Will Europe bog down the future of Microsoft’s big deals?
European antitrust regulators are set to consider Microsoft’s $69 billion acquisition of Activision Blizzard on Monday.In a twist, the European Commission reportedly to be approved It’s a video game giant deal that its American and British peers have already rejected.
That would leave the tech giants dealing with an even more chaotic regulatory landscape as three of the world’s most powerful antitrust regulators take different policy lines.
The EU is expected to be happy with Microsoft’s concessions on the deal, That means making sure top titles like Call of Duty and World of Warcraft are available on competing video game platforms like Sony and Nintendo.
This is a stark contrast to the UK Competition and Markets Authority’s conclusion last month. The agency argued that Microsoft could eventually take control of the nascent cloud gaming business, and that no solution other than selling most of Activision was acceptable.
This would be a remarkable display of leniency by a notoriously tough regulator. The EU has been the most aggressive in cracking down on big tech, fining companies like Google billions of dollars and forcing them to change their business practices. But in recent years, U.S. regulators, including the FTC under Lina Khan, have gone even further, pushing back against acquisitions by tech giants and openly questioning whether the big companies should get bigger.
Microsoft and others are trying to navigate amid increasingly complex global rules as regulators come to very different conclusions on the same issue. And given the size and importance of the UK, Europe and US markets, it is impossible to simply ignore any of them.
If the EU rejects the deal, the future of the deal becomes clearer, but darker. Microsoft and Activision have already appealed the FTC and CMA decisions. It is expected to be particularly difficult to reverse the decisions of UK regulators. (Body reviewing the CMA’s appeal could take months, and will only review whether the regulator’s decision followed due process.)
The Third Battle, Especially Against Overwhelming Regulators Tend to be successful on appeal — It only makes a particularly difficult battle even more difficult.
what is going on here
Twitter explodes after it silences Turkey-related tweets. Critics accused the social network of showing off to Turkish hardline leader Recep Tayyip Erdogan. Block some posts with political themes in a country with elections. The company said it was responding to “legal proceedings.” As for the outcome, a run-off election is scheduled for May 28, as Erdogan did not win the majority of the votes.
Prepare for the second round of debt ceiling negotiations. President Biden said He is scheduled to meet with congressional leaders on Tuesday. As both sides remain in a stalemate over how to avoid default.Adding more urgency: tax revenue depressedhas pushed the U.S. government to the point of running out of money to pay the bills.
US technology is still finding its way to Russia. An illegal trade network facilitates the flow of aircraft parts made by Boeing and Honeywell to sanctioned Russian airlines, supporting the country’s economy, The Times reported. Meanwhile, the G7 and EU this week to be announced New ban on Russian gas imports.
A activist investor is reportedly planning to take on Shake Shack. Engaged Capital plans to Seeking three seats on the board of directors The Wall Street Journal reported that the burger chain is in trouble. Shares of Shake Shack have nearly halved as consumers start spending less.
Two large mergers aim to reshape commodity markets. Pipeline operator Oneok is agreed to buy Magellan Midstream formed a $18.8 billion cash and equity partnership to create one of America’s largest natural gas storage and transportation providers. Australian gold mining company Newcrest Mining Planning to acquire top rivalsNewmont, $17.8 billion.
Many Losers of Vice Bankruptcy
Vice, a once-popular digital media outlet, filed for bankruptcy overnight as the economic hit of online publishing hit hard.
The company has received at least one bailout bid to buy it out of the scope of Section 11, which could spare it the protracted and tumultuous journey of bankruptcy. But the $225 million offer, accompanied by top names in the media and financial world, is a reminder of how depressed Vice was.
Just six years ago Vice was valued at $5.7 billion. The startup has attracted investors including TPG, Disney, Rupert Murdoch’s 21st Century Fox and advertising giant WPP.
All of these companies, along with rivals such as BuzzFeed and Vox, hoped Vice would reinvent the media business through its ability to focus on youthful content and grab readers’ attention from social media platforms. At the time, Vice and his backers dreamed of going public or selling at an even higher valuation.
Now those investors are being wiped out. Vice, like its peers, failed to squeeze revenue from its audience, losing most of its revenue to the social network that attracted its readers. Buzzfeed has closed its news division, is in danger of being delisted from the Nasdaq, and Box has cut its valuation in half.
Vice could soon be taken over by big creditors Led by Fortress and Soros Fund Management, it made its first $250 million loan to a publisher in 2019. The two companies have proposed to effectively convert the $225 million owed to Vice into equity and assume other “significant debt.” (They are also likely to keep Shane Smith, the publisher’s outspoken co-founder and most prominent figure.)
It’s unclear whether other companies will make offers, especially given the economic uncertainty surrounding the online publishing business. Current Vice executives said the bankruptcy filing and subsequent sale would ultimately “strengthen the company.”
Where do chatbots fit in the workplace?
Morgan Stanley is testing whether an artificial intelligence-powered chat tool will give its wealth management clients an investment advantage.Wendy’s Hopes for AI speed up burger ordering at the drive-thru.and samsung reportedly banned workers Refrain from using chatbots due to security risks.
As ChatGPT and its rivals gain more public attention, business leaders are increasingly scratching their heads over how to use AI, asking customers, employees and investors how their companies stand on technology. While asking, Kevin Delaney writes for DealBook.
Here’s what’s at issue:
Moving too slowly can result in lost gains in productivity, customer service, and ultimately competitiveness. This is similar to what happened to companies that didn’t fully or quickly adopt the Internet. But at the same time, leaders should: AI is often perpetual, so avoid mistakes and biases and consider what it means for your employees.
“No matter what sector you are in, you need to think about becoming an AI-first company,” said CEO Alexandra Mousavizadeh. clearis a startup that analyzes the AI capabilities of financial firms.
$140 trillion
— total family wealth In the United States, by 2022, it will more than triple since 1989. More than half of that amount ($84 trillion) will pass from baby boomers to their heirs over the next 20 years as part of a massive intergenerational wealth transfer. The Times does the math.
next week
With the X-date looming when the US government will run out of money to pay its bills, this could be a pivotal week in debt ceiling negotiations. The series of public hearings will also focus on the regional bank crisis. And consumer purchasing power will be a major focus of revenue and data disclosure.
Here are some highlights:
Tuesday: Former Silicon Valley Bank CEO Greg Becker and two former Signature Bank chief executives will testify before the Senate Banking Committee about why lenders failed. Expect similar questions from Fed Vice Chairman Michael Burr, who is due to appear before the House Financial Services Committee.
Meanwhile, Home Depot and Baidu report earnings. And retail sales data will be published.
Wednesday: Cisco, Target and Tencent headlined the day’s earnings call.
Thursday: Walmart and Alibaba report results.
Friday: Footlocker stifled retailers’ spate of earnings. Dia also reports.
speed reading
Information of sale
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Investment giant TPG agreed. buy angelo gordon, an asset management firm focused on private credit and real estate, was acquired for $2.7 billion. (TPG)
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Shares of John Wood GroupThe stock plunged after British engineering services provider Apollo Global said it would not bid for the company. (Reuters)
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Technology-focused hedge fund Tiger Global reportedly considering Selling part of the stake in a start-up company to raise cash. (FT)
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Howard Marks of investment group Oaktree warned: personal credit boom faces its greatest challenge yet. (FT)
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