UK blocks Microsoft’s $69 billion Activision deal 

• April 26, 2023

By Katharine Gemmell | Bloomberg

Microsoft’s $69 billion takeover of Activision Blizzard was vetoed by Britain’s antitrust watchdog, in a potentially fatal blow for the gaming industry’s biggest ever deal.

The Competition and Markets Authority said its concerns couldn’t be solved by remedies such as the sale of blockbuster title Call of Duty or other solutions involving promises to permit rivals to offer the game on their platforms, according to a statement Wednesday. Microsoft said it will appeal the decision.

Pressure had been mounting on Microsoft as it lobbies at home and in Europe to convince watchdogs to clear the deal — one of the 30 biggest acquisitions of all time. Crucially, the CMA’s conclusions come before decisions from the European Union and the US Federal Trade Commission, which is waiting on a hearing in the summer after formally suing to veto the transaction.

READ MORE: FTC sues to block Microsoft’s $69 million takeover of Call of Duty maker Activision Blizzard

Microsoft gained 7% to $294.82 at 9:58 a.m. in New York, while Activision was down 8.8% to $79.11. If the deal is eventually blocked, Microsoft could be on the hook for a breakup fee of as much as $3 billion.

“Microsoft already enjoys a powerful position and head start over other competitors in cloud gaming and this deal would strengthen that advantage giving it the ability to undermine new and innovative competitors,” Martin Coleman, chair of the independent panel of experts conducting this investigation, said.

The CMA took a view that the merger could result in higher prices, fewer choices and less innovation for UK gamers. However, earlier this month it narrowed its original scope to focus on cloud gaming rather than consoles, after weighing new evidence.

“We remain fully committed to this acquisition and will appeal,” Brad Smith, vice chair and president of Microsoft, said. “The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the UK.”

Microsoft had been fighting the regulatory battle in the UK and Europe with an eye-catching road show of Brussels press conferences and full page advertisements in British newspapers to try to influence sentiment on the deal.

The CMA said the deal would solidify Microsoft’s advantage in the market by giving it control over Call of Duty, Overwatch, and World of Warcraft titles. The watchdog found that without the merger Activision would be able to start providing games on cloud platforms in the future.

The Call of Duty’s latest installment, Modern Warfare II, was released in October and topped $1 billion in sales within 10 days. It became the best-selling game of 2022, according to industry researcher NPD Group.

‘Good for competition’

“We’ve already begun the work to appeal to the UK Competition Appeals Tribunal. We’re confident in our case because the facts are on our side, this deal is good for competition,” Bobby Kotick, Activision’s chief executive officer, in a note to employees.

Britain’s competition watchdog said any potential remedy would need some degree of regulatory oversight and it is typically against behavioral remedies.

The regulator has attempted to assert itself as a powerful global regulator since the country left the EU. In recent shows of strength, it’s taken on Big Tech, including ordering Meta Platforms Inc. to reverse its acquisition of Giphy after worries it could take a stranglehold of the GIF market.

“Essentially, there has never been a successful appeal in the UK on an antitrust decision,” said Aaron Glick, a merger arbitrage strategist at TD Cowen. “There does not appear to be a path forward for Microsoft.”

The European Commission is still due to issue the final word on its own probe into the deal on May 22, while the FTC has scheduled a hearing into the deal in August.

​ Orange County Register 

Clippers’ star Kawhi Leonard reportedly suffered torn meniscus in right knee

• April 26, 2023

After the Clippers announced five-time All-Star Kawhi Leonard as a late scratch ahead of Game 3 of their first-round Western Conference playoff series against the Suns, they labeled the injury as a “knee sprain” and called him day to day.

On Wednesday morning, hours after the fourth-seeded Phoenix Suns eliminated the Clippers in Game 5 of their seven-game series, The Athletic’s Shams Charania tweeted that Leonard “has been diagnosed with a torn meniscus in his right knee.”

He added: “Leonard averaged (34.5) points in first two games of this postseason vs. Suns before the meniscus injury was revealed and he was shut down by medical staff.”

Clippers star Kawhi Leonard has been diagnosed with a torn meniscus in his right knee, sources tell @TheAthletic @Stadium. Leonard averaged 35 points in first two games of this postseason vs. Suns before the meniscus injury was revealed and he was shut down by medical staff.

— Shams Charania (@ShamsCharania) April 26, 2023

Leonard missed all of last season with a torn right anterior cruciate ligament he suffered in the Clippers’ second-round playoff series against Utah in 2021.

