The UK's competition regulator has found that Facebook's acquisition of GIF-sharing platform Giphy will harm competition within social media and digital advertising. As part of its provisional decision, the watchdog voiced concerns that Facebook could prevent rivals including TikTok and Snapchat from accessing Giphy, a service they already use. It added that Facebook could also require customers of the GIF platform to hand over more data in return for access. If its objections are confirmed as part of the ongoing review, the regulator said it could force Facebook to unwind the deal and to sell off Giphy in its entirety.

The Competition and Markets Authority (CMA) ultimately determined that the deal stands to increase Facebook's sizeable market power. Together, its suite of apps — including Facebook, WhatsApp and Instagram — account for 70 percent of social media activity and are accessed at least once a month by 80 percent of internet users, the CMA said.

Beyond social media, the watchdog suggested that the acquisition could remove a potential challenger to Facebook in the $5.5 billion display advertising market. Citing Facebook's termination of Giphy's paid ad partnerships following the deal, the regulator said the move had effectively stopped the company's ad expansion (including to additional countries like the UK) in its tracks. This in turn had an impact on innovation in the broader advertising sector, the CMA explained.

Facebook's announcement last May that it was acquiring Giphy, with plans to integrate it with Instagram, for a reported $400 million immediately raised alarm bells for regulators. The social network is facing antitrust complaints in the US and the EU over its social media and advertising monopolies, respectively. At the same time, the UK has ramped up its scrutiny of Big Tech by creating a dedicated Digital Markets Unit to oversee the likes of Google, Facebook and Apple. The fledgling agency sits within the CMA and is designed to give people more control over their data.

Today, the CMA echoed those principles in its initial decision. The regulator said that it would "take the necessary actions" to protect users if it concludes that the merger is detrimental to competition. It will now consult on its findings as part of the reviews process. A final decision is slated for October 6th.

Facebook told Variety that it "disagrees" with the CMA's preliminary findings. "We will continue to work with the CMA to address the misconception that the deal harms competition,” the company added. It previously argued that Giphy has no operations in the UK, meaning that the CMA has no jurisdiction over the deal. In addition, it has claimed that Giphy's paid services cannot be classified as display advertising under the regulator's own market definition. 

DirecTV is now its own company again after AT&T closed the deal with private equity firm TPG, which it first announced back in February. Under their agreement, TPG would own 30 percent of the spinoff, while the mobile giant will retain a 70 percent ownership. As its own company, DirecTV will no longer operate under AT&T and will own and run the AT&T TV and U-verse video services under a single brand known as "DirecTV Stream" debuting later this month. The new spinoff says customers won't even feel the transition: The streaming services will continue being available and subscribers won't be blindsided by hidden fees.

AT&T received $7.1 billion in cash for the sale, which is but a tiny fraction of the $49 billion it originally paid when it purchased DirecTV in 2015. Back then, former AT&T CEO Randall Stephenson said combining DirecTV with AT&T "is all about giving customers more choices for great video entertainment integrated with mobile and high-speed internet service." According to Los Angeles Times, AT&T has lost 40 percent of the DirecTV's original subscriber number since then, and in the second quarter of 2021, DirecTV reported having 15.4 million premium video subscribers.

The telecom giant has been trying to offload DirecTV since at least 2019, but it hasn't announced anything concrete until earlier this year. This deal doesn't include the HBO Max streaming service, which will be part of the company's separate WarnerMedia spinoff. In May, AT&T announced a $43 billion deal that would see its WarnerMedia division merge with Discovery. It's expected to close in mid-2022, four years after AT&T finalized its $85 billion acquisition of Time Warner. Both that deal and this DirecTV spinoff will help AT&T's debt reduction efforts. As Deadline notes, it has taken several steps, including selling off assets, over the past few years to reduce the debts it has acquired due to its massive multimedia acquisitions.

Salesforce has completed its $27.7 billion acquisition — its biggest one to date — of business messaging app Slack. When the companies first announced the purchase back in December 2020, they said Slack founder and CEO Stewart Butterfield will continue to lead the messaging service as a unit within its new parent organization. They also said that Slack will become the new interface of Customer 360, which is a Salesforce tool where you can add and access the company's apps.

In Salesforce's announcement about the acquisition's completion, it confirmed both points and said the purchase will allow them to deliver a "Slack-first Customer 360." It will give clients "a single source of truth for their business, and a single platform for connecting employees, customers, and partners with each other and the apps they use every day."

While Slack has become synonymous with messaging service for businesses following its launch in 2019, it suffered from losses last year after Microsoft positioned its Teams app as a competing product in the middle of the pandemic. Slack even filed an antitrust complaint against the tech giant with the European Commission for bundling Teams with the Office suite. Salesforce announced Slack's acquisition half a year after the EU complaint was filed.

Salesforce President and COO Bret Taylor and Slack CEO and Co-Founder Stewart Butterfield will be hosting an event next month to share more details about the messaging app's integration. It will happen on August 17th at 1PM ET and will be streamed on the Salesforce website.

Sony has just bought another studio, and no it’s not Bluepoint Games. On Thursday, the company announced the acquisition of Nixxes Software, a Dutch developer best known for supporting Crystal Dynamics, IO Interactive and Eidos Montreal in porting some of their games over to PC. “We can’t wait to get to work and are so excited to bring our technical and development expertise to an IP powerhouse like PlayStation Studios,” Jurjen Katsman, founder and senior director of development at Nixxes, said in a statement.

The deal suggests Sony plans to step up its efforts to bring more of its exclusives to Windows. In the last year, the company released Horizon Zero Dawn and Days Gone to Steam and the Epic Games Store, and Sony president and CEO Jim Ryan said more of the company’s first-party games would make their way to the PC in the future. The purchase of Nixxes also follows Sony's acquisition of Returnal developer Housemarque earlier in the week.    

Amazon has reportedly struck dozens of deals with suppliers to buy stakes in their companies, potentially at lower rates. It has scooped up warrants for at least a dozen publicly traded companies and more than 75 private businesses, according to The Wall Street Journal. Amazon's stakes and potential stakes in those organizations is worth billions of dollars.

Warrants work in a similar way to stock options. Holders of warrants can buy shares at a fixed price during a certain period. If the share price rises during that time, the warrant holder can swoop in and buy a stake in the company at a below-market rate.

Amazon is said to have warrant deals with Kohl's, aircraft-leasing companies, call center businesses and hydrogen fuel cell suppliers, among others. Some of the deals have made Amazon one of the top shareholders in the respective companies, according to the report. In several cases, the ecommerce giant has the right to board seats and an option to outbid any acquisition offers.

Leaders at some of the companies suggested they couldn't turn down Amazon's proposal else they could risk losing a big contract to a competitor. Some chalked up Amazon's demands as the price of doing business.

Amazon told the WSJ that warrant agreements are part of less than one percent of the deals it agrees with suppliers. In some cases, the warrants are connected to certain thresholds. They often don't come into effect until Amazon purchases a certain level of goods or services.

We've seen some other evidence of this strategy in action. Last week, Amazon ordered 1,000 autonomous driving systems from Plus, a company that develops such tech for self-driving trucks. It also scooped up the option to buy up to a 20 percent stake in the startup.

Amazon has reportedly been engaging in this practice over the last decade or so, and it's said to have ramped up its efforts to secure warrants over the past few years. However, with Amazon facing deepening antitrust scrutiny, regulators may not look favorably on a report that suggests Amazon is pressuring companies into accepting terms that could force them to sell shares at below-market rates.