According to the filing, the $380 million deal exceeded the $119.5 million threshold that typically triggers premerger reporting requirements, reported The Post. The complaint also highlights terms in the deal that allegedly restrict Covariant’s ability to sell its technology to other companies, turning it into a “zombie” company with limited prospects. She emphasized that the arrangement aimed to enhance Covariant’s technology without limiting its competitive ability. The FTC has confirmed it is reviewing the complaint, but the agency declined to comment further. These so-called “reverse acquihires” are raising concerns among regulators, who worry that such deals may limit competition and innovation, particularly in the rapidly developing AI industry.
