Microsoft Xbox Console Upgrade Leaks Activision Deal Approval Drags

Microsoft is planning for an Xbox console refresh and launching new video games as it seeks to strengthen its dominance in the multibillion-dollar gaming industry. The revelations became clear after his software giant mistakenly shared confidential information of its video game operations on a federal court website.

Xbox Console Leak

The documents shared on the website were part of exhibits that the company is trying to use to lure the FTC to approve its proposed $69 billion takeover of Activision Blizzard. The information shared mistakenly also includes discussions the company held as part of its push to acquire Nintendo.  Given that some of the information shared on the website included nonpublic information, they have been deleted from the website.

The FTC insists it was not responsible for uploading the crucial data. The mishap occurred from Microsoft’s side when it uploaded key data and evidence as part of its ongoing case with the FTC over the Activision Blizzard acquisition push.

Nevertheless, the damage has already been done, given that information regarding new console upcoming titles, mergers, and acquisitions is usually a closely guarded secret. The information mistakenly shared about Xbox consoles will be closely followed and analyzed by competitors looking to gain a piece of the multi-billion gaming industry.

Microsoft has sought to discredit the information that was accidentally leaked. Video game chief Phil Spencer has already poured cold water on sharing any trade secrets, insisting that the information on the website is outdated and that so much has changed.

The leaked information showing Microsoft intends to update its Xbox console contrasts revelations made in June. At the time, Spencer insisted there were no plans or need to update the current Xbox. However,   it is a known secret that the company is working on new features for its consoles as it looks to fend off any threat posed by Sony, one of the biggest players in the console business.

Nevertheless, it is not the first time that crucial information has leaked mistakenly. In June of this year, Sony found itself in a similar debacle after confidential documents leaked. The documents contained data showing the amount of revenue that the Japanese company generated from Activision’s Call of Duty and the game development costs it incurred.

Microsoft Activision Merger

Since Microsoft announced plans to acquire Activision Blizzard for $69 billion, enforcement agencies worldwide have adopted divergent views in response. The European Union antitrust commission and the South African Competition Tribunal have both approved the merger. In the United Kingdom, the Competition and Markets Authority has blocked the deal with the FTC yet to make a decision, although it has shown signs of opposing it.

Activision’s Call of Duty game has become the main center of attention for enforcers, raking in billions of dollars in sales since inception.

There are growing concerns that a merger between Microsoft and Activision will lessen competition in the cloud gaming market, given the amount of power the combined company will wield. There is growing concern that Microsoft will limit access to the Call of Duty game.  Activision Blizzard has sought to push for approval in the US and the UK by announcing plans to sell its streaming rights to Ubisoft Entertainment.

By Saqib Iqbal Ahmed

NEW YORK (Reuters) – The U.S. dollar’s recent rally has put it on track to form a golden cross – a bullish technical trading chart pattern – affirming an upbeat near-term view on the currency, according to a BofA Global Research note published on Wednesday.

A golden cross occurs when a short-term moving average crosses above a long-term moving average.

The dollar index’s 200-day moving average of 103.036 is close to being topped by the 50-day moving average at 103.001, according to LSEG data. The index measures the currency against a basket of six rivals.

“This supports our 4Q23 technical view of a supported and potentially stronger USD,” BofA Global Research technical strategist Paul Ciana said in a note published on Wednesday.

The note was published before the release of the much anticipated Federal Reserve interest rate decision on Wednesday. The dollar index was down 0.47% at 104.707 ahead of the decision at 2 p.m. ET (1800 GMT). [/FRX]

The dollar index rose for its ninth straight week last week, its longest winning streak in nearly a decade, as a resilient U.S. economy – combined with weaker growth abroad – has fueled a rebound.

The last time a golden cross was formed in the index, it went on to rise another 24% before peaking, according to a Reuters analysis.

Ciana, however, noted that the index’s recent strong rally presented a risk to the bullish signal.

Such a move now would lift the dollar index to over 129, far above its 2022 high of 114.78.

“A signal when price is near the highs may make it difficult to perform vs a signal that occurs just after a timely dip,” he said.

(Reporting by Saqib Iqbal Ahmed; Editing by Sharon Singleton)

By Makiko Yamazaki

TOKYO (Reuters) -A $14 billion tender offer to take Toshiba private is set to succeed, private equity firm Japan Industrial Partners (JIP) said on Wednesday, clearing the way for Japan’s biggest deal this year.

