Mergers, Acquisitions and Divestitures

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      Beeper Messaging App Is Acquired as a Bet on a Regulatory Shift

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      Automattic, the company behind WordPress.com, bought Beeper in an effort to build a system that works across Android and Apple devices.Beeper, the app that brought iPhone messaging features to Android smartphones, has been acquired by Automattic, the company behind WordPress.com, to support the development of a single service for sending and receiving chats from WhatsApp, Signal, LinkedIn and others.The deal, which is valued at about $125 million, was announced on Tuesday. It comes as regulators in Europe and the United States pressure the biggest tech companies to open their messaging services to third parties. Regulators believe doing so will make it easier for people to communicate with friends and family and to switch messaging providers.Automattic is betting that the changing regulatory environment will make people more interested in finding a unified messaging system like Beeper, said Toni Schneider, Automattic’s interim chief executive.Beeper is Automattic’s second messaging service acquisition. Last year, it bought Texts, an iPhone app that brings together messages from Instagram, iMessage and others. Mr. Schneider said Beeper and Texts employees would combine their systems into a single app that worked on iPhones and Android smartphones as well as computers.“Everyone has this problem where they say, ‘I know I had this conversation with this person, but I can’t remember where,’” Mr. Schneider said. “We think we can innovate a lot in this space.”Eric Migicovsky, who co-founded Beeper in 2020, said Beeper and Texts would deliver their combined service this year. The teams that built those companies will meet in two weeks in Portugal to begin that process.“The real thing we have been competing against was apathy about new experiences in chat,” Mr. Migicovsky said.Last year, Beeper released an app that offered Android phone users the ability to send encrypted messages and high-resolution videos to iPhones. The app added more than 100,000 users in three days before Apple blocked it by changing its iMessage system.Though a Justice Department lawsuit accusing Apple of maintaining an iPhone monopoly did not refer specifically to Beeper, the problems highlighted by Beeper’s conflict with Apple were mentioned in the complaint, which was filed in March. The department faulted Apple for making “iPhone users less secure than they would otherwise be” by “rejecting solutions” for smartphone messaging like those provided by Beeper.Beeper will soon be open to anyone who wants to download it after a testing period that limited the app to about 100,000 users, Mr. Migicovsky said. The company had 466,000 people on a waiting list. About 60 percent of its users are on Android smartphones.Automattic was an early investor in Beeper, which had raised $16 million from investors that included Y Combinator and Initialized Capital, Mr. Migicovsky said. Last week, Beeper’s 27 employees officially began work at their new company. More

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      Deal Talks Between Paramount and Skydance Heat Up

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      David Ellison, the founder of the Skydance media company, met with Paramount’s board of directors late last month to discuss the deal.Shari Redstone is getting one step closer to selling her media empire.Paramount, home to one of Hollywood’s most storied movie studios as well as CBS and cable networks like Nickelodeon, has been discussing entering into exclusive talks with the media company Skydance for a potential deal, according to four people with knowledge of the discussions. Moving to exclusive talks would be a significant step forward in a process that has been shrouded in uncertainty for months.Whether the two sides will agree to exclusivity remains to be seen, especially with other investors still pursuing Paramount. Apollo Global Management, an investment firm with more than $500 billion under management, has submitted an $11 billion offer to acquire the Paramount movie studio. Paramount’s board of directors, though, is seeking a deal for the entire company — including its cable channels and CBS — rather than pieces.Apollo continues to evaluate what proposal might most appeal to the company’s board, two people familiar with the situation said. Byron Allen, whose Entertainment Studios owns the Weather Channel, has also expressed interest in acquiring Paramount.Ms. Redstone, the controlling shareholder of Paramount, began negotiating with Skydance to sell her stake in the company last year. She controls Paramount through National Amusements, a holding company that owns her voting stock in Paramount. Ms. Redstone has held off on a sale for years, betting that the company’s fortunes would improve as its flagship streaming service, Paramount+, gained momentum.The terms of the deal being discussed would involve Skydance’s buying National Amusements and merging with Paramount. That deal hinges on approval from Paramount’s board, which has for weeks been weighing its options with the help of advisers.Late last month, David Ellison, the tech scion who founded Skydance, met with Paramount’s board committee to discuss his vision for a deal, according to two of the people familiar with the talks. Founded in 2010, Skydance is best known for shepherding blockbusters for Paramount, including movies in the “Mission: Impossible” and “Top Gun” franchises.Representatives for Paramount and Skydance declined to comment, and the financial terms of the deal couldn’t be learned.Paramount’s stock has fallen 18 percent since the start of the year amid headwinds for the media industry. The company is trading at a steep discount to the combined value of Viacom and CBS, which merged to form Paramount in 2019. Paramount+ is still losing money, but its losses have slowed and it continues to add subscribers.The ratings agency S&P Global downgraded Paramount’s debt to junk last week, citing “accelerating declines” in its traditional television business and continued uncertainty in its push toward streaming. Some analysts said that ratings action might make Paramount easier to acquire, since it could circumnavigate a provision that would require a buyer to immediately pay the company’s debt. More

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      Big Republican Donor Jeff Yass Owned Shares in Trump Media Merger Partner

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      The billionaire Wall Street financier is also a major investor in ByteDance, the Chinese parent company of TikTok, which faces a possible ban in the United States.Jeff Yass, the billionaire Wall Street financier and Republican megadonor who is a major investor in the parent company of TikTok, was also the biggest institutional shareholder of the shell company that recently merged with former President Donald J. Trump’s social media company.A December regulatory filing showed that Mr. Yass’s trading firm, Susquehanna International Group, owned about 2 percent of Digital World Acquisition Corp., which merged with Trump Media & Technology Group on Friday. That stake, of about 605,000 shares, was worth about $22 million based on Digital World’s last closing share price.It’s unclear if Susquehanna still owns those shares, because big investors disclose their holdings to regulators only periodically. But if it did retain its stake, Mr. Yass’s firm would become one of Trump Media’s larger institutional shareholders when it begins trading this week following the merger. Shares of Digital World have surged about 140 percent this year as the merger with the parent company of Truth Social, Mr. Trump’s social media platform, drew closer and Mr. Trump became the presumptive Republican nominee for president.“Susquehanna is a market maker and has zero economic interest in Trump Media,” said the company in a statement. “The firm’s long position is offset by short positions of the same size.”Regulatory filings show the firm used offsetting securities to try to minimize its gains or losses in the stock.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Americans Invested Billions in Chinese Companies. Now Their Money Is Stuck.

