violations of its policies against inciting violence, not government pressure as Trump's lawsuit alleged. But with this payout and recent high-profile policy changes, it seems Mark Zuckerberg and company are looking to smooth things over with the Trump camp
From Feuding to Fine Dining
Trump and Zuckerberg's relationship has been a rollercoaster ride. Once accused of being "anti-Trump" and labeled an "enemy of the people" by the former president, as reported by BBC, Zuckerberg now appears to be back in Trump's good graces.
The apparent thawing began in November when the two dined at Mar-a-Lago, where Trump reportedly made it clear that resolving the lawsuit was necessary for Zuckerberg to be "brought into the tent," as reported by NPR. A month later, Meta donated $1 million to Trump's inauguration fund, and Zuckerberg found himself seated among tech moguls at the Capitol.
And the reconciliation didn't stop there. In January, Meta ended its fact-checking program, a move long criticized by Trump's supporters. The company also promoted Republican lobbyist Joel Kaplan to head global affairs and added Trump ally Dana White to its board. The tech giant's recent actions suggest that it is making strategic moves ahead of the 2024 election cycle.
A New Era for Big Tech?
While Meta is patching things up with Trump, it is also investing heavily in artificial intelligence, to the tune of $65 billion. Zuckerberg recently told investors that the rise of Chinese AI competitors, such as DeepSeek, has reinforced Meta's commitment to open-source AI.
Despite the financial strain of these massive investments, Meta is thriving. The company reported a quarterly profit of over $20 billion, a 49% increase from the previous year. And while many tech stocks stumbled following DeepSeek's rise, Meta's stock held strong.
So, what's next for Meta, Trump, and the relationship between social media and politics? Only time will tell, but one thing's for sure: When billionaires and former presidents start playing nice, the stakes — and the headlines — only get bigger.
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