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[prinz_valium]

The timeframe is now set.
Either end of this year, or early next year.

It won't take longer.
Also the harsh economic conditions make a block less likely.
Merger get approved more during economic downturns.

 

[SenjutsuSage]

I suspect the underlying issue with damaging competition isn't based on morality for regulators, but the loss of taxes the competition won't be paying when they can no longer compete, and loss of jobs when the competition can't compete.

At a basic level - in the long run - will the market pay more in taxes in the relevant countries from Microsoft taking Activision games away from competitors or less? I would find it almost impossible to make a hypothetical scenario where the acquisition results in more taxes collected by those countries' governments in the short term or long term. As I would expect the basic situation is more companies in business more taxes paid.

What about Microsoft Corp's taxes? Microsoft is a major employer in England, too. Microsoft does a lot of business over there, too. They also pay a lot of taxes there also. Why wouldn't you think Activision Blizzard being acquired by Microsoft successfully still leads to plenty of taxes still being collected? Microsoft is also a national security partner of the UK. Some contracts that they didn't want public, such as those GCHQ, MI5 and MI6 contracts with Amazon, did in fact go public, but rest assured Microsoft is heavily integrated throughout England as well.

 

[PaintTinJr]

The timeframe is now set.
Either end of this year, or early next year.

It won't take longer.
Also the harsh economic conditions make a block less likely.
Merger get approved more during economic downturns.

Is that only for struggling businesses, though? as it potentially saves jobs. This deal will cost jobs at competitors and possibly Activision IMO., so in the UK I don't think we will approve this deal, as the risk of a gaming crash - that ironically the PS1 rectified -is more likely with a merger of this size. The games industry is so big now, that risk of market contraction might be the risk the UK won't want.

 

[PaintTinJr]

What about Microsoft Corp's taxes? Microsoft is a major employer in England, too. Microsoft does a lot of business over there, too. They also pay a lot of taxes there also. Why wouldn't you think Activision Blizzard being acquired by Microsoft successfully still leads to plenty of taxes still being collected? Microsoft is also a national security partner of the UK. Some contracts that they didn't want public, such as those GCHQ, MI5 and MI6 contracts with Amazon, did in fact go public, but rest assured Microsoft is heavily integrated throughout England as well.

Less B2B transactions results in less VAT, no?

 

[SenjutsuSage]

The timeframe is now set.
Either end of this year, or early next year.

It won't take longer.
Also the harsh economic conditions make a block less likely.
Merger get approved more during economic downturns.

I've stressed this part from the very beginning of this acquisition. With economic uncertainty on the horizon, financial markets need good news stories. Rest assured this massive transaction is one such good news story. What people don't often see regarding these deals is all the money spent and invested as a result of sometimes "looking the other way" or "cutting some slack."

 

[prinz_valium]

Is that only for struggling businesses, though? as it potentially saves jobs. This deal will cost jobs at competitors and possibly Activision IMO., so in the UK I don't think we will approve this deal, as the risk of a gaming crash - that ironically the PS1 rectified -is more likely with a merger of this size. The games industry is so big now, that risk of market contraction might be the risk the UK won't want.

We'll it's one more factor that can tilt a decision.
If something is extremely anti competitive, it obviously gets block.
But if you're on the brink, and decide between yes and no, you rather let a merger go through in those times instead of potentially crippling the economy and buissness even more.

Also during economic downturns less mergers are proposed and happening, so that does skew the statics quite a bit.


Microsoft is a super strong company from a financial standpoint. They could bear any downturn. So in that specific case I would tend to let them buy someone to save those jobs. But activison is not super struggling. There was a time tho, when a lot of game publisher went bankrupt.

 

[Three]

The timeframe is now set.
Either end of this year, or early next year.

It won't take longer.
Also the harsh economic conditions make a block less likely.
Merger get approved more during economic downturns.

Is there data for this? If this is based on the fact that there are more active mergers during times of inflation it's because just having cash in the bank is not good and big companies spend it on aquisitions instead of having it lose value. Does the percentage of blocked vs approved aquisitions change though?

 

[Rossco EZ]

would be nice if it gets approved they added to game pass (ofc) but still kept it on ps. i mostly game on xbox now but seems weird to take a game like cod from playstation in the future.

 

[GHG]

From the article you posted.


Of course this impacted the decision. Regulators don't like to be blown off.

Try reading the official verdict and the accompanying PDF. Vestegar mentioned it to the press but nowhere is it mentioned in the official documents and there's a reason for that.

Simply put, it's not a reason to block a deal and if they had officially noted it it would get overturned in an appeals process. If that's all it was down to the deal would have been approved and at most the company gets a fine.

 

[Fess]

It's gonna go through, but boy would it be fun to see the meltdowns if it didn't.

It’s not like it would change anything throughout this generation anyway so why any meltdowns?
Personally I hope it won’t go through, not as a fanboy but as a stock owner. I think they’re paying far too much and I don’t see the point if they’ll be in shackles afterwards. Could secure Gamepass releases without buying the whole publisher. In the end it could end up being their final acquisition, they’ll have all eyes on them after this one. And with Sony’s contracts they won’t get CoD exclusivity until next gen anyway, who knows if people even like CoD by then, so what’s the point?
They should pull out.
If they must buy studios they could acquire some smaller studio already doing work for them, like Asobo after the awesome work with MS Flight Sim.

