Connect with us

Published

on

Game enthusiasts and industry personnel walk between the Microsoft Xbox and Sony PlayStation exhibits at the E3 trade show on June 16, 2015 in Los Angeles, California.

Christian Petersen | Getty Images

Sony has signed a binding agreement with Microsoft to keep Call of Duty on its PlayStation gaming consoles after closing the Activision Blizzard acquisition, Microsoft said on Sunday.

“We are pleased to announce that Microsoft and PlayStation have signed a binding agreement to keep Call of Duty on PlayStation following the acquisition of Activision Blizzard,” Microsoft Gaming CEO Phil Spencer said on Twitter Sunday.

related investing news

Activision is the maker of the best-selling Call of Duty lineup. Regulators around the world had expressed significant concern about Microsoft’s power over the gaming market if an Activision acquisition was approved.

Microsoft is the manufacturer of the Xbox, which competes directly with Sony’s PlayStation, prompting fears that Microsoft would be able to make games “exclusive” to its own consoles and displace Sony from competition.

The deal does something to ameliorate those concerns, although Microsoft and Sony aren’t disclosing the duration of the agreement. A Microsoft spokesperson did note the deal was in place for the long term. The company has signed similar deals in the past.

Anti-competitive concerns were shared by the CEO of Sony’s interactive entertainment division, Jim Ryan, as recently as last month. Ryan, whose portfolio includes PlayStation, said that he thought the proposed Activision Blizzard acquisition was not good for competition in videotaped June testimony.

Microsoft vice chair Brad Smith said on Twitter Sunday that even after a potential deal closes, Microsoft “will remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before.”

The acquisition isn’t certain to close, although Microsoft and Activision’s prospects are markedly better after a federal appeals judge prevented the Federal Trade Commission from temporarily blocking the deal. The FTC had sued to stop the deal in San Francisco federal court in July but had failed to convince a judge that the deal would pose a sufficient anti-competitive risk.

Regulators in the EU signed off on the deal in May. The U.K.’s Competition and Markets Authority, which has forced divestitures and blocked prior tech deals, said on Wednesday that it was prepared to negotiate with Microsoft over the terms of the deal.

The two companies are aiming to complete their transaction by Tuesday, July 18.

Continue Reading

Technology

Google to test using AI to determine users’ ages

Published

on

By

Google to test using AI to determine users’ ages

Google chief executive Sundar Pichai speaks during the tech titan’s annual I/O developers conference on May 14, 2024, in Mountain View, California. 

Glenn Chapman | Afp | Getty Images

Google will start using artificial intelligence to determine whether users are age appropriate for its products, the company said Wednesday.

Google announced the new technique for determining users’ ages as part of a blog focused on “New digital protections for kids, teens and parents.” The automation will be used across Google products, including YouTube, a spokesperson confirmed. Google has billions of users across its properties and users designated as under the age of 18 have restrictions to some Google services.

“This year we’ll begin testing a machine learning-based age estimation model in the U.S.,” wrote Jenn Fitzpatrick, SVP of Google’s “Core” Technology team, in the blog post. The Core unit is responsible for building the technical foundation behind the company’s flagship products and for protecting users’ online safety. 

“This model helps us estimate whether a user is over or under 18 so that we can apply protections to help provide more age-appropriate experiences,” Fitzpatrick wrote.

The latest AI move also comes as lawmakers pressure online platforms to create more provisions around child safety. The company said it will bring its AI-based age estimations to more countries over time. Meta rolled out similar features that uses AI to determine that someone may be lying about their age in September.

Google, and others within the tech industry, have been ramping their reliance on AI for various tasks and products. Using AI for age-related content represents the latest AI front for Google.

The new initiative by Google’s “Core” team comes despite the company reorganization that unit last year, laying off hundreds of employees and moving some roles to India and Mexico, CNBC reported at the time. 

WATCH: Google kills diversity hiring targets, reviewing other DEI programs

Google kills diversity hiring targets, reviewing other DEI programs

Continue Reading

Technology

AppLovin soars almost 30% on earnings, guidance beat

Published

on

By

AppLovin soars almost 30% on earnings, guidance beat

Adam Foroughi, CEO of AppLovin.

CNBC

AppLovin shares soared almost 30% in extended trading on Wednesday after the company reported earnings and revenue that sailed past analysts’ estimates and issued better-than-expected guidance.

Here’s how the company performed compared with analysts’ expectations, according to LSEG:

  • Earnings per share: $1.73 vs. $1.24 expected
  • Revenue: $1.37 billion vs. $1.26 billion expected

Net income in the quarter more than tripled to $599.2 million, or $1.73 per share, from $172.3 million, or 51 cents per share, a year earlier, the company said in a statement.

