Microsoft's acquisition of Activison Blizzard

[Bryank75]

From FT.com / Financial Times

Why Microsoft's Activision Blizzard deal could be on its last life

Microsoft and Activision said they would fight the decision — but is it really worth it?

One lawyer told DD that the companies face an uphill battle in appealing against the CMA's ruling; its decisions are rarely overturned. Another described it as "pointless" and "time consuming".

If they were to go down this route (while still facing separate probes in Washington and Brussels) they would go past the so-called drop dead date when the parties must close the transaction. Several traders we spoke to said it was likely Activision was going to demand a higher price from Microsoft to extend the deadline to keep the merger agreement from expiring.

But do either of the parties still need, or indeed, want a deal? Activision agreed to sell itself following allegations of widespread gender-based discrimination and harassment, which weighed on its shares and created the perfect opportunity for Microsoft to swoop in.

The company is in a stronger place since then and has the earnings to prove it.

As for Microsoft, which also reported strong first-quarter results on Tuesday, it appears to be more of a want than a need, particularly after its well-timed investment in OpenAI-owned ChatGPT earlier this year.

Shares in the company were up more than 7 per cent following the CMA's announcement, indicating that shareholders are happy to leave the deal on the table.

Whatever happens, the saga suggests the CMA will continue flexing its broad intervention powers going forward, further damping the outlook for cross-border M&A.

"We hear very clearly that acquirers are not announcing deals because they are worried about getting blocked by the unappealable CMA," one merger arb investor told DD.

A clear winner should the deal fall apart is rival Sony, whose PlayStation consoles would no longer be at risk of limited access to Call of Duty and other Activision titles, and whose share price had already begun to feel the pressure of consolidation in the entertainment world.

 

[Bryank75]

'Even a 'moderate' increase to MS strength could give them too much power in cloud'

Meaning CMA could block any medium sized acquisition of a publisher or large developer in the future on the same grounds, that would be fantastic for the health of gaming TBH.

 

[Dick Jones]

Where do I sign up?

I left the marketing to Aaron on that. I'm sure he'll pull through

 

[Entropi]

So Sam Smith complaints CMA officials are “unelected”? Well UK not doing the whole “pay to own” things like they’re used to in the US so it’s unfair lol.

https://www.theguardian.com/technol...hines-activision-blizzard-the-cma-did-its-job

 

[riesgoyfortuna]

Nobody is talking about the poor employees on ABK anymore, the talk shifted to fake UK tech business and “stifled” competition.
They never cared about these people.

That was so fake

 

[Bryank75]

So Sam Smith complaints CMA officials are “unelected”? Well UK not doing the whole “pay to own” things like they’re used to in the US so it’s unfair lol.

https://www.theguardian.com/technol...hines-activision-blizzard-the-cma-did-its-job

They want them 'elected' like the senators in USA sending letters about Sony being dominant in Japan....

Naaa the best thing is to hire people right out of University that never worked for big corporations and train them all about ethics and agency theory and how to remain unbiased.

Insulate them as much as possible from political influences as well as jobs and monetary influence from big corporations.

The CMA is doing great. The more space they have away from outside influence, the better is what I am basically saying.

 

[FatKaz]

So Sam Smith complaints CMA officials are “unelected”? Well UK not doing the whole “pay to own” things like they’re used to in the US so it’s unfair lol.

https://www.theguardian.com/technol...hines-activision-blizzard-the-cma-did-its-job

Must be burning his soul he can't do the same bribing and lobbying like in the USA against the CMA.

 

[Loy310]

View attachment 1195

'Even a 'moderate' increase to MS strength could give them too much power in cloud'

Meaning CMA could block any medium sized acquisition of a publisher or large developer in the future on the same grounds, that would be fantastic for the health of gaming TBH.

I think how they handled zenimax is coming back to haunt them. I believe regulators behind closed doors saw that they made a mistake there because the fact remains that a lot of gamers are now going to not have access to a lot of zenimax content.

So that is why the cma will consider mid size pubs and devs with major ip as an issue when it comes to mergers going forward.
MS poisoned the well for themself and everyone else. Such a selfish and destructive company.

 

[Bryank75]

So Sam Smith complaints CMA officials are “unelected”? Well UK not doing the whole “pay to own” things like they’re used to in the US so it’s unfair lol.

https://www.theguardian.com/technol...hines-activision-blizzard-the-cma-did-its-job

I understand how some one could mix up Brad Smith and Sam Smith....

 

[Shmunter]

Not sure if this has been posted in this crazy fast thread….



MS and Activision acting like mobsters, crying that CMA is killing their country; while both reporting losses in the UK, shipping profits of to Barmuda for tax minimisation, all the while collecting uk tax payer money to subsidise their losses.

Hey I’m a business man and I get it, but this is a hell of an expose of these cunts that needs to be publicised wide.

 

[Dick Jones]

I understand how some one could mix up Brad Smith and Sam Smith....

I thought the same. I glad I know I'm not the only one

 

[Johnic]

Thank fuck the media is actually writing about this. About time MS got a lot of that criticism they deserve.

 

[Swift_Star]

Some people really need to touch grass.

What’s funny about this is that they go on these rants but hate anything about social democracy or communism. You can’t be pro worker and support a government by the US, neither a company like Microsoft. It’s incoherent.

 

[Edmund]

Just realised that Sullivan over at Resetera requested a self ban. Most likely because of the CMA blocking the MS - ATVI merger.


Guy is the biggest hypocrite ever and talks so much smack about Sony and so pro acquisition.


Fucking loser knows the sony fans will gloat so he saw himself out with a ban request.

Pussy ass bitch. Dare to talk so much smack about Sony and talking down to the fans but goes into hiding the moment the merger gets blocked.

 

[Edmund]

Here's some performative drama from someone who cared so much about the workers they "literally teared up"
View attachment 1194

This guy has purple hair. Guaranteed.

 

[daniel5043]

I seen people saying the CMA has broken the law. What law have they broken because I haven't the scooby of which law they broke

 

[daniel5043]

Also how can people not understand that a lot of details have been redacted from public view regarding the future of cloud

 

[Johnic]

I seen people saying the CMA has broken the law. What law have they broken because I haven't the scooby of which law they broke

The one MS shills made up to cope.

 

[Entropi]

Once again, it doesn’t matter what the EU decides, as MS needed 4 out of 4 to say yes to the deal for it to go through, and the CMA said “Fuck no!”

Yes but look at it like the EU kicking them while they’re down is just for shits and giggles for us.

 

[Loy310]

Just realised that Sullivan over at Resetera requested a self ban. Most likely because of the CMA blocking the MS - ATVI merger.


Guy is the biggest hypocrite ever and talks so much smack about Sony and so pro acquisition.


Fucking loser knows the sony fans will gloat so he saw himself out with a ban request.

Pussy ass bitch. Dare to talk so much smack about Sony and talking down to the fans but goes into hiding the moment the merger gets blocked.

Re’s ABK Merger thread, Page 816 is thee best video game forum page in history, cause it records the moment the comet hit.
That page is like the layer of ash in the earth crust left behind from the Chicxulub Impact Event.
816 is literally ground zero. Icon-era should start a podcasts titled 816

Also a lot of pro merger dudes from RE are in hiding now. Credit to the ones that stuck around and took it on the chin.