All articles tagged with #uk regulators
The U.K.'s Competition and Markets Authority is examining the partnership between Microsoft and OpenAI, seeking feedback on whether it should be considered a de facto merger. This marks the first scrutiny by a major competition authority into the relationship between the tech giant and the artificial intelligence company behind ChatGPT.
Activision Blizzard's stock rose nearly 2% in premarket trading after U.K. regulators indicated they might approve Microsoft's proposed acquisition of the video game developer. The Competition & Markets Authority (CMA) found that the amendment to the original deal, which divested certain streaming rights to Ubisoft Entertainment, addressed potential anticompetitive impacts. Meanwhile, Scholastic's stock plunged 16% in premarket trading after the publisher's fiscal first-quarter financial results fell short of expectations, with revenue down 13% YoY and losses widening by roughly 70%. Despite CEO Peter Warwick's optimism for the fall season, shareholders remain concerned about Scholastic's future performance.
Microsoft has submitted a new proposal to U.K. regulators for its takeover bid of Activision Blizzard after its initial proposal was rejected. Microsoft's vice-chairman and president, Brad Smith, stated that they have taken the concerns of regulators seriously and have worked to address them. The U.K.'s Competition and Markets Authority will now investigate the new proposal, with a decision deadline of October 18. Under the new deal, Microsoft will not acquire cloud rights for existing Activision PC and console games, or for new games released by Activision for the next 15 years. French gaming publisher Ubisoft will acquire those rights before Microsoft's acquisition of Activision. Smith believes that this transaction can advance competition and address regulatory concerns. Ultimately, it will be up to the regulators to decide whether the path is clear for the takeover.
Microsoft has submitted a new document to the UK's Competition and Markets Authority (CMA), arguing for its proposed acquisition of Activision Blizzard to be reconsidered. The CMA had previously blocked the deal due to concerns over its impact on the cloud gaming market. Microsoft is now urging the regulator to take into account its cloud gaming agreements, a new Call of Duty deal with Sony, and evidence from the FTC case that challenges the conclusions of the final report. The company is also working on a final proposal to address the CMA's concerns, potentially involving the sale of its cloud gaming rights in the UK. The CMA is seeking comments from Microsoft's rivals and will make a final decision by August 29th.
Microsoft and Activision Blizzard have agreed to extend their merger agreement until October 18th, pending negotiations with UK regulators. The extension allows ample time to address regulatory concerns and finalize the transaction. The termination fee has been increased to $3.5 billion if the deal doesn't close by August 29th. Microsoft is negotiating with the UK's Competition and Markets Authority (CMA) to address cloud gaming concerns and potentially sell off its rights to cloud gaming in the UK. The CMA has until Thursday to file relevant evidence for the tribunal judges to pause the appeal process.
The Federal Trade Commission's request for a preliminary injunction to block Microsoft's $69 billion acquisition of Activision Blizzard has been denied by U.S. District Judge Jacqueline Scott Corley, shifting the focus to U.K. regulators.
Meta has sold Giphy to Shutterstock for $53 million, after being ordered to divest it by UK regulators. The sale comes at a significant loss for Meta, which purchased Giphy for $315 million in 2020. Giphy had urged regulators to enact behavioral ordinances rather than force a sale, citing a lack of interest in GIF platforms. Shutterstock plans to expand its API ecosystem with Giphy's 14,000-plus API/SDK integrations and grow its marketing and advertising potential by getting consumers to use relevant GIFs and stickers in "casual conversations."
Microsoft and Activision Blizzard face more restrictions from UK regulators, requiring prior written consent from the CMA for any investment or acquisition in each other's development studios or interests. The UK government has also unveiled "smarter regulation" to reduce red tape for businesses and foster a more competitive environment. Microsoft is preparing to appeal the CMA's judgment, while the impact of the new streamlined rules on the two companies remains to be seen.
The UK's Competition and Markets Authority has blocked Microsoft's $68.7 billion deal to acquire Activision Blizzard, and EU regulators are due to make a decision soon. Microsoft is expected to appeal the decision, which could drag on for months and lead to a messy fight with the FTC. All eyes are now on European regulators as Microsoft attempts to salvage the acquisition.
Activision Blizzard reported strong earnings in its Q1 2023 results, released a day early after U.K. regulators blocked its $69 billion sale to Microsoft. The company's net bookings rose 25% to $1.86 billion, beating analyst expectations, and non-GAAP earnings of 60 cents a share topped expectations of 51 cents a share. The results indicate that Activision Blizzard has gained momentum independent of a sale to Microsoft.
The UK’s Competition and Markets Authority (CMA) has blocked Microsoft’s $68.7 billion deal to acquire Activision Blizzard, citing concerns that it could reduce innovation and choice for UK gamers in the cloud gaming market. Microsoft plans to appeal the decision, but it will likely prevent the company from closing the deal if the appeal is unsuccessful. The CMA estimates that Microsoft controls around 60 to 70 percent of global cloud gaming services and that adding control over Call of Duty, Overwatch, and World of Warcraft would give Microsoft a significant advantage in the cloud gaming market.
Amazon's stock fell by 2.6% after reports that UK regulators may investigate Amazon and Microsoft's cloud practices. The UK's media and communications regulator, Ofcom, has "significant concerns" about practices used by Amazon and Microsoft in the cloud infrastructure market. The regulatory body said it had conducted a market study and "has provisionally identified features and practices that make it more difficult for customers to switch and use multiple cloud suppliers."
UK regulators have provisionally found that Microsoft's $69 billion acquisition deal to buy Activision Blizzard would not harm competition, as new data shows that making the "Call of Duty" game series exclusive to Xbox would result in significant losses for Microsoft. The agency is still investigating the cloud gaming aspect of the deal, and their final verdict is due in four weeks. Microsoft still needs approval from European regulators and must deal with an antitrust lawsuit by the U.S. Federal Trade Commission.