JIP’s tender offer, which closed on Wednesday, ends Toshiba’s 74-year history as a listed firm and puts the electronics-to-power stations maker in domestic hands after years of battles with overseas activist shareholders.

“It is forecasted that the tender offer will be successful,” JIP said in a statement, suggesting that at least two-thirds of shareholders have tendered their shares.

The final results of the tender offer will be announced once they are finalised, JIP added.

Now that JIP has gained a two-third majority, the remaining shareholders would be squeezed out upon a vote at a planned emergency shareholder meeting. Toshiba shares would then be delisted by as early as December.

The odds of JIP’s bid succeeding increased last week when it was revealed that Toshiba’s largest shareholder, Effissimo Capital Management, had decided to tender its 9.9% stake.

Japan is the only major market in Asia that has seen growth in mergers and acquisitions for the first nine months of this year.

The total value of deals involving Japanese firms this year through mid-September has increased 25% from the same period last year, buoyed by the Toshiba deal, as well as a planned $6.4 billion buyout of materials maker JSR, according to data compiled by LSEG.

($1 = 147.9100 yen)

(Reporting by Makiko Yamazaki and Tokyo Newsroom, Editing by Louise Heavens and Sharon Singleton)

By Diane Bartz

WASHINGTON (Reuters) – The deceptive use of artificial intelligence should be a priority for the Federal Trade Commission (FTC), three commissioner nominees said at a confirmation hearing Tuesday in show of bipartisanship on the popular issue.

The hearing was held to consider the re-nomination of Commissioner Rebecca Slaughter, a Democrat, along with the nominations of two Republicans, Andrew Ferguson and Melissa Holyoak, the solicitors general of Virginia and Utah, respectively.

Ferguson was chief counsel to U.S. Senate Republican Leader Mitch McConnell from 2019 until 2021.

Asked by Senator John Thune about the FTC’s role in enforcing rules involving artificial intelligence, Slaughter said it was the FTC’s job to pursue instances where laws against unfair and deceptive acts and practices were broken, whether or not artificial intelligence was used.

“There may be things (involving AI) that Congress think are problematic that go beyond what the FTC Act covers and that is up to you,” she said.

Ferguson and Holyoak agreed, with Holyoak noting that AI could be used to turbocharge fraud by making phishing emails and robocalls more convincing to potential victims of scams.

The agreement was striking given previous partisan battles at the agency. A previous Republican FTC commissioner, Christine Wilson, quit this year and sharply criticized agency leadership.

If confirmed by the Senate, as expected, the two Republicans will not change the balance of power at the five-member FTC, which also enforces antitrust law. It currently has a Democratic chair, Lina Khan, and two Democratic commissioners.

(Reporting by Diane Bartz; Editing by Aurora Ellis)

By Jonathan Stempel

NEW YORK (Reuters) – Netflix was ordered by a federal judge to face a defamation lawsuit by best-selling author and former Manhattan prosecutor Linda Fairstein over her portrayal in a 2019 crime drama about the Central Park Five case.

U.S. District Judge Kevin Castel on Tuesday said Fairstein plausibly alleged that Netflix, director Ava DuVernay and writer-producer Attica Locke acted with actual malice as to five scenes in “When They See Us.”

The series dramatized the story of five Black and Hispanic teenagers who spent five to 13 years in prison after being wrongfully convicted in the April 1989 rape of a white jogger in Central Park. Another man confessed in 2002.

Castel in a 67-page decision found evidence that in depicting Fairstein as a villain emblematic of broader problems in criminal justice, the defendants “reverse-engineered plot points to attribute actions, responsibilities and viewpoints to Fairstein that were not hers and are unsupported in defendants’ substantial body of research materials.”

The Manhattan judge said jurors should decide whether there was “clear and convincing evidence that defendants were recklessly indifferent to the truth.”

Netflix, based in Los Gatos, California, and the defendants’ lawyers did not immediately respond to requests for comment. A lawyer for Fairstein had no immediate comment.

Fairstein, 76, had been running the sex crimes unit of the Manhattan District Attorney’s office when the 28-year-old jogger, later identified as Trisha Meili, was attacked.

