Business

Microsoft Closes Deal To Buy Call Of Duty Maker Activision Blizzard After Antitrust Fights

Published

1 year ago

2023-10-13

Kiara Grace

On Friday, Microsoft finalized the $69 billion acquisition of video game developer Activision Blizzard, concluding one of the most costly technology transactions ever and potentially affecting the entire video game industry.

The notification of the transaction’s completion was issued seven hours after Microsoft received ultimate approval from the competition watchdog in Britain. The watchdog had previously reversed its opposition to the merger, thereby eliminating the final barrier to the transaction.

Acquisition of the development studios responsible for critically acclaimed games such as Call of Duty, Diablo, and Overwatch will benefit Microsoft’s Xbox, currently positioned third in sales, trailing only Sony’s PlayStation and Nintendo. Additionally, the software behemoth has ambitious plans to incorporate Activision titles into its multi-game subscription service, which functions similarly to the video game Netflix.

The transaction took nearly 22 months to finalize amid rivalry and government oversight, reflecting apprehensions that Microsoft might exploit its expanding game library to stifle competition. An element of more extensive industry consolidation has caused concern among independent game developers who fear being marginalized as the sector redistributes resources to established blockbuster franchises.

The U.S. Federal Trade Commission opposes it, arguing that Microsoft could create “walled gardens” around its Xbox Game Pass subscription service and the emerging business of streaming games on demand by consolidating a major game publisher. However, after losing a court battle to halt the merger, FTC antitrust enforcers must now wage a difficult battle to undo it.

“The FTC continues to believe that this transaction poses a threat to competition,” Victoria Graham, a spokesperson for the FTC, stated on Friday.

Microsoft has consistently advocated for the agreement, asserting that it intended to expand the accessibility of Activision games across multiple platforms rather than prevent rival console manufacturers from obtaining those games.

Microsoft Closes Deal To Buy Call Of Duty Maker Activision Blizzard After Antitrust Fights.

Phil Spencer, CEO of Microsoft’s Xbox division, said in a statement on Friday, “Whether you play on Xbox, PlayStation, Nintendo, PC, or mobile, you are welcome here – and will remain welcome, even if Xbox isn’t where you play your favourite franchise.”

In a video commemorating the merger, he uploaded clips from video games accompanied by the Broadway musical “Oklahoma!”‘”Oh, What A Beautiful Morning!”

The U.K.’s Competition and Markets Authority granted initial approval for a revised Microsoft proposal last month, with the intention of assuaging concerns that the transaction would negatively impact competition and negatively impact gamers, particularly in the burgeoning cloud gaming sector where players can stream games to their smartphones or tablets instead of purchasing expensive consoles.

“The new agreement will prevent Microsoft from stifling competition in the burgeoning cloud gaming market, ensuring that U.K. cloud gaming customers continue to receive competitive pricing and services,” the watchdog stated.

However, it also considerably shifts the “balance of power” in favor of Microsoft, whose Xbox console has lagged behind PlayStation and Nintendo, according to tech research and advisory firm Omdia senior principal analyst George Jijiashvili.

He stated that Microsoft “now has a tremendous opportunity to shape the future of the gaming industry.”

Since the transaction was officially declared in January 2022, Microsoft has obtained authorizations from antitrust authorities in over 40 countries. Significantly, it received approval from the 27-member European Union after its concession to permit cloud gaming platforms and consumers to stream its titles without remitting royalties for ten years.

U.S. and British regulators presented the most formidable opposition to the transaction. Sony was also concerned it would restrict access to Call of Duty, Activision’s long-running military shooter series, for PlayStation players.

A court bid by the FTC to halt the transaction so that its in-house judge could assess it was unsuccessful this summer. The FTC has not surrendered, appealing the decision and filing notice of its intention to recommence the trial last month.

Microsoft will sell European cloud streaming rights for all new and current Activision games released within the next 15 years to French game studio Ubisoft Entertainment to obtain U.K. approval.

Although the regulator criticized how the agreement was reached, he cautioned other businesses against adopting Microsoft’s strategy of “insisting on a package of measures that we told them simply wouldn’t work.”

In contrast to the feeble commitments acknowledged by the European Commission, the structural remedy imposed by the U.K. regulator on Microsoft “deserves credit,” according to Max von Thun, director of the Europe office of the Open Markets Institute and an advocate for stricter antitrust enforcement.

He stated, however, that the British regulator appears “weak and indecisive” due to the back-and-forth.

Until now, the title for the most expensive technology acquisition belonged to computer manufacturer Dell, which acquired data-storage company EMC for approximately $60 billion in 2016. Concurrently, Microsoft completed its largest transaction to date, the $26 billion acquisition of professional networking service LinkedIn.

“Inclusive of Activision Blizzard’s net cash,” Microsoft initially valued the Activision deal at $68.7 billion; however, Microsoft consented to pay $95 in cash per share of the game-maker, bringing the total value closer to $75 billion.

Activision, founded in 1979 by former employees of Atari Inc., has developed or acquired a significant number of the most popular video games, including Guitar Hero, World of Warcraft, and Pitfall in the 1980s. A significant asset of Activision that Microsoft acquired was its King studio, which developed well-known mobile games, including Candy Crush Saga.

