Microsoft / Activision Deal Approval Watch |OT| (MS/ABK close)

Do you believe the deal will be approved?


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Some thoughts, about why MS cant do indefinite contract for COD, and why they cant rush on concessions.

Imagine a situation where Microsoft is forced to sign an agreement with the EU/CMA that they have to promise to keep CoD Multiplatform indefinately, or lets even say 10 years. Now Sony has Leverage over Microsoft. If Microoft wants to make a new CoD Game, they are now forced by law to release CoD on Playstation.

Now Imagine if Sony was to say, up the Developer Fee for Microsoft. Dev Boxes cost more or Sony refues to give Microsoft more boxes. Maybe Microsoft has to pay a higher fee. Sony forces Microsoft to make Playstation exclusive content to certify it, or Sony utilizes their position as Market Leader to reject some features so that Microsoft has to make a special development build for Playstation. Perhaps Sony changes the development contract and says Microsoft can't put CoD on Game Pass because it goes against some developer ToS.

Because Microsoft is under contract with the Government to release CoD on Playstation, Microsoft can't just say "Screw that". They will have to appease Sony and listen to all of their demands if they want CoD on PlayStation. And because Microsoft needs CoD on PlayStation to be able to legally release on Xbox. Now Microsoft is stuck.

Now thats not to say that Sony would actually do any, or even most of this. But its something that could happen. So you can see why Microsoft would natually be hesitant of it unless they could get an iron clad contract in place to protect them.

killerrin

From Era.
 
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I would have preferred by far, by far, that they had acquired some smaller indie/AA studios that are struggling for money and had pumped them with money and a support network. Could have probably acquired 10 such studios for less than £2b.
Hopefully they support some smaller acquisitions after. I'd love for them to grab Asobo.
 
Some thoughts, about why MS cant do indefinite contract for COD, and why they cant rush on concessions.


killerrin

From Era.
Can't they just go around the IP exclusivity like what happened with Demon's Souls and Dark Souls?
Call of Duty needs to come to Playstation. But there is no more Call of Duty. They just start a new war shooter IP exclusive to Xbox and PC.
No?
 
Can't they just go around the IP exclusivity like what happened with Demon's Souls and Dark Souls?
Call of Duty needs to come to Playstation. But there is no more Call of Duty. They just start a new war shooter IP exclusive to Xbox and PC.
No?
The IP sells. MS cant simply abandon COD name.
 
Yea, top shareholders at Activision no longer want the big payouts they'll get, and they want Bobby Kotick to remain at the helm of the company.

Jonah Hill Ok GIF
Well actually they do. The board recently reappointment him so clearly you have no idea what you're talking about

https://thebossmagazine.com/activision-ceo-bobby-kotik-re-elected/
 
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I still think the deal gets made but with concessions. Dumbo Ryan done well getting this deal scrutinised. MS are company not to be trusted.
Same can be said about any company.

They just want your money. "pro consumerism" is what they do to keep you as a customer and "anti consumer" is when they take thing away from others.
 
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They aren't going to fire him while he is in the middle of making that huge payout happen. They won't go through a sale of the largest gaming publisher in history without a CEO at the helm.

Sounds like he does know what he is talking about.
The guy said the shareholders don't want him but the shareholders voted him in in a landslide victory.
 
The guy said the shareholders don't want him but the shareholders voted him in in a landslide victory.
Yeah the shareholders want to keep him for the money he makes the company. It's the employees who want him gone and no one is really thinking about them I suppose outside of MS who has already signaled they'll support unions and deal with the systemic cultural issues in the organization.
 
Some thoughts, about why MS cant do indefinite contract for COD, and why they cant rush on concessions.


killerrin

From Era.
I think people are overthinking all of these weird, moustache twiring ways each party can screw over each other. Microsoft isn't rushing because they feel at this point like they might be able to get away with the purchase without concessions. That is why they are very loud making it sound like CoD will be on Playstation forever. It costs them nothing to make vague promises at this point and their audience eats it up.

