The UK is considering an investigation into Microsoft's partnership with OpenAI to decide if it has resulted in an "acquisition of control" that's subject to antitrust law, the Competition and Markets Authority (CMA) wrote today. The regulator said it's considering "recent developments," no doubt referring to the Sam Altman CEO ouster drama in which Microsoft played a large role.
"The CMA is now issuing an ITC to determine whether the Microsoft/OpenAI partnership, including recent developments, has resulted in a relevant merger situation and, if so, the potential impact on competition," it said in a news release. "The CMA will review whether the partnership has resulted in an acquisition of control — that is, where it results in one party having material influence, de facto control or more than 50% of the voting rights over another entity."
The regulator noted that the "close and multifaceted" partnership includes a multi-billion dollar investment by Microsoft, technology development cooperation and cloud services. It added that both firms have significant activities in financial and related markets, meaning their business dealings directly affect investors. It added that Microsoft was recently involved in developments related to OpenAI's governance.
When Sam Altman was fired by OpenAI's board, Microsoft stepped in to hire him, and a majority of OpenAI's staff threatened to bolt to Microsoft as well. OpenAI's board relented soon after and Altman returned as CEO. "Microsoft executives have since concluded that the current situation [with Altman back in charge] is the best possible outcome," according to a New Yorker expose on the drama.
In a statement, Microsoft told Engadget that its relationship with OpenAI keeps both companies independent. "Since 2019, we’ve forged a partnership with OpenAI that has fostered more AI innovation and competition, while preserving independence for both companies," said Microsoft's vice-chairman and president, Brand Smith, in a statement. "The only thing that has changed is that Microsoft will now have a non-voting observer on OpenAI’s Board, which is very different from an acquisition such as Google’s purchase of DeepMind in the UK. We will work closely with the CMA to provide all the information it needs.”
The CMA is now seeking views on whether the partnership creates a relevant merger situation and how it impacts competition in the UK. If an investigation is launched, it would be the second one involving Microsoft in the last year, following the company's Activision Blizzard acquisition. The UK's probe had material effects on that merger, as Microsoft agreed to sell Activision Blizzard game streaming rights to Ubisoft to satisfy the CMA.
This article originally appeared on Engadget at https://www.engadget.com/the-uks-competition-regulator-is-reviewing-microsofts-links-to-openai-115248453.html?src=rss
Back in June, the UK’s Competition and Markets Authority (CMA) began an in depth investigation into the planned $20 billion Adobe and Figma merger. The organization has released its findings and, well, they don’t paint a rosy picture. The probe tasked independent experts to determine whether or not the merger would reduce competition in the design space and the results suggest that, in fact, it’ll do just that.
It must be noted, however, that these are provisional findings. With that said, the CMA’s message is clear. The group states that the merger will “eliminate competition between two main competitors”, which is fairly obvious given Figma and Adobe’s standing in the industry. The findings also state that the deal would “reduce innovation” and the development of competing products. Finally, it’ll also “remove Figma as a threat” with regard to Adobe’s flagship software suites like Photoshop and Illustrator.
Figma is a giant player in the UK design space, accounting for 80 percent of the market. It’s also a major part of the country’s $19.4 billion app development sector. Without the merger, the CMA suggests, Figma would continue to develop or expand products that challenge Adobe. That goes away once the merger is in place because, you know, why challenge yourself?
The investigation concludes that the merger would eliminate competition between these two major players across multiple fields, including product design, image editing and illustration. These sectors account for $60 billion in annual revenue across the UK, adding up to nearly three percent of the national economy, with 850,000 skilled workers across the impacted industries. Another intent of the investigation was to suss out if the merger would damage the UK’s economy and it concluded it most likely will.
Again, these are provisional findings and the CMA has yet to consult the data to reach a final decision as to whether or not it’ll allow the sale to go through. It plans on taking some time to “listen to any further views,” likely referring to Adobe. To that end, Adobe argues that buying Figma would strengthen both companies, saying that the Creative Cloud apps would get some of Figma’s collaborative features and vice-versa. The company says it’s “deeply committed” to keeping Figma an independent entity and that it has no plans to change the pricing, including Figma’s free tier.
If the deal’s approved by the UK, which looks more unlikely with this report, Adobe still has some other battles to fight before this merger officially goes through. The acquisition still faces a US investigation, and the EU has issued its own dire warning.