Bobby Kotick assumed the role of CEO in 1991, after he collaborated with a business associate in rescuing the company from bankruptcy.

Kotick announced his impending departure on Friday, stating that he remains CEO of the organization that is now a Microsoft subsidiary until 2023, during which time he is “completely committed to assisting with the transition.”

“Our extraordinary teams around the world will gain access to new opportunities and resources as a result of our partnership with Microsoft,” Kotick wrote in a letter to employees.

He is under the supervision of Spencer, who has held the position of CEO of Microsoft’s Xbox division since 2014.

While Sony’s PlayStation continues to dominate the industry, Microsoft has been acquiring game studios in recent years to attract more enthusiasts to Xbox. It acquired ZeniMax Media, the parent company of video game publisher Bethesda Softworks, the developer of Elder Scrolls, Fallout, and the recently released Starfield, for $7.5 billion last year. Microsoft acquired Minecraft, one of the most popular games in the world, in 2014 for $2.5 billion from Swedish developer Mojang.

Rivals have also acquired larger game libraries through acquisitions; Sony acquired Bellevue, Washington-based independent game publisher Bungie Inc. for $3.6 billion last year, venturing near Microsoft’s headquarters.

SOURCE – (AP)

Kiara Grace

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics.

Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

Business

Intuit Debuts Online Tax Platform Tools

Published

7 hours ago

2024-12-05

Geoff Brown

Intuit has rolled out new tax platform offerings for personal and small business filers.

Intuit has launched additional tax platform options for small company and individual taxpayers, as part of its attempts to assist taxpayers outside of tax season, according to a news release.

Intuit, executive vice president and general manager of the company’s consumer group, Mark Notarainni, said “we’re laser focused on eliminating the work and worry of tax filing, delivering the best ‘done-for-you’ tax prep experience on the market that puts maximum refunds guaranteed into customers’ pockets faster.”

“Receiving a tax refund is a pivotal moment in the financial lives of millions of Americans each year.”

“We go even farther with our connected consumer platform, giving customers of TurboTax and Credit Karma year-round insights and tailored recommendations to help them manage their finances outside of tax season.”

One of the new features is that filers can use Intuit’s 12,000-member artificial intelligence (AI)-powered network of professionals, which includes tax attorneys, CPAs, and EAs, to get their taxes prepared in as little as two hours.

Intuit Assist

In the meanwhile, most tax forms can be automatically filled out by the company’s AI platform, reducing the need for human data entry.

“Customers receive comprehensive and individualised explanations throughout the filing process, ensuring they understand the ‘why’ behind the numbers and boosting their confidence that their taxes are done correctly, building on the previously announced Intuit Assist,” the business stated. “As customers finish their returns, automated workflows provide real-time accuracy checks, anticipating the filer’s needs.”

The new products are the most recent in a line of AI-powered services that Intuit has launched this year as part of its ongoing adoption of AI.

As we show off the strength of Intuit’s AI-driven expert platform approach, we’ve enjoyed a great start to the year. During an earnings call last month, Intuit CEO Sasan Goodarzi stated, “We continue to fuel the success of consumers and businesses by delivering ‘done-for-you’ experiences, enabled by AI with access to AI-powered human experts.”

“We remain confident in our approach due to our innovation and the evidence we are seeing.”

A day prior, the company had integrated a generative AI-powered assistant into QuickBooks to aid small and medium-sized businesses (SMBs) by producing estimates, bills, invoices, and reminders for payments, as well as offering tailored suggestions.

96% of SMBs who have experimented with AI believe it to be a useful tool, according to research by PYMNTS Intelligence.

Top 5 PTO Tracking Software Solutions for 2024

Geoff Brown

Geoff Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas’ articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

Business

Why Has Bitcoin’s Ascent to $100,000 in 2024 Been So Remarkable?

Published

9 hours ago

2024-12-05

Salman Ahmad

Paul Yeung | Bloomberg | Getty Images

(VOR News) – Bitcoin has finally surpassed the $100,000 threshold, following a year in which the principal cryptocurrency was accepted by prominent Wall Street organisations and became a heated topic in the presidential race in the United States.

This accomplishment is the result of the cryptocurrency’s acceptance by significant Wall Street institutions.

Over the course of several years, individuals who are enthusiastic about bitcoin have expressed optimism regarding the cryptocurrency by predicting that its value will rise to $100,000.

Conversely, a significant number of individuals on Wall Street elected to disregard them. The digital currency’s value surpassed the six-figure threshold on Wednesday evening, and it is presently experiencing a gain of over 140% in 2024.

Wall Street’s institutions love it.

The most recent chapter in the history of cryptocurrency is a suitable moment to contextualise it, given that the first exchange-traded funds (ETFs) based on bitcoin were introduced on January 11, 2024.

The funds have received inflows aggregating tens of billions of dollars since their inception. The iShares Bitcoin Trust (IBIT) has been the source of the majority of these inflows, with assets presently valued at $50 billion.

