Amazon, Vista, ByteDance face scrutiny and deal shifts

Italian tax police have searched Amazon’s Milan headquarters and the homes of managers as part of a new investigation into the company’s local tax affairs. Prosecutors in Milan have opened proceedings against Luxembourg-based Amazon EU Sàrl and one of its directors over suspected failure to declare income in Italy.

According to a warrant seen by Reuters and cited in the coverage, authorities allege Amazon had a permanent establishment in Italy before August 2024. That was when the group joined a co‑operative compliance programme with the Italian tax authority and began paying taxes domestically. Investigators say Amazon EU Sàrl terminated and then re‑employed 159 staff in 2024 who had worked for another Amazon entity, arguing this effectively created a permanent establishment in the country.

During the searches, investigators seized computers and storage devices, including hard drives holding employee emails retained after deletion from Amazon systems. The Guardia di Finanza also inspected the offices of auditor KPMG, which is not under investigation; the visit is linked to a probe into whether Amazon maintained an undisclosed permanent establishment in Italy between 2019 and 2024.

Amazon called the Milan prosecutor’s actions “aggressive and wholly disproportionate” and said it is in “transparent dialogue with Italian tax authorities to gain clarity on complex technical matters.” The company said it applied in March 2025 for enhanced cooperation with the Italian Revenue Agency, seeking formal confirmation on the tax treatment of the same activities now under investigation.

Amazon stated it had paid taxes in Italy throughout the period under scrutiny, with total tax contributions exceeding €1.7bn in 2024, and invested €4bn in the country that year. It also said it supported more than 20,000 Italian SMEs through Amazon.it and warned that unpredictable regulation, disproportionate penalties and lengthy legal processes are affecting Italy’s attractiveness for investment.

The latest action is one of a series of Italian tax and fraud cases involving Amazon. In December, the company agreed to pay €510m to Italy’s tax collection agency to settle a dispute tied to alleged evasion of €1.2bn for 2019‑2021. Prosecutors are separately investigating alleged tax evasion for 2021‑2024 and suspected customs and tax fraud linked to Chinese imports.

A prior inquiry into labour practices ended after an Italian Amazon unit paid compensation and discontinued a delivery staff monitoring system. The current probes underscore the breadth of Italy’s scrutiny, spanning corporate tax structure, customs treatment and employment practices at the US group.

Vista Equity Partners is exploring a sale of emergency communications software provider AlertMedia that could value the company at more than $1bn. People familiar with the matter said Vista has hired JPMorgan to run the process, which is at an early stage. The parties declined to comment or did not respond to requests for comment.

Austin‑based AlertMedia provides emergency communications to thousands of organisations, including Walmart, JetBlue, Coca‑Cola Bottling, DHL and Thomson Reuters. The business generates more than $100m in revenue and, according to the sources, could attract a double‑digit revenue multiple.

Vista invested in AlertMedia in 2021 through its middle‑market‑focused Foundation Fund. A potential exit comes after rival Thoma Bravo acquired emergency communications provider Everbridge for $1.8bn in 2024, highlighting ongoing consolidation in the sector even as public software valuations have been volatile and have slowed some IPOs and deals.

Vista has also been broadening its focus beyond traditional enterprise software. Last week, it was reported to be leading a funding round of more than $350m in AI chip start‑up SambaNova Systems, described as a rare departure from Vista’s usual investment focus.

ByteDance is in advanced talks to sell its Shanghai‑based gaming unit, Moonton Technology, to Saudi Arabia’s Savvy Games Group in a deal valued between $6bn and $7bn, according to a Reuters report cited in the coverage. The parties have reached an initial agreement and a deal could be finalised as soon as this quarter.

Founded in 2014, Moonton has grown into a major mobile gaming player. Its flagship title, Mobile Legends: Bang Bang, has surpassed 1.5bn downloads and has more than 110m monthly active users. A sale to Savvy Games, which is backed by Saudi Arabia’s sovereign wealth interests, would mark a significant shift in ownership of a leading Asian mobile game franchise.

Beyond individual deals, several recent developments highlight how capital markets and regulation are influencing strategy for technology and software companies. AI start‑up Anthropic, the developer of the Claude model, has seen annualised revenue rise 1,300% and has been linked to a $30bn funding round and a $380bn valuation, underlining investor appetite for generative AI platforms.

Oracle has faced questions over how it will fund large‑scale AI infrastructure commitments. In February, Bernstein trimmed its Oracle price target and noted uncertainties around financing data centre construction for a $300bn, multi‑year cloud agreement signed with OpenAI in 2025. Oracle has said it plans to raise $45bn‑$50bn in 2026 through a mix of equity and debt to support those obligations.

At the same time, regulators and policymakers are reshaping the operating environment. In India, markets regulator Sebi has proposed relaxed reporting rules for certain stock‑broker demat and bank accounts to reduce compliance burdens, while in Europe and the UK, new data‑sharing rules for digital platforms such as eBay are intended to tighten tax enforcement on online sellers.

Together, these moves show large tech, gaming and software groups adjusting portfolios, financing and compliance strategies in response to shifting market conditions, rapid AI adoption and more assertive tax and regulatory regimes.