Revenue jumped 43% from $953.3 million a year earlier.

AppLovin was the best-performing U.S. tech stock last year, soaring more than 700%, driven by the company’s artificial intelligence-powered advertising system. In 2023, AppLovin released the updated 2.0 version of its ad search engine called AXON, which helps put more targeted ads on the gaming apps the company owns and is also used by studios that license the technology.

Read more CNBC tech news

AppLovin’s business has been split between advertising and apps, which is primarily made up of game studios that the company has acquired over the years. With the historic growth in its advertising unit, the apps business has become much less important, and now the company says it is selling it off.

“Today we’re announcing we’ve signed an exclusive term sheet to sell all of our apps business,” CEO Adam Foroughi said on the earnings call.

Later in the call, the company said it has signed a term sheet for the sale for a “total estimated consideration” of $900 million. That includes $500 million in cash, “with the remainder representing a minority equity stake in the combined private company.”

Advertising revenue climbed 73% in the quarter to almost $1 billion. The ad business was previously categorized as Software Platform. The company said it made the change because advertising accounts for “substantially all of the revenue in this segment.”

AppLovin said it expects first-quarter revenue of between $1.36 billion and 1.39 billion, exceeding the $1.32 billion average analyst estimate, according to LSEG. More than $1 billion of that will come from its advertising segment, as the company said it is “still in the early stages” of bolstering its AI models.

“The roadmap ahead is filled with opportunities for iteration,” the company said in its shareholder letter. “As we execute, we believe we can continue to drive value creation for our shareholders.”

WATCH: AppLovin shares jump

Applovin shares jump more than 15% on earnings beat

Continue Reading

Technology

Cisco pops on increased full-year revenue forecast

Published

on

By

Cisco pops on increased full-year revenue forecast

Cisco CEO Chuck Robbins speaking on CNBC’s “Squawk Box” outside the World Economic Forum in Davos, Switzerland, on Jan. 22, 2025.

Gerry Miller | CNBC

Cisco shares climbed about 6% in extended trading on Wednesday after the networking hardware maker reported fiscal second-quarter results and guidance that topped Wall Street’s expectations.

Here’s how the company did against LSEG consensus:

  • Earnings per share: 94 cents adjusted vs. 91 cents expected
  • Revenue: $13.99 billion vs. $13.87 billion expected

Revenue increased 9% in the quarter, which ended on Jan. 25, from $12.79 billion a year earlier, according to a statement. The growth follows four quarters of revenue declines. The company said it had orders for artificial intelligence infrastructure that exceeded $350 million in the quarter.

Cisco now sees adjusted earnings of $3.68 to $3.74 for the 2025 fiscal year, with $56 billion to $56.5 billion in revenue. Analysts polled by LSEG had been looking for $3.66 in adjusted earnings per share and $55.99 billion in revenue. In November, the forecast was $3.60 to $3.66 in earnings per share and $55.3 billion to $56.3 billion in revenue.

Net income in the latest period slid almost 8% to $2.43 billion, or 61 cents per share, from $2.63 billion, or 65 cents per share, a year ago.

Revenue from the networking division totaled $6.85 billion, down 3% but more than the $6.67 billion consensus among analysts surveyed by StreetAccount.

The security unit contributed $2.11 billion. That is a 117% increase from a year earlier, thanks to the addition of Splunk. Analysts expected $2.01 billion, according to StreetAccount.

Read more CNBC tech news

Splunk, which Cisco bought in March 2024 for $27 billion, was accretive to adjusted earnings per share sooner than planned, Scott Herren, Cisco’s finance chief, was quoted as saying in the statement. Cisco’s total revenue would have been down 1% year over year if not for Splunk’s contribution, according to the statement.

Many technology companies have been trying to predict the effects from President Donald Trump’s newly established Department of Government Efficiency. But three-quarters of Cisco’s U.S. federal business comes from the Defense Department, while most of the headcount cutting thus far has occurred in other agencies, Cisco CEO Chuck Robbins said on a conference call with analysts.

“Everything seems to be progressing as we expected,” he said.

Customers do not appear to be pulling up orders before tariffs go into effect, Herren said on the conference call.

As of Thursday’s close, Cisco shares were up 5% so far in 2025, while the S&P 500 index had gained about 3%.

WATCH: Cisco CEO Chuck Robbins on impact of tariffs, AI innovation and future of DEI

Cisco CEO Chuck Robbins on impact of tariffs, AI innovation and future of DEI

Continue Reading

Trending