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The Federal Trade Commission's failure to stop Microsoft from closing its $68.7 billion acquisition of Activision Blizzard is the latest loss in what's becoming a lengthy losing streak.

Why it matters: Antitrust advocates were hoping a Lina Khan-led FTC would put the clamps on consolidation, particularly within the tech industry. That hasn't happened, Tim writes.

Driving the news: Microsoft can now close its merger with Activision ahead of a July 18 deadline everywhere except for the U.K. after a U.S. court denied the FTC's bid for a preliminary injunction of the deal.

That U.K. roadblock may even be removed soon as Microsoft agreed to suspend its appeal of that country's regulatory block of the deal after both sides said they would try to negotiate an acceptable compromise.

The other side: Even in losing, Khan's supporters have argued that the FTC is still making an impact by taking high-profile cases to court and deterring merger-minded companies wishing to avoid the cost and delays expected with their plans. 

Khan has said she isn't afraid to go to court, previously telling Axios she would rather challenge alleged anticompetitive acquisitions than negotiate settlements.

"Lina has made the FTC relevant again," Tim Wu, former White House adviser on tech and competition policy, told Axios' Ashley Gold. "She's doing the stuff that Congress should be doing: taking on privacy, noncompetes, and AI."

"And along with [DOJ antitrust chief Jonathan] Kanter and the White House, she's rebooted the antitrust law and managed, somehow, to make antitrust cool."

Yes, but: Her detractors, including the U.S. Chamber of Commerce, say she's trying to ruin American business and entrepreneurship with onerous and unfair rules. Other pro-business groups point out attrition at the FTC under her tenure, alleging a bad work environment.

And then there is the issue of resources — taking on high-cost, high-profile cases that the agency ends up losing. 

Sign up for Axios Pro Tech Policy authored by Ashley Gold and Maria Curi.

Microsoft court loss latest merger defeat for Lina Khan's FTC

1 big thing: Lina Khan's losing streak

Photo illustration of FTC Commissioner Lina M. Khan with a podium and a scale

Photo illustration: Sarah Grillo/Axios. Photo: Graeme Jennings-Pool/Getty Images

Data: Company earnings reports; Chart: Axios Visuals

Disney is exploring its options regarding its Star India business, which could result in forming a joint venture or an outright sale, the Wall Street Journal reports.

Why it's the BFD: Star India was a prized asset when Disney acquired it as part of its Fox deal, but the loss of hugely popular cricket league streaming rights sunk the business, Tim writes.

Details: Talks are at a very early stage, but Disney has engaged at least one bank about sharing costs to help its India business grow, the WSJ reports. 

There is no word on any kind of price or value attached to Star India, though Reuters reported that at the time of the Fox deal, the India business had an enterprise value of $15 billion-$16 billion.

By the numbers: Disney was able to radically beef up its subscriber count when it integrated Disney+ within Star India's preexisting Hotstar streaming service in 2020.

At its high point, Disney had more than 60 million subscribers in the region, which was more than any other territory, including the U.S. It accounted for almost half of Disney's global subscriber count. 

Yet the low cost of the service in India meant Disney was earning significantly less on those subscribers, with an average monthly revenue per user hovering around $1.

Viacom18 outbid Disney last year for the streaming rights to Indian Premier League, a widely popular cricket league, with that new deal starting this year. 

Disney+ Hotstar has shed more than 4 million subscribers through the first quarter and could lose as much as 10 million this quarter. 

The bottom line: It's no coincidence that Disney is looking for an off-ramp from India because it lost cricket league rights. 

Disney explores options as India business falls

2. The BFD: Disney's India problem

• Passes, an invite-only paywall platform for creators, raised $9m in seed funding. Multicoin Capital led and was joined by Florida Funders, Anti Fund, Gradient Ventures, Craft Ventures, Menlo Ventures and 11:11 Media. https://axios.link/46HUCbp

• Vellum, a New York-based generative AI prompting startup, raised $5m in seed funding from Rebel Fund, Eastlink Capital, Pioneer and YC. https://axios.link/46GDJhg

• Skydance Media, the studio behind "Top Gun: Maverick" and "Mission: Impossible - Dead Reckoning Part One," closed a five-year, $1b credit facility with JPMorgan. Last year, it raised $400m led by KKR and joined by RedBird Capital Partners and Tencent at a valuation north of $4b. https://axios.link/43l3HE7