The five alleged defamatory scenes include suggestions that Fairstein withheld evidence, coerced confessions and ordered a mass police roundup of young Black men in Harlem.

Backlash from the series caused Fairstein to lose her publisher, resign under pressure from several boards and be attached on social media including under the hashtag #CancelLindaFairstein.

The defendants said Fairstein offered no evidence that their portrayal of her “reflected the essence of truth” and was protected by the First Amendment.

They also said that the lawsuit threatened filmmakers’ ability to dramatize controversial, real-life events when told from “different and often marginalized perspectives.”

New York City reached a $41 million settlement with the five original defendants, without admitting wrongdoing, in 2014.

The case is Fairstein v. Netflix Inc et al, U.S. District Court, Southern District of New York, No. 20-08042.

(Reporting by Jonathan Stempel in New York; Editing by Mark Porter)

By Ahmed Aboulenein

WASHINGTON (Reuters) – The U.S. government is awarding $45 million in grants to help clinics treating long COVID develop new models of care and expand access, the Department of Health and Human Services (HHS) said on Wednesday.

Nine clinics will receive $1 million grants annually over the next five years through the Agency for Healthcare Research and Quality (AHRQ) within HHS, the department said.

President Joe Biden had tasked HHS last year with developing a national action plan to tackle long COVID, a complex, multi-symptom condition that arises months after a COVID-19 infection and leaves many of its sufferers unable to work.

“The Biden-Harris Administration is supporting patients, doctors and caregivers by providing science-based best practices for treating long COVID, maintaining access to insurance coverage, and protecting the rights of workers as they return to jobs while coping with the uncertainties of their illness,” said HHS Secretary Xavier Becerra.

The funding will be used for increasing in-person and virtual visits, establishing new satellite clinics, and an education initiative aimed at growing referrals. Limited knowledge and acceptance among clinicians has contributed to delays in diagnoses and referrals.

It will also go towards social services, hiring interpreters, group patient programs, and behavioral health support. The grants prioritize access for underserved, rural, vulnerable, and minority populations that are disproportionately impacted by long COVID.

The condition affects nearly 7% of all U.S. adults and 2.3% of the overall population and has cost an estimated $386 billion in lost wages, savings and medical bills, according to an analysis in April by the Solve Long Covid Initiative, a non-profit research and advocacy group.

More than 200 symptoms have been linked to the syndrome – including extreme fatigue, difficulty thinking, headaches, dizziness when standing, sleep problems, chest pain, blood clots, immune dysregulation, and even diabetes.

No proven treatments are available but research is underway. The National Institute of Health (NIH) is conducting a $1.15 billion effort, the RECOVER program, which launched two clinical trials in July that will evaluate at least four potential treatments.

(Reporting by Ahmed Aboulenein; Editing by Richard Chang)

By Gram Slattery

WASHINGTON (Reuters) -Republican presidential contender Ron DeSantis pledged on Wednesday to slow America’s transition to electric vehicles, repeal regulations related to environmental, social and governance considerations and dramatically ramp up domestic fossil fuel production if he were elected.

In a speech in Midland, Texas, a city in the heart of oil country, the Florida governor also said he would withdraw the U.S. from global agreements to reduce greenhouse gas emissions to fight climate change, while increasing production of crude, gas, coal and uranium on federal lands.

Taken as a whole, the plan represented a doubling down on pledges DeSantis and most of his Republican opponents have made on the campaign trail to jettison limits on fossil fuel production and consumption and slash federal regulations. While the Florida governor had acknowledged that human-induced climate change was real earlier in his career, he has since backed away from that position, a shift that was apparent on Wednesday.

“We’ve seen a concerted effort to ramp up the fear when it comes to things like global warming and climate change,” he said.

DeSantis, whose home state of Florida has been struck by multiple powerful hurricanes during his time in office, added that “human beings are safer than ever from climate disasters,” thanks largely to increased access to electricity and power.

He said that under his administration, the federal government would replace the phrase “climate change” with “energy dominance” in key foreign policy and national security documents, though he did not specify which documents in particular would be affected.

Energy dominance was a theme of former President Donald Trump’s administration. Under President Joe Biden, a Democrat, U.S. oil output is expected to hit a record level this year.

Oil and gas executives are among DeSantis’ top boosters and financial backers, and DeSantis has been meeting with donors this week throughout Texas to refill his campaign coffers.