In his first season back from that injury, he played in 52 regular-season games and averaged 23.8 points, 6.5 rebounds, 3.9 assists and 1.4 steals per game. In two postseason games in Phoenix, including a Game 1 victory over the favored Suns, Leonard was shooting 54.5% from the field and averaging 6.5 rebounds, 6.0 assists and two steals in those games.

The Clippers expressed regret on Leonard’s behalf that he’d been sidelined by an injury without revealing specifics.

“The fact that he got hurt Game 1, tried to play through it Game 2 and people think that he’s out ’cause he doesn’t want to play,” fellow Clippers star Paul George said Tuesday morning before shootaround. “I think it just attacks his character, where people don’t understand. Like, he’ll play through it. It’s got to be a reason why he’s out.”

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But the day before, Clippers coach Tyronn Lue hedged Monday when asked if there was any possibility Leonard could play Tuesday in Game 5: “I mean, there’s always a possibility, yes.”

​ Orange County Register 

Knott’s Berry Farm brings back chaperone policy amid increasing unruly behavior

• April 26, 2023

Knott’s Berry Farm has brought back a chaperone policy that went into effect after multiple fights broke out involving teenagers last summer following a series of incidents marred by violence and weapons at sister parks in recent weeks.

Under the updated policy, all visitors 15 years old or younger must be accompanied by a chaperone at least 21 years old after 4 p.m. daily to enter the Knott’s Berry Farm theme park or Knott’s Soak City water park.

SEE ALSO: Theme park fights escalate into a nationwide problem

“Over the past two years, there have been increasing incidents of unruly and inappropriate behavior across our industry and at other major entertainment venues,” according to the Knott’s website.

A single chaperone can accompany up to 10 underage visitors per day at the Buena Park theme park. The chaperone must have a valid ID with date of birth, provide a phone number and remain with the minors throughout the entire visit. Visitors 15 years old and under found in the park without a chaperone face ejection.

The reinstituted chaperone policy at Knott’s follows incidents at other Cedar Fair amusement parks involving minors, violence and weapons. An opening day fight involving more than 100 teens erupted in early April at Worlds of Fun in Missouri. A 17-year-old arrested with a gun at Kings Island in mid-April forced the Ohio amusement park to partially halt operations on opening day.

SEE ALSO: What to expect from Montezooma coaster renovation at Knott’s Berry Farm

In addition to Knott’s, parent company Cedar Fair has instituted chaperone policies at Worlds of Fun, Kings Island, Virginia’s Kings Dominion, Pennsylvania’s Dorney Park, Minnesota’s Valleyfair and California’s Great America in Santa Clara. The latest Knott’s chaperone policy went into effect on April 22.

Knott’s initially instituted a chaperone policy in July after multiple altercations involving teenagers caused the park to close early. Since then, Knott’s has expanded, scaled back, dropped and reintroduced its chaperone policy. The latest change expands the evolving chaperone policy from weekends only to a daily requirement, drops the age requiring an accompanying adult from 17 to 15 years old and allows chaperones to supervise more minors.

A nationwide outbreak of theme park fights have occurred at major players like Disney, Universal and Busch Gardens and regional parks like Kings Island, Kennywood and Waldameer.

Before the COVID-19 pandemic, fights were rare in recent decades at American theme parks that bill themselves as family-friendly safe havens.

​ Orange County Register 

Dombresky, Duke Dumont, Dom Dolla top Insomniac’s Day Trip Festival lineup

• April 26, 2023

Insomniac Events has officially released the lineup for its two-day Day Trip Festival and it includes a roster of top house music performers.

The annual summer house music party is back for its second year and has moved to The Queen Mary’s waterfront park in Long Beach on June 24-25.

Saturday’s bill will include sets by Dombreksy, Duke Dumont, James Hype, Jask, J. Worra, Low Steppa, Majestic, Titta Lau, Blond:Ish, Claptone, Jaden Thompson, Kaysin, Medzua, Mr. V, Oden & Fatzo and Robin S., giving a special performance celebrating her 1993 record “Show Me Love.”

Sunday’s lineup will include Cid, Dom Dolla, Friendly Fire, Lupe Fuentes, Miane, Noizu, Ron Carrol, Sideoiece B2B Lee Foss, an extended day party set with Walker & Royce, Archie Hamilton, Beltran, Eli Brown, Josh Butler, Nora En Pure, Robyn Balliet, Secondicity, Tinlicker and an additional closing set by Nora En Pure B2B Tinlicker.

