It’s been an action-packed 24 hours in tech and, unlike most of the past month, the stock market didn’t drive today’s developments. If there is a common thread running through the latest news, it’s the specter of big tech companies expanding their market power. That’s most obviously true in Nvidia’s abandonment of its Arm acquisition, confirmed late Tuesday, as the result of regulatory opposition. This outcome may, however, also demonstrate the law of unintended consequences. As we noted in this analysis, Arm’s prospects as an independent company are not optimal, given the competition it faces from rivals with much deeper pockets.
Meanwhile, big tech may very well play a role in the future of Peloton, the troubled fitness firm, if regulators stand aside. Tuesday’s news that John Foley is exiting as CEO in favor of a veteran financial executive, Barry McCarthy, suggests Peloton is preparing for a sale. The most logical buyers are big firms such as Apple or Amazon, but they’d surely face scrutiny if they tried to buy Peloton. Yet the employees—those that remain after the 2,800 job cuts announced today—may be better off if the fitness firm gets bought by a rich company rather than a private equity firm, which could be the alternative.
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