Posts with «mergers» label

Microsoft vows to bring 'Call of Duty' to Nintendo consoles

Microsoft vows to bring Call of Duty to Nintendo and to continue making it available on the latter's consoles for 10 years if its Activision Blizzard acquisition pushes through. Phil Spencer, Microsoft Gaming's CEO, has announced the company's commitment on Twitter, adding that "Microsoft is committed to helping bring more games to more people — however they choose to play." Spencer previously said during an interview that the company intends to treat Call of Duty like Minecraft that's available across platforms and that he would "love to see [the game]" on the Switch. A 10-year commitment potentially means that the franchise will also be released for the current Switch's successors. 

In addition, Spencer has announced on Twitter that Microsoft will continue to offer CoD on Steam, alongside the Xbox, after the deal is closed. As The New York Times says, this announcement could be a move to appease the Federal Trade Commission and to get regulators on their side. The publication says the FTC is expected to discuss the acquisition in a closed-door meeting on Thursday, where the agency will decide whether to take steps to block the deal. 

Microsoft has entered into a 10-year commitment to bring Call of Duty to @Nintendo following the merger of Microsoft and Activision Blizzard King.  Microsoft is committed to helping bring more games to more people – however they choose to play. @ATVI_AB

— Phil Spencer (@XboxP3) December 7, 2022

A recent report by Politico claimed that Microsoft failed to convince the FTC staff reviewing the acquisition with its arguments and that the commission will likely file an antitrust lawsuit to block it as soon as this month. The FTC is reportedly concerned the purchase would give Microsoft an unfair advantage and that it would reduce competition in the market. 

In an opinion piece written for The Wall Street Journal, Microsoft President Brad Smith defended the acquisition and argued that it's good for gamers. FTC suing to block the deal "would be a huge mistake," he said, and would hurt competition in the industry instead. Smith also said that Microsoft offered Sony, the loudest dissenting voice to the merger, a 10-year contract ensuring all new CoD releases would be available on the PlayStation the same day they go out for the Xbox. "We're open to providing the same commitment to other platforms and making it legally enforceable by regulators in the US, UK and European Union," he wrote. Whether these efforts are enough to assure regulators that the purchase wouldn't be detrimental to the industry remains to be seen. 

Ye is no longer buying Parler, the ‘free speech’ social media app

Ye is no longer buying Parler, the controversial social media app that’s billed itself as a “free speech” alternative to Twitter. Ye, formerly known as Kanye West, originally struck a deal with Parlement Technologies in October to buy the company for an undisclosed amount.

That deal is now off, according to the company. “Parlement Technologies has confirmed that the company has mutually agreed with Ye to terminate the intent of sale of Parler,” a spokesperson for Parler said in a statement. “This decision was made in the interest of both parties in mid-November. Parler will continue to pursue future opportunities for growth and the evolution of the platform for our vibrant community.”

Parler will continue to pursue future opportunities for growth and the evolution of the platform for our vibrant community.

— Parler (@parler_app) December 1, 2022

The spokesperson didn’t immediately respond to questions about why the acquisition was terminated. News of the deal imploding comes just hours after Ye praised Nazis and said, “I like Hitler,” during an appearance on Alex Jones’ podcast.

Ye had first announced he would buy Parler after he was suspended from Twitter following a series of antisemitic tweets. (Twitter CEO Elon Musk later welcomed him back to the platform.) At the time, Parlement technologies CEO George Farmer said that "the proposed acquisition will assure Parler a future role in creating an uncancelable ecosystem where all voices are welcome.”

The FTC might file an antitrust lawsuit to block Microsoft's Activision purchase

Microsoft's $69 billion purchase of Activision Blizzard is facing scrutiny from antitrust investigators in several countries. In the US, for instance, the Federal Trade Commission (FTC) started looking into the acquisition shortly after it was announced. Now, the FTC is reportedly ready to take action and will likely file an antitrust lawsuit to block Microsoft's massive purchase, according to Politico. Microsoft failed to convince the FTC staff reviewing the deal with its arguments, Politico's sources said, but the agency's commissioners have yet to vote on filing a complaint or to meet with lawyers. 