Tickets go on sale at noon on Thursday, April 27 at daytripfest.com. Two-day general admission passes start at $159.99; Two-day VIP passes start at $319.99. This year’s VIP experience will include shaded areas, viewing decks and refreshments. Fans who purchase VIP packages will also have expedited entry, separate water refill stations, mobile charging areas and air-conditioned restrooms.

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​ Orange County Register 

California state computer systems fail new audit, at risk of serious security breaches

• April 26, 2023

Once again, the California state government has failed to provide adequate computer and technology services to the state’s 39 million residents.

The Golden State remains the global center of private-sector information technology, yet Sacramento is incapable of harnessing the capabilities of Silicon Valley toward getting government technology up to speed.

The latest critique comes from State Auditor Grant Parks’ audit of the California Department of Technology.

The CDT, the auditor noted, “has broad responsibility and authority over nearly all aspects of IT in the state,” including  strategic direction, security and project oversight. But it “has not fulfilled important responsibilities in these areas, resulting in significant consequences for the state.”

The CDT employs about 1,000 people and has been allocated $830 million in Gov. Gavin Newsom’s January budget proposal for fiscal year 2023-24. It is by no means a small department.

The ongoing failures of the department have led to two major consequences. First, the auditor noted “tens of millions of dollars in cost overruns and systems that do not fully function as intended.”

Second, and even more important, the state has been at risk of serious security breaches and failures. The auditor highlighted, as one example, a 2016 system outage that affected 122 out of 188 Department of Motor Vehicles offices. The outage impaired the ability of many offices from processing drivers licenses and other critical functions for as long as two weeks.

Getting the state’s IT sector in order is crucial because, as of November 2022, the state is spending an additional $3.7 billion on IT projects at 20 different agencies.

The state has suffered similar problems going back decades. In 1994, the Legislative Analyst found $1.3 billion worth of problems with 11 computer systems. In 2020, as COVID-19 spread, the Employment Development Department’s computers buckled, delaying checks to millions of the jobless, sometimes for months.

Parks’ recommendations include: 1. Ensure better accountability, including performance monitoring and evaluating strategic goals. 2. Prioritize responsibilities, including “focusing efforts in key areas when goals or due dates are in conflict.” 3. Urgently assess the state’s information security. 4. Pass laws to ensure the independence of IT project oversight.

These all sound like common sense. If only state government officials could focus on the basics of government.

“Our state government’s lack of modern IT safeguards not only jeopardizes the functionality of agencies and departments, but wastes taxpayer resources and potentially risks the sensitive information Californians entrust to their state government,” Assemblymember Kate Sanchez, R-Rancho Santa Margarita, told us.

She sits on both the Assembly Appropriations and Budget committees. She called on Newsom to “do more to ensure the security of our state’s digital infrastructure.”

It ought to be one of his top priorities. Instead of campaigning in other states, Newsom should drop by Silicon Valley and see if anyone wants to help state government catch up with the 21st century.

​ Orange County Register 

California’s ailing power grid stymies electric shift

• April 26, 2023

In its effort to battle climate change, California is in the forefront of the nation’s effort to shift our electrical generation away from fossil fuels and toward renewable-energy production.

Yet as California rushes to achieve its climate goals of 90% “clean” energy within a dozen years, it is far behind in its need to upgrade our electrical infrastructure.

The latest news should serve as a wakeup call.

As CalMatters reported, “California officials insist that the grid can provide enough electricity” to handle millions of new electric vehicles, but “that’s based on multiple assumptions — including building solar and wind at almost five times the pace of the past decade — that may not be realistic.”

Furthermore, the state’s major utility companies — Southern California Edison, Pacific Gas & Electric and San Diego Gas and Electric — unveiled a new rate structure (in response to Assembly Bill 205) that lowers usage-based costs and increases the fixed-cost portion of people’s bills. It bases bills heavily on income levels, but incentivizes consumers to use more electricity. That will further stress the grid.

The California Independent System Operator, the regional organization that manages the electricity grid, this month released a draft report calling “for an additional 22 transmission projects driven by the state’s energy policy goals.” The ISO estimates those costs at $7.53 billion over the next decade — at a time when California is facing a $25-billion budget deficit.

This epitomizes California’s approach, which seems driven more by ideology than reality. On the same week last year that the California Air Resources Board announced a roadmap for a 100-percent EV future, the ISO cautioned EV owners not to charge their cars for several days to avoid blackouts from an overstressed grid during a heat wave.

