- Starfield, Redfall Exclusivity ‘Powerful Evidence’ Against Xbox’s Activision Buyout, Claims FTC Push Square
- Lawyers: Internal email proves Microsoft’s Activision bid is designed to eliminate PlayStation Axios
- FTC: Xbox Making Starfield and Redfall Exclusive ‘Powerful Evidence’ Against Activision-Blizzard Merger IGN
- Microsoft CEO Satya Nadella and many Xbox executives are set to defend its FTC case The Verge
- Keeping Bethesda games Microsoft exclusives “powerful evidence” against Activision Blizzard takeover, says FTC Eurogamer.net
- View Full Coverage on Google News
Tag Archives: Buyout
UK’s Activision Buyout Block Prevents Microsoft from Trying Again for 10 Years – Push Square
- UK’s Activision Buyout Block Prevents Microsoft from Trying Again for 10 Years Push Square
- Microsoft News Roundup: Farewell Activision Blizzard deal, goodbye Windows 10, and so long Microsoft-branded accessories Windows Central
- Readers’ Opinion: Do You Think the Microsoft and Activision Blizzard Deal Is Dead? PlayStation LifeStyle
- Microsoft Will Have to Pay Activision $3 Billion if Acquisition Fails GamingBolt
- Microsoft Activision-Blizzard Deal Will Pass Provided More Concessions Are Being Offered, DFC Believes Wccftech
- View Full Coverage on Google News
Toshiba shares jump on report of possible $19 bln buyout
TOKYO, Oct 13 (Reuters) – Shares in Toshiba Corp (6502.T) on Thursday surged on a report that a domestic investor-led group was looking at a $19 billion bid – a potential deal that would likely lead to foreign activist shareholders being bought out after years of tension.
A consortium led by private equity firm Japan Industrial Partners and which also includes Chubu Electric Power Co (9502.T) has been given preferred bidder status in the second round of bidding, Kyodo news agency and other media have reported.
The 2.8 trillion yen figure cited by Kyodo would mark a 26% premium to Wednesday’s closing price.
Register now for FREE unlimited access to Reuters.com
The shares were up 7% in afternoon trade, on track for their biggest one-day gain in more than a year. They have risen some 17% this year.
Once a storied conglomerate, Toshiba has been weakened by accounting and governance scandals. Attempts to turn itself around have been overshadowed in recent years by discord between management and its many activist shareholders.
The consortium will put up around 1 trillion yen in equity, with the rest of the money likely to come from bank loans, Kyodo said, adding that financing talks were ongoing and the offer value could change depending on future movements of Toshiba’s stock price.
Toshiba has declined to comment on the report.
It was not immediately clear how many bids Toshiba is seriously considering but the contest to take over the company is likely still an open race between Japan Industrial Partners and state-backed Japan Investment Corp, said Travis Lundy, a Quiddity Advisors analyst who publishes on the Smartkarma platform.
The two had previously joined forces to bid for Toshiba but have since gone their separate ways, sources have said. Japan Investment Corp has since been in talks with private equity firm Bain Capital, one of several overseas funds that passed the first round of bidding, local media have reported.
Toshiba and activist shareholders have been at odds over the direction of the company, with several large foreign funds pushing the conglomerate to consider private equity bids.
Tensions culminated last year when a shareholder-commissioned investigation concluded management had colluded with Japan’s trade ministry – which sees the company’s nuclear and defence technology as a strategic asset – to block overseas investors from gaining influence at its 2020 shareholder meeting.
“The only way to get rid of the activists is to buy them out,” Lundy said.
($1 = 146.8300 yen)
Register now for FREE unlimited access to Reuters.com
Reporting by Sam Byford; Editing by David Dolan and Edwina Gibbs
Our Standards: The Thomson Reuters Trust Principles.
Judge delays Twitter trial, gives Musk time to seal buyout
A judge has delayed a looming trial between Twitter and Elon Musk, giving the Tesla CEO more time to close his $44 billion deal to buy the company after months spent fighting to get out of it.
Musk had asked to halt the upcoming Delaware court trial, where the Tesla billionaire was expected to fare poorly against Twitter’s lawsuit to force him to complete his April merger agreement. Musk revived the takeover offer on Monday but said he needed time to get the financing in order.
Chancellor Kathaleen St. Jude McCormick, head of the Delaware Chancery Court, said Thursday that Musk and Twitter now have until Oct. 28 to close the deal. A trial originally set for Oct. 17 will happen in November if they don’t, she said.
Twitter had asked McCormick earlier Thursday to proceed with the trial, saying the billionaire refuses to accept the “contractual obligations” of his April agreement to buy the social media company and take it private.
