Tag Archives: Mergers, Acquisitions & Takeovers

UK antitrust officials join FTC in investigating Microsoft’s hiring of Inflection AI staff

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The UK's antitrust watchdog is once again investigating Microsoft. The Competition and Markets Authority (CMA) has opened a formal probe over the company's hiring of former Inflection AI staff and its licensing of the startup's tech. The initial phase one investigation will be wrapped up by September 11, at which point the CMA will determine whether to open a more in-depth (phase two) probe.

The agency will try to determine whether Microsoft attempted to avoid antitrust scrutiny by recruiting Inflection's staff and employing its tech but not buying the company outright. It will look at whether the moves "resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002" and if that has, or is likely to have, a negative impact on competition in the UK.

"We are confident that the hiring of talent promotes competition and should not be treated as a merger,” Microsoft told Bloomberg in a statement. “We will provide the UK CMA with the information it needs to complete its inquiries expeditiously.”

Microsoft's Inflection strategy is also under the spotlight in the US. The Federal Trade Commission is investigating the situation.

Microsoft last week gave up its non-voting observer seat on OpenAI's board in what onlookers believed was an attempt to evade further antitrust scrutiny. Microsoft has invested over $10 billion into OpenAI — which has also drawn the attention of the FTC and CMA.

Meanwhile, the CMA and Microsoft are familiar foes. The antitrust agency heavily scrutinized Microsoft's $69 billion takeover of Activision Blizzard. The probe was the final hurdle the companies had to overcome before closing the deal.

This article originally appeared on Engadget at https://www.engadget.com/uk-antitrust-officials-join-ftc-in-investigating-microsofts-hiring-of-inflection-ai-staff-143243701.html?src=rss

UK antitrust officials join FTC in investigating Microsoft’s hiring of Inflection AI staff

Posted on by

The UK's antitrust watchdog is once again investigating Microsoft. The Competition and Markets Authority (CMA) has opened a formal probe over the company's hiring of former Inflection AI staff and its licensing of the startup's tech. The initial phase one investigation will be wrapped up by September 11, at which point the CMA will determine whether to open a more in-depth (phase two) probe.

The agency will try to determine whether Microsoft attempted to avoid antitrust scrutiny by recruiting Inflection's staff and employing its tech but not buying the company outright. It will look at whether the moves "resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002" and if that has, or is likely to have, a negative impact on competition in the UK.

"We are confident that the hiring of talent promotes competition and should not be treated as a merger,” Microsoft told Bloomberg in a statement. “We will provide the UK CMA with the information it needs to complete its inquiries expeditiously.”

Microsoft's Inflection strategy is also under the spotlight in the US. The Federal Trade Commission is investigating the situation.

Microsoft last week gave up its non-voting observer seat on OpenAI's board in what onlookers believed was an attempt to evade further antitrust scrutiny. Microsoft has invested over $10 billion into OpenAI — which has also drawn the attention of the FTC and CMA.

Meanwhile, the CMA and Microsoft are familiar foes. The antitrust agency heavily scrutinized Microsoft's $69 billion takeover of Activision Blizzard. The probe was the final hurdle the companies had to overcome before closing the deal.

This article originally appeared on Engadget at https://www.engadget.com/uk-antitrust-officials-join-ftc-in-investigating-microsofts-hiring-of-inflection-ai-staff-143243701.html?src=rss

T-Mobile to acquire majority of US Cellular, further consolidating carrier market

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T-Mobile will acquire the majority of US Cellular in a deal worth approximately $4.4 billion. This means that T-Mobile will own all of US Cellular’s stores, some of its spectrum assets and some of its customers. The deal includes a combination of cash and up to $2 billion of assumed debt, according to a press release by US Cellular. The companies expect to finalize the purchase by mid-2025, though the deal must attain regulatory approval.

All told, T-Mobile will walk away with around 30 percent of US Cellular’s wireless spectrum, which it hopes to use to improve coverage in rural areas and offer better connectivity to current US Cellular customers throughout the country. Current customers will be able to keep their plans or switch to a similar T-Mobile contract.

