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Trump derailed big tech deals like AT & T, Broadcom

James Stewart, as George Bailey and Lionel Barrymore as Potter, points to the “It’s a Wonderful Life” scene.

Betman | Getty Images

Christmas movies often explore different timelines. Ebenezer Scrooge will run on a “Christmas carol” from his future. George Bailey is “a wonderful life” and wonders what life would have been without him. Kevin McCallister can enjoy a family-free life at “Home Alone”.

In the spirit of the holidays, look back at how retiring U.S. President Donald Trump handled some of the biggest tech events in the last four years and wonder what would have happened without government intervention. Let’s do it.

2017: DOJ Blocks AT & T’s $ 85 Billion Time Warner Transaction

AT & TInc. Randall Stephenson, Chairman and Chief Executive Officer of the company, has left Time Warner Inc. Jeffrey’Jeff’Bewkes, Chairman and Chief Executive Officer of the company, will speak.

Patrick T. Fallon | Bloomberg | Getty Images

The US government has appealed Leon’s decision, but lost the court’s appeal in February 2019.

The world of television began to change while waiting for AT & T to take control of Time Warner. Americans have canceled millions of cables and started replacing traditional pay-TV bundles with Netflix, Amazon Prime Video, and Hulu.

In November 2019, Disney launched Disney +. In just over a year, Disney has 8.68 million Disney + subscribers. AT & T was unable to reorganize Time Warner around streaming until the deal was approved in mid-2018, so it took time to launch HBO Max’s flagship service, which debuted in May 2020. Subscriber.

Impressed by the deal with Time Warner, investors are not happy with AT & T’s performance. Stocks are trading near their 10-year lows.

Alternative timeline: AT & T acquired Time Warner in late 2017. AT & T offered HBO Max to consumers a few months before Disney in 2019. Consumers flock to HBO Max because of the starter advantage. When investors give AT & T a Netflix-like multiple, AT & T’s stock price soars.

2018: Trump kills Broadcom’s hostile bid against Qualcomm

reality: Just days before the Justice Department appealed to block AT & T’s acquisition of Time Warner, Broadcom placed a staggering $ 103 billion hostile bid against Qualcomm. Qualcomm is in the process of approving its major acquisition (a $ 47 billion deal to acquire Dutch semiconductor maker NXP), adding complexity to its offer.

In the next few months, Qualcomm and Broadcom fought each other. Broadcom raised its bid to $ 121 billion and lowered it to $ 117 billion after Qualcomm raised NXP’s bid to appease activist shareholder Elliott Management. Still, as proxy voting approached, Broadcom seemed to be leveraging Qualcomm’s shareholders.

In early March, the Trump administration was involved. The Committee on Foreign Investment in the United States (CFIUS) has written a letter stating the national security risks that may arise from misusing or infringing Qualcomm’s assets through an arrangement with a “third-party foreign company.” Was sent to Broadcom and Qualcomm lawyers. It also broke concerns about Broadcom’s reputation for reducing research spending and shared concerns between Microsoft and Google, as CNBC previously reported.

About a week later, Trump dropped an unprecedented hammer. He was blocking transactions on national security concerns, even before reaching an agreement between the two companies. The move has significantly expanded CFIUS’s power and effectively cooled cross-border semiconductor trading in the United States for the rest of President Trump.

In retaliation for Trump’s Broadcom decision, Chinese regulators may not have approved Qualcomm’s acquisition of NXP. Qualcomm has closed the deal.

Alternative timeline: Broadcom has acquired Qualcomm to become a global semiconductor superpower. You won’t buy CA Technologies for about $ 19 billion, or Symantec’s enterprise business for $ 10.7 billion. NXP remains independent as Broadcom chooses not to acquire NXP. Bankers and attorneys are very pleased with billions of other cross-border tip transactions over the next three years.

2019: Trump bans Huawei in US market

In May 2019, Trump submitted an executive order banning technology from “foreign enemies” that pose “unacceptable risks” to national security. The move targeted Chinese telecommunications equipment makers Huawei and ZTE. Mr. Trump argued that China could use network equipment to spy on the United States, and Huawei said the spy’s allegations were incorrect.

On December 12, 2020, US President Donald Trump waved before boarding Air Force One at Andrews Air Force Base in Maryland, USA.

Tom Brenner | Reuters

The ban also negatively impacted the development of both companies’ global 5G infrastructure. This is definitely the point of ordering.

A few weeks later, Trump officially politicized his actions, stating that Huawei’s US fate could be settled as part of a broader trade deal with China.

However, the deal did not happen immediately. In January 2020, the United States and China signed a partial trade agreement with China. Huawei and ZTE were not part of it. In July 2020, under strong pressure from the Trump administration, the UK banned Huawei components from 5G networks after first resisting.

Trump extended the Huawei / ZTE Executive Order for another year in May 2020. The presidential election Joe Biden’s administration needs to decide what to do next in May 2021.

Alternate timeline: US companies are using Huawei components to build faster 5G networks at less cost, but the mystery remains as to how secure Chinese technology is within the US border. I am. Huawei’s Honor phone is a low-cost alternative to the Apple iPhone and Samsung Galaxy phones in the United States, but overall, it remains a minor player in the smartphone war.

2020: Trump threatens to ban TikTok

Trump’s TikTok ban continued two themes for his presidency. Retribution to companies for personal reasons and punishing China’s business interests in the United States.

After India banned the popular video-sharing application TikTok owned by China-based ByteDance, the Trump administration decided it was the same.

“As far as TikTok is concerned, we’re banning them from the United States,” Trump told reporters on July 31. A week later, Trump drafted an executive order banning unless ByteDance sold TikTok’s US business.

The Trump administration said national security reasons prompted an executive order. ByteDance may share data from US users with the Chinese government, Trump said.

Still, TikTok executives said Trump actually banned the company because teens used TikTok to buy tickets for a rally in Tulsa, Oklahoma, and then pranked the Trump presidential campaign because they didn’t show up. I was wondering if it was.

Kevin Mayer, Chairman of The Walt Disney Company’s Direct Sales and International Division, today attended the Disney + Showcase at Disney’s D23 EXPO 2019 in Anaheim, CA on August 23, 2019.

Jesse Grant

ByteDance said it would not share or share information with the Chinese government. Nevertheless, the company began sales negotiations with Microsoft and Oracle and continued to operate in the United States before announcing the deal. Kevin Mayer, CEO of TikTok, has announced that he will resign rather than run TikTok as a division of a major US tech company.

Just as ByteDance prepared to announce the deal, the Chinese government added new restrictions on sales and sent the parties back to the drawing board.

In collaboration with the Trump administration, ByteDance has agreed to sell its 12.5% ​​stake in TikTok Global to Oracle and its 7.5% stake to Walmart. In addition, Oracle acts as TikTok’s “trusted technology partner”, storing US data on servers.

But China still needed to approve the deal-and it never did. China hunted down Trump by refusing to agree to the sale. He threatened and could either ban the application or end the problem.

The Trump administration seems to have chosen the latter option. To date, TikTok has not been traded. ByteDance continues to own the company. It is unknown if and when the transaction will occur.

Alternative timeline: Kevin Mayer is still the CEO of TikTok. Everyone involved in this blunder has improved their mental health and sleep.

See: The TikTok story finally reaches a “peaceful solution”: Jeffreys analyst

Trump derailed big tech deals like AT & T, Broadcom

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