Twitter disputed Musk’s claim that the San Francisco-based company is refusing to accept his renewed bid. Musk told Twitter earlier this week he’s ready to buy the company once again after trying to back out of the deal over the summer, accusing it of refusing to give him information about “spam bot” accounts on the service.
Twitter described Musk’s move to delay the trial as “an invitation to further mischief and delay” after his arguments for terminating the agreement haven’t had merit.
But after the judge’s ruling, Twitter reiterated in a statement that it was ready to close the deal on the share price agreed upon in April: “We look forward to closing the transaction at $54.20 by October 28th,” referring to the price Musk originally offered for each Twitter share.
Brooklyn Law School professor Andrew Jennings said Twitter wants to be certain that the deal will get done and not allow “wiggle room for Musk to walk away again.”
Musk attorneys argued that Twitter was disagreeing with the trial delay “based on the theoretical possibility” of Musk not coming up with the financing, which they called “baseless speculation.”
They said Musk’s financial backers “have indicated that they are prepared to honor their commitments” and are working to close the deal by Oct. 28.
Musk attorney Alex Spiro said in a statement Thursday that “Twitter offered Mr. Musk billions off the transaction price” but Musk “refused because Twitter attempted to put certain self-serving conditions on the deal.” He didn’t elaborate on what those conditions were. Twitter hasn’t described the talks beyond what its attorneys have said in court.
Twitter’s shares fell $1.91, or 3.7%, to close at $49.39 on Thursday. It was the stock’s second day of declines following a surge of more than 22% on Tuesday after Musk made his renewed offer to buy the company.
Musk, Twitter could reach deal to end court battle, close buyout soon, source says
WILMINGTON, Del., Oct 5 (Reuters) – Elon Musk and Twitter Inc (TWTR.N) may reach an agreement to end their litigation in coming days, clearing the way for the world’s richest person to close his $44 billion deal for the social media firm, a source familiar with the matter told Reuters.
Musk, who is also chief executive officer of electric car maker Tesla Inc (TSLA.O), proposed to Twitter late on Monday he would change course and abide by his April agreement to buy the company for $54.20 per share, if Twitter dropped its litigation against him.
The two sides had been expected to reach a deal as early as Wednesday, but negotiations are continuing with a resolution expected to take more time, the source said.
Register now for FREE unlimited access to Reuters.com
Twitter’s legal team, however, has yet to accept the agreement and Chancellor Kathaleen McCormick, the judge on Delaware’s Court of Chancery, said she was preparing for the looming trial.
“The parties have not filed a stipulation to stay this action, nor has any party moved for a stay. I, therefore, continue to press on toward our trial set to begin on Oct. 17, 2022,” McCormick wrote in a Wednesday court filing.
Musk’s proposal on Monday included a condition that the deal closing was pending the receipt of debt financing. The potential agreement would likely remove that condition, said the source, who requested anonymity as the discussions are confidential.
Twitter’s legal team and lawyers for Musk updated the judge on Tuesday with their attempts to overcome mutual distrust and find a process for closing the deal.
Two firms that were interested in partly financing the deal, Apollo Global Management Inc (APO.N) and Sixth Street Partners, had ended talks to provide up to a combined $1 billion, two sources told Reuters.
An attorney representing a proposed class action against Musk on behalf of Twitter shareholders said in a letter to McCormick that Musk should be required to make a “substantial deposit” in case he again reneges on his commitment to close. He should also be liable for interest delaying the closing of the deal, said the letter from attorney Michael Hanrahan.
It is not clear what led the Musk legal team to offer to settle, but Musk is scheduled to be deposed on Thursday in Austin, Texas. Questioning is expected to be tough, which provides Twitter leverage in talks to close the deal.
Shares of Twitter closed 1.3% lower at $51.30 on Wednesday. The stock on Tuesday hit its highest level since Musk and Twitter agreed in April that he would buy the company for $54.20 per share.
A DISTRACTION
Tesla stock ended down 3.5% on Wednesday as investors worry that Musk may have to sell more shares in the electric carmaker to fund the Twitter deal and that Twitter could be a distraction for the entrepreneur.
Musk sold $15.4 billion worth of Tesla stock this year, but analysts said he may have to raise an additional $2 billion to $3 billion provided that the rest of his financing remains unchanged.
Musk said in July he was walking away from the takeover agreement because he discovered Twitter had allegedly misled him about the amount of fake accounts, among other claims.