US Cellular will retain 70 percent of its wireless spectrum and towers. Additionally, it will lease space on around 2,100 additional towers to T-Mobile. "The decisions we announced today are in the best interests of our customers and our shareholders. T-Mobile is the right partner for our wireless operations," said Laurent Therivel, CEO of US Cellular.

This is just the latest consolidation move by T-Mobile. The company recently acquired the Ryan Reynolds-backed Mint Mobile, via the purchase of parent company Ka'ena Corporation for around $1.35 billion. T-Mobile also merged with Sprint back in 2020. It’s basically Pac-Man, but instead of dots it hoovers up smaller cellular carriers.

The Wall Street Journal recently reported that T-Mobile had teamed up with frenemy Verizon to “carve up” US Cellular’s wireless spectrum, but it looks like that deal has either fallen through or will be significantly delayed.

This article originally appeared on Engadget at https://www.engadget.com/t-mobile-to-acquire-majority-of-us-cellular-further-consolidating-carrier-market-152212548.html?src=rss

T-Mobile to acquire majority of US Cellular, further consolidating carrier market

Posted on by

T-Mobile will acquire the majority of US Cellular in a deal worth approximately $4.4 billion. This means that T-Mobile will own all of US Cellular’s stores, some of its spectrum assets and some of its customers. The deal includes a combination of cash and up to $2 billion of assumed debt, according to a press release by US Cellular. The companies expect to finalize the purchase by mid-2025, though the deal must attain regulatory approval.

All told, T-Mobile will walk away with around 30 percent of US Cellular’s wireless spectrum, which it hopes to use to improve coverage in rural areas and offer better connectivity to current US Cellular customers throughout the country. Current customers will be able to keep their plans or switch to a similar T-Mobile contract.

US Cellular will retain 70 percent of its wireless spectrum and towers. Additionally, it will lease space on around 2,100 additional towers to T-Mobile. "The decisions we announced today are in the best interests of our customers and our shareholders. T-Mobile is the right partner for our wireless operations," said Laurent Therivel, CEO of US Cellular.

This is just the latest consolidation move by T-Mobile. The company recently acquired the Ryan Reynolds-backed Mint Mobile, via the purchase of parent company Ka'ena Corporation for around $1.35 billion. T-Mobile also merged with Sprint back in 2020. It’s basically Pac-Man, but instead of dots it hoovers up smaller cellular carriers.

The Wall Street Journal recently reported that T-Mobile had teamed up with frenemy Verizon to “carve up” US Cellular’s wireless spectrum, but it looks like that deal has either fallen through or will be significantly delayed.

This article originally appeared on Engadget at https://www.engadget.com/t-mobile-to-acquire-majority-of-us-cellular-further-consolidating-carrier-market-152212548.html?src=rss

Nintendo snaps up a studio known for its Switch ports

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Nintendo is buying (PDF) Florida-based studio Shiver Entertainment from the Embracer Group, which is splitting up its rather messy gaming empire and is letting go of certain assets. Shiver was founded in 2012 and is mostly known for working with publishers and developers to port games to the Switch, including couple of Scribblenauts titles and Hogwarts Legacy. Nintendo will acquire the "boutique-sized studio" in full, making it a fully owned subsidiary that will continue working on Switch ports and developing software for multiple platforms. 

The Japanese gaming company isn't known for gobbling up small studios and developers. In its announcement of the deal, it said it's aiming "to secure high-level resources for porting and developing software titles" with this purchase. By buying Shiver, Nintendo is also showing that it's committed to the Switch platform, which will remain its primary business for years to come. 

As Nintendo Life notes, Nintendo may have decided to purchase Shiver to acquire its talent, as well. The studio's CEO, John Schappert, is an industry veteran who used to oversee Xbox Live, the Xbox platform software and Microsoft Game Studios. He also served as Chief Operating Officer at EA and at Zynga. Nintendo didn't say how much it's paying for the studio, but it doesn't sound like the purchase will make any considerable impact on its finances. "The Acquisition will have only a minor effect on Nintendo’s results for this fiscal year," the company wrote in its announcement. 