The Los Angeles Times recently noted that “getting the ball rolling on new power lines has been especially tough” given that “getting permission to string wires over long distances … can take a decade or more.”

Our leaders need to spend less time promoting far-reaching environmental goals — and more time figuring out how we can meet them.

​ Orange County Register 

Frumpy Mom: Here’s some funny cancer stuff I didn’t make up

• April 26, 2023

Let me just tell you a little secret: Having cancer isn’t nearly as much fun as you might think.

I remember flouncing into the chemotherapy infusion room, dressed in my best cocktail attire, and waiting for the nurses to bring on the margaritas. Surprise: No margaritas. I came close to walking out, but I decided to stay and try the concoctions they offered.

Pro tip: Margaritas are better.

Finally, one week I got fed up, so I brought my own margarita. Along with the glass. The chemo nurse was rather taken aback, but she agreed to take my picture with my frozen tequila beverage. But then she only let me have a couple of swallows before she made me throw it out. I guess I should have gulped it before she got there.

Not long ago, I reconnected with a friend who’d moved away. I hadn’t seen her for years, but I heard she had cancer, so I sent her a supportive email. Well, she called me, and we ended up talking on the phone for four hours – undoubtedly the longest phone conversation I ever had with someone I wasn’t sleeping with. A good part of the time, we were regaling each other with funny stories about absurd things that happened during our cancer treatment.

So I asked my Facebook friends (you are on my Facebook page, aren’t you?) to give me their own funny cancer stories. Here are some they shared with me. (I edited for length and to remove some minor, and totally understandable, curse words.)

One Halloween, chemo left me pale, hairless, round-faced and puffy-eyed. I slipped into a white wrap robe tied with a sash to hand out “treats” and told everyone I was dressed as a Buddhist monk. One child’s father touched my smooth head to confirm that I was genuinely bald and said, “Wow, when you choose a costume, you really commit!” – Sheri

During my radiation and chemo, I was told that if I lost weight I would have a feeder tube. Oh, no. Not me. But I got chemo sick during Easter week. Deathly afraid of the morning weigh-in, I wore boots, jeans, a large belt, two blouses, a T-shirt and one or two jackets. And for good measure, I put rolled quarters in my boots, pockets and every other piece of clothing. I came in very close to my pre-chemo weight. Later, I got great pleasure in sharing that story with the radiation and chemo oncologists. – Karen

My pastor’s wife had cancer and she had just lost all her hair and was wearing a wig … People threw her a birthday party, but nobody thought to help her take the presents to the car. It was a super-windy day, and she was walking out to the car with her hands full of presents a sudden gust of wind came up, flipped off her wig, and it went tumbling with all the leaves and branches. She was running after it, with her hands, full, trying to stomp on it, like it was some kind of creature! When she told that to a room full of women, we were all rolling on the floor in church. – Teri

I had breast cancer and a mastectomy. I used the (silicon enhancer) “chicken breast” in the bra to even things out. It got interesting a few times: It migrated to the middle so that I had one large breast on the left, slipped down toward my pants so I had two widely and weirdly spaced breasts, and my favorite — fell out completely (usually in public). That last one happened several times. – Synthia

My mom had a partial mastectomy so she had a “chicken breast”. One day while she was hand-stitching something, the doorbell rang. She poked the needle into her chicken breast and answered the door with the needle sticking out of her boob. – Judye

I’d lost my hair from chemo. I always wore a wig or hats with scarves. My baldness didn’t bother me – others were unnerved and uncomfortable. I was barhopping with friends, donning my wig so we could be viewed as just some girls having fun. Bars closed and I volunteered to drive us to Naugles – why do we get so hungry after a night of cocktails?! I had stopped at a light, windows down and loudly singing along to the radio. A car full of young guys stopped next to us and massive flirting back n forth. Just as the light turned green, I yanked off my wig and waved it at the guys. We took off, I looked in the rearview mirror and they were frozen at the light with a look of total shock! We laughed until we (well, you know.) – Pam

My mom’s doctor wanted to see her in person after a mammogram follow-up. This can’t be good news, Mom. I’m coming with you. Yep, a breast cancer diagnosis. We had the deer-in-the-headlights look as we stumbled out of his clinic that day. The receptionist called out as we left, “Well, have a nice day!” My mom and I looked at each other in the hallway and just burst out laughing at the inanity of it all. That became our mantra, through thick and thin, and never failed to crack us up. “Yes, >insert some new horrible thing< … BUT, have a nice day!” – Melanie

