acquisitions
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Adobe's $20 billion purchase of Figma is being scrutinized by the EU
The European Commission has opened an in-depth investigation into Adobe’s planned $20 billion purchase of design rival Figma. The EU said it’s concerned about the acquisition diminishing competition for interactive design software and digital asset creation tools.
Spotify buys podcast tech companies Chartable and Podsights
It's the kill or acquire playbook all over again.
NVIDIA is officially buying ARM for $40 billion
NVIDIA is officially buying the chip design company ARM for $40 billion.
Western Digital officially owns SanDisk
The world's largest storage manufacturer officially gets even bigger this week. Western Digital announced today that the company has cleared all the necessary regulatory hurdles in their planned purchase of SanDisk.
The FCC is set to approve AT&T's DirecTV acquisition (update: DoJ too)
As first reported by the Wall Street Journal, the FCC is gearing up to approve AT&T's $49 billion acquisition of DirecTV. Commission Chairman Thomas Wheeler confirmed that he is set to call a vote on the matter with the FCC's other four commissioners. According to Wheeler, the proposal will "directly benefit customers" by increasing competition in the broadband marketplace. Most importantly, the FCC's approval comes with strings: AT&T will not be permitted to exclude affiliated video services and content from data caps on its fixed broadband connections, and it must submit all interconnection reports to the FCC, as well as reports on network performance. If the deal passes their vote, it will be clear to close. The deal will transform AT&T into the nation's largest pay television provider as well as its second largest telecom, combining AT&T's U-verse and DirecTV's satellite offerings. Update: The Justice Department also announced tonight that it "will not challenge" AT&T's acquisition of DirecTV, clearing the path for it to go through once the commission votes. For AT&T's part, it says "We hope the order will be approved by the Commission quickly and we expect to close shortly thereafter."
PayPal to buy money-transfer startup Xoom for $890 million
Wiring money home (especially as cash) can be an awkward, expensive and time-consuming ordeal -- but it's about to get a whole lot easier. PayPal announced on Wednesday that it is acquiring San Francisco-based digital money transfer startup Xoom (no, not the tablet maker) to make "international remittances simpler, safer and more affordable," according to the company's blog. Xoom transferred more than $7 billion for its 1.3 million customers over the 12 months preceding last April, primarily on mobile devices between family and friends. PayPal (which has up to now focused on business payments) hopes to leverage this platform in its planned expansion into markets like Mexico, India, the Philippines, China and Brazil. The acquisition is expected to be complete by the end of the year, assuming it passes muster with regulators and Xoom's investors.
Lumines changes hands, returning on iOS and Android
Mobcast acquired the Lumines and Meteos properties from Q Entertainment, the Japanese smartphone game developer announced this week, as translated by Gematsu. Additionally, a new Lumines game is on the way for iOS and Android, and will be a collaboration with the colorful puzzle series' creator, Tetsuya Mizuguchi. Mizuguchi will work on the latest Lumines at his new California-based studio, Enhance Games. The Rez and Space Channel 5 creator co-founded Q Entertainment in 2003 following his departure from Sega. Mizuguchi left the developer in March. The last Lumines game to launch was 2012's Lumines: Electronic Symphony (seen above). [Image: Q Entertainment]
The TUAW Daily Update Podcast for July 23, 2014
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get some the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the player at the top of the page. Be sure that your podcast software is set up to subscribe to the new feed in the iTunes Store here.
