Rockwell Automation receives second takeover bid from Emerson
Having rejected a $27.6bn takeover bid from Emerson, Rockwell Automation is once again considering a multi-billion-dollar takeover bid with its industry rival having upped its offer to $29bn.
“We remain convinced there is compelling strategic, operational, and financial merit to bringing together our two companies – and that such a combination would benefit our respective customers, employees and shareholders,” said David Farr, CEO of Emerson.
“The industrial logic for this combination is clear. A combination of Emerson and Rockwell would create a leader in the $200 billion global automation market.”
Rockwell previously rejected Emerson’s initial acquisition some two weeks back, reasoning that the offer undervalued the company. However, the new $29bn represents a 30% premium compared to Rockwell’s share price prior to any knowledge of Emerson’s proposed acquisition being revealed.
Further, despite Rockwell’s shares being up 7%, trading at $202 before the offer was made, this still remained well below the new offer price that would see Emerson purchasing the entirety of Rockwell’s shares at a price of $225 per share.
The proposal stands as a part-cash, part-share transaction, with shareholders expected to receive $135 in cash and $90 in Emerson shares per Rockwell share, should the offer be accepted.
Discord buys Sentropy to fight against hate and abuse online
Discord, a popular chat app, has acquired the software company Sentropy to bolster its efforts to combat online abuse and harassment. Sentropy, monitors online networks for abuse and harassment, then offers users a way to block problematic people and filter out messages they don’t want to see.
First launched in 2015 and currently boasting 150 million monthly active users, Discord plans to integrate Sentropy’s own products into its existing toolkit and the company will also bring the smaller company’s leadership group aboard. Discord currently uses a “multilevel” approach to moderation, and a Trust and Safety (T&S) team dedicated to protecting users and shaping content moderation policies comprised 15% of Discord’s workforce as of May 2020.
“T&S tech and processes should not be used as a competitive advantage,” Sentropy CEO John Redgrave said in a blog post on the announcement. “We all deserve digital and physical safety, and moderators deserve better tooling to help them do one of the hardest jobs online more effectively and with fewer harmful impacts.”
Cleanse platforms of online harassment and abuse
Redgrave elaborated on the company’s natural connection with Discord: “Discord represents the next generation of social companies — a generation where users are not the product to be sold, but the engine of connectivity, creativity, and growth. In this model, user privacy and user safety are essential product features, not an afterthought. The success of this model depends upon building next-generation Trust and Safety into every product. We don’t take this responsibility lightly and are humbled to work at the scale of Discord and with Discord’s resources to increase the depth of our impact.”
Sentropy launched out of stealth last summer with an AI system designed to detect, track and cleanse platforms of online harassment and abuse. The company emerged then with $13 million in funding from notable backers including Reddit co-founder Alexis Ohanian and his VC firm Initialized Capital, King River Capital, Horizons Ventures and Playground Global.
“We are excited to help Discord decide how we can most effectively share with the rest of the Internet the best practices, technology, and tools that we’ve developed to protect our own communities,” Redgrave said.