Part of Musk’s case was based on allegations by Twitter whistleblower Peiter “Mudge” Zatko that became public in August, and Musk’s legal team on Wednesday rejected the idea that they had inappropriate talks with Zatko or spoken with him before his concerns became public.
Twitter’s, legal team has wanted to investigate if Alex Spiro, a lawyer from legal firm Quinn Emanuel, who has led the case for Musk, communicated with the whistleblower as early as May.
Twitter lawyers were suspicious that Zatko sent an anonymous May 6 email to Spiro. The sender claimed to be a former Twitter employee, offered information about the company and suggested communicating by alternate means.
Spiro said in a filing with the court on Wednesday he never read the email until Twitter brought it to his attention and it appeared to be someone seeking a job. Spiro also said he was unaware of the existence of Zatko’s allegations before they became public on Aug. 23.
Register now for FREE unlimited access to Reuters.com
Reporting by Tom Hals in Wilmington, Del., and Anirban Sen in New York; Additional reporting by Hyunjoo Jin in San Fransico
Editing by Nick Zieminski, Matthew Lewis and Sam Holmes
Our Standards: The Thomson Reuters Trust Principles.
Sources — JaMychal Green nears buyout with Oklahoma City Thunder, plans to join Golden State Warriors
Veteran forward JaMychal Green is completing a contract buyout with the Oklahoma City Thunder and plans to sign with the Golden State Warriors upon clearing waivers, sources told ESPN’s Adrian Wojnarowski.
Green was traded to the Thunder from the Denver Nuggets on draft night, but Thunder general manager Sam Presti told reporters he would try to find a new team for Green that would be a better fit.
Green’s arrival in Golden State would give the Warriors a stretch-four and floor-spacer who will fill the voids left by Nemanja Bjelica and Otto Porter Jr. He could also see minutes at center in some small-ball lineups.
Green averaged 6.4 points on 48 percent shooting and 4.2 rebounds in 16 minutes per game for the Nuggets last season.
John Wall Finalizes Buyout, Intends To Join Clippers
JUNE 28: The Rockets have officially announced their buyout agreement with Wall, issuing a statement thanking him for his professionalism and wishing him the best. The point guard is now on track to clear waivers on Thursday.
JUNE 27: John Wall is finalizing a buyout with the Rockets and will become an unrestricted free agent, according to Chris Haynes of Yahoo Sports.
Wall’s agent Rich Paul of Klutch Sports is meeting with Rockets GM Rafael Stone on Tuesday to complete the buyout, sources told Haynes.
Wall intends to joins the Clippers once he clears waivers, though other teams are also calling, ESPN’s Adrian Wojnarowski tweets.
There had been momentum toward a buyout or trade after Wall picked up his $47.4MM player option for the 2022/23 season last week. The size of Wall’s contract made it very difficult to find a suitable trade partner.
Wall is giving back $6.5MM in order to part ways with Houston and sign with the team of his choice, Tim MacMahon of ESPN tweets. That’s approximately the same amount as a taxpayer mid-level exception, which suggests that’s likely what he’ll get from the Clippers, MacMahon adds (via Twitter).
Wall has played in just 72 regular season contests since the 2017/2018 season. He put up solid numbers during 40 games with Houston in ’20/21, averaging 20.6 PPG and 6.9 APG, though he shot a career-worst 40.4% from the field. His production peaked in ’16/17, when he averaged 23.1 and 10.7 APG for Washington. His career was sidetracked by heel surgery and a ruptured Achilles tendon.
Last season, the rebuilding Rockets, who were intent on starting a young starting backcourt of Jalen Green and Kevin Porter Jr., reached an agreement with Wall to allow him to remain away from the team. Wall collected $44.3MM during his agreed-upon exile.
Twitter Says Committed to Elon Musk Buyout Even As He Wavers
- Twitter said on Tuesday it plans to complete its $44 billion merger agreement with Elon Musk.
- This is despite Musk’s apparent hesitation in recent days to go ahead with negotiations.
- Both parties had agreed to rules that ensure the deal closes, including a clause that forces a completion.
Twitter said it plans to complete its $44 billion merger agreement with Elon Musk, even as the Tesla CEO appears to dither on the deal.
“Twitter is committed to completing the transaction on the agreed price and terms as promptly as practicable,” it said in a Securities and Exchange Commission filing published Tuesday night, referring to Musk’s offer to take the company private.
“We intend to close the transaction and enforce the merger agreement,” the board also told Bloomberg in a statement. A Twitter spokesperson declined to comment when approached by Insider.
On Tuesday, Musk put the brakes on negotiations, saying the buyout can’t proceed unless Twitter CEO Parag Agrawal proved that the platform has fewer than 5% fake accounts. Earlier that day Agrawal had said that “we aren’t perfect at catching spam.”