It takes skill to be this wrong about an Apple rumor
I've written about some silly Apple rumor articles in the past, but I've never seen a piece get so many things wrong as quickly as this Apple/Beats writeup by Mark Hibben on Seeking Alpha (which was then regurgitated on PCMag). Called "Why The Apple/Beats Deal May Be Dead," the article was published on May 27, roughly 24 hours before the deal was officially confirmed. Hibben starts off by attacking the rationale for the theoretical deal, pointing to Billboard articles which suggested that, amongst other things, iTunes Radio is a flop and Apple finds Beats to be more ideal. He does a brief takedown on articles by David Goldman and Ben Thompson who used these theories as their basis for support of an Apple/Beats deal, before wrapping up with "Can $3.2 billion worth of desperation ever really be cool?" No, but apparently $3 billion can be. I'll let Tim Cook's quote from an interview with the Wall Street Journal speak for itself here: "We love the subscription service that they built -- we think it's the first one that really got it right." Sounds to me like Apple absolutely adores the Beats service, and the suggestion that Apple finds it superior to even the company's own iTunes Radio service, which provides ad-free listening with an iTunes Match subscription, is spot-on. The next sticking point for Hibben is the "infamous" Dr. Dre video, which was posted to Facebook and seemed to indicated that Dre had indeed made a big-money deal. Though Apple wasn't mentioned specifically, it seemed to fit in with the rumors at the time, and its immediate takedown was another sign that something was up. Hibben suggests that even if a deal was indeed in place, this likely jeopardized it to the point where it might have been outright cancelled. To this I have to ask, when was the last time Apple announced a new product or service that wasn't rumored to exist long before its debut? The "culture of secrecy" that Hibben points at Beats not fitting into is a bit of a myth in its own right. Yes, the company would love to keep everything on lockdown, but Tim Cook and Co. aren't blind to the fact that we live in a world where everything will be leaked in one form or another. In fact, having the public first learn of a possible deal from the likes of an enthusiastic Dr. Dre and movie star Tyrese directly connects the company to a market they would greatly benefit from, which is urban youth. As Micah Singleton points out in a fantastic piece on The Daily Dot, this buy is as much about cultural influence as it is about headphones or streaming music, and whether Hibben likes it or not, that video probably helped more than it hurt. The Seeking Alpha piece wraps up by suggesting that Apple's stock will take a hit once everyone realizes a deal isn't actually going to happen. "Tim Cook's leadership will of course again be called into question." Nah, it won't be, because the deal was confirmed the next day, and now everyone is falling all over themselves to praise Apple for making such a bold move. Tim Cook wins this round, and he wins big.
Forget headphones, Apple's interest in Beats is about paid music subscriptions
The rumor mill exploded last week amidst reports that Apple is considering purchasing Beats Electronics for US$3.2 billion. While most of Apple's acquisitions are small, surgical, and neatly fit into the company's future product plans, the Apple/Beats rumor raised many more questions than it answered. Why, after all, would Apple be interested in a company that, at the end of the day, is primarily known for selling expensive headphones? While there are no shortage of talking heads who believe the rumored acquisition has to do with Apple attempting to make inroads on a younger and hipper demographic, it's hard to take that line of reasoning seriously. The extent of Apple concerning itself with its "image" starts and ends with marketing. So what's likely at play here? Streaming music. Earlier today, Bloomberg reported that Apple, first and foremost, is primarily interested in Beats Music. Any deal would deepen Apple's ties to the music industry at a time when digital download sales are falling. Apple hasn't changed its iTunes music service much since it was introduced more than a decade ago. Today, iTunes still provides downloads of singles for 99 cents, as well as downloads of albums, even as subscription music services including Spotify Ltd. flourish. Apple became interested in doing a deal with Beats after executives were impressed by Beats Music, the online music streaming service unveiled earlier this year, which was rapidly converting users into paying subscribers, said a person with knowledge of the talks, who asked not to be identified because the discussions are private. That digital downloads are on the decline is no secret. What's more, Apple's iTunes Radio hasn't quite been the hit Apple may have been hoping for. While Apple's streaming radio service reportedly has about an 8% share of the audio streaming market, it's been reported that only 1-2% of listeners actually end up purchasing songs via the buy button. Meanwhile, the revenue generated from subscription sites like Spotify continue to grow, and in some areas, is giving iTunes a run for its money. If we take the rumored $3.2 billion acquisition price out of the equation for a second, integrating Beats Music into the Apple ecosystem starts making a lot more sense. Apple's rollout of iTunes Radio demonstrates that the company still cares about remaining relevant in the music space. Beats Music itself has been highly regarded for not only offering a compelling subscription package, but more so because it offers users professionally curated music playlists. Imagine for a second, a future iteration of iOS 8 coming with a Beats Music app placed front and center on the homescreen. You'd have to imagine that this would be a more enticing proposition than iTunes Radio. Further, given how many consumers have already given Apple their credit card information, perhaps getting folks to sign up for Beats Music subscriptions will be a streamlined piece of cake. Perhaps all it will take is a quick Touch ID thumbprint and, just like that, a new subscriber is born. The rumored Beats deal hasn't yet been confirmed, so as with any Apple rumor, assume nothing is a done deal until an Apple press release hits the wires.
How quickly does Apple turn acquisitions into products?
"Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans." That is Apple's boilerplate response to just about every publicized acquisition the company makes, like the recent buy of micro LED company LuxVue. It's a great catch-all whenever the Cupertino giant swallows up a smaller fish, but Apple can't keep us from connecting the dots later on. After the reveal of a new Apple product or feature, past purchases suddenly become a bit more clear. Apple has done a whole lot of acquiring in the past year or so, but how long does it take before we'll see the fruits of those purchases? It's unpredictable to say the least, as each company provides pieces small or large to upcoming products. First, let's look at some recent acquisitions that yielded tangible results. Quatro Wireless Acquired: March 2010 Product launch: July 2010 (iAd) Time: ≈4 months Apple snapped up this mobile ad platform developer and had a shiny new mobile ad network within months for the launch of iOS 4. Siri Acquired: April 2010 Product launch: October 2011 (Siri personal assistant) Time: ≈18 months Siri was a standalone app before Apple bought the company and turned it into a household word. It took a year and a half from acquisition to Siri's Apple debut, but the sassy personal assistant is now a huge part of Apple's mobile identity. IMSense Acquired: July 2010 Product launch: September 2010 (HDR photography in iOS 4.1) Time: ≈3 months Apple wanted HDR tech for iOS and IMSense happened to specialize in exactly that. A quiet acquisition was sleuthed out after the feature was announced for iOS 4.1, and the turnaround was a quick three months. AuthenTec Acquired: July 2012 Product launch: September 2013 (Touch ID) Time: ≈14 months AuthenTec's fingerprint sensor tech made this acquisition big news, and just over a year later the iPhone 5s finally made use of it. The length of time between when Apple buys a smaller company and the resulting product can vary greatly. Apple, as you would expect, keeps team structure and projects under extremely tight wraps even after the fact, so all we can do is guess at how much progress the company had made on any of these products -- if any -- before it brought in specialists through an acquisition. There are also products like Maps, which has been the root of many Apple purchases over the past few years as Apple continues to hammer the lingering issues out of it. Placebase - acquired July 2009 Poly9 - acquired July 2010 - World mapping C3 technologies - acquired August 2011 - 3D mapping New Apple Maps is launched - September 2012 WiFiSlam - acquired March 2013 - Indoor location tracking Locationary - acquired July 2013 - Point of interest mapping HopStop - acquired July 2013 - Walking maps, transit information Embark - acquired August 2013 - Transit mapping BroadMap - acquired December 2013 - Location data, point of interest mapping Other acquisitions haven't yielded any super obvious results, such as the September 2010 purchase of facial recognition company Polar Rose. Apple has had a facial recognition feature in iPhoto for some time now, but has not yet added it to their mobile offerings. Apple added a facial detection API to iOS -- which can identify a face as human, but not specific individuals -- in October 2011 with the release of iOS 5, but has yet to implement any facial recognition directly into iOS. It would certainly make sense for the Polar Rose team to be involved with the facial detection development, but the Swedish startup's most notable accomplishments have not (yet) been translated into a new Apple product or feature. They could be working to improve iPhoto's recognition, or are working on some other project. If there's any trend to be seen across all of these acquisitions it's that Apple's buyouts yield seemingly erratic results. Predicting when a new product or feature will debut based on these procurements is a dangerous game with very little stability. Like any tech giant, Apple buys smaller companies for a variety of reasons, from talent to fully-realized products. Cases such as Siri, which Apple essentially adopted and iterated upon, are the exception to the rule, with many other instances not translating into obvious results. As is so often the case when it comes to Apple, it's all a bit of a guessing game.