This would be the larger-ever-purchase for Adobe in its storied 41-year history. Figma, on the other hand, is a relative newcomer to the market, springing forth in 2012.
This article originally appeared on Engadget at https://www.engadget.com/adobe-and-figma-deal-will-harm-digital-design-sector-uk-report-suggests-163954858.html?src=rss
The biggest acquisition in gaming history and one of the largest in the tech industry is in the books. Twenty-one months after the deal was announced, Microsoft has bought Activision Blizzard for $68.7 billion, the largest acquisition in the company's history. CEO of Microsoft Gaming Phil Spencer has asked Activision CEO Bobby Kotick to stay on until the end of 2023, at which point he'll be leaving the company. It's been a long road filled with plenty of twists and turns to get to this point.
In an attempt to win over the UK regulator, Microsoft agreed to sell the cloud gaming rights for Activision Blizzard titles to Ubisoft. That means that not only should Activision Blizzard's games be on Xbox Game Pass, but they'll land on Ubisoft+ and any other game-streaming service Ubisoft decides to work with. Concerns about competition in the cloud gaming market was the CMA's reasoning for initially blocking Microsoft's takeover of Activision, but the watchdog said in September that the Ubisoft concession "opens the door to the deal being cleared." A few weeks later, the CMA has rubberstamped the merger.
Microsoft also signed 10-year agreements with Nintendo and severalcloud-gamingcompanies to offer its titles on their platforms. Those moves led to the European Union giving the merger the green light. The bloc's competition officials reportedly didn't see anything in the amended merger agreement (with the Ubisoft plan factored in) that would prompt a fresh antitrust investigation.
The Federal Trade Commission's attempts to stop the deal over competition concerns haven't panned out. The agency sued to block it in December and an evidentiary hearing in that case was slated to take place on August 2nd. The FTC tried to temporarily block the merger with a preliminary injunction ahead of its administrative trial, but a judge denied that effort.
The FTC still plans to challenge the merger. If that effort is successful, Microsoft could be forced to divest some or all of Activision Blizzard.
But for now, the deal is done. It means, among other things, that Activision Blizzard titles will be available on cloud gaming platforms for the first time since the publisher pulled its titles from GeForce Now in early 2020. Its games will surely join Game Pass in the coming months, including on Xbox Cloud Gaming, and they'll pop up on Ubisoft+ and other platforms Ubisoft works with.
Those waiting for Activision Blizzard's two biggest games of 2023 to hit Game Pass will certainly need to remain patient, though. The publisher has said Call of Duty: Modern Warfare III and Diablo IVwon't hit the service until next year.
Meanwhile, Blizzard games are already coming to Steam rather than being siloed on the Battle.net launcher. We'll probably see them appearing on Xbox's PC app too. For what it's worth, in court filings, Microsoft called Activision's strategy of releasing PC versions of Call of Duty titles exclusively on Battle.net in a bid to grow the platform a "resounding failure."
ASSOCIATED PRESS
One of the key reasons Microsoft gave for pursuing the deal was to accelerate its aim of becoming a major player in the mobile gaming market. With Activision Blizzard pulling in $1.9 billion in mobile revenue in the first six months of 2023 alone, it will achieve that goal practically overnight.
King, which is behind the hugely successful Candy Crush franchise, generated more revenue ($1.49 billion) than Activision ($1.15 billion) in the first half of this year. Thanks largely to the massive success of Diablo IV, Blizzard brought in the most of the three units during that period with a hair over $1.5 billion. Still, King had 238 million monthly active users as of June 30th, just over twice as many as Activision and Blizzard combined. It recently emerged that Candy Crush Saga has generated over $20 billion in lifetime revenue.
Blizzard has also been making a push into mobile gaming with the likes of Diablo Immortal. Activision, meanwhile, has Call of Duty Mobile in its portfolio and Call of Duty: Warzone Mobile is on the way. The company said in its most recent earnings report Call of Duty has around 90 million monthly players, "with over half of all engagement on the mobile platform."