If they need to make concessions it would probably be kept simple. Microsoft will most likely have some kind of program for interested platforms to negotiate/purchase a port of the game. The terms of that program would either be negotiated on a case by case basis or handled by the program's leadership.
 
They already dissolved the Zenimax board members after acquiring them
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I don't get why people assume they will keep these people around and pay them six figures even though they don't contribute anything to actual game development.
The board represents the shareholders of the business. Once the business gets purchased it is usually dissolved or merged as there is usually another board at the purchasing company.

AFAIK many Zenimax executives are still with Microsoft.
 
https://seekingalpha.com/news/39034...cerns-with-microsofts-planned-activision-deal
Article behind login.
Take-Two Interactive (NASDAQ:TTWO) CEO Strauss Zelnick said he has no issues with the Microsoft's (NASDAQ:MSFT) planned $69 billion purchase of Activision (NASDAQ:ATVI) and most of his competitors feel the same way.

"Well there's one big company that is, but apart from that no," Zelnick said in a Tuesday interview with CNBC. "Generally speaking I don't think people are particularly concerned because it remains a fragmented business" Zelnick said in a Tuesday interview with CNBC where he said he told regulators he had no issues with the deal.

Zelnick didn't identify which company he was referencing, though reports have indicated PlayStation owner Sony Corp. (SONY) has been critical of the transaction. Microsoft last monthcomplained about the influence of videogame console rival Sony on UK regulators, as the country's competition watchdog reviews the deal.

"We don't really think the competitive landscape is meaningfully effected in the event that that merger goes through," Zelnick said.

While Zelnick said he saw a 90% chance the deal would go through when it was announced, those odds appear to be lower now.

"It's hard to say what will happen at this point," Zelnick said. "If you asked me when it was first announced I would have said I thought it was about 90% chance it would be approved," Zelnick said. "It appears as though it's less than that."
 
Well actually they do. The board recently reappointment him so clearly you have no idea what you're talking about

https://thebossmagazine.com/activision-ceo-bobby-kotik-re-elected/

Uh oh, looks like someone's sticking around for the long haul after all 🤣.

Yeah the shareholders want to keep him for the money he makes the company. It's the employees who want him gone and no one is really thinking about them I suppose outside of MS who has already signaled they'll support unions and deal with the systemic cultural issues in the organization.

I still find this very hard to believe given MS have their own share of similar cultural workplace issues that have been there for years and still get swept under the rug.

At the end of the day though, there's a good chance Kotick stays aboard in some semi-significant capacity after the deal closes, they might just keep him around as an advisor or whatever. Like you just said, he knows how to make ABK a lot of money, and that's the biggest reason Microsoft want them to begin with. Why would you completely cut them off?

Keep him on as a business advisor on the money side, but put someone else in his place when it comes to actually overseeing the ABK teams and regulating things when it comes to workplace issues, communicating directly with the teams etc. You get to keep him for what he's good at but keep his toxic stuff out of the way of the employees.
 
I still find this very hard to believe given MS have their own share of similar cultural workplace issues that have been there for years and still get swept under the rug.

At the end of the day though, there's a good chance Kotick stays aboard in some semi-significant capacity after the deal closes, they might just keep him around as an advisor or whatever. Like you just said, he knows how to make ABK a lot of money, and that's the biggest reason Microsoft want them to begin with. Why would you completely cut them off?

Keep him on as a business advisor on the money side, but put someone else in his place when it comes to actually overseeing the ABK teams and regulating things when it comes to workplace issues, communicating directly with the teams etc. You get to keep him for what he's good at but keep his toxic stuff out of the way of the employees.
You have any evidence of MS having the same cultural issues as Activision? Activision has current active lawsuits pending over sexual harassment. These issues come from the top. How many active harassment suits are pending for MS? I can provide some evidence in the contrary.


Let's see your evidence.

I highly doubt Kotick will be kept on in a leadership position which is the big issue right now. In fact I doubt he will stick around at all because he is more of a liability than an asset. Call me crazy but I think MS is more than capable of making money without Kotick.
 
