Apple didn’t know that activist investors wanted it it take on child safety (AAPL)
Apple didn’t know that two of its biggest investors, Jana Partners and the California State Teachers’ Retirement System, wanted it to take a bigger role in children safety.
Apple was given a heads-up call shortly before the investors publicly released a letter calling for changes, but the letter wasn’t the result of previous talks or suggestions made privately to Apple.
The letter received an immediate response from Apple promising to add features and upgrade its existing child safety features. Apple also pointed out that it has offered child safety features since 2008.
Last week, Apple was the target of an interesting PR situation in which everyone involved walked away winners.
Apple was somewhat blindsided by an open letter by activist hedge fund JANA Partners and powerhouse institutional investor the California State Teachers’ Retirement System (CalSTRS) demanding that the iPhone maker do more to protect kids from the dangers of too much screen time, a person familiar with the situation tells Business Insider.
The company received a “courtesy call,” shortly before this PR campaign launched, as this person described it, but the investors had not been in talks behind-the-scenes with Apple prior to the letter being made public.
In the letter, investors that jointly owned $2 billion worth of Apple stock, asked Apple to invest in research on the topic and to create a committee that included academic researchers to help it create new child safety features.
Apple promptly responded with a statement, pointing out that it’s had parental controls in its software since 2008 but promising to update them. “Apple has always looked out for kids, and we work hard to create powerful products that inspire, entertain, and educate children while also helping parents protect them online. We have new features and enhancements planned for the future to add functionality and make these tools …read more
Source:: Business Insider