• Greenfly, a Santa Monica, California-based digital media company, acquired Miro AI, a Hong Kong-based sports content-as-a-service platform. Greenfly has raised $44m from firms like Alpha Edison, Elysian Park Ventures and Iconica Partners. https://axios.link/3PTKOoB

• Falfurrias Capital Partners, the North Carolina-based private equity firm that formerly held a majority stake in business media company Industry Dive, acquired a majority stake in Executive Platforms, an events company that hosts forums for business executives, Sara Fischer reports. https://axios.link/3rtSyn5

• Havas, the Vivendi-owned ad agency, acquired a 51% stake in Uncommon Creative Studio, a U.K. agency that works with British broadcaster ITV and British Airways. https://axios.link/3JPZTnx

• Lemon Sky Studios, a Malaysian art and animation studio that worked on The Last of Us and Marvel's Spider-Man titles, is prepping a local IPO, per Reuters. https://axios.link/44G9jtD

• TikTok partnered with Chicken Soup for the Soul Entertainment to play its videos on Redbox's more than 3,000 DVD rental kiosk screens. https://axios.link/3JSrJQ1

• Universal and Amblin Partners, Steven Spielberg's production company, announced a multiyear deal where the studio will co-finance Amblin movies. https://axios.link/3rr1ppX

3. Deal flow

• Nina Lawrence joined The Miss Universe Organization, owned by JKN Global Group Public Company Limited, as its first-ever CRO. She was most recently CRO at Tinybeans and previously worked at Condé Nast, WSJ, Time Inc .and Artsy. https://axios.link/3pBh1qk

• Alex MacCallum was hired at The Washington Post as CRO. She worked as global head of product for CNN Worldwide and general manager of CNN+ and previously was at the New York Times. https://axios.link/3XKY2pL

• Scott Shooman was named head of AMC Networks Film Group, which includes IFC Films, RLJE Films and Shudder. He previously headed film acquisitions at Endeavor Content. https://axios.link/3NQ0MgP

• Amblin Partners, Steven Spielberg's production company, cut 20% of its about 100-person workforce including staff in marketing, international and post-production. https://axios.link/3PT50ar

4. Movin' on up (or out)

🏌️‍♂️ PGA Tour defends potential deal with Saudi fund (Axios)

"PGA Tour COO Ron Price and board member Jimmy Dunne spent three hours in a Senate hearing Tuesday defending the Tour's decision to possibly link up with Saudi Arabia's Public Investment Fund," Tim writes.

📻 Radio broadcaster Audacy to begin financial restructuring negotiations (WSJ)

"Lawyers representing two different groups of creditors have recently signed nondisclosure agreements to begin confidential discussions about restructuring Audacy's $1.9 billion of debt," Alexander Gladstone reports.

✊ Hundreds of agents meet with SAG-AFTRA leaders ahead of potential strike (THR)

"Several sources tell The Hollywood Reporter that over 300 top agents got on a Zoom call with Duncan Crabtree-Ireland, the union's chief negotiator and national executive director, and Ray Rodriguez, the chief contracts officer, to answer questions about negotiations and operating during a potential strike," Mia Galuppo and Borys Kit report.

💸 Vice execs were paid over $1 million in bonuses the day after "painful" layoffs (HuffPost)

"New court filings confirm earlier reports from Semafor that Vice senior executives received performance-related 'retention bonuses,' totaling over $1,000,000, on April 28, one day after the company announced a 'painful' round of layoffs," Kelby Vera writes.

5. Channel surfing

Illustration of a pair of sunglasses with lenses that look like tv screens.

🗓️ Situational awareness: Join senior editor George Moriarty at 2pm ET today for a demo of the Pro Deals Tracker beta. This 30-minute session will provide an overview of how the tool was built and how you can use it. Register.

@tim_bays: Hot One's "Heat Eaters" premiere party at Ms Yoo. Let's hope my stomach can handle all the spicy food (and that the actors don't go on strike while I'm there). 

@kerrymflynn: Bravo's "Real Housewives of New York City" premiere party at the Rainbow Room. I wonder if Jenna Lyons will notice I'll be wearing J. Crew.

✏️ Thanks to Michael Flaherty for editing and Katie Lewis for copy editing this newsletter.

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July 12, 2023

1 big thing: Lina Khan's losing streak