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

Do you believe the deal will be approved?


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GhostOfTsu

Banned
Consider that bridge burned
This Bobby clown needs to go. The next CEO will come crawling back to Jim to get Playstation deals after this mess.
Mr Rogers Clown GIF
 

Varteras

Member
Pretty sure it won't stay 70B$ and the price would be cut if COD is removed from the equation


Who would own COD then? Unless MS won't acquire Acti (only Blizzard and King)
Correct, but then they'd have to renegotiate the price, assuming Microsoft or Activision are even interested at that point. But I'm not entirely sure how divestment works as in do they sell the assets or are they simply taken off the table?
 

3liteDragon

Member
I don’t know that word - divest? Is it like cutting out the COD studios from ABK?
Pretty much.
CMA said:
At this stage, the CMA has identified the following possible structural remedies:

(a) Requiring a partial divestiture of Activision Blizzard, Inc.

This may be:

(i) Divestiture of the business associated with Call of Duty;

(ii) Divestiture of the Activision segment of Activision Blizzard, Inc. (the Activision segment), which would include the business associated with Call of Duty;

(iii) Divestiture of the Activision segment and the Blizzard segment (the Blizzard segment) of Activision Blizzard, Inc., which would include the business associated with Call of Duty and World of Warcraft, among other titles
 
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Desless1

Member
They will have used a 3rd party agency.

First it was Sony who sent it, now it's supposed to be direct from the CMA. What next?

Game Show Fox GIF by SpinTheWheel
The CMA used a market research company yes. Would you expect them to do this themselves?

There is nothing next, it's stated on the information site they created for the merger.
 

Heisenberg007

Gold Journalism
Sony is finally going to have to hand over the documents they’ve been fighting tooth and nail to hide, online sentiment will shift fully against them when the stuff they clearly don’t want known comes out, and the CMA will allow the deal through with the concession that MS continue to publish COD on other platforms. This provisional finding is a big w for MS. Did anyone actually expect a unconditional approval???
Yes, Satya Nadella, CEO of Microsoft.

 
Really hard pressed to see a viable path forward for behavioral remedies. Agencies hate having to police these things in an ongoing way, they have taken any behavioral remedy for Cloud completely off the table as well, and Cloud impact is one of the biggest issues they have with this deal.

There is no world where MS bites on the supposed structural remedies CMA proposed here. Completely divesting CoD and its studios, or divesting all of Blizzard & Activision, and just keeping CoD. I imagine that both of these are essentially non-starters.

What folks in the Era thread aren't considering is how much these findings bolsters the FTC's case in this regard. They will begin citing the provisional findings almost immediately, and this gives them a viable anti-competitive angle they can argue in court.

I'm not gonna say the deal is 100% dead, but its hard to imagine a scenario that ensures this deal happens. Folks thinking that everyone excepted this deal to go through with concessions is absolutely fooling themselves - I know for a fact both MS and ATVI thought they wouldn't be challenged on this. Nadella and MS announced they expected this deal to go through with no concessions, so if you're sitting there thinking you expected this when the folks who made the deal didn't even, you're just lying to yourself.
 
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NickFire

Member
Correct, but then they'd have to renegotiate the price, assuming Microsoft or Activision are even interested at that point. But I'm not entirely sure how divestment works as in do they sell the assets or are they simply taken off the table?
I might get corrected by someone who has actual experience with forced divestment. But I'm pretty sure in this context MS would have to buy the asset as agreed between MS and Activision, and then sell off the part(s) being divested. Unless there is some get out of jail free card for MS allowing them to renegotiate (which would probably neuter the buyout fees, so I doubt Activision would have agreed in the OG contract to being forced into a renegotiation).
 

yazenov

Member
MS shot themselves in the foot. Their excuse for the purchase was not for Call of duty or keeping exclusive games from Playstation, but it was to enter the mobile market primarily.

So now the CMA called their bluff and might enforce the breaking up of ABK and giving MS the mobile division only, while Call of Duty and other console games stay multiplatform.
 

Heisenberg007

Gold Journalism
Pretty sure it won't stay 70B$ and the price would be cut if COD is removed from the equation


Who would own COD then? Unless MS won't acquire Acti (only Blizzard and King)
I may be wrong, but I think they will have to buy ABK (for $69 billion) and then separate the A of ABK in a separate company that someone may or may not buy.
 

Thirty7ven

Banned
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Heisenberg007

Gold Journalism
MS shot themselves in the foot. Their excuse for the purchase was not for Call of duty or keeping exclusive games from Playstation, but it was to enter the mobile market primarily.

So now the CMA called their bluff and might enforce the breaking up of ABK and giving MS the mobile division only, while Call of Duty and other console games stay multiplatform.
CMA: "So you can only buy King. You wanted ABK for King anyway, right? You said it."

Microsoft:

1786898c-c7d5-445f-9af6-5fc01271e5da_text.gif
 

jm89

Member
CMA: "So you can only buy King. You wanted ABK for King anyway, right? You said it."

Microsoft:

1786898c-c7d5-445f-9af6-5fc01271e5da_text.gif
Yup. CMA played this right. You know folks would have been jumping up and down if CMA went for a straight block, and using the argument it's all about mobile. CMA shut that shit down.
 
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NickFire

Member
If they were clear about Bethesda intentions before approval, this deal might have been approved with minimum behavioral remedies.

If they didn't announce a release date for Starfield that they could not meet, their intentions to make that exclusive might not even be known yet (and wouldn't be used against them).

If they didn't gas light everyone about mobile, then no-one would be able to say you can still achieve your primary goal without COD.
 
Treating twitter as the battleground for this regulatory process hasn't worked thus far so what do they do? Double down and do it with greater frequency and aggression.

What could go wrong?
I don't see what she's doing wrong here. She helping people understand what the process is or unfamiliar what's going on. You are upset that MS is fighting for this deal.
 

Riky

$MSFT
Dude, you spent a long time telling us all about how VRR makes one system better if I remember correctly. And now you gonna pretend Switch or Cloud is suitable for the COD games people buy in droves every fall?

Come on man.

Even Sony agreed VRR was better in the end, let it go, I was right all along.
We don't know what hardware Nintendo have coming by the time this all finishes and the point is they haven't even considered the 10 year offer to Sony yet, that means the remedy could already be available.
 

NickFire

Member
I think that Microsoft should just pull out at this point. But i am expecting a litigation nightmare. They will try to win it in court.
Almost certainly not. MS already talked about working to get this on track between now and April. Come April the termination fee goes up another 1/2 billion. Plug is almost certain to be pulled before the escalation date unless they feel the deal can get approved without protracted litigation. They might still fight and win, but I really doubt it will be through courts unless both EU and CMA approve (leaving only 1 court fight).
 

DForce

NaughtyDog Defense Force
3j0eRIF.jpg


So they haven't even considered the deal that brings COD to Nintendo yet? This has a long way to go.

It literally says they considered what MS offered Nintendo, Sony, and Steam during their investigation.
 

DeepEnigma

Gold Member
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