ProSiebenSat.1 acquires Aeria Games Europe
The European gaming publisher ProSiebenSat.1 just got bigger. Pending approval by the responsible cartel authorities, PSS1 has acquired online and mobile games publisher Aeria Games Europe. The deal doubles the publisher's portfolio (upping it from 19 to 39 games) and almost triples its games community (rising from 27 to 77 million gamers). ProSiebenSat.1 will combine the games operations in Berlin and take on the name SevenGames. Dr. Christian Wegner, a member of PSS1's Executive Board, explained, "The acquisition of Aeria Games Europe allows us full access to new markets and target groups, making us one of the top three publishers in Europe in one fell swoop, and takes us a big step forward in mobile gaming, the sector's largest growth driver. The transaction is fully in line with our strategy of strengthening our portfolio of digital assets by making bolt-on acquisitions." [Source: ProSiebenSat.1 press release]
Breaking: Google acquires Nest Labs for $3.2 billion
Hold on to your hats, folks. We interrupt this otherwise slow news day with some breaking news. Google today announced the acquisition of Nest Labs for US$3.2 billion in cash. Nest Labs, of course, is the purveyor of the highly touted and well-received Nest Thermostat and, more recently, the Nest Protect smoke alarm. Google's press release reads in part: Larry Page, CEO of Google, said: "Nest's founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family. They're already delivering amazing products you can buy right now--thermostats that save energy and smoke/CO alarms that can help keep your family safe. We are excited to bring great experiences to more homes in more countries and fulfill their dreams!" Tony Fadell, CEO of Nest, said: "We're thrilled to join Google. With their support, Nest will be even better placed to build simple, thoughtful devices that make life easier at home, and that have a positive impact on the world." There are a few factors that make this acquisition particularly interesting. For starters, Tony Fadell is a famed Apple engineer and executive who helped steer Apple to the tech mountaintop thanks to his incredible work with the iPod. A former Apple executive joining Google? That's big news. Incidentally, Nest co-founder Matt Rogers is also an Apple alum, having worked on the original iPhone, the iPad and 10 generations of the iPod. Second, and from a more practical standpoint, is the commonly held view that Nest Labs was an Apple acquisition just waiting to happen. Nest's Thermostat was largely viewed as an Apple-esque product insofar that it simplified what was otherwise a cumbersome and confusing activity. It may sound absurd, but the Nest Thermostat really worked to make home temperature automation seem cool, and more importantly, approachable. Given that Fadell has deep roots at Apple and that home automation via mobile devices is becoming more prevalent, many assumed, or perhaps hoped, that if any company were to acquire Nest it'd be Apple. But, alas, it was not to be. More so than ragging on Apple, one has to give credit to Google for going all in with Nest and ponying up $3.2 billion in cash. Apple of course has the cash for such an acquisition if it so chooses, but remember that Apple in its entire history has never even spent $500 million on a single acquisition. The notion that the company would now spend $3.2 billion for Nest Labs is, to be blunt, wishful thinking. Lastly, and notably, Google in its press release writes that "Nest will continue to operate under the leadership of Tony Fadell and with its own distinct brand identity." Well played, Google. Well played.
Facebook increases focus on 'conversations' with purchase of Branch and Potluck
In a move a company spokesperson termed an acqui-hire, today Facebook snapped up the 10 person team behind Branch and Potluck. Josh Miller and Cemre Güngör created the company in 2012 with financial support from Twitter co-founders Ev Williams and Biz Stone, and launched Branch, a social platform, alongside Potluck, a "web and mobile app designed for friends to hang out and talk about cool things they find online." According to The Verge, the deal is valued at $15 million. Both products will now fall within the social giant's umbrella, with the team forming a new Conversations group in New York City. Confirmed in a post from Miller, Branch and Potluck will "live on outside of Facebook," with products resembling both of the existing platforms to come.
Yahoo absorbs movie-making app Ptch to bolster its photo and video efforts
It's a familiar story: A start-up creates an app that does something cool on the web or in the mobile space, Marissa Mayer catches wind of it, whips out her checkbook and Yahoo acquires the company. This time, it was the Dreamworks-backed social-video app Ptch. The company's announcement blog post says that its tech will be used to improve Yahoo's photo and video platforms (read: Flickr), and that users have until January 2nd to download their creations either via the app or website. After that? Good luck, because come January 3rd, they're closing down. Until then, we're just curious when we'll actually see the Voltron-esque thing that Flickr turns into after these upgrades are applied.
Logitech acquires smartphone accessory design house TT Design Labs
Remember hearing Tim Cook's admission during his lovefest with Walt Mossberg and Kara Swisher at D11 that Apple had swallowed up something like nine companies since the beginning of the year? Well, they're not the only tech company making acquisitions, and one on a much smaller scale was announced today -- Logitech, the manufacturer of a lot of tech accessories, announced that they're acquiring TT Design Labs. If you're like me, your first response was "Who?" and you'd be entirely justified. But upon further research, I discovered that I was familiar with the company. TT Design Labs, a tiny two-person design shop consisting of Derek Tarnow and Zahra Tashakorinia, is the company behind very interesting iPhone accessories. The first was the TidyTilt (image above), which can be best described as a Smart Cover for iPhone. It's a tiny little foldable magnetic cover / stand that also serves to hold headphones and do other amazing tricks. TT Design Labs then came out with the JustMount on Kickstarter, a wall mount designed to magnetically hold an iPhone for hands-off viewing or FaceTime action. Both products will be available from Logitech starting today, and the two TT Design Labs employees will continue on in their duties; Tarnow will be a full-time Logitech employee, while Tashakorinia will be providing consulting services on an ongoing basis. The TT Design Labs acquisition is a perfect example of how crowdfunded projects can evolve into deals that benefit everyone.
