Microsoft defends a $69 billion Activision agreement. In January 2022, Microsoft announced that it had reached an agreement to acquire Activision Blizzard, a leading video game publisher, for $69 billion. The deal is expected to close in 2023, subject to regulatory approval.
Microsoft has defended the deal as a strategic move that will expand its gaming business and help it compete more effectively with rivals such as Sony and Nintendo. The company has emphasized the growth potential of the video game industry, which has seen a surge in demand during the COVID-19 pandemic, and the opportunity to tap into Activision’s popular franchises, including Call of Duty, World of Warcraft, and Candy Crush.
Microsoft has also highlighted the potential for synergies between the two companies, including the integration of Activision’s games and franchises with Microsoft’s Xbox gaming platform and cloud services. The company has said it will use the acquisition to “accelerate the growth of gaming and esports, reaching more players in more places.”
However, the deal has also faced criticism from some industry observers, who have raised concerns about consolidation in the video game industry and the impact on competition. Some have also raised concerns about Activision’s culture and its handling of issues such as workplace harassment.
Microsoft has responded to these concerns by stating that it will work to promote a “positive and inclusive culture” at Activision and will take steps to address any issues related to workplace culture and ethics. The company has also emphasized that it will continue to support independent game developers and promote competition in the industry..
Sony rejects compromise.
It has already received approval from certain nations, including Saudi Arabia, Chile, and Brazil.
Although it has not yet made a final decision, the UK’s competition authority recently declared its opposition to the merger, and the European Commission commissioned an inquiry.
The UK Competition and Markets Authority has suggested that Call of Duty may be offered separately.
Sony has so far rejected Microsoft’s offer to make all current Activision Blizzard titles available on Nintendo, Sony, and Steam for at least the next ten years.
The company has already bought game developers including Fallout creator Bethesda and Minecraft creator Mojang. The upcoming Bethesda game Starfield will initially be an Xbox exclusive when it comes, as it has previously been confirmed.
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