Premium: Elon Musk loses a loyal supporter over fling with Sergey Brin’s estranged wife

START YOUR MORNING BY LISTENING TO TODAY'S BIZNEWS BREAKFAST BRIEFING – Fed to hike rates 0.75%, but market already expects cuts in 2023; SA's informal economy booming; European banks, US dollar and Ukraine's finmin..___STEADY_PAYWALL___.Back in 1997 when a venture capitalist acquired a slice of my Internet publishing start-up, he told me that his biggest risk was how I'd react after his investment hit my account. Having money and the power it brings, he said, changes people. Often for the worse. .I was reminded of these wise words when reading the Wall Street Journal's exclusive on Elon Musk's latest dalliances (republished below). It focuses on the Tesla CEO's alleged fling with Google founder Sergey Brin's estranged wife – an encounter which has apparently destroyed a long friendship between the multi-billionaires. .It's the best read story on WSJ.com this morning. Because of the salacious details and reputable source, the news has spread like wildfire having been republished by major titles worldwide. And that was despite Musk's strong denial (see above) and a subsequent tweet which reads: "Haven't even had sex in ages (sigh)"..For Tesla investors, the worrying part of the report is Brin's reaction after having been a loyal supporter for decades. Despite Musk apparently getting down on knee to beg his forgiveness, Brin is breaking off their extensive business relationships. WSJ seems a strange title for such disclosures. Then again, given the potential impact on Musk's company, it's probably the perfect place. .WATCH: Stanlib chief economist Kevin Lings delivers a masterclass on why interest rates have been rising – and explains why inflation globally will soon start to fall. His thesis: US inflation peaked at June's 9.1% and within a year will drop sharply to a fraction of that level. If he's right, seemingly brave souls now rushing back into Wall Street may be well rewarded for their prescience by entering a market that is down sharply (S&P -17%; Nasdaq -24% in 2022). Lings is one of South Africa's leading economists and possesses a rare gift of being able to explain the dismal science in language that we can all understand. He visited the BizNews studio in Bryanston for this interview with Alec Hogg..More for you to read today: .Ramaphosa is rattled. William Saunderson-Meyer says Farmgate has put the President under pressure.The Central Bank That Holds the Fate of Nations in Its Hands. The ECB's growing political role makes investing in Europe harder.Weak Earnings Reports Aren't Fazing Investors After Brutal Year for Stocks. Shares of Bank of America, Tesla and Netflix rise after posting better-than-feared results..Elon Musk's Friendship With Sergey Brin Ruptured by Alleged Affair.Tesla chief's liaison with Google co-founder's wife led to couple's divorce filing.By Kirsten Grind and Emily Glazer.Elon Musk engaged in a brief affair last fall with the wife of Sergey Brin, prompting the Google co-founder to file for divorce earlier this year and ending the tech billionaires' long friendship, according to people familiar with the matter..Their falling out is one of a string of personal issues Mr. Musk has faced even as he juggles business challenges, including manufacturing disruptions at Tesla Inc. TSLA 0.20%▲ and a court fight over his desire to withdraw his $44 billion bid for Twitter Inc..Mr. Musk is the richest person in the world, with an estimated fortune of $240 billion, and Mr. Brin ranks eighth world-wide, with $95 billion, according to the Bloomberg Billionaires Index..Messrs. Brin and Musk, among the nation's most famous entrepreneurs, were longtime friends. Mr. Musk has said that for years he regularly crashed at Mr. Brin's house in Silicon Valley..Mr. Brin provided Mr. Musk with about $500,000 for Tesla during the 2008 financial crisis, when the company was struggling to increase production. In 2015, Mr. Musk gave Mr. Brin one of Tesla's first all-electric sport-utility vehicles..In recent months, there has been growing tension between the two men and their teams, according to the people familiar with the matter. Mr. Brin has ordered his financial advisers to sell his personal investments in Mr. Musk's companies, some of those people said. It couldn't be learned how large those investments are, or whether there have been any sales..Mr. Brin filed for divorce from Nicole Shanahan in January of this year, citing "irreconcilable differences," according to records filed in Santa Clara County Superior Court. The divorce filing was made several weeks after Mr. Brin learned of the brief affair, those people said..At the time of the alleged liaison in early December, Mr. Brin and his wife were separated but still living together, according to a person close to Ms. Shanahan. In the divorce filing, Mr. Brin cited