The establishment of these funds and the rapid expansion of their activities are the most evident indication that bitcoin is accepted by the conventional financial system, despite the presence of a few notable outliers among investment companies.

This remains the case, despite the fact that there are still a few notable exceptions among investment enterprises. Bitcoin has been considered a speculative asset by individual speculators for a number of years. Nevertheless, Bitcoin has now achieved a new level of profitability as a consequence of institutional purchases.

Institutions have acquired 683,000 cryptocurrencies since the commencement of 2018. These acquisitions have been primarily accomplished by employing US spot exchange-traded funds (ETFs) and substantial purchases made by the software development company MicroStrategy, which functions as a Bitcoin proxy.

A substantial 245,000 of these inflows occurred in the weeks following the United States’ election. According to Geoff Kendrick, the global director of digital assets research at Standard Chartered Bank, this is one of the factors that has enabled Bitcoin to surpass the USD 100,000 threshold. Kendrick is employed by Standard Chartered Bank.

Kendrick composed this statement, which was incorporated into a memo that was sent to consumers on Thursday.

Reports suggest that Trump has undergone a transformation.

Kendrick’s memo seeks to reassure customers that the bank is taking steps to ensure their safety and stability. Kendrick also encourages customers to contact the bank if they have any questions or concerns.

Furthermore, an increasing number of political organisations in the United States are beginning to recognise the potential that Bitcoin has. It would seem that President-elect Donald Trump has altered his perspective on bitcoin and the business that is associated with it, as the cryptocurrency lobby spent a significant amount of money during the 2024 election cycle.

During his campaign for office, Trump attended the Bitcoin Conference in Nashville. The appointment of Paul Atkins as chief of the Securities and Exchange Commission is widely considered to be a substantial departure from Gary Gensler’s current role.

Bitcoin is generally viewed favorably by Atkins.

The current administration has exhibited substantial aversion to alternative cryptocurrencies. We, along with the rest of the industry, have been influenced by it to a certain extent.

As Vlad Tenev, the CEO of Robinhood, stated during an appearance on “Squawk Box” on Thursday, it is imperative that the industry has individuals who understand, appreciate, and adopt it. This assertion was issued by Tenev. Robinhood’s broking platform provides access to cryptocurrency trading.

Since November 4, the day preceding the presidential election, the price of Bitcoin has surged by 49%. This is a substantial increase. This increase occurred on November 4th.

Additionally, it is conceivable that Jerome Powell, the chairman of the Federal Reserve, may have provided Bitcoin with a slight lift in order to help it surpass the $100,000 threshold. This is a potential action that could have been taken to assist Bitcoin in achieving the milestone.

The currency that competes with bitcoin, according to Powell’s statements as of Wednesday, is gold, not the currency of the United States.

Although it is conceivable that the association between bitcoin and one of the oldest investment vehicles in the world could be interpreted as a sign of legitimacy, it is crucial to recognise that this is not a definitive endorsement of cryptocurrencies

SOURCE: CNBC

Business

Agribusiness Giant Cargill to Layoff 5% of its Workforce

Published

2 days ago

2024-12-04

Geoff Brown

Cargill, which employs 160,000 workers globally, declined to comment

Following a rare income decline, agribusiness giant Cargill, which employs 160,000 people worldwide, has announced the layoff of approximately 8,000 employees.

An internal message to employees obtained by Reuters stated that most layoffs would occur this year.

“They will focus on streamlining our organisational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work,” Brian Sikes, our CEO, told employees in a memo.

Bloomberg reported Monday, citing sources familiar with the matter, that the changes would not affect Cargill’s management team but would include several “next-level senior leaders.”

The Minneapolis-based enterprise is the largest privately held business in the United States.

In August, Cargill reported revenue of $160 billion, a decrease from $177 billion in 2023 and $165 billion in 2022. Profits also plummeted to $2.48 billion in the fiscal year that ended in May from a record $6.7 billion the previous year.

As a result, the company announced that it would reduce the number of business units from five to three, integrating the Food and Bio divisions with the Protein and Salt teams to become Food. Cargill has not explained what the restructuring means for its Wichita business and personnel.

The 160-year-old corporation and beef, poultry, salt, and eggs processors are major commodity dealers.

Cargill Protein North America is based in Wichita, where the division has existed for over 40 years. As of 2021, Cargill claimed to have roughly 1,000 employees in Wichita.

Many have linked the revenue decline to lower pricing for key crops such as corn and soybeans, which had risen dramatically during the pandemic. The United States Department of Agriculture recorded the smallest cow herd in nearly seven decades.

According to the trade newspaper Agriculture Dive, the company laid off almost 200 employees in June as part of its sale of a California meat-processing plant.

Cargill mentioned the consolidation in a statement about the layoffs.

“Earlier this year, we set a long-term strategy that continues that legacy, while carrying forward the values and core strengths that have defined our success from the beginning,” the statement read.

“As we look to the future, we have laid out a clear plan to evolve and strengthen our portfolio to take advantage of compelling trends, maximize our competitiveness, and continue to deliver for our customers.

As the world around us changes, we are committed to transforming even faster to deliver for our customers and fulfill our purpose of nourishing the world.