Lookzy: all your daily legal news in 0.1 billable hours. Litigation, deals, lateral moves and industry news; we cover it all. 

Welcome to Lookzy.  In today's Lookzy:

• Microsoft's potential $10 billion AI deal

• The SEC charges against McDonald's former CEO

• The English Premier League teams which are potential takeover targets

• Stroock lays off lawyers and staff

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MICROSOFT'S POTENTIAL $10B AI DEAL

Microsoft is reportedly in talks to invest as much as $10 billion into OpenAI, the AI research lab which created the ChatGPT and DALL-E AI creation tools, as part of its current funding round. 

Microsoft's $10 billion investment would value OpenAI at around $29 billion, up more than 2x compared to its $14 billion valuation from its prior 2021 financing.  OpenAI's skyrocketing valuation comes as its AI chat app and text-to-image tools have caught the public's imagination.  

Microsoft's business is highly complementary to OpenAI's.  Microsoft previously invested $1 billion into the company and reportedly plans to integrate ChatGPT into Bing in a renewed challenge to Google.  OpenAI also uses Microsoft's cloud software to operate its tools, funneling revenue back to Microsoft.  

This substantial potential investment comes on the heels of initial details of OpenAI's latest financing round, in which VC firms Thrive and Founders Fund, among others, were already planning to invest more than $300 million.  

The financing round is unique because it is structured as a tender offer, as was OpenAI's prior financing round.  As part of Microsoft's investment, it would receive 75% of OpenAI’s profits until it recoups its investment.  Microsoft would own 49% of the company, other investors would own 49% and OpenAI's nonprofit parent would keep 2%.  

ECON SNAPSHOT

The difference between special bonuses and layoffs

THE VERDICT

Arguing today's litigation news

Want fries with that? The SEC charged Stephen J. Easterbrook, the former CEO of McDonald’s Corporation, with making false and misleading statements to investors about the circumstances leading to his termination in November 2019, specifically related to his relationship with a colleague.

Expensive iPhones.  US District Judge Jacqueline Scott Corley refused to dismiss claims made against Qualcomm in a civil consumer lawsuit alleging that Qualcomm violated California state antitrust law through "exclusive dealing" relationships with Apple and other device and parts suppliers to maintain a monopoly in the modem chip market, which in turn caused mobile phones and tablet owners to artificially pay more for their devices. 

Firms hiring firms.  Law firm Dechert hired Kaplan Hecker & Fink to defend it in a lawsuit by WSJ former chief foreign correspondent Jay Solomon, who claimed Dechert worked with hackers in India to steal and then leak emails between him and one of his sources.

Proskauer vs. COO.  The former COO of Proskauer that the firm sued for allegedly stealing a number of firm trade secrets and confidential information had initially planned to join Paul Hastings.  Paul Hastings confirmed that the former COO is no longer joining the firm.  

No cooked books. Delaware's Supreme Court upheld the Court of Chancery's dismissal of a suit by a stockholder of Calgon Carbon Corp which had alleged that the Company's $1.1 billion sale to Japanese chemical company Kuraray Co. used misleading financial statements in order to secure investor approval of the deal.  

THE DEAL

Wheelin' and dealin' today's corporate news

Long receipts.  CVS Health Corp. is reportedly exploring an acquisition of Oak Street Health Inc., which runs primary care centers for Medicare recipients.  Oak Street's market cap is currently $5.5 billion and the deal may cost CVS as much as $10 billion between market premiums and debt.  

Duck hunting.  Vista Equity Partners agreed to purchase insurance technology provider Duck Creek Technologies Inc. for approximately $2.6 billion in cash.  Kirkland is representing Vista, Skadden is representing Duck Creek and Paul Weiss is representing a special committee of Duck Creek's board.  

Paying for payments.  Canadian payments company Nuvei Corp agreed to purchase its US peer Paya Holdings Inc for $1.3 billion.  The deal values Paya at the same valuation as when Paya originally listed via SPAC merger.  Davis Polk and Stikeman Elliott are representing Nuvei and Kirkland is representing Paya.  

Pill activism.  Activist investment fund Inclusive Capital, ran by Jeffrey Ubben, acquired a 0.83% stake in Bayer AG for approximately $435 million in the face of a depressed Bayer share price due to the threat of further litigation over alleged carcinogenic effects of its weedkiller Roundup.  

Soccer M&A.  PSG-owner Qatar Sports Investments is reportedly considering a full or partial purchase of Liverpool FC and also considering investing in Tottenham Hotspur or Manchester United.  

BUSINESS OF THE FIRM

Lateral Moves: 

• Kasowitz Benson Torres hired EDNY assistant US attorney Jonathan Algor.

• O'Melveny & Myers hired SDNY assistant US attorney Natasha Waglow Teleanu, who had previously worked at the firm.

• Gibson Dunn hired Jane Horvath, who was previously the former chief privacy officer at Apple and worked there for 11 years.

• Latham hired Joe Alexander from DLA Piper.

• 9th Circuit Judge Paul Watford is stepping down and returning to private practice. Judge Watford previously worked at Munger Tolles.

Industry News:

• Stroock & Stroock & Lavan announced that it laid off nine "non-partner" lawyers and 18 business professionals, citing market conditions. In March 2022, a group of 43 Stroock restructuring lawyers accounting for 29% of the firm's 2021 revenue left Stroock for Paul Hastings.

• Still waiting on your bonus? Check out the Lookzy Reverse Bonus Tracker to see who else is left to announce.

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