"The Commission's preliminary investigation shows that the transaction may significantly reduce competition on the markets for the distribution of console and PC video games, including multigame subscription services and/or cloud game streaming services, and for PC operating systems," the European Commission said in a statement.

"In particular, the Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access to Activision Blizzard's console and PC video games, especially to high-profile and highly successful games (so-called 'AAA' games) such as 'Call of Duty'," it said. (Reporting by Foo Yun Chee, Marine Strauss; Editing by Jan Harvey
 

BRUSSELS — EU antitrust regulators on Tuesday opened a full-scale investigation into Microsoft's $69 billion bid for "Call of Duty" maker Activision Blizzard, warning the deal may hurt competition.

"The Commission's preliminary investigation shows that the transaction may significantly reduce competition on the markets for the distribution of console and PC video games, including multigame subscription services and/or cloud game streaming services, and for PC operating systems," the European Commission said in a statement.

"In particular, the Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access to Activision Blizzard's console and PC video games, especially to high-profile and highly successful games (so-called 'AAA' games) such as 'Call of Duty'," it said. (Reporting by Foo Yun Chee, Marine Strauss; Editing by Jan Harvey)
 
The board represents the shareholders of the business. Once the business gets purchased it is usually dissolved or merged as there is usually another board at the purchasing company.

AFAIK many Zenimax executives are still with Microsoft.
If you mean people like Pete Hines, they are part of the Bethesda publishing division. The holding company Zenimax including people who headed it like James L. Leder and Cindy L. Tallent are gone. Pete Hines is now head of publishing and reporting directly to Phil Spencer.
 
More inquiries about EU.
https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6578

Topher Topher can you please break it down. I am at work now.
This paragraph sums it up pretty well:

"Such foreclosure strategies could reduce competition in the markets for the distribution of console and PC video games, leading to higher prices, lower quality and less innovation for console game distributors, which may in turn be passed on to consumers."

In my opinion, their concerns are spot on.
 
BRUSSELS — EU antitrust regulators on Tuesday opened a full-scale investigation into Microsoft's $69 billion bid for "Call of Duty" maker Activision Blizzard, warning the deal may hurt competition.

"The Commission's preliminary investigation shows that the transaction may significantly reduce competition on the markets for the distribution of console and PC video games, including multigame subscription services and/or cloud game streaming services, and for PC operating systems," the European Commission said in a statement.

"In particular, the Commission is concerned that, by acquiring Activision Blizzard, Microsoft may foreclose access to Activision Blizzard's console and PC video games, especially to high-profile and highly successful games (so-called 'AAA' games) such as 'Call of Duty'," it said. (Reporting by Foo Yun Chee, Marine Strauss; Editing by Jan Harvey)
We're all playing a guessing game here, but I did think the EU would align with the UK.

Hopefully all of the conspiracy posts/attempts to discredit the CMA disappear now, because I've never read such tripe.
 
More inquiries about EU.
https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6578

Topher Topher can you please break it down. I am at work now.

Not a lot here, really. The commission is concerned about MS making games exclusive to MS platforms "especially to high-profile and highly successful games (so-called 'AAA' games) such as 'Call of Duty'" as well as using Game Pass to "foreclose access" to games. EU thinks these strategies could reduce competition in the market. EU also has concerned about MS being able to leverage Windows and discourage people from buying non-Windows computers.

Hopefully all of the conspiracy posts/attempts to discredit the CMA disappear now

Season 2 Lol GIF by Friends
 
This paragraph sums it up pretty well:

"Such foreclosure strategies could reduce competition in the markets for the distribution of console and PC video games, leading to higher prices, lower quality and less innovation for console game distributors, which may in turn be passed on to consumers."

In my opinion, their concerns are spot on.
That doesn't make any sense at all.
Gaming is competitive field. Reducing quality means consumers would leave.

Halo infinite is prime example.
 
Gotta admit this is taking longer then I'd thought, while we've been waiting Musk has bought Twitter for 44billion and no one batted an eyelid.
 
This paragraph sums it up pretty well:

"Such foreclosure strategies could reduce competition in the markets for the distribution of console and PC video games, leading to higher prices, lower quality and less innovation for console game distributors, which may in turn be passed on to consumers."