While a lawsuit is not 100 percent guaranteed yet, the commission is reportedly done with the biggest parts of the investigation, including with the depositions of the Microsoft chief Satya Nadella and Activision CEO Bobby Kotick. If the FTC ultimately decides to file a lawsuit, it could do so as soon as next month. The publication says the commission will likely file the case in its own in-house administrative court, since it doesn't have to bring it to federal court first to seek a temporary injunction. Seeing as other regulators are also looking into the acquisition, it wouldn't be able to go through (if it's ultimately allowed to do so) until sometime next year. 

In the UK, the Competition and Markets Authority (CMA) launched an in-depth investigation of the deal in September. And more recently, the European Commission announced that it will carry out a full-scale probe into Microsoft's purchase. Like these two European regulators, the FTC is concerned that the acquisition will give Microsoft an unfair advantage in the gaming sector and that it may significantly reduce competition in the market. 

Sony has been one of the loudest voices opposing the deal and has expressed concerns that Microsoft might make valuable IPs like Call of Duty an Xbox exclusive. Jim Ryan, Sony PlayStation's CEO, previously revealed that Microsoft only offered to keep Call of Duty available on PlayStation for three years after the current agreement ends. But Xbox chief Phil Spencer said more recently that the company is "not taking Call of Duty from PlayStation." In Microsoft's latest filing with the CMA, it argued that the acquisition won't give it an unfair advantage: Sony has more exclusive games than the Xbox, it said, and many of them are of "better quality."

Google buys an AI avatar startup to take on TikTok

Google has quietly acquired a startup that was working on using AI to generate avatars for social media users and brands. According to TechCrunch, the company recently paid about $100 million to buy Alter. The acquisition went through about two months ago without Google publicly announcing it. On Thursday, the search giant confirmed the purchase but did not disclose the financial terms of the deal. According to TechCrunch, Google bought Alter to better compete against TikTok.

Alter began life as Facemoji, offering a platform that other developers could use to add avatar creation systems to their apps and games. Alter chief co-founder and operating officer Jonathan Slimak recently took to LinkedIn to share he was starting a position “building Avatars at Google.” How Alter’s team and technology could help Google better compete against TikTok is unclear. YouTube Shorts, Google’s take on the short-form video format, is already a success for the company. Following a global rollout in the summer of 2021, Google announced this past June the platform had 1.5 billion monthly active users.

House, Senate Democrats ask FTC to fight Amazon's acquisition of iRobot

Amazon might face some political opposition in its bid to acquire iRobot. Democrats including Senator Elizabeth Warren and House Representatives Jesus Garcia, Pramila Jayapal, Mondaire Jones, Katie Porter and Mark Pocan have asked the Federal Trade Commission (FTC) to oppose the purchase of the Roomba creator. iRobot is a "powerful" incumbent in robot vacuums, according to the politicians' letter, and Amazon would allegedly reduce competition with the resources it could pour into the market.

The members of Congress pointed to Amazon's history of technology buyouts to support their case, arguing that the company snaps up competitors to eliminate them. Amazon killed sales of Kiva Systems' robots after the 2012 acquisition and used them exclusively in its warehouses, for instance. The 2017 and 2018 acquisitions of Blink and Ring reportedly helped Amazon dominate US video doorbell sales, while the internet retailer has also faced multiple accusations of abusing third-party seller data to launch rival products and promote them above others.

We've asked Amazon for comment. The online shopping giant frequently denies anti-competitive practices, and has even called for the recusal of FTC chair Lina Khan in Amazon-related cases over claims she's biased against the company.

The Commission hasn't said if it will take action against the iRobot deal. Reports circulated that the FTC reviewed Amazon's purchase of MGM, but didn't challenge it. Khan didn't have a party majority at the time, however, and movie studios aren't the same as robot vacuum makers. iRobot is estimated to have 75 percent of the American robovac market by revenue, according to Statista. It's already difficult for challenges like Shark and Eufy to thrive, and it wouldn't get easier with Amazon involved.