Twitter said to have acquired fledgling video-sharing service Vine
Twitter has pretty much nailed text-based interaction, so it looks like it's time to diversify into video. According to AllThingsD, the blue birdie has snapped up a three-man outfit called Vine, a video-sharing startup intended specifically for bite-sized clips. You'd be forgiven for not knowing it -- the service hasn't actually launched yet -- and there's no word on whether it'll operate independently or be assimilated by the social network. There are bound to be more details revealed soon, and it might not be too long before you're sharing less in 140 characters and more in five-second clips.
FCC chairman green-lights AT&T's use of WCS spectrum for LTE with proposed order
AT&T is close to securing a major victory in its battle against the spectrum crunch. While it's not quite a done deal, FCC chairman Genachowski has submitted a proposed order to FCC commissioners that would authorize AT&T's deployment of its LTE service within a 20MHz portion of the 2.3GHz (WCS) band. The deal is unique in that the spectrum is currently reserved for satellite radio, and the reallocation would mark the first of its kind within the WCS band. As you may recall, AT&T previously conceded to a 5MHz dead zone on both ends of Sirius XM's operating frequency in order to mitigate interference concerns, and it seems the move was sufficient to gain the chairman's support. Also looming on the FCC's to-do list is the decision of whether to approve AT&T's purchase NextWave and its unused WCS spectrum. If it's any indication, however, Chairman Genachowski seems bullish on the reallocation and has suggested that the agency may authorize another 30MHz of the WCS band for mobile broadband use. AT&T has previously said that it could feasibly deploy LTE over the 2.3GHz spectrum within the next three years. One group fighting the deal is the Competitive Carrier Association, which posits that AT&T's purchase of such a significant chunk of spectrum on the secondary market is anti-competitive in nature. It'll no doubt be interesting to see if the argument gains any traction with the FCC. In the meantime, you can view remarks from the agency's spokesperson after the break.
WSJ: Google set to acquire Frommer's from Wiley, add trusted travel reviews
Just one year after its Zagat acquisition, Google has made a move on another trusted lifestyle brand. John Wiley & Sons Inc., the current owner of the Frommer's network of travel sites and guide books, confirmed the Mountain View acquisition, with a closing expected shortly. According to The Wall Street Journal, Google hasn't made a call concerning Frommer's printed guidebooks, which don't necessarily fall in line with the company's otherwise online-only model. It's also unclear whether or not the new content arm will fall under Zagat's leadership, though a department executive did comment on the acquisition in an interview, saying that Google planned to keep Frommer's on its current path for the time being. Neither company was able to confirm pricing for the buyout, which could help Google boost its reviews portfolio, backing user-submitted travel content with professional credibility. Full details are at the source link below. Update: As it turns out, Google will reportedly be keeping the print staff on board, moving the team to its NYC offices. Online editors are less fortunate, however, with layoffs having already begun.
AT&T agrees to acquire NextWave for $600 million, gobbles up WCS and AWS spectrum
AT&T's making no secret of the fact it wants to snatch up as much spectrum as it possibly can, so news of the company's proposed acquisition of NextWave Wireless doesn't result in much of a shock. AT&T has agreed to purchase the company -- and all of its WCS (Wireless Communication Service) and AWS spectrum licenses and equity along with it -- for $25 million, pending FCC approval. If you count $25 million in contingency costs and the outstanding debt the big blue globe has also picked up, however, the total bill climbs to $600 million. The deal comes shortly after AT&T partnered with Sirius XM to petition the FCC in the hopes that it would allow WCS (2.3GHz) spectrum to be opened up for LTE use -- mobile data is currently restricted by the federal body to prevent any interference with satellite radio. The government hasn't given the green light for this proposal yet (additionally, the NextWave deal isn't likely to be approved until later this year), but that's not stopping AT&T from its preparations just in case -- it plans to have WCS LTE ready for deployment in three years if everything works out in the carrier's favor.