Among those who have donated to DeSantis are Continental Resources founder Harold Hamm and Dan Eberhart, the head of Colorado-based oilfield services firm Canary.

“We will unleash American energy dominance as a way to stop inflation and achieve $2 gas in 2025,” DeSantis said on Wednesday. The average on Wednesday for U.S. retail gasoline was about $3.88 a gallon.

DeSantis’ speech, which was meant to broadly lay out his energy policy, comes as his campaign is in need of a boost. The Florida governor has slid in the polls for months, and he now sits 37 points behind former President Donald Trump, according to the latest Reuters/Ipsos poll.

According to the remarks and a factsheet released alongside the speech, DeSantis will “repeal Biden’s EV mandates” and prevent “California and faceless bureaucrats from setting America’s environmental standards.”

The Environmental Protection Agency has proposed rules that could result in as much as two-thirds of the new vehicle market shifting to EVs, or electric vehicles, by 2032. California is seeking to enforce its own, more stringent rules to reduce vehicle emissions, a plan opposed by congressional Republicans.

DeSantis’ plan called on pensions and government accounts to eliminate environmental, social or governance considerations, known as ESG, from consideration when making investment considerations, a plan which tracks closely with moves he made as Florida governor. He added he would strike a rule proposed by the Securities and Exchange Commission which would require companies to make certain ESG-related disclosures to investors.

In addition to expanding fossil fuel production, DeSantis called for significant investments in so-called critical minerals, including the creation of a Critical Mineral Strategic Reserve.

DeSantis said he would seek to require plaintiffs to pay compensation when they bring spurious litigation against energy projects.

He added that he would repeal rules establishing protections for seasonal streams and wetlands that have upset farmers, a key constituency in the politically key state of Iowa.

(Reporting by Gram Slattery; Additional reporting by Sabrina Valle, Richard Valdmanis and James Oliphant; editing by Timothy Gardner)

By Jaiveer Shekhawat and Echo Wang

(Reuters) -Shares of Klaviyo were set to open up to 23% above their IPO price on Wednesday, giving the marketing automation company a potential valuation of $11.4 billion.

The stock was indicated to open between $35 and $37, compared with the initial public offering (IPO) price of $30.

The Boston-based company’s IPO of 19.2 million shares was priced above range on Tuesday, raising $576 million in proceeds, part of which will go to existing investors who cashed out some of their holdings.

The offering gave Klaviyo a valuation of $9.2 billion. BlackRock and AllianceBernstein have agreed to buy up to $100 million worth of shares each, accounting for a big chunk of the total IPO proceeds.

“Every consumer business is building more and smarter digital relationships with their customers. This is a very durable trend. We’re just at the start of that,” said Andrew Bialecki, co-founder and CEO of Klaviyo.

“Being a public company shows that you’re in it for the long haul.”

A successful debut of Klaviyo would underscore a revival in the IPO market, which has been on ice for nearly 18 months after the end of an easy-money regime prompted investors to question the valuations of high-flying startups.

Both Arm and Instacart have seen strong debuts in recent days but have given back most of their gains following their first-day pops. However, their shares are still above their respective IPO prices.

Founded in 2012 by software engineers Bialecki and Ed Hallen, Klaviyo helps store and analyze data for e-commerce brands, enabling them to send out personalized marketing emails and messages to potential customers.

(Reporting by Jaiveer Singh Shekhawat and Niket Nishant in Bengaluru; Editing by Anil D’Silva, Vinay Dwivedi and Shounak Dasgupta)

By Gram Slattery

WASHINGTON (Reuters) -Republican presidential contender Ron DeSantis pledged on Wednesday to slow America’s transition to electric vehicles, repeal regulations related to environmental, social and governance considerations and dramatically ramp up domestic fossil fuel production if he were elected.

In a speech in Midland, Texas, a city in the heart of oil country, the Florida governor also said he would withdraw the U.S. from global agreements to reduce greenhouse gas emissions to fight climate change, while increasing production of crude, gas, coal and uranium on federal lands.

Taken as a whole, the plan represents a doubling down on pledges DeSantis and most of his Republican opponents have made on the campaign trail to jettison limits on fossil fuel production and consumption. While the Florida governor had acknowledged that human-induced climate change was real earlier in his career, he has since backed away from that position.