Musk also suggested a day earlier that he could renegotiate the deal at a lower price, Bloomberg reported.
In response, Twitter on Tuesday evening published its account of how the deal was negotiated over several weeks with Musk. Twitter suggested that Musk did not make obvious efforts in finding out more about Twitter’s business, including the number of spam accounts on its platform, before offering to take Twitter private on April 25.
Twitter and Musk set out terms and conditions last month to ensure that both parties stick to closing the buyout deal, which is expected to end in October. Each side agreed to pay the other party a $1 billion penalty if they don’t honor the agreement.
Should negotiations look shaky, Twitter could also enact a “specific performance” clause to force Musk — through a lawsuit — to close the deal if there’s already financing in place and all conditions are met.
The company’s Tuesday filing raised the prospect that it could sue Musk and obtain a settlement from him, Reuters reported.
Twitter’s falling share price suggested that investors were convinced that Musk’s current buyout offer might fall through. It closed at $38.32 on Tuesday, almost 30% lower than Musk’s offer at $54.20 per share.
Musk’s $44 billion Twitter buyout challenged in shareholder lawsuit
May 6 (Reuters) – Elon Musk and Twitter Inc (TWTR.N) were sued on Friday by a Florida pension fund seeking to stop Musk from completing his $44 billion takeover of the social media company before 2025.
In a proposed class action filed in Delaware Chancery Court, the Orlando Police Pension Fund said Delaware law forbade a quick merger because Musk had agreements with other big Twitter shareholders, including his financial adviser Morgan Stanley (MS.N) and Twitter founder Jack Dorsey, to support the buyout.
The fund said those agreements made Musk, who owns 9.6% of Twitter, the effective “owner” of more than 15% of the company’s shares. It said that required delaying the merger by three years unless two-thirds of shares not “owned” by him granted approval.
Register now for FREE unlimited access to Reuters.com
Morgan Stanley owns about 8.8% of Twitter shares and Dorsey owns 2.4%.
Musk hopes to complete his $54.20 per share Twitter takeover this year, in one of the world’s largest leveraged buyouts.
He also runs electric car company Tesla Inc (TSLA.O), leads The Boring Co and SpaceX, and is the world’s richest person according to Forbes magazine.
Twitter and its board, including Dorsey and Chief Executive Parag Agrawal, were also named as defendants.
Twitter declined to comment. Lawyers for Musk and the Florida fund did not immediately respond to requests for comment.
The lawsuit also seeks to declare that Twitter directors breached their fiduciary duties, and recoup legal fees and costs. It did not make clear how shareholders believed they might be harmed if the merger closed on schedule.
On Thursday, Musk said he had raised around $7 billion, including from sovereign wealth funds and friends in Silicon Valley, to help fund a takeover. read more
Musk had no financing lined up when he announced plans to buy Twitter last month.
Some of the new investors appear to share interests with Musk, a self-described free speech absolutist who could change how the San Francisco-based company moderates content.
Florida’s state pension fund also invests in Twitter, and Governor Ron DeSantis said this week it could make a $15 million to $20 million profit if Musk completed his buyout.
In afternoon trading, Twitter shares were down 60 cents at $49.76.
The case is Orlando Police Pension Fund v Twitter Inc et al, Delaware Chancery Court, No. 2022-0396.
Register now for FREE unlimited access to Reuters.com
Reporting by Jonathan Stempel in New York
Editing by Howard Goller and Mark Potter
Our Standards: The Thomson Reuters Trust Principles.
Majority of Americans approve of Elon Musk’s Twitter buyout: poll
A majority of Americans approve of Elon Musk’s $44 billion buyout of Twitter, according to the results of an upcoming poll obtained by The Post.
Even as employees of the social media giant are melting down at the prospect of new ownership, a Rasmussen poll set to be released Friday found that 62 percent of adults think Musk’s purchase will make Twitter better.
Just 13 percent, meanwhile, feel Musk will make the platform worse, the poll shows.
Women, Republicans, people over 40 and lower income earners were the most enthusiastic demographics about the Musk takeover. But even 57 percent of Democrats polled thought Musk would improve the platform.
Just 19 percent of respondents said they would be less likely to use Twitter once Musk owned it, with the percentage rising to 31 percent of Democrats and 33 percent of government employees.
The poll surveyed 1,000 adults Sunday and Monday, the day Twitter’s board of directors unanimously accepted Musk’s buyout offer.
The poll’s margin of error is 3 percentage points.
