State AGs probe Meta, Instagram; Endeavor sells stake in content unit for $775M

TOP NEWS IN TMT

* A bipartisan group of state attorneys general is investigating Meta Platforms Inc. and Instagram, LLC for promoting the photo-sharing platform to young users despite allegedly knowing through internal research the app's potential harms. The probe will examine whether Meta, formerly known as Facebook, violated state consumer protection laws and put the public at risk.

* Endeavor Group Holdings Inc. agreed to sell an 80% stake of Endeavor Content's scripted business to South Korean entertainment company CJ ENM Co. Ltd. for $775 million. Under the deal, which is expected to close in the first quarter of 2022, Endeavor will retain Endeavor Content's non-scripted business and 20% of the scripted business, along with certain documentary and film sales and financing consulting services.

➤ M&A Replay: Media, telecom M&A activity grows 3.3% YOY in October

S&P Global Market Intelligence counted 94 sector deal announcements with disclosed transaction values in October, compared to 105 in September and 91 in October 2020.

➤ Broadband adds slow as cable industry settles into transformative period

It is unlikely the industry will ever return to predictable cycles of growth and retraction, some analysts believe.

TECHNOLOGY

* Microsoft Corp.'s executive vice president of gaming, Phil Spencer, said the Xbox maker is evaluating its relationship with Activision Blizzard Inc. following an article by The Wall Street Journal about Activision CEO Bobby Kotick's handling of sexual-misconduct issues, Dow Jones Newswires reported, citing Spencer's staff letter. Relatedly, over 1,100 Activision employees signed an online petition demanding Kotick's resignation.

* Apple Inc. aims to accelerate efforts for its electric car project and shift its focus to full self-driving capabilities, Bloomberg News reported, citing sources familiar with the matter. The project's new leader, Kevin Lynch, is reportedly pushing for a product debut as early as 2025.

* In other Apple news, the tech giant pushed back the return-to-office date for its corporate employees to Feb. 1, 2022, from a previous target of January, Bloomberg News reported, citing a staff email from CEO Tim Cook. The office return will be implemented in phases, with some teams required to come into the office one or two days a week for the first month.

INTERNET AND OTT

* Meta Platforms, Facebook's new parent company, said it has implemented 65 of the 117 actions and recommendations proposed by its civil rights team in a July 2020 audit report. Meta said work on 42 other measures is still "in progress," while eight are under evaluation and two will not be implemented.

* Workday Inc. agreed to acquire VNDLY Inc. for about $510 million in a transaction expected to close in the fiscal fourth quarter ending Jan. 31, 2022, subject to closing conditions and regulatory approvals. Under the deal, Workday will continue to partner and invest in VNDLY's manager services provider network.

* In other Workday news, the application software company promoted Barbara Larson, its senior vice president of accounting, tax and treasury, to CFO, effective Feb. 1, 2022. Workday also named Doug Robinson, executive vice president of global sales, as the company's new co-president, effective immediately.

TELECOMMUNICATIONS

* The California Public Utilities Commission approved Verizon Communications Inc.'s proposed acquisition of TracFone Wireless Inc. on the condition that the companies implement consumer protection measures, including the participation of the companies in the California LifeLine phone subsidy program for 20 years after the closing of the transaction. The companies were required to enroll at least 200,000 California LifeLine subscribers by Dec. 31, 2025.

FILM AND TV

* Comcast Corp.'s NBCUniversal LLC netted U.S. rights to Premier League games for another six seasons, extending coverage of the U.K.'s top-flight soccer circuit to 15 seasons. The deal includes rights to carry all 380 matches each season, from the 2022-23 through the 2027-28 campaigns, and also covers Spanish-language rights.

* NBCUniversal Media LLC said more than 100 companies have responded to its attendant requests for proposals on new measurement structures for gauging viewing and advertising impact. Comcast's content arm has grouped the potential partners into six categories and hopes to begin a certification process for an initial set of companies after the start of 2022.

* Warner Media LLC aims to offer its own audience-measurement data in 2022, Variety reported, citing an interview with Andrea Zapata, the company's head of research, data and insights. Zapata said Warner Media is in talks with 10 to 15 measurement vendors, and plans to test possibilities in the first quarter of 2022 in collaboration with media-buying agencies and advertisers.

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