Adobe vows to continue offering Figma's free plan if its buyout is approved

In an interview with Bloomberg, Adobe Chief Product Officer Scott Belsky has reassured worried Figma users that the online collaborative design platform's acquisition will not change its pricing model and ease of use. If you'll recall, Adobe announced in mid-September that it's purchasing Figma for roughly $20 billion in cash and shares. Users understandably raised concerns about the merger, seeing as Adobe's programs are quite expensive. 

Belsky said in the interview that Figma will remain a "freemium" offering with a basic tier that's available at no cost. Figma co-founder Dylan Field added that Adobe isn't planning any price increase and that the platform will remain free for education. Adobe does have changes planned for the platform, of course, including integrating features from its software portfolio, as well as its library of fonts and stock images. 

According to Belsky, though, any update Adobe rolls out won't be obstructive and won't make it difficult to navigate the platform's interface. Perhaps most importantly for those who use Figma for collaborations, it will continue allowing file sharing without additional fees — users won't have to get a Creative Cloud subscription to work on the same document. 

Adobe's suite of programs will undergo changes due to the acquisition, as well. The company plans to adopt Figma's collaborative features and may build multi-user web platforms for its programs. Adobe Express and Acrobat might also get their own versions of Figma's whiteboard and presentation functions. "We would only want to amplify and continue and learn from the things that Figma has done to become a viral product in the enterprise and throughout the world," Belsky said. 

There is one Adobe program that might not survive the acquisition: Figma's direct competitor Adobe XD. The company has no immediate plans to kill the software, but it will "reevaluate where [it] want[s] to shift [its] resources and focus" once Figma comes in. Both parties expect the deal to close sometime in 2023, so long as it gets approval from both regulators and shareholders.

Adobe acquires collaborative design platform Figma for $20 billion

Adobe just made a big move into team-based creative work. The company is acquiring the online collaborative design platform Figma for roughly $20 billion in cash and shares. That's the largest buyout of a private software company to date, according to Bloomberg's Katie Roof. Adobe hopes the deal will "accelerate" web creativity and put more of the Creative Cloud suite's technology on the internet. You can expect to see Adobe's visual editing features find their way into Figma's platform.

The two firms expect the purchase to close sometime in 2023 if it receives approval from regulators and shareholders. Figma co-founder and chief Dylan Field will continue to lead his company if and when the takeover finalizes, but will report to Adobe's digital media lead David Wadhwani.

THREAD: This morning we’re announcing that @Figma has entered into an agreement to be acquired by @Adobe

More information here:
https://t.co/eqJsSlkShq (1/9)

— Dylan Field (@zoink) September 15, 2022

Don't worry that Adobe will completely revamp Figma, at least not at first. Field stressed in a blog post that Adobe was "deeply committed" to keeping Figma an autonomous company. There's "no plan" at the moment to change Figma's pricing, and it will remain free for education users. While the executive hoped to draw on Adobe's know-how for upgrades, he also expected to keep running Figma as he did before.

While the acquisition is huge, it's not surprising given Adobe's past moves. It bought the video collaboration platform Frame.io in 2021, and has been making moves into web-based tools with offerings like Creative Cloud Express. Figma is a logical (if major) extension of that strategy — it could help make online teamwork a staple of the creative process in companies that regularly use software like Photoshop and Premiere.

Ethereum completes the 'merge' that will make its crypto transactions greener

Ethereum has completed its much-anticipated "Merge" to a far more energy efficient method of minting new coins, the cryptocurrency's co-founder Vitalik Buterin tweeted. Ether coins will no longer be minted by "proof-of-work" that uses powerful computers to solve cryptographic tasks. Instead, they'll be created using "proof-of-stake" methods that require users called validators to stake coins for the chance to approve transactions and earn a small reward. 

Until today, mining Ethereum has required powerful banks of computers to solve difficult math problems. That not only consumed huge amounts of energy, but made Ethereum difficult to scale and costly for small transactions. It also concentrated power into the hands of a few, something that's anathema to the decentralization ethos of crypto. 

