The losses are coming fast and furious for the FTC, which has been pulling out all the stops to do anything it can to try to prevent Microsoft from closing its $69 billion acquisition of Activision Blizzard. Now, one final loss means the deal can likely close before its appeal actually takes place.
First, the FTC failed to win an injunction to stop the acquisition after it presented a lengthy case to a judge.
Then, the FTC filed an emergency motion to stay the deal after the first loss, which it also lost.
Finally, late on Friday, the FTC lost another attempt to stop the deal before appeal, this time via the 9th Circuit Court.
What this means is that Microsoft is now free to close The Activision Blizzard deal, likely as soon as next week, provided it can sort out their final bit of business with the UK’s CMA, which previously rejected the acquisition on cloud gaming-based grounds.
The FTC has not lost its actual appeal, but the fact that the deal can essentially happen now means that any future action that could be taken would be far less relevant than blocking it now, as if it was granted these injunctions, it might have actually killed the deal. Now, that’s almost certainly not going to happen.
SAN FRANCISCO, CALIFORNIA – JUNE 23: XBOX CEO Phil Spencer arrives at federal court on June 23, 2023 … [+] in San Francisco, California. Top executives from Microsoft and Activision/Blizzard will be testifying during a five day hearing against the FTC to determine the fate of a $68.7B merger of the two companies. (Photo by Justin Sullivan/Getty Images)
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The FTC’s resounding loss in court and extremely fast follow-up rejections have caused the overall effectiveness of the agency to come into question. At least in this specific case, no matter what your opinion of the industry’s consolidation that would occur through the deal, it was easy to see the FTC was presenting an extremely weak case. It is not a good sign when the judge you’re arguing before has to actively remind you that you’re supposed to be arguing for consumers, not one specific company, Sony.
Closing seems likely to happen soon. Activision is already in the process of being delisted from the stock exchange ahead of acquisition. Microsoft is taking victory laps. The UK CMA thing is almost certainly going to work itself out as the lone remaining obstacle, and not a very big one at that.
It always seemed likely that this deal would go through, especially after dozens and dozens of countries approved it without issue and most other big tech companies seemed to have no issue with it, with gaming industry giants like Valve and Nintendo shrugging at the possibility that Microsoft would own Activision Blizzard. This left Sony as essentially the lone crusader, but it was often giving talking points directly to regulatory agencies in a way that was too obviously defending its own specific interests. But its key point, that Microsoft could take away Call of Duty from PlayStation, was never convincing given the economics of the situation and Microsoft’s decade-long deals it was offering (that Sony was rejecting). Emails revealed Sony’s Jim Ryan himself did not actually believe COD would leave the platform, revealing it as a move to stop the deal rather than an actual concern.
The ink is not dry but after this latest loss, this is as close to a sure thing as we’re going to get. It’s likely this ends for good next week, minus any UK obfuscation.
MONTREAL – Lightspeed Commerce Inc. says it is conducting a review of its business and operations including talks relating to a range of potential strategic alternatives.
The Montreal-based payments technology company made the comments after reports concerning a potential transaction involving the company.
Lightspeed says it periodically undertakes a review of its business and operations with a view of realizing its full potential.
A strategic review is often seen by investors as a prelude to a sale by a company.
Lightspeed says its board of directors is committed to acting in the best interests of the company and its stakeholders.
Company founder Dax Dasilva returned to the role of chief executive officer earlier this year and has been working to return the company to profitability.
This report by The Canadian Press was first published Sept. 26, 2024.
OTTAWA – Bank of Canada governor Tiff Macklem says there is a lot of uncertainty around how artificial intelligence could affect the economy moving forward, including the labour market and price growth.
In a speech in Toronto at the Economics of Artificial Intelligence Conference, the governor said Friday that the central bank is approaching the issue cautiously to get a better understanding of how AI could affect its job of keeping inflation low and stable.
“Be wary of anyone who claims to know where AI will take us. There is too much uncertainty to be confident,” Macklem said in prepared remarks.
“We don’t know how quickly AI will continue to advance. And we don’t know the timing and extent of its economic and social impacts.”
The governor said AI has the potential of increasing labour productivity, which would raise living standards and grow the economy without boosting inflation.
In the short-term, he said investment in AI is adding to demand and could be inflationary.
However, Macklem also highlighted more pessimistic scenarios, where AI could destroy more jobs than it creates or lead to less competition rather than more.
The governor called on academics and businesses to work together to shed more light on the potential effects of AI on the economy.
“When you enter a dark room, you don’t go charging in. You cautiously feel your way around. And you try to find the light switch. That is what we are doing. What we central bankers need is more light,” he said.
This report by The Canadian Press was first published Sept. 20, 2024.
CHICAGO (AP) — United Airlines has struck a deal with Elon Musk’s SpaceX to offer satellite-based Starlink WiFi service on flights within the next several years.
The airline said Friday the service will be free to passengers.
United said it will begin testing the service early next year and begin offering it on some flights by later in 2025.
Financial details of the deal were not disclosed.
The announcement comes as airlines rush to offer more amenities as a way to stand out when passengers pick a carrier for a trip. United’s goal is to make sitting on a plane pretty much like being on the ground when it comes to browsing the internet, streaming entertainment and playing games.
“Everything you can do on the ground, you’ll soon be able to do on board a United plane at 35,000 feet, just about anywhere in the world,” CEO Scott Kirby said in announcing the deal.
The airline says Starlink will allow passengers to get internet access even over oceans and polar regions where traditional cell or Wi-Fi signals may be weak or missing.
