Latest news with #Antitrust
NHK
3 days ago
- Business
- NHK
AI start-up Perplexity offers to buy Google's Chrome browser for $34.5 bil.
Artificial intelligence start-up firm Perplexity has offered to buy tech giant Google's Chrome browser. Perplexity said on Tuesday that it is offering 34.5 billion dollars to acquire Chrome. The offer comes ahead of an expected US court ruling on Google's monopoly in the search engine market. The US Justice Department filed a lawsuit against Google in 2020 arguing that the firm had violated antitrust law through its online search business. A US district court ruled last year that Google had illegally monopolized the search market and is expected to rule later this month on how to restore competition. Perplexity said its ''proposal is designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection." US media outlets say Google has not indicated a willingness to sell the browser.
Malay Mail
3 days ago
- Business
- Malay Mail
Perplexity AI bids US$34.5b for Google's Chrome browser amid antitrust push
SAN FRANCISCO, Aug 13 — Perplexity AI offered Google on Tuesday US$34.5 billion for its popular Chrome web browser, which the internet giant could potentially be forced to sell as part of antitrust proceedings. The whopping sum proposed in a letter of intent by Perplexity is nearly double the value of the startup, which was reportedly US$18 billion in a recent funding round. 'This proposal is designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection,' Perplexity chief executive Aravind Srinivas said in the letter, a copy of which was seen by AFP. Google is awaiting US District Court Judge Amit Mehta's ruling on what 'remedies' to impose, following a landmark decision last year that said the tech titan maintained an illegal monopoly in online search. US government attorneys have called for Google to divest itself of the Chrome browser, contending that artificial intelligence is poised to ramp up the tech giant's dominance as the go-to window into the internet. Google has urged Mehta to reject the divestment, and his decision is expected by the end of the month. Google did not immediately respond to a request for comment. Perplexity's offer vastly undervalues Chrome and 'should not be taken seriously,' Baird Equity Research analysts said in a note to investors. Given that Perplexity already has a browser that competes with Chrome, the San Francisco-based startup could be trying to spark others to bid or 'influence the pending decision' in the antitrust case, Baird analysts theorized. 'Either way, we believe Perplexity would view an independent Chrome — or one no longer affiliated with Google — as an advantage as it attempts to take browser share,' Baird analysts told investors. Google contends that the United States has gone way beyond the scope of the suit by recommending a spinoff of Chrome, and holding open the option to force a sale of its Android mobile operating system. 'Forcing the sale of Chrome or banning default agreements wouldn't foster competition,' said Cato Institute senior fellow in technology policy Jennifer Huddleston. 'It would hobble innovation, hurt smaller players, and leave users with worse products.' Google attorney John Schmidtlein noted in court that more than 80 per cent of Chrome users are outside the United States, meaning divestiture would have global ramifications. 'Any divested Chrome would be a shadow of the current Chrome,' he contended. 'And once we are in that world, I don't see how you can say anybody is better off.' The potential of Chrome being weakened or spun off comes as rivals such as Microsoft, ChatGPT and Perplexity put generative artificial intelligence (AI) to work fetching information from the internet in response to user queries. Google is among the tech companies investing heavily to be a leader in AI, and is weaving the technology into search and other online offerings. — AFP
Mint
20-07-2025
- Business
- Mint
DOJ Probing for Collusion in CLO Market During Libor Transition
The US Justice Department is conducting a criminal antitrust investigation into whether some investors in collateralized loan obligations colluded to bolster their positions as markets transitioned away from the scandal-plagued London interbank offer rate in early 2023, according to people familiar with the matter. Antitrust prosecutors in New York have sent subpoenas to financial firms as they seek to determine whether investors with an equity stake in the $1.3 trillion CLO market illegally coordinated as the underlying buyout debt was repriced, said the people, who asked not to be identified discussing the confidential probe. The investigation was opened about a year-and-a-half ago, the people said. A spokesperson for the Justice Department declined to comment. In the last few months of 2022 and early 2023 — shortly before the final phaseout of Libor — a flurry of companies in the leveraged loan market rushed to switch the benchmarks on their debt. Often, they tried to exclude an adjustment that was meant to compensate investors for the fact that the Secured Overnight Financing Rate — the debt's new benchmark — consistently printed below Libor. CLO managers, who repackage leveraged loans into bonds of varying risk and size, saw how some companies were about to reap benefits during that transition if that additional spread wasn't added, as it lowered the interest the companies paid. The most junior holders of the bonds they issued, also known as equity, stood to lose millions as they get paid last after every other investor in the bond has received their payments. Communications between CLO equity holders near the transition deadline is part of what is being investigated by prosecutors, said the people familiar with the matter. CLO equity investors were particularly exposed during the transition because their returns depend on the excess cash flows from underlying loans after higher-ranking CLO debt holders have been paid, and because of the significant leverage built into the structures. Smaller interest payments mean there's less left over for them to pocket. Antitrust law bars competitors from colluding for economic gain. Because each CLO investor is a separate entity, it could potentially be illegal for them to agree with each other on the financial terms for an investment. In criminal collusion or price-fixing cases, prosecutors must show evidence of an agreement, but don't need to provide proof of economic harm, potentially giving them an advantage if a case goes to trial. Still, if the government ultimately brings charges, it would need to convince a jury the actions came from collusion instead of firms reaching the same decision independently. This article was generated from an automated news agency feed without modifications to text.
