The Committee on Foreign Investment in the U.S. is increasing scrutiny on transactions involving sensitive technologies, trade lawyers said. Companies are facing more CFIUS-related delays and a heavier involvement by political appointees as the Trump administration seeks to put more pressure on China, the lawyers said. Transactions by companies that operate in industries that don’t seem to affect national security are attracting CFIUS attention, said Dechert's Mark Thierfelder, on Friday's webinar hosted by the law firm. “Deals that we might have thought about as being simple from an approval process in prior years seem to be getting an increasingly harder look.” In areas that may be national security risks, companies should expect even more CFIUS scrutiny, especially with critical tech, said Neal Wolin, CEO of Brunswick Group and former CFIUS chair. This is partly due to the administration’s increased focus on tech competition with China and a heightened White House involvement in foreign direct investment matters, Wolin said. “The willingness of the White House to be engaged in and involved in these kinds of conversations … has increased,” he said. “There's a lot of focus and a lot of politics around these kinds of deals, so inevitably the work of the committee gets shaped by that broader political context.” The Treasury Department and the White House didn't comment Monday.
Charter, Comcast and ViacomCBS will jointly and equally own the Blockgraph anonymized advertising data platform, they said Friday. Blockgraph started in 2017 and has been part of Comcast's ad technology unit, FreeWheel, but with the goal of it being a collaborative industry solution and alternative to third-party data, they said. Jason Manningham, general manager of Blockgraph under FreeWheel, will be Blockgraph CEO.
Intel is buying Rivet Networks, a provider of software and cloud-based technologies for Wi-Fi networks. The companies partnered to build the Wi-Fi 6-based Killer AX1650, said to deliver speed, intelligence and control for gamers and performance PC users. The Rivet team will be part of Intel’s client computing group, and its key products will integrate into Intel’s PC Wi-Fi portfolio, blogged Chris Walker, general manager of the group. Intel will license Rivet software to customers and develop new solutions for “broader PC connectivity enhancement,” he said Wednesday.
Verizon closed its buy of BlueJeans Network, a videoconferencing and event platform, adding its 390 employees, Verizon said Monday. “BlueJeans products complement Verizon's mobile-first business solutions, like One Talk, and will be deeply integrated into Verizon’s current and future 5G product roadmap." The deal was announced amid the pandemic (see 2004160004).
Facebook acquired GIPHY and will integrate the GIF database into Instagram and other apps, said Facebook Vice President-Product Vishal Shah Friday. The platform uses the GIPHY application programming interface in Instagram, the Facebook app, Messenger and WhatsApp. The deal shouldn’t be allowed because it will strengthen Facebook’s social media monopoly, said Freedom From Facebook & Google co-Chairs Sarah Miller and David Segal in a statement. The acquisition shows how little the company regards antitrust scrutiny from Congress, state attorneys general, the FTC and DOJ, they added: “They couldn’t care less and are moving full speed ahead with new acquisitions.” A Facebook spokesperson emailed that the “vast majority” of GIPHY users are Instagram users: “Of all the GIPHY API integrations, Instagram is the largest and most engaged with ~50% of traffic coming from FB properties. We will continue to invest in the GIPHY library, including its global content collection and GIPHY's API partners will retain access.”
Consumer advocates challenged T-Mobile/Sprint's conditional OK by the California Public Utilities Commission (see 2005010048). The commission ignored evidence that the deal will harm competition and public safety and isn't necessary to spur 5G deployment, said the CPUC Public Advocates Office, Greenlining Institute and The Utility Reform Network in a Thursday application for rehearing in docket A.18-07-011. "Because it is unlikely that the transaction can be unwound,” applicants asked the commission to grant rehearing and add conditions. T-Mobile didn’t comment Friday.
T-Mobile appears poised to close 1,500-2,000 Metro by T-Mobile prepaid brand stores across the country “not as a result of the pandemic, but due to the merger” with Sprint, the Communications Workers of America said Tuesday: “The move will eliminate thousands of jobs, and comes despite promises by T-Mobile not to cut jobs following the merger.” T-Mobile allegedly “engaged in an intense union busting campaign” at a store in Del Rio, Texas, where workers are trying to organize to join CWA, the union said. “A T-Mobile manager from Laredo has driven three hours to the store multiple times to meet with the workers indoors for captive audience meetings to pressure them to vote against union representation." The company didn’t comment.
Sprint postpaid net adds were 502,000 in Q1, with adds offset by postpaid phone losses of 348,000, T-Mobile said in an SEC filing Friday, reporting on Sprint’s last months as a stand-alone company. Postpaid churn was 1.86%, up 5 basis points year over year. Prepaid net losses were 10,000 in Q1. T-Mobile will release its results this week with a call Wednesday, its first since completing its buy of Sprint. End-of-period connections were 54.7 million, up from last year's 54.5 million. Financial and operational results for Sprint are expected to be released in May after an audit is complete, T-Mobile said.
DOJ should “carefully review” Alphabet’s proposed buy of Fitbit due to concerns about harm to competition (see 1911130026), Public Knowledge and the Consumer Federation of America wrote Attorney General William Barr Thursday. “When head-to-head horizontal competition is scarce, nascent and potential competition, like that provided by Fitbit or a potential alternative buyer of Fitbit, may be the only source of real competitive pressure on dominant digital platforms,” PK said. DOJ didn’t comment.
Antitrust authorities cleared the way for Verizon to buy BlueJeans Network, a videoconferencing platform (see 2004160004). An FTC early termination notice dated Monday and released Tuesday ended the Hart-Scott-Rodino waiting period.