EU Extends Review of Microsoft-Time Warner Deal on Anti-Piracy Software

Strategic Insights -

The European Union has broadened its examination of the partnership between Microsoft and Time Warner to jointly develop anti-piracy software, adding another dimension to the deal's scrutiny. The EU now faces a deadline of August 25 to decide whether to approve the partnership or initiate a thorough investigation. This development stems from Microsoft's acquisition of Contentguard, a digital rights management (DRM) technology, from Xerox. Microsoft already held a 25% stake in Contentguard prior to the acquisition. As a result, the combined entity of Microsoft and Time Warner now owns the majority of Contentguard, with Xerox realizing a reported $83 million from the sale. This partnership is a consequence of the $750 million antitrust settlement Microsoft and Time Warner agreed to, with the intention of forming a joint DRM effort through Contentguard.

Key Takeaways:

  • The EU has expanded its review of the Microsoft-Time Warner deal to include the development of anti-piracy software, focusing on the partnership's potential impact on digital rights management (DRM).
  • The review will be concluded by August 25, after which the EU will decide whether to approve or initiate a full investigation into the partnership.
  • Microsoft acquired the remaining stake in Contentguard from Xerox for $83 million, with Microsoft already holding a 25% stake prior to the acquisition.
  • The partnership between Microsoft and Time Warner aims to fulfill their mutual commitment from the $750 million antitrust settlement, which included the development of DRM technology through Contentguard.
  • Xerox, the original owner of Contentguard, cleared $83 million from the sale to Microsoft.
  • European Union Commissioner will make the final decision on whether to approve the deal or open a full investigation.
  • The Vatican has announced its reservations regarding the canonization of Robert Schuman, the founding father of the European Union, due to the need to verify a bona fide miracle associated with his politician life.
  • the European Union has to decide by August 25 whether to approve the deal, open a full-blown investigation, or ask for more information to come to a decision.

Statistics:

  • August 25: Deadline for the European Union to decide whether to approve or initiate a full investigation into the Microsoft-Time Warner deal.
  • $83 million: The amount Xerox earned from selling its stake in Contentguard to Microsoft.
  • 25%: Microsoft's initial stake in Contentguard.
  • $750 million: The value of the antitrust settlement between Microsoft and Time Warner.
  • 1: The number of reported bona fide miracles needed to verify the sanctity of the European Union's founder, Robert Schuman.

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