In my opinion, their concerns are spot on.
The key words here are 'reduced competition in distribution of console and PC games leading to higher prices.' There has only been one platform holder that has increased prices on games and consoles and it wasn't MS. MS also has no reason to reduce the distribution of their games on PC and console. MS is the only platform holder putting out their games on PC day one. If anything this acquisition will increase distribution of games to cloud and potentially Switch.

This phase 2 investigation was never in doubt for an acquisition this size. At least the EU isn't focused on how Sony will cope and more on how consumers could be hurt with higher prices. After the investigation is over it will be clear MS actually offers the best value and with the assurances MS has already gone on record about CoD this deal should be done by June 2023.
 
The key words here are 'reduced competition in distribution of console and PC games leading to higher prices.' There has only been one platform holder that has increased prices on games and consoles and it wasn't MS. MS also has no reason to reduce the distribution of their games on PC and console. MS is the only platform holder putting out their games on PC day one. If anything this acquisition will increase distribution of games to cloud and potentially Switch.

This phase 2 investigation was never in doubt for an acquisition this size. At least the EU isn't focused on how Sony will cope and more on how consumers could be hurt with higher prices. After the investigation is over it will be clear MS actually offers the best value and with the assurances MS has already gone on record about CoD this deal should be done by June 2023.
Your argument about pricing is a red herring. There was just an interview where the take away was everything might be going up in 2023. And any implication that COD is suitable for cloud gaming on switch is a second red herring IMO.
 
The key words here are 'reduced competition in distribution of console and PC games leading to higher prices.' There has only been one platform holder that has increased prices on games and consoles and it wasn't MS. MS also has no reason to reduce the distribution of their games on PC and console. MS is the only platform holder putting out their games on PC day one. If anything this acquisition will increase distribution of games to cloud and potentially Switch.

This phase 2 investigation was never in doubt for an acquisition this size. At least the EU isn't focused on how Sony will cope and more on how consumers could be hurt with higher prices. After the investigation is over it will be clear MS actually offers the best value and with the assurances MS has already gone on record about CoD this deal should be done by June 2023.
I think you're on the right track but you're only looking at the "right now" and not thinking of the potential there that MS could increase prices once they own them.

You're right, that currently, they haven't done so. But that is because they are in third place in the console space and have to make those compromises, that could change once ABK closes.

I still think this closes, just later than what people think or want, there isn't much current proof for the EU to make the claims i stated above.
 
There has only been one platform holder that has increased prices on games and consoles and it wasn't MS.
FYI it's not in anybody's remit to explore Sony's business practice as part of this process, and the regulatory bodies are exploring Microsoft's potential to do this in the future.
 
As expected UK and Europe aren't going to go easy on Microsoft.
At this point Microsoft is very likely to be forced to a compromise if they want this to go through. They could be legally bound to keep things multiplatform without artificial advantages to their own platform. But that would be a neutralized deal for them, would it be worth 70 billions?
 
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As expected UK and Europe aren't going to go easy on Microsoft.
At this point Microsoft is very likely to be forced to a compromise if they want this to go through. They could be legally bound to keep things multiplatform without artificial advantages to their own platform. But that would be a neutralized deal for them, would it be worth 70 billions?

Just buy Sony instead.....
 
So Brussels has started an official investigation on the Acti/MS deal. The did a pre-research and decided to investigate further.
 
If you mean people like Pete Hines, they are part of the Bethesda publishing division. The holding company Zenimax including people who headed it like James L. Leder and Cindy L. Tallent are gone. Pete Hines is now head of publishing and reporting directly to Phil Spencer.
Executives at subsidiaries are still executives. They usually are a direct report to a chief executive (who reports directly to the parent CEO) or to someone in the parent company. Depends on the relationship and how it is structured. My original point was pointing out that a board being dissolved is meaningless. Boards represent ownership (shareholders) and the owners changed so the board needs to be either merged or dissolved.

Kotick might be out or they might keep him around. I guarantee they will not talk about that until the deal closes as it could have huge legal repercussions.
 
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