As for exclusivity of future projects, Microsoft Gaming CEO Phil Spencer has promised to "do whatever it takes" to keep shipping Call of Duty games on PlayStation. After months of refusing to do so, Sony eventually signed a 10-year pact just before the initial merger deadline of July 18th to keep that particular franchise on PlayStation, conceding defeat in its efforts to halt the acquisition. However, Microsoft will likely opt to keep other Activision Blizzard games off of PlayStation platforms, as it has done with ZeniMax/Bethesda titles Redfall and Starfield, as well as MachineGames' upcoming Indiana Jones project.
Meanwhile, many observers hope that Microsoft will help stamp out the alleged toxic workplace culture at Activision Blizzard. Earlier this year, Activision Blizzard paid $35 million to settle SEC charges related to how it handled employees' workplace misconduct complaints.
In 2021, the California Civil Rights Department (formerly the Department of Fair Employment and Housing) sued the company and accused it of fostering a "frat boy" culture in which female employees were harassed and discriminated against. Activision Blizzard countersued the CRD in December. The case hasn't been resolved. In fact, the CRD's lawsuit (which, along with other events, sent Activision's stock tumbling) set the ball rolling on Microsoft's acquisition of the company in the first place.
ASSOCIATED PRESS
Spencer hinted at efforts to improve the publisher's workplace culture. "Today is a good day to play. We officially welcome Activision Blizzard King to Team Xbox," he wrote on X. "Together, we’ll create stories and experiences that bring players together, in a culture empowering everyone to do their best work and celebrate diverse perspectives." Spencer added that "whether you play on Xbox, PlayStation, Nintendo, PC or mobile, you’re always welcome here — even if Xbox isn’t where you play your favorite franchise. Because when everyone plays, we all win."
Now that the acquisition has closed, a labor neutrality agreement between Microsoft and the Communications Workers of America will go into effect for Activision Blizzard workers in 60 days. That should make it easier for more of the publisher's employees to unionize. Some of Activision Blizzard's quality assurance (QA) workers have already formed unions. Earlier this year, hundreds of QA workers at ZeniMax Studios, a Microsoft subsidiary, voted to unionize with the CWA.
Spencer sent the following note to Activision Blizzard employees to welcome them to the Microsoft fold:
Today I am thrilled and honored to welcome you all to Team Xbox.
I’ve long been a fan of the incredible games and stories that your teams have created, and admired the impact that you’ve all had on gaming, entertainment and pop culture. Whether it was late nights spent playing the Diablo IV campaign with friends from start to finish, gathering the entire family in the rec room for our weekly Guitar Hero night, or going on an epic streak in Candy Crush, some of my most memorable gaming moments have come from experiences your studios have created.
Bringing our teams together represents an incredible opportunity for us to learn from one another, unlock a world of possibilities, and continue doing what both of our companies have always done – create stories and experiences that bring players together. Thank you to everyone who contributed to making this moment possible.
By combining Xbox with your teams’ skill and talent, energizing passion, and amazing legacy of games, we will bring the joy and community of gaming to even more players around the world. Our goal is to keep nurturing what makes you great, support you in doing your best work building groundbreaking games, and prioritizing our shared commitment to putting culture at the center of everything we do. We want to learn from your centers of excellence, exchange ideas and best practices, and empower you to bring your visions to life.
As of today, we couldn’t be more excited that Activision Blizzard employees are our colleagues, co-workers, and teammates. As mentioned in Bobby’s email earlier, he has agreed to remain in his role through the end of 2023, reporting directly to me, to ensure a smooth and seamless integration. We look forward to working together as a unified team and we will share more updates on our new organizational structure in the coming months.
Through this integration, we remain committed to being transparent and sharing information wherever possible. We have a dedicated team ensuring that you feel welcome, have opportunities to ask questions, and that we are creating a culture of trust, inclusion, and collaboration with you. Earlier today, I sent a note to Microsoft letting the rest of the company know that we can now officially welcome you. And there, I reiterate that we hold ourselves to a high bar in delivering the most inclusive and welcoming experiences for players, creators, and employees. We are one team – Team Xbox.
Over the coming weeks, I’ll be visiting the Activision, Blizzard, and King offices, along with members of the Xbox Leadership Team. There, we’ll have the opportunity to address questions and hear from each other. We also look forward to welcoming you alongside Team Xbox at our next virtual all-hands. More to come on these.
Update, October 10, 2023, 9:34AM ET: This story has been updated to include comments from Phil Spencer, and to add context about the labor neutrality agreement and unionization efforts at Activision Blizzard and Microsoft.
