News Round-Up: Week of August 29th, 2022

Microsoft’s Acquisition of Activision to Undergo Antitrust Investigation In The UK

In yet another turn of events, the UK’s Competition and Markets Authority (CMA) announced their intention to investigate whether Microsoft’s $69B proposed acquisition of Activision will lead to decreased competition in the gaming industry. A CMA spokesperson was recently quoted as saying, “The CMA is concerned that if Microsoft buys Activision Blizzard, it could harm rivals, including recent and future entrants into gaming, by refusing them access to Activision Blizzard games or providing access on much worse terms.”

Both Microsoft and Activision are confident that the deal will close by June 2023, a sentiment that has been uplifted mainly due to positive responses from several regulatory bodies. However, the transaction, which has already faced significant hurdles, will likely be subject to additional regulatory scrutiny in the coming months.

Nielsen Shareholders Vote in Favor of Private Equity Consortium Buyout

Shareholders of Nielsen Holdings (NYSE: NLSN), a New York-based provider of audience insights, data, and analytics solutions for the media industry, announced on August 31st that they had voted in favor of a proposed $16B acquisition offer from a consortium of private equity firms, including Evergreen Coast Capital, an affiliate of Elliott Investment Management, and Brookfield Business Partners. The transaction is priced at $28 per share and includes debt.

The deal, which has already received regulatory approval, is expected to close in October.

RedBird Capital Partners Acquire Stake in AC Milan

RedBird Capital Partners, Yankee Global Enterprises, and Main Street Advisors have reached an agreement to jointly acquire a minority stake in famed Italian soccer club AC Milan. The deal, which is priced at $1.2B, will see the ownership groups of both the Boston Red Sox (RedBird) and New York Yankees (Yankee Global Enterprises) join forces in the venture. Both Drake and Lebron James are also reportedly connected to the deal through their investments in Main Street Advisors.

Back in June, RedBird, who also has stakes in Liverpool FC and Toulouse FC, reached an agreement to acquire the interest in AC Milan from Elliott Advisors.

Jefferies Set to Sell Ownership Stake in Oak Hill Capital to Wafra

On August 30th, news broke that renowned American investment bank Jefferies was in talks to sell its 15% ownership stake in Oak Hill Capital to alternative asset manager Wafra, a firm that invests on behalf of Kuwait’s sovereign wealth fund.

Oak Hill Capital, which has approximately $20B in assets under management, is the latest acquisition by Wafra, which has previously invested in a host of other alternative asset management firms, including Thompson Street Capital, Stone Point Capital, and TowerBrook Capital Partners, among others.

Thoma Bravo in Talks to Divest Frontline Education

In a story that first broke on August 30th, leading American private equity firm Thoma Bravo is reportedly in talks to divest Frontline Education, a provider of employee performance measurement and improvement solutions for the K-12 space, to Roper Technologies (NYSE: ROP) in a deal estimated to be worth $3.725B. The transaction, which is reportedly all cash, will see Thoma Bravo exit their nearly 5-year union with Frontline.

The deal between Thoma Bravo and Roper Technologies is expected to close in Q4.?