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      TikTok’s turn in geopolitical cross hairs highlights the narrowing paths to liquidity for investments in Chinese companies.When investors talk about “zombie” companies, they’re usually referring to distressed start-ups that are hobbling along, unable to grow and unlikely to ever return the money they’ve raised.But as deal makers feverishly debated efforts this week by lawmakers to force TikTok’s Chinese parent company, ByteDance, to sell the app, they talked about a new version: China zombies.China zombies may have booming businesses, but they’re unlikely to provide investors with any immediate return because they’re stuck in geopolitical cross hairs.It’s not just the investors in ByteDance who, after handing it more than $8 billion, are stuck. What looked like a mammoth growth opportunity just a few years ago — inspiring investors to pour money into companies like Ant Financial, PingPong and Geekplus — has turned hostile.“There’s more out there like ByteDance,” Evan Chuck, a partner at the advisory firm Crowell, said of companies with investors who may find themselves in this position. “It’s only really heating up further.”Selling is increasingly a long shot. Take TikTok. Even if ByteDance puts the app up for sale, the Chinese government is unlikely to allow the company’s most valuable asset, its recommendation algorithm, to be included. The country introduced new export control rules for technologies like that algorithm in 2020, just as TikTok was nearing a deal with U.S. buyers (which eventually fell apart).We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      TikTok Bill’s Progress Slows in the Senate

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      Legislation to force TikTok’s Chinese owner to sell the app or have it banned in the United States sailed through the House, but the Senate has no plans to move hastily.After a bill that would force TikTok’s Chinese parent company to sell the app or face a nationwide ban sailed through the House at breakneck speed this week, its progress has slowed in the Senate.Senator Chuck Schumer of New York, the Democratic leader who determines what legislation gets a vote, has not decided whether to bring the bill to the floor, his spokesman said. Senators — some of whom have their own versions of bills targeting TikTok — will need to be convinced. Other legislation on the runway could be prioritized. And the process of taking the House bill and potentially rewriting it to suit the Senate could be time consuming.Many in the Senate are keeping their cards close to their vest about what they would do on the TikTok measure, even as they said they recognized the House had sent a powerful signal with its vote on the bill, which passed 352 to 65. The legislation mandates that TikTok’s parent company, ByteDance, sell its stake in the app within six months or face a ban.“The lesson of the House vote is that this issue is capable of igniting almost spontaneously in the support that it has,” Senator Richard Blumenthal, Democrat of Connecticut, said in an interview on Friday. He said that there could be adjustments made to the bill but that there was bipartisan support to wrest the app from Chinese ownership.The slowdown in the Senate means that TikTok is likely to face weeks or even months of uncertainty about its fate in the United States. That could result in continued lobbying, alongside maneuvering by the White House, the Chinese government and ByteDance. It is also likely to prompt potential talks about deals — whether real or imagined — while the uncertainty of losing access to the app will hang over the heads of TikTok creators and its 170 million U.S. users.“Almost everything will slow down in the Senate,” said Nu Wexler, a former Senate aide who worked for Google, Twitter and Meta, which owns Facebook and Instagram. “They’ll need some time to either massage egos or build consensus.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Gerald M. Levin, Time Warner Chief in a Merger Debacle, Dies at 84

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      He was called a visionary in cable television, but his foray into the world of the internet, in a marriage with AOL, proved disastrous.Gerald M. Levin, a “visionary” media executive, as he was often described, who became C.E.O. of the world’s largest media company, Time Warner, and an architect of its merger with America Online, widely considered the worst corporate marriage in American history, died on Wednesday. He was 84.Jake Maia Arlow, a grandchild of Mr. Levin’s, confirmed the death, in a hospital, and said he lived in Long Beach, Calif. No other details were provided. Mr. Levin had been diagnosed with Parkinson’s disease.Mr. Levin was Time Warner’s chief executive when he and his counterpart at AOL at the time, Steve Case, devised what was then the largest business merger in U.S. history. When the deal was announced on Jan. 10, 2000, Time Warner was the world’s largest media company, and America Online was the largest internet company, with a combined market value of roughly $342 billion (the equivalent of about $600 billion today).The merger, creating AOL Time Warner, was heralded as a watershed moment — the union of old and new media, a storied 20th-century American company whose origins could be traced to the publishing baron Henry Luce and the Hollywood boss Jack Warner, hitching up with a Virginia tech company for a ride into the World Wide Web. Instead, it became shorthand for the excesses of the turn-of-the-century dot-com bubble and the era of so-called synergy.Richard Parsons, who succeeded Mr. Levin as chief executive of AOL Time Warner in 2002, said in a phone interview for this obituary in 2022 that Mr. Levin was “one of the smartest guys in the media and entertainment space,” a “visionary” who saw the digital wave coming and understood how the internet would transform Time Warner’s business.“He saw the merger with AOL as making Time Warner digital by injection,” Mr. Parsons said. “What AOL brought to the party was instant access and competence in terms of how to access the internet world.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More