My friend is a breast cancer survivor. When she was diagnosed, I would go to her appointments with her. She was too tired and overwhelmed to fill out the forms so every time I asked her a question on the health form – like “Do you have …” And then she, as loud as she could in the waiting room, would say “Well, I probably do now!” We would laugh so hard. – Gina

P.S. Want to meet me? Come to my next book signing at Nectar of the Dogs wine tasting room (nectarofthedogswine.com). Saturday, May 13 from 1 p.m. to 3 p.m. Stop by to say hi, get your book signed, buy a copy of my book or just drink some wine. A portion of the proceeds go to help animals. Address: 791 Chambers Lane, Suite 110, Simi Valley. (702) 275-0482

Related links

Frumpy Middle-aged Mom: Cancer isn’t as much fun as you might think it would be
Frumpy Middle-aged Mom: I may have cancer, but you’re not getting rid of me
I can’t have a brain tumor. I’ve got dinner on the stove
Frumpy Middle-aged Mom: I’m back and I’m buying too much at Costco
Frumpy Middle-aged Mom: Going wig shopping when you need fresh hair

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​ Orange County Register 

LA-Orange County homebuying at 2nd-slowest pace despite 43% March jump

• April 26, 2023

Homebuying in Los Angeles and Orange counties ran at the second-slowest March pace on record despite a noteworthy jump in closed transactions from February.

Sales totaled 7,044 in March in the two counties, according to CoreLogic. That’s up 43% for the month but down 35% for the year.

But how slow is that?

No. 2 lowest sales volume for a March in records dating to 1988
28th-smallest sales total for any month
39% below the average March sales over 35 years

Yes, some house hunters returned to the market in early 2023 despite economic skittishness and lofty mortgage rates that have cut buying power by 23% in a year. Still, sales in the six-county Southern California region in the past year fell by 37% to 15,307. The six-county median sales price fell 2.1% to $705,000.

The basics

Let’s look inside the L.A.-O.C. market, starting with March sales.

Los Angeles County had 4,935 closings, up 45% in a month but 36% lower in a year. Orange County had 2,109 sales – up 39% in a month but 34% lower in a year.

Note: A March sales bump is little surprise. Since 1988, sales have grown from February by an average 38% in L.A. and 37% in O.C.

Next, consider how prices moved.

In Los Angeles County, the $799,000 median was up 4.4% in a month but 8% off the $865,000 record high set in April 2022.

Orange County’s $990,000 median was up 3.6% in a month but 6% off the $1.05 million peak of May 2022.

Since 1988, the average March has had prices gain 3.5% in L.A. for the month and advance 2.1% in O.C.

Payment pain

Pricier financing is a factor: The 30-year mortgage rate averaged 6.5% in March vs. 4.2% 12 months earlier.

My trusty spreadsheet tells me Los Angeles County buyers got an estimated house payment that was 25% pricier – $4,057 per month on the $799,000 median vs. $3,243 on a year ago’s $832,000 home. That assumes having $159,800 for a 20% downpayment.

In Orange County, buyers got a 27% bigger payment – $5,027 monthly on the $990,000 median vs. $3,957 on a year ago’s $1,015,000 home. It takes $198,000 for a 20% downpayment.

Single-family homes

Sales: Los Angeles County’s 3,523 transactions were up 50% in a month but 33% lower in a year. Orange County’s 1,309 closings were up 42% in a month but 32% lower in a year.

Prices: Los Angeles County’s $850,000 median was up 2% in a month but 6% lower in a year. Orange County’s $1.13 median was up 6% in a month but 6% lower in a year.

Condos

Sales: Los Angeles County had 1,149 sold —  up 38% in a month but 39% lower in a year. Orange County had 561 sold —  up 30% in a month but 45% lower in a year.

Prices: Los Angeles County’s $665,000 median was up 4% in a month but 1% lower in a year. Orange County’s $710,000 median was down 2% in a month and 5% lower in a year.

New homes

Sales: Los Angeles County builder sold 176 units —  up 12% in a month but 55% lower in a year. Orange County had 234 new residences sold —  up 44% in a month but 2% lower in a year.

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Prices: Los Angeles County’s $884,250 new-home median was up 0.5% in a month and 6% higher in a year. Orange County’s $1.19 million median was down 4% in a month and 9% lower in a year.

Builder share: In Los Angeles County, new homes were 3.6% of all closings last month compared with 5.1% 12 months earlier. Orange County’s 11.1% share last month compares to 7.5% 12 months earlier.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at [email protected]

​ Orange County Register