This article originally appeared on Engadget at https://www.engadget.com/activision-blizzard-now-officially-belongs-to-microsoft-125053787.html?src=rss
The biggest acquisition in gaming history and one of the largest in the tech industry is in the books. Twenty-one months after the deal was announced, Microsoft has bought Activision Blizzard for $68.7 billion, the largest acquisition in the company's history. CEO of Microsoft Gaming Phil Spencer has asked Activision CEO Bobby Kotick to stay on until the end of 2023, at which point he'll be leaving the company. It's been a long road filled with plenty of twists and turns to get to this point.
In an attempt to win over the UK regulator, Microsoft agreed to sell the cloud gaming rights for Activision Blizzard titles to Ubisoft. That means that not only should Activision Blizzard's games be on Xbox Game Pass, but they'll land on Ubisoft+ and any other game-streaming service Ubisoft decides to work with. Concerns about competition in the cloud gaming market was the CMA's reasoning for initially blocking Microsoft's takeover of Activision, but the watchdog said in September that the Ubisoft concession "opens the door to the deal being cleared." A few weeks later, the CMA has rubberstamped the merger.
Microsoft also signed 10-year agreements with Nintendo and severalcloud-gamingcompanies to offer its titles on their platforms. Those moves led to the European Union giving the merger the green light. The bloc's competition officials reportedly didn't see anything in the amended merger agreement (with the Ubisoft plan factored in) that would prompt a fresh antitrust investigation.
The Federal Trade Commission's attempts to stop the deal over competition concerns haven't panned out. The agency sued to block it in December and an evidentiary hearing in that case was slated to take place on August 2nd. The FTC tried to temporarily block the merger with a preliminary injunction ahead of its administrative trial, but a judge denied that effort.
The FTC still plans to challenge the merger. If that effort is successful, Microsoft could be forced to divest some or all of Activision Blizzard.
But for now, the deal is done. It means, among other things, that Activision Blizzard titles will be available on cloud gaming platforms for the first time since the publisher pulled its titles from GeForce Now in early 2020. Its games will surely join Game Pass in the coming months, including on Xbox Cloud Gaming, and they'll pop up on Ubisoft+ and other platforms Ubisoft works with.
Those waiting for Activision Blizzard's two biggest games of 2023 to hit Game Pass will certainly need to remain patient, though. The publisher has said Call of Duty: Modern Warfare III and Diablo IVwon't hit the service until next year.
Meanwhile, Blizzard games are already coming to Steam rather than being siloed on the Battle.net launcher. We'll probably see them appearing on Xbox's PC app too. For what it's worth, in court filings, Microsoft called Activision's strategy of releasing PC versions of Call of Duty titles exclusively on Battle.net in a bid to grow the platform a "resounding failure."
ASSOCIATED PRESS
One of the key reasons Microsoft gave for pursuing the deal was to accelerate its aim of becoming a major player in the mobile gaming market. With Activision Blizzard pulling in $1.9 billion in mobile revenue in the first six months of 2023 alone, it will achieve that goal practically overnight.
King, which is behind the hugely successful Candy Crush franchise, generated more revenue ($1.49 billion) than Activision ($1.15 billion) in the first half of this year. Thanks largely to the massive success of Diablo IV, Blizzard brought in the most of the three units during that period with a hair over $1.5 billion. Still, King had 238 million monthly active users as of June 30th, just over twice as many as Activision and Blizzard combined. It recently emerged that Candy Crush Saga has generated over $20 billion in lifetime revenue.
Blizzard has also been making a push into mobile gaming with the likes of Diablo Immortal. Activision, meanwhile, has Call of Duty Mobile in its portfolio and Call of Duty: Warzone Mobile is on the way. The company said in its most recent earnings report Call of Duty has around 90 million monthly players, "with over half of all engagement on the mobile platform."
As for exclusivity of future projects, Microsoft Gaming CEO Phil Spencer has promised to "do whatever it takes" to keep shipping Call of Duty games on PlayStation. After months of refusing to do so, Sony eventually signed a 10-year pact just before the initial merger deadline of July 18th to keep that particular franchise on PlayStation, conceding defeat in its efforts to halt the acquisition. However, Microsoft will likely opt to keep other Activision Blizzard games off of PlayStation platforms, as it has done with ZeniMax/Bethesda titles Redfall and Starfield, as well as MachineGames' upcoming Indiana Jones project.