Oil and gas executives are among his top boosters and financial backers, and DeSantis has been meeting with donors this week throughout Texas to refill his campaign coffers.

Among those who have donated to DeSantis are Continental Resources founder Harold Hamm and Dan Eberhart, the head of Colorado-based oilfield services firm Canary.

“We will unleash American energy dominance as a way to stop inflation and achieve $2 gas in 2025,” DeSantis said on Wednesday. The average on Wednesday for U.S. retail gasoline was about $3.88 a gallon.

“We will reverse American decline by reversing Biden’s America last energy agenda, eliminating reliance on hostile nations for energy, and putting the economic interests of Americans before the radical left’s ideological agenda.”

DeSantis’ speech, which is meant to broadly lay out his energy policy, comes as his campaign is in need of a boost. The Florida governor has slid in the polls for months, and he now sits 37 points behind former President Donald Trump, according to the latest Reuters/Ipsos poll.

According to the remarks and a factsheet released alongside the speech, DeSantis will “repeal Biden’s EV mandates” and prevent “California and faceless bureaucrats from setting America’s environmental standards.”

The Environmental Protection Agency has proposed rules that could result in as much as two-thirds of the new vehicle market shifting to EVs, or electric vehicles, by 2032. California is seeking to enforce its own, more stringent rules to reduce vehicle emissions, a plan opposed by congressional Republicans.

DeSantis’ plan calls on pensions and government accounts to eliminate environmental, social or governance considerations, known as ESG, from consideration when making investment considerations, a plan which tracks closely with moves he made as Florida governor.

In addition to expanding fossil fuel production, DeSantis called for significant investments in so-called critical minerals, including the creation of a Critical Mineral Strategic Reserve.

(Reporting by Gram Slattery; Additional reporting by Sabrina Valle, Richard Valdmanis and James Oliphant; editing by Timothy Gardner)

By Niket Nishant and Noel Randewich

(Reuters) -Instacart’s shares ended up 12% in their Nasdaq debut on Tuesday, failing to hold onto an intraday gain of as much as 43%, days after SoftBank’s Arm Holdings debuted on Wall Street with a bang.

The IPO of San Francisco-based Instacart, which is incorporated as Maplebear Inc, was priced at the top end of its $28 to $30 price range, raising a total of $660 million, of which $237 million will go to investors who sold their shares in the offering.

The IPO gave Instacart a valuation of nearly $9.9 billion, a fraction of the $39 billion it was worth in 2021, the company’s last funding round.

The stock closed at $33.70 after hitting a high of $42.95.

Several startups’ valuations have shrunk since 2022 as inflation, geopolitical tensions and the Federal Reserve’s rapid rate hikes soured the economic climate.

Investors had speculated that Instacart’s debut, along with those of chip designer Arm and RayzeBio last week, could encourage other startups to test the waters and potentially revive the IPO market after a near 18-month dry spell, albeit at lower valuations than during the exuberance of 2020 and 2021.

“One of the biggest headwinds to getting companies to come out was the founders coming around to the fact that they needed to get these things valued to reality and not to their last equity raise,” said Art Hogan, chief market strategist at B. Riley Wealth.

But a lukewarm reception to Neumora Therapeutics’ IPO last week hinted at limited investor enthusiasm for new listings.

Arm soared on its first day of trading but has dropped every day since then. After Tuesday’s 4.9% drop, Arm has now declined 13% from the closing price on its first day of trading, and remains about 8% above its $51 IPO price.

As of Sept. 8, the 10 biggest U.S. IPOs of the past four years were down an average of 47% from the closing price on their first day of trading, an analysis of LSEG data showed.

Instacart is debuting almost three years after kicking off preparations for going public, with the company’s long slog to Nasdaq featuring some key moments.

Its core business turned profitable in 2022, and that trend has continued in the first six months of 2023, the company disclosed in its regulatory filing last month.

In 2021, its co-founder Apoorva Mehta stepped down after seven years at the helm and named Fidji Simo, the former head of Meta’s Facebook app, its CEO.

Goldman Sachs and J.P. Morgan are the lead underwriters for Instacart’s IPO.

(Reporting by Niket Nishant in Bengaluru and by Noel Randewich in Oakland, California; Editing by Devika Syamnath, Anil D’Silva and Nick Zieminski and Richard Chang)