How is the Microsoft – Activision merger going?
Tech giant Microsoft made headlines in early 2022 by announcing plans to buy Activision Blizzard, one of the world's most valuable gaming companies, for $68.7 billion. The news rocked the world and was quickly dubbed one of the most influential operations in video game history.
Too bad we arrived in August 2023 and the acquisition did not materialize with Microsoft and Activision-Blizzard are still two completely separate units in half the world. So the operation is still far from having realized its operation.
The merger could still happen , but nobody really knows if or when. The original deadline for completing the merger was July 18, but it has now been extended. We've compiled a recap to keep you posted on the trials and tribulations of the Activision Blizzard deal.
It's important to note that Activision's acquisition of Blizzard isn't the first major spending on games by the tech conglomerate, which already owns Xbox. Microsoft owns Minecraft, Halo developer 343 Industries, Obsidian Entertainment, Forza Playground Games developer, and Bethesda owner ZeniMax. Activision Blizzar would be the largest acquisition for Microsoft, the final jewel in the esports crown.
The main reason behind the acquisition was Microsoft's desire to consolidate its position in the video game industry and the growing metaverse. The metaverse trend was at the height of its popularity at the time it was announced, and Microsoft saw this as a way to further strengthen its presence in this rapidly growing industry. With Activision Blizzard's blockbuster titles such as Call of Duty, Overwatch and Diablo under its banner, Microsoft could have boasted a highly valuable game catalog and a strong position in the gaming industry.
Additionally, the acquisition would have given Microsoft control over major IP and development studios, such as Treyarch and Infinity Ward. This would have further enhanced the library of exclusive games available for its Xbox console, giving it a competitive edge over competitors such as Sony and Nintendo.
Another important aspect is that the acquisition would have led to Microsoft becoming a relevant player in the esports arena. With the leagues of Overwatch and Call of Duty, Microsoft would have the opportunity to influence the development and growth of esports on a global scale, opening up new opportunities for monetization and player engagement.
An acquisition that not everyone appreciated
However, this acquisition has not been without its snags. Regulators around the world have scrutinized the deal due to its possible implications on competition and game distribution. Some countries have approved the deal The Microsoft Activision Blizzard merger has been approved in several markets around the world such as Ukraine, Saudi Arabia, Brazil, Serbia, Chile, Japan, South Africa, South Korea and China.
In particular, the European Union, the United Kingdom and the United States have raised concerns about the potential negative impact of the acquisition on competition in the video game sector . The EU approved the deal in May 2023, but the UK and US have expressed reservations and taken legal action to block or delay the acquisition.
The complicated legal and regulatory situation has made the evolution of the acquisition uncertain and subject to change. The UK CMA rejected the original offer, but Microsoft and Activision Blizzard have presented a new deal that could address some of the concerns raised by UK regulators. The United States has also been the scene of a legal battle between the two companies and the Federal Trade Commission, with some legal hearings affecting the future direction of the acquisition.
Add to that Activision Blizzard's internal problems and issues, and the fact that its CEO Bobby Kotick is being investigated by the SEC, and you can figure out what makes the deal attractive to both parties. Microsoft's offer comes amid legal and public criticism over lawsuits alleging widespread sexual harassment issues at the publisher, and while it's hard to think of the $69 billion as a discount, the legal and PR may have given Microsoft a better deal.
Furthermore, Ubisoft's involvement as a potential buyer of Activision Blizzard's game streaming rights has added another layer of complexity to the whole situation.
The US and British authorities will hardly allow themselves to definitively block the merger of history in the eSports sector. Among other things, the participation of Ubisoft, which lightens the dominant position in the USA
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The article How is the Microsoft – Activision merger going? comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/come-sta-andando-la-fusione-microsoft-activision/ on Thu, 31 Aug 2023 06:00:51 +0000.