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Microsoft Completes US$69 Billion Takeover of Games Maker Activision Blizzard

Microsoft Completes US$69 Billion Takeover of Games Maker Activision Blizzard

In the largest transaction in the history of the video game industry, Microsoft has completed its acquisition of Call of Duty developer Activision Blizzard for $69 billion. UK regulators have given Microsoft, owner of the Xbox gaming console, the go-ahead for the global merger.

The Competition and Markets Authority, which had initially banned the bid, later said that its concerns had been addressed.

The acquisition of Activision Blizzard was “incredible,” according to Phil Spencer of Microsoft.

Activision Blizzard CEO Bobby Kotick revealed in a message to employees that he would be stepping down at the end of 2023 following the announcement of the merger.

“I have long said that I am fully committed to helping with the transition,” added the politician. “[Phil Spencer and I] both look forward to working together on a smooth integration for our teams and players.”

Mr Spencer, CEO of Microsoft Gaming, tried to reassure customers despite concerns from competitors including PlayStation maker Sony and authorities about competition in the gaming business.

Mr. Spencer said in a statement after the takeover, “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.”

We can only succeed if everyone participates. We’re confident that the information we’re sharing today will open the door to countless new game possibilities.

Microsoft will have a monopoly

Under the new terms of the agreement, French video game developer Ubisoft will be responsible for cloud-based distribution of Activision’s titles for consoles and personal computers.

Despite the compromise, Microsoft will now have monopoly over massively profitable games like Call of Duty, World of Warcraft, and Candy Crush.

The CMA claimed the new agreement would “preserve competitive prices” in the gaming business while also expanding consumer options and improving quality of service.

However, the watchdog did not spare Microsoft criticism for its behaviour during the nearly two-year struggle, despite approving the merger.

Sarah Cardell, CEO of the Competition and Markets Authority, said that Microsoft’s methods “are no way to engage with the CMA,” and that businesses and their advisors should be aware of this.

After we advised Microsoft that the steps they were proposing wouldn’t work, they persisted in pushing through with them nevertheless. This kind of protracted litigation is a waste of resources on all fronts.

UK to become attractive to build technology

Microsoft president Brad Smith criticised the Competition and Markets Authority (CMA) after it vetoed the merger earlier this year, calling the CMA’s decision “bad for Britain” and “counter to the ambitions of the UK to become an attractive country to build technology businesses.”

Although authorities throughout the world have had mixed reactions to it, the European Union has already approved it. Recently, the courts in the United States rejected an attempt by the US competition monitor to halt the transaction.

As CMA’s Ms. Cardell put it, “we’ve made sure Microsoft can’t have a stranglehold over this important and rapidly developing market” by selling Activision’s cloud streaming rights to Ubisoft (the makers of Assassin’s Creed).

“We were clear that that deal couldn’t go ahead, because it would have harmed competition, and that would have been bad for UK gamers,” according to her.

“We take our decisions free from political influence and we won’t be swayed by corporate lobbying.”

Mr. Smith thanked the CMA for its “thorough review and decision,” adding that Microsoft appreciated it.

Ubisoft’s cloud gaming rights

Microsoft is purchasing Activision for US$95 a share in cash, which means that Activision’s outgoing CEO, Mr Kotick, stands to make $400 million and Activision’s chairman, Brian Kelly, stands to make $100,000.

Microsoft has agreed to transfer to Ubisoft, for a period of 15 years outside the European Economic Area (EEA), the rights to stream Activision titles from the cloud under the revised deal. Iceland, Liechtenstein, and Norway are all part of this group.

Ubisoft’s cloud gaming rights for Activision’s content will expire at the end of the 15-year period, but it is believed that the regulator will have established competitors by then, making the cloud gaming industry more competitive.

Microsoft expects that the acquisition will increase demand for the Xbox console and allow the company to expand its Xbox Game Pass service, where users pay a monthly fee to have access to a library of games via the cloud (either download or streaming).

Microsoft intends to build on the success of mobile games like Candy Crush by acquiring Activision’s dedicated mobile studio as part of the agreement.

Sony and Microsoft’s Gaming Battle

The acquisition will solidify Microsoft’s position as a gaming powerhouse and may even propel it past Nintendo to claim third place in the industry behind PlayStation-owning Sony and market leader Tencent.

Concerned that major Activision titles like Call of Duty could become Xbox exclusives in the future, Sony fought hard against this pact.

Sony’s PlayStation is more popular than Microsoft’s Xbox, but both companies need quality content to thrive; Sony isn’t above buying up successful studios if necessary.

The approval of the merger was “great news for gamers,” according to Nicky Stewart, a consultant and the former commercial director of cloud services provider UK Cloud.

“[It will lead to] more choice, more innovation, better value, and improved gaming experiences and a healthy, competitive market,” said Ms. Stewart, a former head of ICT at the Cabinet Office government agency.

Microsoft has made concessions to the CMA in the UK that the company has not made to any other regulatory body. For the young gaming industry in the UK, this is encouraging news.

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

Pepsi

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

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Old National Bank And Infosys Broaden Their Strategic Partnership.

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Old National Bank And Infosys Broaden Their Strategic Partnership.

Infosys

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

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American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

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Qantas Airways Apologizes After R-Rated Film Reportedly Airs On Every Screen During Flight

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American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

water

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

water

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP

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