Government moves to block Microsoft's acquisition of Activision
The Federal Trade Commission said Thursday it is suing to block Microsoft's planned $69 billion takeover of video game company Activision Blizzard, saying it could suppress competitors to its Xbox game consoles and its growing games subscription business.
The FTC voted 3-1 to issue the complaint after a closed-door meeting, with the three Democratic commissioners voting in favor and the sole Republican voting against. A fifth seat on the panel is vacant after another Republican left earlier this year.
The FTC's complaint points to Microsoft's previous game acquisitions, especially of well-known developer Bethesda Softworks and its parent company ZeniMax, as an example of where Microsoft made some poplar game titles exclusive despite assuring European regulators it had no intention to do so.
“Microsoft has already shown that it can and will withhold content from its gaming rivals,” said a prepared statement from Holly Vedova, director of the FTC's Bureau of Competition. “Today we seek to stop Microsoft from gaining control over a leading independent game studio and using it to harm competition in multiple dynamic and fast-growing gaming markets.”
Microsoft's president, Brad Smith, suggested in a statement Thursday that the company is likely to challenge the FTC's decision.
Apple delays self-driving car debut to 2026
Cupertino-based Apple has scaled back ambitious self-driving plans for its future electric vehicle and postponed the car's target launch date by about a year to 2026, according to people with knowledge of the matter.
The car project, dubbed Titan inside the company, has been in limbo for the past several months as Apple executives grappled with the reality that its vision for a fully autonomous vehicle — without a steering wheel or pedals — isn't feasible with current technology.
In a significant shift for the project, the company is now planning a less-ambitious design that will include a steering wheel and pedals and only support full autonomous capabilities on highways, said the people, who asked not to be identified because the information is private.
The latest changes underscore the challenge Apple faces in pushing into an entirely new product category and taking on technological obstacles that have bedeviled some of the world's biggest companies.
The secretive project, underway for years, is meant to provide Apple with another major moneymaker, but it also could test the limits of the iPhone maker's capabilities.
Blue Apron cutting 10% of workforce to stay afloat
Meal-delivery company Blue Apron Holdings in New York says it's cutting about 10% of its corporate workforce — part of a plan to drastically reduce expenses amid stagnant sales.
The company expects to slash spending by as much as $50 million in 2023 and “create a more nimble, focused organization and to better align internal resources with strategic priorities,” according to a statement Thursday. Blue Apron said it will incur about $1.2 million in employee-related expenses from the job cuts. The company had 1,694 full-time workers as of June 30.
The savings will help the company strengthen its balance sheet to maintain compliance with its minimum liquidity covenant of $25 million. Blue Apron expects to stay compliant through at least the first quarter of 2023 and remains in talks with its financial advisers to evaluate financing and other alternatives.
The precipitous decline in value underscores the fading appeal of the once-buzzy business model of delivering ingredients to busy consumers so they can prepare their own meals at home. Blue Apron's quarterly revenue peaked at $238 million in 2017. It reported less than half that total in its most recent quarter.