And we finalized!

Happy merge all. This is a big moment for the Ethereum ecosystem. Everyone who helped make the merge happen should feel very proud today.

— vitalik.eth (@VitalikButerin) September 15, 2022

With the new system, the more a validators stakes, the larger the chance of winning a reward. But everyone gets at least something, as all staked ether earns interest (around 5.2 percent), making it more like buying a bond or putting it in a bank (apart from the wild market volatility, of course). The minimum stake amount required to be a validator is 32 ether (around $50,000 right now), though individuals can do pooled staking with trusted third-party validators to meet that level. 

The Merge got its name because the Ethereum blockchain has combined with a parallel network that's now been running for almost two years in a proof-of-stake test, but it's just one step in the transformation. "We still have to scale, we have to fix privacy. To me the Merge symbolizes the difference between an early stage Ethereum and the Ethereum we’ve always wanted," said Buterin during a livestreamed Merge party. 

Ether started the day going up, but has since dropped a few percent from yesterday. It remains to be seen if the the Merge will live up to its promise of transforming crypto, as there are still a lot of questions around regulation, Ethereum forks and more. There's also the risk of scams (as usual in crypto), with the risk of transactions from the old chain being copied to the new one, among others.

Twitter shareholders vote to approve Elon Musk’s $44 billion acquisition

A majority of Twitter’s shareholders have voted to approve Elon Musk’s $44 billion takeover. During a special meeting of shareholders that lasted about seven minutes, stockholders approved of two proposals: one to adopt the merger agreement with Musk, and one related to how the company’s executives will be compensated as a result of the deal.

Both measures were approved, though Twitter will disclose the final breakdown of votes “at a later date” when it files paperwork with the Securities and Exchange Commission.

Though shareholders formally approved the deal, which valued each share at $54.20, an October trial in Delaware’s Court of Chancery will determine whether Musk is able to terminate the agreement. Musk initially cited concerns about bots and spam as reasons for ending the merger agreement, though Twitter’s lawyers argued he was actually concerned about “World War 3.” The judge in the case ruled that Musk will be able to add claims raised by the company’s former security chief turned whistleblower, Peiter Zatko, to his legal bid.

Separately, Zatko testified at a Judiciary Committee hearing Tuesday, during which he shed new light on his allegations that Twitter’s security practices are a risk to the United States' national security.

Sony and Tencent now own almost a third of ‘Elden Ring’ studio FromSoftware

Sony has joined forces with Tencent to purchase a 30.34 percent share of FromSoftware, the developer behind titles like Elden Ring, Dark Souls 3 and Bloodborne. Tencent's Sixjoy Hong Kong division will own 16.25 percent of FromSoftware's shares, Sony will take a 14.09 percent interest and parent Kadokawa Group will remain the largest shareholder with a 69.66 percent stake. Tencent already has an investment in Kadokawa from last year.

FromSoftware might not be a developer that's on the tip of your tongue, but it has an impressive catalog. Elden Ring has been the top selling game of 2022 to date, with sales of 12 million copies in the first 18 days alone. Along with Bloodborne and the Dark Souls franchise, it has also produced the PSVR mystery adventure Déraciné and Sekiro: Shadows Die Twice

The company plans to use the funds raised (36.4 billion yen or $262 million) to strengthen its relationship with Sony, create new IP and expand its ability to publish globally. Elden Ring is the company's biggest hit to date, but it's published outside of Japan by Bandai Namco. Earlier this year, FromSoftware and Bandai Namco called Elden Ring the start of a "new franchise" and announced efforts to "expand the brand beyond the game itself and into everyone's daily life." 

While Microsoft has grabbed most of the headlines with its (still-pending) Activision Blizzard acquisition, Sony has been snapping up studios as well. It recently completed a $3.6 billion deal to buy Halo and Destiny developer Bungie Games, along with God of War co-development studio Valkyrie and Jade Raymond's Haven Studios. Considering the success of Elden Ring, its stake in FromSoftware seems like a relative bargain.