Dec. 15, 2021, as the date of the couple's separation..A lawyer for Mr. Brin declined to comment. Mr. Musk didn't respond to a request for comment. A spokeswoman for Ms. Shanahan, who runs a foundation focused on reproductive justice, also didn't respond to requests for comment..In an interview early this month with the news website Puck, Ms. Shanahan said of the divorce filing: "I hope for Sergey and I to move forward with dignity, honesty and harmony for the sake of our child. And we are both working towards that.".Over the past two months, Mr. Musk's personal life has drawn considerable attention. He has been accused of exposing himself to a flight attendant at his aerospace company, SpaceX, which he has denied; the publication Business Insider reported he had two children late last year with a female executive at another company he co-founded, Neuralink; and one of his 10 children has publicly disavowed him..Earlier this month, Mr. Musk sought to back out of an agreement to buy Twitter, saying the company hasn't provided the necessary information to assess the prevalence of fake or spam accounts. Twitter said it has "bent over backwards" to provide the information. It has sued Mr. Musk to force him to honor the deal, and a Delaware court has agreed to an expedited trial in October..Mr. Brin and Ms. Shanahan, his wife of nearly four years, met at the yoga retreat Wanderlust about seven years ago, according to a person familiar with their relationship. Both had been married previously: Mr. Brin to Anne Wojcicki, co-founder of genetics company 23andMe Inc., and Ms. Shanahan to a finance executive. Mr. Brin has two children with Ms. Wojcicki..Mr. Brin and Ms. Shanahan already were facing problems in their marriage in the fall of 2021, primarily because of Covid pandemic shutdowns and the care of their 3-year-old daughter, according to people familiar with their relationship..The liaison with Mr. Musk took place in early December 2021, at the Art Basel event in Miami, those people said. Art Basel is a multiday, annual festival that draws wealthy attendees from around the world..At a party earlier this year, Mr. Musk dropped to one knee in front of Mr. Brin and apologized profusely for the transgression, begging for forgiveness, according to people with knowledge of the incident..Mr. Brin acknowledged the apology, but still isn't speaking regularly to Mr. Musk, those people said..The alleged liaison happened after Mr. Musk had broken up with his on-again, off-again girlfriend, the singer Grimes, in September. Mr. Musk and Grimes, whose real name is Claire Boucher, had a second child, a daughter, via surrogate in December 2021. Mr. Musk's twins with Shivon Zilis, the executive at Neuralink, also were born last fall..Mr. Brin and Ms. Shanahan are now involved in divorce mediation, with Ms. Shanahan seeking more than $1 billion, according to people familiar with the negotiations..The two sides have yet to come to an agreement, with Mr. Brin's side claiming that Ms. Shanahan is asking for much more than her prenuptial agreement entitles her to, the people said. Ms. Shanahan's side is arguing that her request is only a fraction of Mr. Brin's $95 billion fortune, and that she signed the prenuptial agreement under duress, while pregnant, the people said..Mr. Brin co-founded Google, now a unit of Alphabet Inc., GOOG -5.81%▼ along with Larry Page in 1998, and helped build it into one of the world's most valuable companies. He and Mr. Page stepped down from management of Alphabet in 2019, but both remain on the board..Since then, he has been heavily involved in fitness pursuits, at one point trying to learn many different Olympic sports, according to people who know him. He runs a $4.4 billion family foundation that has supported such causes as education and Parkinson's research, and he is affiliated with an airship startup called LTA Research and Exploration. He is currently writing a physics textbook..Jim Oberman, Rebecca Elliott and Tim Higgins contributed to this article..NB FOR YOUR WALL STREET JOURNAL ACCESS….As a Premium subscriber you are entitled to full membership of wsj.com (normal price $29 a month). Be sure to action your access through the Premium link on the BizNews website. Because of The Wall Street Journal's credential requirements, be sure to create a password which has at least 8 characters and includes at least one letter and one number – NB it MAY NOT contain any special characters (ie #, !, @ etc). To maintain access to WSJ.com, you MUST enter our partner's website via Biznews Premium at least once a month. A final PS, if you had previously signed up for WSJ you'll need to clear the cookies from your device. Our helpdesk can assist – support@alecbiznews-com

Premium: Elon Musk loses a loyal supporter over fling with Sergey Brin’s estranged wife

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