Yahoo
16-07-2025
- Business
- Yahoo
Omnicom Group Inc (OMC) Q2 2025 Earnings Call Highlights: Navigating Growth Amidst Market Challenges
Organic Growth: 3% for the quarter. Non-GAAP Adjusted EBITDA Margin: 15.3% for the quarter, flat compared to last year. Non-GAAP Adjusted Net Income Per Share: $2.05, up 5.1% from 2024. Cash Used for Share Repurchases: $223 million in the first half, with a target of $600 million for 2025. Revenue Impact from Foreign Currency Translation: Increased reported revenue by 1.1% for the quarter. Acquisition-Related Costs: $66 million in Q2 2025. Repositioning Costs: $89 million during Q2 2025. Net Interest Expense: $40.7 million in Q2 2025. Reported Income Tax Rate: 30.2% in Q2 2025. Free Cash Flow: Decline driven by reduction in net income due to acquisition-related and repositioning costs. Outstanding Debt: $6.3 billion at the end of Q2 2025. Cash Equivalents and Short-Term Investments: $3.3 billion at the end of the quarter. Return on Invested Capital: 18% for the 12 months ended June 30, 2025. Return on Equity: 34% for the 12 months ended June 30, 2025. Warning! GuruFocus has detected 3 Warning Sign with OMC. Release Date: July 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Omnicom Group Inc (NYSE:OMC) reported a solid 3% organic growth for the second quarter, aligning with their expectations. The company achieved a 5.1% increase in non-GAAP adjusted net income per share, reaching $2.05 compared to the previous year. Omnicom Group Inc (NYSE:OMC) received antitrust approval for their proposed acquisition of Interpublic in the United States, with 13 out of 18 required jurisdictions approved. The company is on track to repurchase $600 million in shares in 2025, having already used $223 million in cash for share repurchases in the first half. Omnicom Group Inc (NYSE:OMC) is actively deploying generative AI and agentic capabilities through their Omni platform, enhancing value creation for clients and driving operational efficiency. Public relations revenue declined by 9%, primarily in the US, due to weaker performance in global networks and reduced national election spend. Healthcare revenues were down 5%, impacted by prior period client loss and work winding down on brands nearing loss of patent protection. Branding and retail commerce experienced a 17% decline, affected by uncertain market conditions and slow M&A activity. The company incurred $66 million in acquisition-related costs and $89 million in repositioning costs during Q2 2025. Omnicom Group Inc (NYSE:OMC) faces ongoing macroeconomic uncertainties, which may impact client spending and overall market conditions. Q: Can you speak to the progression of macroeconomic conditions since your last update, given that some competitors noted a worsening trend in June? How should we view the low end of your guidance? A: John Wren, CEO: The macro environment hasn't changed significantly since our last update. Some clients are impacted by proposed tariffs, but overall, it's business as usual. We maintain our guidance range and see no reason to expect it to be lower. Any macro concerns are largely driven by decisions from Washington, which we expect to settle down as the year progresses. Q: How do you view the sustainability and growth of third-party principal costs, which indicate strong contribution from principal trading? A: John Wren, CEO: Media is a strong area within the industry, and our third-party costs reflect a product that continues to grow. It's a product that clients opt into, and it provides incremental revenue and margin. This growth is expected to continue. Q: Regarding AI agents, where do you expect to see the biggest immediate value add, and how might this impact your financials? A: Paolo Yuvienco, CTO: Our AI strategy is grounded in an agentic framework, infusing intelligence into every facet of the marketing workflow. This drives deeper understanding and connects capabilities, enhancing consumer insights. Financially, it enables both topline growth through share gains and operational efficiency, impacting margins positively. Q: If macro conditions remain the same for the rest of the year, is it reasonable to assume growth improves in H2 due to the ramp-up of Amazon revenues? A: John Wren, CEO: We are comfortable with our guidance and expect to navigate any macro challenges. We are agile and focus on long-term client relationships, which should support growth regardless of short-term macro conditions. Q: Can you discuss your philosophy regarding buybacks, given the $600 million target for the year? A: John Wren, CEO: The $600 million buyback target was agreed upon as part of the merger agreement with Interpublic. Post-transaction, we expect to have more flexibility to react to market conditions and potentially increase buyback activity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Wall Street Journal
11-07-2025
- Business
- Wall Street Journal
Sam Altman Is Up, Tim Cook Is Down: Big Tech's Trump Scorecard
Tech companies have been some of the most aggressive in trying to appeal to President Trump, whose policies stand to shake up antitrust, trade and other areas important to the industry. Executives and companies donated millions of dollars to Trump and have announced billions of dollars in new investments. Here is a look at how Big Tech is doing nearly six months into the Trump administration. This explanatory article may be periodically updated.
