Antitrust

The ghost of Instagram haunts Microsoft’s future

9 Dec 2022

When Facebook bought the photo-sharing site in 2012, regulators failed to see Mark Zuckerberg’s larger vision. Now the FTC is trying to block Microsoft’s $69 bln Activision deal, partly to stop future domination. Fighting on qualitative terms seems unfair but is inevitable.

Musk’s Apple fight could be his Twitter legacy

29 Nov 2022

The billionaire isn’t the first to criticize the smartphone maker for taking a cut from transactions on its app store. But owning Twitter gives Elon Musk a powerful megaphone. Taking a chunk out of Apple could even be the most durable outcome of Musk’s social media foray.

Slim-chance grocer lawsuit is real problem for M&A

4 Nov 2022

Washington attorneys won a temporary setback for grocer Albertsons on a $25 bln sale to Kroger. Arguments over a special dividend look stretched. Still, state meddling in deals is unusual. This opening salvo is one part of an expanding toolkit competition hawks will start to use.

Stephen King makes for unlikely antitrust hero

1 Nov 2022

A U.S. judge blocked Penguin’s $2.2 bln deal with rival publisher Simon & Schuster, after watchdogs argued it would unfairly limit pay for top authors. If the decision sticks, future mergers may be vetted based on their effect on workers as well as customers. It could get messy.

HSBC Canada exit could be a nice clean break

4 Oct 2022

The Anglo-Asian lender is diminutive in a market dominated by a few giants. That, though, might make it easier to sell its profitable Canadian operations without too much antitrust and politics. Tiptoeing away from Canada’s carbon-intensive energy sector can’t hurt either.

Capital Calls: Buffett’s Berkshire successor

4 Oct 2022

Concise views on global finance: The Omaha oracle owns $100 bln of stock in his conglomerate. His potential successor Greg Abel’s purchase of $68 mln of stock last week – after selling shares in a subsidiary for $870 mln in June – is too small a move toward Buffett’s standard.

Italy’s first female leader, Amazon’s monopoly

22 Sep 2022

Far-right leader Giorgia Meloni is favourite to become prime minister after Sunday’s election. In this Viewsroom podcast, Breakingviews columnists debate how she will handle Rome’s debt, which is expected to reach 148% of GDP. And: the online retail giant’s antitrust battle.

Capital Calls: Ralph Lauren

19 Sep 2022

Concise views on global finance: The $6 bln retailer known for its iconic Polo shirts is cheaply valued compared to European counterparts.

Big Tech has its moment to take on Lina Khan

12 Sep 2022

The FTC under her tenure faced its first major blow this month when a judge ruled in favor of Illumina. It shows how weak the FTC’s legal position is. While Khan has raised the cost of doing deals, buyers with time, money and the inclination have an opening to push back.

Illumina deals FTC a painful glancing blow

1 Sep 2022

Competition hawk Lina Khan’s agency lost a bid to unwind DNA tester Illumina’s $7 bln purchase of Grail. There could be appeals, and Europe may still bust up the deal. But a rebuke from the FTC’s own judge shows the Biden administration’s antitrust push rests on shaky ground.

India M&A veto plans will shake world’s dealmakers

5 Aug 2022

New Delhi is set to give its antitrust enforcer a bigger say on overseas deals. It may have missed the boat in stymieing tie-ups among Big Tech, which have a huge user-base in the country. If India, like China, uses those powers for industrial aims, it will have a chilling effect.

Capital Calls: UK antitrust watchdog/M&A

3 Aug 2022

Concise views on global finance: The Competition and Markets Authority’s change of heart over NortonLifeLock’s 6.2 bln pound takeover of UK group Avast was an opportunity for bold investors.

Antitrust watchdogs go big on drama, light on plot

1 Aug 2022

Penguin’s merger with fellow publisher Simon & Schuster is going to trial; Facebook owner Meta faces a battle over its deal with a virtual fitness firm. Both cases test out new storylines crafted by the U.S. competition watchdogs. But by getting creative they risk missing meatier targets.

Apple’s reveal party glosses over bigger shifts

7 Jun 2022

The iPhone maker’s developer conference can bring major product drops. This year’s announcements, like buy-now-pay-later and medication tracking features, barely move the needle. What will, though, is Apple’s quiet creep into advertising, percolating beneath the surface.

Deal odds in the face of market pain

19 May 2022

Market pain is changing the math for arbitrageurs, as targets' shares may drop further if mergers fail. A Breakingviews calculator shows the odds of a deal going through. Run the numbers here.

Spirit shareholders are flying without a pilot

16 May 2022

JetBlue launched a $3.3 bln hostile, all-cash offer for the ultra-cheap carrier. That’s almost 60% more than Spirit’s agreed cash-and-stock deal with Frontier. A JetBlue tie-up could face more antitrust scrutiny. But without an open process, Spirit shareholders are on their own.

ICE’s Black Knight deal has antitrust snare

13 May 2022

The NYSE owner is paying a big premium to round out its mortgage tech dominance with the servicing-focused Black Knight. But the combination looks to pose antitrust problems, and a loose merger agreement gives ICE room to blow up the deal if it runs into resistance.

Capital Calls: JetBlue antitrust risk haunts Spirit

2 May 2022

Concise views on global finance: The low-cost U.S. airline rejected its midmarket rival's takeover offer. Spirit reckons that even a price 50% higher than its agreed sale to Frontier doesn't compensate for Washington's anti-merger stance.

Twitter’s habitat lacks natural predators

18 Apr 2022

Elon Musk’s $41 bln bid has put the social network in play, but closing a deal is harder. The Tesla boss may struggle to recruit partners, while meager earnings make it a stretch for private equity. Tech giants face antitrust concerns and toxic content will put off media suitors.

Antitrust worries can ground JetBlue’s Spirit bid

6 Apr 2022

The U.S. airline’s shock $3.6 bln bid for its ultra-budget rival offers few cost savings and could lead to higher fares. That increases the risk that competition regulators – or Spirit’s board – stop it getting off the ground. For skeptical shareholders, that would be a relief.