This article originally appeared on Engadget at https://www.engadget.com/nintendo-snaps-up-a-studio-known-for-its-switch-ports-100003358.html?src=rss

Comcast’s bundle of Netflix, Apple TV+ and Peacock Premium costs $15 per month

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Comcast didn't wait too long to reveal how much its bundle of Netflix, Apple TV+ and Peacock Premium will cost or when Xfinity users can sign up for it. The StreamSaver bundle, which was announced a week ago, will run you $15 per month and it will be available next week.

You won't quite get the best version of all the services, though. The bundle includes Netflix Basic and Peacock Premium, both of which include ads. That Netflix tier also only supports HD streaming rather than 4K. There's only one tier of Apple TV+ available, and that includes 4K streams.

In any case, the bundle will save you $10 per month compared with signing up for those services separately, given that Peacock Premium will increase by $2 to $8 per month in July. Netflix Basic with ads is $7 per month, while Apple TV+ is $10.

If you're interested in signing up for Now TV (which includes more than 60 linear streaming channels such as AMC and the History Channel), you can also add that to StreamSaver. The cable-esque Now StreamSaver bundle is $30 per month. Now TV alone typically costs $20 per month, though it includes Peacock Premium.

This is the latest instance of streaming rivals coming together to offer their services at a lower price, but Comcast is beating a previously announced bundle of Max, Disney+ and Hulu to the punch. That bundle is set to arrive this summer.

Meanwhile, a package combining sports streaming services from Disney, Fox and Warner Bros. Discovery will arrive later this year. The name of the joint venture was recently revealed as Venu Sports.

This article originally appeared on Engadget at https://www.engadget.com/comcasts-bundle-of-netflix-apple-tv-and-peacock-premium-costs-15-per-month-164833844.html?src=rss

UK regulators want to investigate Three and Vodafone’s blockbuster merger

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The UK's Competition and Markets Authority (CMA) is concerned that the merger Three and Vodafone announced last year could lead to "substantial lessening of competition" and might conduct an in-depth investigation into the deal. Three years after Virgin Media's merger with O2, Three and Vodafone revealed their intention to enter a joint venture agreement that would knock off a standalone mobile network from consumers' choices in the region. go

Apparently, CMA regulators launched a preliminary investigation into their proposed deal back in January and had identified potential issues that could come with combining two of the four remaining mobile network operators in the UK. Those issues include the possibility of the merger leading to higher prices and lower quality of service, since competition typically helps keep prices low and compels operators to make investments meant to improve their network quality. In addition, the CMA is worried that having fewer networks could affect mobile virtual network operators' ability to negotiate for the best deals possible for their customers.

When the two companies announced the merger in 2023, they said that together, they will "have the scale needed to deliver a best-in-class 5G network" and open up "new opportunities for businesses across the length and breadth of the UK." But CMA regulators say their claims "need more detailed assessment." They've now given the companies five working days to respond to their concerns with "meaningful solutions," otherwise they'll proceed towards conducting a more in-depth investigation. 

In 2015, Three also made an attempt to purchase O2 for £10.25 billion ($12.9 billion), but the CMA and the European Commission blocked the purchase after concluding that it would reduce competition and lead to higher prices. The CMA approved the joint agreement between O2 and Virgin Media, a landline, cable and broadband operator, however, after it found those very same concerns to be unfounded. 

This article originally appeared on Engadget at https://www.engadget.com/uk-regulators-want-to-investigate-three-and-vodafones-blockbuster-merger-120058606.html?src=rss

Saber Interactive may escape Embracer’s death hug and become a private company

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Saber Interactive has reportedly found an exit strategy from the death grip of its parent company, Embracer Group AB. Bloomberg reported Thursday that “a group of private investors” will buy the studio in a deal worth roughly $500 million. Saber would then become a private company with about 3,500 employees.