Meanwhile, many observers hope that Microsoft will help stamp out the alleged toxic workplace culture at Activision Blizzard. Earlier this year, Activision Blizzard paid $35 million to settle SEC charges related to how it handled employees' workplace misconduct complaints.
In 2021, the California Civil Rights Department (formerly the Department of Fair Employment and Housing) sued the company and accused it of fostering a "frat boy" culture in which female employees were harassed and discriminated against. Activision Blizzard countersued the CRD in December. The case hasn't been resolved. In fact, the CRD's lawsuit (which, along with other events, sent Activision's stock tumbling) set the ball rolling on Microsoft's acquisition of the company in the first place.
ASSOCIATED PRESS
Spencer hinted at efforts to improve the publisher's workplace culture. "Today is a good day to play. We officially welcome Activision Blizzard King to Team Xbox," he wrote on X. "Together, we’ll create stories and experiences that bring players together, in a culture empowering everyone to do their best work and celebrate diverse perspectives." Spencer added that "whether you play on Xbox, PlayStation, Nintendo, PC or mobile, you’re always welcome here — even if Xbox isn’t where you play your favorite franchise. Because when everyone plays, we all win."
Now that the acquisition has closed, a labor neutrality agreement between Microsoft and the Communications Workers of America will go into effect for Activision Blizzard workers in 60 days. That should make it easier for more of the publisher's employees to unionize. Some of Activision Blizzard's quality assurance (QA) workers have already formed unions. Earlier this year, hundreds of QA workers at ZeniMax Studios, a Microsoft subsidiary, voted to unionize with the CWA.
Spencer sent the following note to Activision Blizzard employees to welcome them to the Microsoft fold:
Today I am thrilled and honored to welcome you all to Team Xbox.
I’ve long been a fan of the incredible games and stories that your teams have created, and admired the impact that you’ve all had on gaming, entertainment and pop culture. Whether it was late nights spent playing the Diablo IV campaign with friends from start to finish, gathering the entire family in the rec room for our weekly Guitar Hero night, or going on an epic streak in Candy Crush, some of my most memorable gaming moments have come from experiences your studios have created.
Bringing our teams together represents an incredible opportunity for us to learn from one another, unlock a world of possibilities, and continue doing what both of our companies have always done – create stories and experiences that bring players together. Thank you to everyone who contributed to making this moment possible.
By combining Xbox with your teams’ skill and talent, energizing passion, and amazing legacy of games, we will bring the joy and community of gaming to even more players around the world. Our goal is to keep nurturing what makes you great, support you in doing your best work building groundbreaking games, and prioritizing our shared commitment to putting culture at the center of everything we do. We want to learn from your centers of excellence, exchange ideas and best practices, and empower you to bring your visions to life.
As of today, we couldn’t be more excited that Activision Blizzard employees are our colleagues, co-workers, and teammates. As mentioned in Bobby’s email earlier, he has agreed to remain in his role through the end of 2023, reporting directly to me, to ensure a smooth and seamless integration. We look forward to working together as a unified team and we will share more updates on our new organizational structure in the coming months.
Through this integration, we remain committed to being transparent and sharing information wherever possible. We have a dedicated team ensuring that you feel welcome, have opportunities to ask questions, and that we are creating a culture of trust, inclusion, and collaboration with you. Earlier today, I sent a note to Microsoft letting the rest of the company know that we can now officially welcome you. And there, I reiterate that we hold ourselves to a high bar in delivering the most inclusive and welcoming experiences for players, creators, and employees. We are one team – Team Xbox.
Over the coming weeks, I’ll be visiting the Activision, Blizzard, and King offices, along with members of the Xbox Leadership Team. There, we’ll have the opportunity to address questions and hear from each other. We also look forward to welcoming you alongside Team Xbox at our next virtual all-hands. More to come on these.
Update, October 10, 2023, 9:34AM ET: This story has been updated to include comments from Phil Spencer, and to add context about the labor neutrality agreement and unionization efforts at Activision Blizzard and Microsoft.
