The Games Industry Has a Problem

There’s no nice way to put this: Activision Blizzard has a giant f’ing problem. 

The California Department of Fair Employment and Housing filed suit against the gaming giant last week. ⚖️ The lawsuit responds to reports that the company has allowed rampant sexual harassment and a “frat boy culture’ to run unchecked.

Among other charges, the suit alleges that women have been passed over for promotions and received lower starting pay for “substantially similar work.”

In support of the suit, hundreds of employees staged a walkout to make their grievances known—streamers and esports teams went dark in solidarity with the picket line.

In a letter published last night, Activision Blizzard CEO Bobby Kotick committed to “long-lasting change” by offering employee support, modified hiring practices, manager evaluations, and removal ofinappropriate content from games and player communities. 

Sound familiar? That’s because it is. Earlier this month, Ubisoft was beat down for allegations of sexual misconduct. It goes without saying that the gaming industry is still grappling with a vast cultural reckoning. 

This case could likely end in a multi-billion-dollar settlement. But more importantly, it stands to bring lasting changes to the games industry. Among potential changes are more ‘lax employee contracts, the publication of salary data, and implementation of diversity and representation policies.

$ATVI is down 11.29% this month.

Japan’s Nippon Takes Over U.S. Steel

After months of bidding, U.S. Steel finally has a buyer. However, the auction’s winner has some parties concerned. 🤔

Japan’s Nippon Steel emerged as the top bidder for the 122-year-old steelmaker, beating out offers from Cleveland-Cliffs, ArcelorMittal, and Nucor. Its $55 per share price represents a 142% premium to where $X shares were trading before Cleveland-Cliffs’ $35-per-share offer kicked off the bidding war.

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Plug Power Is Charged Up

Plug Power hasn’t given investors much to be excited about over the last few years, but today’s news has people (and its stock price) charged up again. So let’s see what happened. 👇

The alternative-energy company, which provides hydrogen fuel cell technology, finalized a deal with the Department of Energy (DOE) for a $1.6 billion loan facility. This critical funding comes at a time when the company has faced immense liquidity issues, issuing a going-corn warning last quarter and disclosing a secondary share offering of up to $1 billion. 💸

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Justice Department Targets UnitedHealth

With the upcoming presidential election looming, the current administration is itching to accomplish more before a potential shakeup. While antitrust regulators have had a field day with big tech, airlines, grocery chains, and others this year, they’re taking another look at UnitedHealth, especially given its recent cybersecurity issues. 🕵️‍♂️

The Justice Department is poking around to figure out the relationship between the company’s UnitedHealthcare insurance unit and its Optum health-services division. They’ve asked how UnitedHealth’s acquisitions of doctor groups might affect competitors and consumers. 🤔

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Biotech Buyout Spree Continues

It may be the last week of the year, but many companies are rushing to get deals done before year-end. Two significant transactions in the biotech space were announced today, so let’s dive in. 👇

The first deal involves RayzeBio, which raised $358 million via an initial public offering (IPO) just three months ago. However, its time as a public company is being cut short by Bristol Myers Squibb, which is acquiring the radiopharmaceutical therapeutics company for $62.50 per share in cash. 💰

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