Engadget emailed a spokesperson from Saber for confirmation about the alleged buyout. The studio declined to comment.

The alleged agreement would be one of Embracer’s most significant cost-cutting moves since the collapse of a reported $2 billion deal with a group backed by Saudi Arabia’s sovereign wealth fund. Some criticized the imperiled deal as the gaming equivalent of “sportswashing,” using popular sporting acquisitions and partnerships to boost beleaguered governments’ global images. That followed US intelligence’s conclusion that the Saudi regime murdered The Washington Post reporter Jamal Khashoggi in late 2018.

Other cost-cutting moves at Embracer have included laying off about 900 employees in September, cutting another 50 or so jobs at Chorus developer Fishlabs and implementing more layoffs at Tiny Tina’s Wonderland developer Lost Boys Interactive, Beamdog, Crystal Dynamics and Saber subsidiary New World Interactive. Embracer also closed Saints Row studio Volition Games and Campfire Cabal.

Still from Star Wars: The Knights of the Old Republic. Two people and a droid stand outside on a bridge in a very Star Wars-y environment. Buildings, ships, towers.
LucasArts / Aspyr

According to Bloomberg, Saber’s sale won’t affect the studio’s role in developing an upcoming Star Wars: Knights of the Old Republic (KOTOR) remake. That game has already changed hands once: One of Saber’s Eastern European studios took over from Aspyr Media in the summer of 2022.

Aspyr had reportedly already been working on the game for years before providing a demo for Lucasfilm and Sony in June 2022; a week later, Aspyr fired its design director and art director. (Reports of the KOTOR demo costing a disproportionate amount of time and money may indicate a possible reason for the fallout.) By late that summer, Saber had taken over the development of the highly anticipated — and indefinitely delayed — remake.

Embracer bought Saber for $525 million in 2020 as it scooped up gaming studios left and right. It acquired at least 27 companies during that period, folding some of them (Demiurge Studios and New World Interactive) into Saber. Bloomberg reports that the deal to sell Saber to private investors includes an option to “bring along multiple Embracer subsidiaries.”

One studio that’s far too big to be included in this transaction is Borderlands developer Gearbox Entertainment. However, Kotaku reported Thursday that Gearbox CEO Randy Pitchford told staff this week that a decision about the studio’s future had been made. He allegedly said he’d be able to share more details with them next month.

In the meantime, a cloud of uncertainty envelops Gearbox — and Embracer’s other remaining studios. “I’ve personally been looking for roles elsewhere not just due to the Embracer layoff fears, but due to pay,” an anonymous developer reportedly said to Kotaku. “Vague and in a holding pattern is definitely par for the course at the moment and has been for most of 2023.”

This article originally appeared on Engadget at https://www.engadget.com/saber-interactive-may-escape-embracers-death-hug-and-become-a-private-company-203623311.html?src=rss

Saber Interactive may escape Embracer’s death hug and become a private company

Posted on by

Saber Interactive has reportedly found an exit strategy from the death grip of its parent company, Embracer Group AB. Bloomberg reported Thursday that “a group of private investors” will buy the studio in a deal worth roughly $500 million. Saber would then become a private company with about 3,500 employees.

Engadget emailed a spokesperson from Saber for confirmation about the alleged buyout. The studio declined to comment.

The alleged agreement would be one of Embracer’s most significant cost-cutting moves since the collapse of a reported $2 billion deal with a group backed by Saudi Arabia’s sovereign wealth fund. Some criticized the imperiled deal as the gaming equivalent of “sportswashing,” using popular sporting acquisitions and partnerships to boost beleaguered governments’ global images. That followed US intelligence’s conclusion that the Saudi regime murdered The Washington Post reporter Jamal Khashoggi in late 2018.

Other cost-cutting moves at Embracer have included laying off about 900 employees in September, cutting another 50 or so jobs at Chorus developer Fishlabs and implementing more layoffs at Tiny Tina’s Wonderland developer Lost Boys Interactive, Beamdog, Crystal Dynamics and Saber subsidiary New World Interactive. Embracer also closed Saints Row studio Volition Games and Campfire Cabal.