This article originally appeared on Engadget at https://www.engadget.com/activision-blizzard-now-officially-belongs-to-microsoft-125053787.html?src=rss
With the last major obstacle out of the way, the Competitions and Markets Authority (CMA) has now largely cleared the path for the companies to close the biggest merger in gaming history. That move was widely expected after the watchdog said in September that the company's revised merger agreement "substantially addresses previous concerns and opens the door to the deal being cleared."
In April, the CMA blocked the deal on the grounds of a belief that it would make Microsoft too dominant of a player in the cloud gaming space. However, as other dominoes that were preventing the deal from happening fell, the CMA gave Microsoft a second chance to resolve its concerns. The companies extended their merger agreement by three months to give them time to smooth things out with the CMA.
Microsoft later submitted a modified deal to the watchdog that will see it sell Activision Blizzard game streaming rights to Ubisoft if the merger goes through. Ubisoft would then handle cloud streaming rights in perpetuity for current titles and any others that Activision Blizzard releases over the following 15 years. Given that the CMA's misgivings over the original deal, Microsoft evidently hoped that the concession would be significant enough to resolve the regulator's concerns. Evidently, that's exactly what happened.
The CMA said last month that it had "residual concerns" about enforcement of Microsoft's revised proposal. However, it noted that "Microsoft gave undertakings that will ensure that the terms of the sale of Activision's rights to Ubisoft are enforceable by the CMA."
The regulator touted its role in forcing Microsoft to make concessions. "With the sale of Activision’s cloud streaming rights to Ubisoft, we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market," CMA chief executive Sarah Cardell said in a statement. "As cloud gaming grows, this intervention will ensure people get more competitive prices, better services and more choice. We are the only competition agency globally to have delivered this outcome."
There were suggestions that European Union antitrust regulators might review the amended deal. EU officials approved the acquisition in May after Microsoft made some cloud gaming concessions. According to Bloomberg, the bloc's competition regulators didn't see cause for concern with the amended deal that would prompt another investigation.
After a US court rejected the Federal Trade Commission's attempt to temporarily block the deal pending an administrative trial, the CMA and both companies in question asked a tribunal to delay Microsoft's appeal against the UK regulator's initial decision. The tribunal agreed and, after reviewing the updated proposal from Microsoft, the CMA has rubberstamped the merger. It now seems like just a matter of time until this is a done deal and one of the biggest tech mergers in memory is in the books.
There is one significant potential hurdle remaining, however. The FTC is moving forward with its attempt to challenge the deal. That effort won't stop Microsoft from closing the acquisition, but there's a chance that the FTC could force the company to divest some or all of Activision Blizzard.
This article originally appeared on Engadget at https://www.engadget.com/uk-regulator-approves-microsofts-687-billion-purchase-of-activision-blizzard-063625038.html?src=rss
Game Pass subscribers will have to wait a bit more before they're able to play Diablo IV and Call of Duty: Modern Warfare III on the service. Activision Blizzard has announced on X, formerly Twitter, that it doesn't have plans to add those games — among other upcoming and recent releases — to the service anytime this year. Based on its explanation, it's waiting for Microsoft's acquisition of the company to be finalized, which is expected to happen within this month.
"As we continue to work toward regulatory approval of the Microsoft deal, we've been getting some questions whether our upcoming and recently launched games will be available via Game Pass," the gaming giant wrote. It added that it expects to start working with Xbox and add its titles to the Game Pass service once the deal closes, and that the process would begin "sometime in the course of next year."
Microsoft first announced that it was buying Activision Blizzard for $68.7 billion in early 2022 and that it was hoping to close the deal by June 2023. However, several regulators moved to block the purchase over concerns that it would harm competition and stifle innovation. The European Commission rubberstamped the acquisition in May with the condition that Microsoft offers its games on other cloud gaming services. Meanwhile, the UK's Competition and Markets Authority blocked the deal until the companies promised to sell "cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years to Ubisoft Entertainment... in perpetuity." In the US, courts denied the Federal Trade Commission's (FTC) request to issue an injunction on the purchase. However, the FTC announced in September that it plans to restart its in-house trial against the acquisition.
It’s awesome to see anticipation building for Call of Duty®: Modern Warfare® III. As we continue to work toward regulatory approval of the Microsoft deal, we’ve been getting some questions whether our upcoming and recently launched games will be available via Game Pass.
