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ServiceNow's acquisition of Moveworks is reportedly being reviewed over antitrust concerns

1. ServiceNow’s $2.85 billion acquisition of Moveworks faces regulatory scrutiny. 2. U.S. Justice Department is reviewing the acquisition for antitrust issues. 3. Regulatory probe began in June; a 'second request' has been issued. 4. Closure of the deal is predicted for the second half of 2025. 5. Moveworks has not provided comments on the ongoing situation.

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FAQ

Why Bearish?

Regulatory scrutiny could delay or derail the acquisition, affecting investor confidence. Past mergers facing scrutiny often see stock price volatility.

How important is it?

The acquisition's uncertainty directly impacts ServiceNow's growth strategy and investor sentiment. Regulatory hurdles are critical in tech M&A, affecting market perceptions.

Why Short Term?

Antitrust reviews tend to have immediate effects on stock prices before resolution. Historical mergers under investigation often experience stock price fluctuations within months.

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