Still from Star Wars: The Knights of the Old Republic. Two people and a droid stand outside on a bridge in a very Star Wars-y environment. Buildings, ships, towers.
LucasArts / Aspyr

According to Bloomberg, Saber’s sale won’t affect the studio’s role in developing an upcoming Star Wars: Knights of the Old Republic (KOTOR) remake. That game has already changed hands once: One of Saber’s Eastern European studios took over from Aspyr Media in the summer of 2022.

Aspyr had reportedly already been working on the game for years before providing a demo for Lucasfilm and Sony in June 2022; a week later, Aspyr fired its design director and art director. (Reports of the KOTOR demo costing a disproportionate amount of time and money may indicate a possible reason for the fallout.) By late that summer, Saber had taken over the development of the highly anticipated — and indefinitely delayed — remake.

Embracer bought Saber for $525 million in 2020 as it scooped up gaming studios left and right. It acquired at least 27 companies during that period, folding some of them (Demiurge Studios and New World Interactive) into Saber. Bloomberg reports that the deal to sell Saber to private investors includes an option to “bring along multiple Embracer subsidiaries.”

One studio that’s far too big to be included in this transaction is Borderlands developer Gearbox Entertainment. However, Kotaku reported Thursday that Gearbox CEO Randy Pitchford told staff this week that a decision about the studio’s future had been made. He allegedly said he’d be able to share more details with them next month.

In the meantime, a cloud of uncertainty envelops Gearbox — and Embracer’s other remaining studios. “I’ve personally been looking for roles elsewhere not just due to the Embracer layoff fears, but due to pay,” an anonymous developer reportedly said to Kotaku. “Vague and in a holding pattern is definitely par for the course at the moment and has been for most of 2023.”

This article originally appeared on Engadget at https://www.engadget.com/saber-interactive-may-escape-embracers-death-hug-and-become-a-private-company-203623311.html?src=rss

FromSoftware’s parent company has acquired Acquire, the studio behind Octopath Traveler

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Octopath Traveler developer Acquire has been purchased by FromSoftware’s parent company, the Kadokawa Corporation, for an undisclosed sum. The Japanese conglomerate announced the acquisition in a quarterly earnings report published today, as revealed by Gamesindustry.biz.

The purchase makes Acquire a sister company to FromSoftware and Spike Chunsoft, among others. For the uninitiated, FromSoftware is the developer behind little known games like Dark Souls, Elden Ring and Sekiro: Shadows Die Twice. Spike Chunsoft is also no slouch, as it's behind the Danganronpa and AI: The Somnium Files franchises.

Acquire has made many games beyond Octopath Traveler and its sequel, including No Heroes Allowed VR, Akiba's Beat and Akiba's Trip: Undead and Undressed. Kadokawa said the purchase should help the company “generate synergies” with its “existing game-related subsidiaries.” We don’t know what that means, but hopefully it refers to a bizarre Octopath Traveler and Elden Ring crossover title.

Kadokawa also says the move will enhance its “line-up of console games.” This is true, as the original Octopath Traveler sold over three million copies and the sequel sold a million copies in just three months. Those are big numbers for JRPGs with old-school mechanics. The company hasn’t announced whether it’ll still rely on Square Enix for publishing future entries in the Octopath franchise, but with those sales numbers it’s a fairly safe bet.

Last year’s Octopath Traveler 2 arrived to mostly positive reviews, though we dinged it for the same reason many people took umbrage with the original. The eight storylines don’t intersect enough, making the whole thing seem kind of random and disconnected. Still, the games are gorgeous and manage to capitalize on nostalgia for retro gameplay mechanics. They “feel” like classic Square Enix RPGs, even if they struggle with some of the execution.

This article originally appeared on Engadget at https://www.engadget.com/fromsoftwares-parent-company-has-acquired-acquire-the-studio-behind-octopath-traveler-175648777.html?src=rss