This article originally appeared on Engadget at https://www.engadget.com/modern-warfare-iii-and-diablo-iv-wont-come-to-game-pass-until-2024-085336560.html?src=rss
The film-focused social media site LetterBoxd has new ownership. Cofounder Matthew Buchanan announced on Friday that Tiny, a venture capital firm, has bought a 60 percent stake in the platform. The New York Timesreportedthat the deal values Letterboxd at over $50 million. Buchanan and fellow founder Karl von Randow will retain minority shareholder positions and continue to lead the company as they insist “very little else will change.”
Founded in 2011, Letterboxd was a rare independently owned social network. It grew significantly during pandemic lockdowns as homebound users sought new movies to stream (and communities to chat with). Lacking the clutter of Amazon-owned IMDb, the website and app provided a haven for film buffs who wanted to write and read reviews, rate movies, create watch lists and socialize with fellow enthusiasts.
Letterboxd’s cofounders frame the move as less about selling out to big money and more a growth opportunity. “Teaming up with Tiny represents a big leap forward for us,” Buchanan and von Randow wrote in a statement. “We see this as a huge win for our community, enabling us to cement Letterboxd’s future with additional resources without sacrificing the DNA of what makes it special.”
The site doesn’t currently support television series, but the founders say they’re working on a way to offer that. They insist they want to incorporate TV shows “only once we know we can do it right.” Letterboxd partnered with Netflix earlier this year, bringing the streaming service’s recommendations to the social platform.
“We’ve been huge fans and users of Letterboxd for a long time and could not be more excited to join forces with Matthew, Karl, and the rest of the team for the long-term,” said Andrew Wilkinson, Co-founder of Tiny. “If you’re running out of things to watch, it’s because you haven’t used Letterboxd yet — and we believe that the potential for superior discovery is a large opportunity.”
This article originally appeared on Engadget at https://www.engadget.com/letterboxd-sells-a-majority-stake-after-explosive-pandemic-fueled-growth-201646444.html?src=rss
The film-focused social media site LetterBoxd has new ownership. Cofounder Matthew Buchanan announced on Friday that Tiny, a venture capital firm, has bought a 60 percent stake in the platform. The New York Timesreportedthat the deal values Letterboxd at over $50 million. Buchanan and fellow founder Karl von Randow will retain minority shareholder positions and continue to lead the company as they insist “very little else will change.”
Founded in 2011, Letterboxd was a rare independently owned social network. It grew significantly during pandemic lockdowns as homebound users sought new movies to stream (and communities to chat with). Lacking the clutter of Amazon-owned IMDb, the website and app provided a haven for film buffs who wanted to write and read reviews, rate movies, create watch lists and socialize with fellow enthusiasts.
Letterboxd’s cofounders frame the move as less about selling out to big money and more a growth opportunity. “Teaming up with Tiny represents a big leap forward for us,” Buchanan and von Randow wrote in a statement. “We see this as a huge win for our community, enabling us to cement Letterboxd’s future with additional resources without sacrificing the DNA of what makes it special.”
The site doesn’t currently support television series, but the founders say they’re working on a way to offer that. They insist they want to incorporate TV shows “only once we know we can do it right.” Letterboxd partnered with Netflix earlier this year, bringing the streaming service’s recommendations to the social platform.
“We’ve been huge fans and users of Letterboxd for a long time and could not be more excited to join forces with Matthew, Karl, and the rest of the team for the long-term,” said Andrew Wilkinson, Co-founder of Tiny. “If you’re running out of things to watch, it’s because you haven’t used Letterboxd yet — and we believe that the potential for superior discovery is a large opportunity.”
This article originally appeared on Engadget at https://www.engadget.com/letterboxd-sells-a-majority-stake-after-explosive-pandemic-fueled-growth-201646444.html?src=rss
Just when Microsoft's buyout of Activision seemed to finally be near complete, the Federal Trade Commission said it will revive its attempt to block the $69 billion deal in an adjudicative process. The FTC plans to restart its in-house trial against Microsoft’s multibillion-dollar acquisition of the Call of Duty maker.
This effort by the FTC is unlikely to be anything more than a nuisance for Microsoft. It already received EU approval over the summer when the European Commission endorsed the deal as long as the tech giant could ensure “full compliance with commitments.” And more recently, the UK's Competition and Markets Authority issued a preliminary approval of the merger. Activision Blizzard CEO Bobby Kotick called it “a significant milestone for the merger” in a statement and said he remains optimistic that the deal will complete soon. The CMA's consultation on Microsoft's proposed changes is expected to be complete by October 6, just days ahead of the October 18 deadline for the CMA’s review process.
