Your Cart is Empty

FTC Involvement in Mega Mattress Merger

July 24, 2023 3 min read

Hey there, mattress enthusiasts! Today we're diving headfirst into the whirlpool of mergers and acquisitions, or M&As, as the cool kids call them. The main actors in our story? The formidable Federal Trade Commission (FTC) and a couple of eyebrow-raising deals from Microsoft and Tempur Sealy. Buckle up, folks; it's going to be a wild ride!

Microsoft's Big Move and the FTC Tango

Picture this: Tech giant Microsoft casually drops the news that it's about to bag Activision Blizzard, the brains behind the blockbuster Call of Duty franchise. No biggie, right? Except it is, especially when you realize the price tag reads over $69 billion! That's when the FTC stepped in to voice its concerns about this potentially competition-squashing merger. The FTC has not been taking this lying down, folks. Despite an initial setback, they're continuing to challenge the deal, and boy, is it setting an interesting precedent for future M&A disputes!

Tempur Sealy's Grand Plan: Shaking Up the Mattress Biz

Let's switch gears for a second and talk mattresses. Tempur Sealy, the heavyweight champion of the bedding industry, announced plans to snap up Mattress Firm, the biggest retailer in the same sector. Although its $4 billion deal may not cause as much sticker shock as Microsoft's multi-billion dollar bid, it's a major shake-up for the bedding world. And you bet the FTC has been paying close attention!

The Biden Era: M&As under a New Microscope

Now, you might think these M&A shenanigans are just isolated incidents, but oh boy, you'd be wrong! Since President Joe Biden took office in January 2021, the U.S. Justice Department and the FTC have been on an intervention spree, jumping into the ring for a whopping 22 mergers. That's right, folks. The current administration is showing they're not afraid to flex their regulatory muscles.

Even after a few stumbles in court, Biden's key appointees, FTC Chair Lina Khan and DoJ antitrust chief Jonathan Kanter, keep pushing back. They're sticking to their guns that unchecked corporate consolidation could harm the little guy – consumers and workers.

What's It All Mean?: The Changing Face of M&As

So, where does all this leave us? It seems the landscape is shifting, with deals facing more scrutiny and taking a little longer to finalize. Firms are responding strategically, negotiating for extra time to complete deals and working in beefier break-up fees just in case the regulators step in. In short, they're bracing for some drawn-out battles with the regulators. But hey, they're not backing down. Far from it!

Looking Ahead: All Eyes on Microsoft and Tempur Sealy

As we go forward, everyone's keeping a close watch on the Microsoft-Activision and Tempur Sealy-Mattress Firm stories. While there's no crystal ball to predict whether Tempur Sealy and Mattress Firm will face the same FTC dance as Microsoft and Activision, it's worth noting the FTC's recent actions may hold some clues about what's in store.

So there you have it! The world of M&As is ever-evolving, with regulators like the FTC playing an increasingly active role. Whether you're a corporate giant or a humble start-up, it's something to keep in mind when planning your next big move. We'll just have to wait and see how these gripping tales unfold and what they mean for the future of M&As. So stay tuned!