Normally, the FTC typically drops its challenges to deals when efforts are lost in federal court and despite the agency’s effort, this move will not delay the deal from going through. The likely worst-case scenario for Microsoft would be divestiture. Being forced to sell Activision or parts of it after the fact would not be ideal, but at least short term there seems to be little chance of the FTC derailing things.
The agency’s failed attempt to block the acquisition over the summer in the US should have put an end to the bargaining when the FTC’s injunction request to block the deal got rejected and the Ninth Circuit Court of Appeals denied the agency’s last-ditch effort. Judge Jacqueline Scott Corley said in her ruling that the FTC did not prove the deal would harm consumers.
Microsoft told Bloomberg that it's not overly concerned about the move preventing its purchase. Regardless of what impact it could have, the FTC’s in-house hearing will only start after the Ninth Circuit issues an opinion on the appeal, according to the filing.
In response to questions about this: we’re focused on working with Microsoft toward closing.
Lulu Cheng Meservey, the CCO of Activision, said the company is focused on closing the deal with Microsoft. In a jab on X, the site formerly known as Twitter, she questioned the FTC for how it “uses limited taxpayer resources.”
This article originally appeared on Engadget at https://www.engadget.com/ftc-is-challenging-microsofts-69-billion-buyout-of-activision-again-162844282.html?src=rss
Microsoft's $68.7 billion acquisition of Activision Blizzard looked close to being dead not long ago, but it just took a big step toward clearing its last major obstacle. The UK's Competition and Markets Authority (CMA) has announced that Microsoft's revised agreement "substantially addresses previous concerns and opens the door to the deal being cleared." The agreement is still in consultation, but final approval now looks highly likely.
"The CMA considers that the restructured deal makes important changes that substantially address the concerns it set out in relation to the original transaction earlier this year," the regulator wrote. "In particular, the sale of Activision’s cloud streaming rights to Ubisoft will prevent this important content — including games such as Call of Duty, Overwatch, and World of Warcraft — from coming under the control of Microsoft in relation to cloud gaming."
The UK regulator initially blocked the merger over fears it would hand Microsoft a 60 to 70 percent share of the cloud gaming market, making it a monopoly player. That in turn would give it "incentive to withhold games from competitors and substantially weaken competition in this important growing market."
In response, Microsoft announced last month that it would sell Activision Blizzard streaming rights to Ubisoft in an attempt to win UK approval. It said that if the merger goes through, it would transfer "cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years to Ubisoft Entertainment... in perpetuity." Ubisoft said in a separate release that the titles would be available across a range of services.
The revised deal "substantially addresses most concerns," the CMA wrote, but it still wants to ensure that provisions in the sale of Activision's cloud streaming rights to Ubisoft can't be "circumvented, terminated or not enforced." It added that Microsoft has offered remedies to ensure that those rights are enforceable, and those should resolve any residual concerns.
In an open letter to employees, Activision Blizzard CEO Bobby Kotick said today's news represents "a significant milestone for the merger and a testament to our solutions-oriented work with regulators. I remain optimistic as we continue the journey toward completion and am very grateful to each of you for your dedication and focus throughout this process." Microsoft Vice Chair and President Brad Smith similarly wrote on X:
We are encouraged by this positive development in the CMA’s review process. We presented solutions that we believe fully address the CMA’s remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the October 18…
Microsoft managed to turn the deal around after taking a lot of blows from regulators. Late last year, the US Federal Trade Commission (FTC) sued to block the merger, but was later rebuffed by a federal court. The UK's CMA rejected the deal a few months later, but Microsoft appealed the decision and was later given more time to submit an amended deal. It made a major concession with the sale of streaming rights to Ubisoft — and that seems like it may have done the trick. We should know soon, as the CMA's consultation on Microsoft's proposed remedies closes on October 6.
Update September 22 11AM ET: This story was updated after publish to include comments from Activision and Microsoft leadership.
This article originally appeared on Engadget at https://www.engadget.com/microsofts-activision-merger-set-to-get-its-final-uk-approval-083315786.html?src=rss