 

[Kagey K]

It’s not like it would change anything throughout this generation anyway so why any meltdowns?
Personally I hope it won’t go through, not as a fanboy but as a stock owner. I think they’re paying far too much and I don’t see the point if they’ll be in shackles afterwards. Could secure Gamepass releases without buying the whole publisher. In the end it could end up being their final acquisition, they’ll have all eyes on them after this one. And with Sony’s contracts they won’t get CoD exclusivity until next gen anyway, who knows if people even like CoD by then, so what’s the point?
They should pull out.
If they must buy studios they could acquire some smaller studio already doing work for them, like Asobo after the awesome work with MS Flight Sim.

On the opposite side, anyone that owns Activision shares would be fucked as the stock will completely collapse the second the deal fails.

Right now it's easy money and should be trading near 96.00

 

[Banjo64]

If they must buy studios they could acquire some smaller studio already doing work for them, like Asobo after the awesome work with MS Flight Sim.

yeah man it’s annoying - it’s a purchase definitely focussed on the revenue streams that CoD and King bring in rather than ‘what can we bring to game pass for the die hards’ - Bethesda at $7b was an absolute steal. They could get a lot more in terms of quality for a lot less in price, however those studios/games just don’t make the same amount of money as CoD/King.

 

[Fess]

On the opposite side, anyone that owns Activision shares would be fucked as the stock will completely collapse the second the deal fails.

Right now it's easy money and should be trading near 96.00

I don’t have Activision stocks, just MS stocks, and that won’t collapse (but it’ll probably drop initially so you can buy more)

 

[Kagey K]

yeah man it’s annoying - it’s a purchase definitely focussed on the revenue streams that CoD and King bring in rather than ‘what can we bring to game pass for the die hards’ - Bethesda at $7b was an absolute steal. They could get a lot more in terms of quality for a lot less in price, however those studios/games just don’t make the same amount of money as CoD/King.

I love watching opinions change. MS overpaid for Mojang. MS overpaid for Bethesda

https://www.neogaf.com/threads/is-7-5-billion-too-much-and-ms-overpaid.1567583/

 

[Banjo64]

I love watching opinions change. MS overpaid for Mojang. MS overpaid for Bethesda

https://www.neogaf.com/threads/is-7-5-billion-too-much-and-ms-overpaid.1567583/

When did my opinion change? $7b felt like a lot at the time but obviously now it’s been dwarfed by Activision and Bungie it is looking like tremendous business.

 

[Kagey K]

I don’t have Activision stocks, just MS stocks, and that won’t collapse (but it’ll probably drop initially so you can buy more)

While I have both, I've been donating excess cash to the Acti side as that 20% return is far above market beating on sale date.

Seems like the safest bet right now at the price it's selling for. 77 last time I looked.

 

[Fess]

yeah man it’s annoying - it’s a purchase definitely focussed on the revenue streams that CoD and King bring in rather than ‘what can we bring to game pass for the die hards’ - Bethesda at $7b was an absolute steal. They could get a lot more in terms of quality for a lot less in price, however those studios/games just don’t make the same amount of money as CoD/King.

Yeah it’s about acquiring the ABK wallet too and not just Gamepass games, but the day this deal goes through we won’t see any big acquisition for MS anymore, probably less smaller ones too. As I’ve said before I don’t think this acquisition and the price makes much sense. But idk maybe I just can’t think far enough ahead I just see that the fruits from the deal, to leverage from any exclusivity or nice Gamepass PR, wouldn’t come until next gen. Sony has the contracts in so for this gen it’ll change nothing. And until next gen they’ll be in a worse position than now.

 

[Fess]

While I have both, I've been donating excess cash to the Acti side as that 20% return is far above market beating on sale date.

Seems like the safest bet right now at the price it's selling for. 77 last time I looked.

I had them for a short while but I stepped out, not that sure it’ll go through and I’ve been burned on trying to catch easy money before.
Should probably lower my investment in MS too tbh, but it’s one of few stocks where I’m on the plus side right now, it’s been a rough year.

 

[Kagey K]

I had them for a short while but I stepped out, not that sure it’ll go through and I’ve been burned on trying to catch easy money before.
Should probably lower my investment in MS too tbh, but it’s one of few stocks where I’m on the plus side right now, it’s been a rough year.

It's a FAANG, you cant really overinvest in it if it fails its taking the entire market with it

 

[Fess]

It's a FAANG, you cant really overinvest in it if it fails its taking the entire market with it

Microsoft isn’t among the FAANG group but maybe it should be. Never the less, they’ll obviously not go under but the market will still react and for awhile the stock could go down if the deal break apart. In the end it all depends if you invest long term or not.

 

[Kagey K]

Microsoft isn’t among the FAANG group but maybe it should be. Never the less, they’ll obviously not go under but the market will still react and for awhile the stock could go down if the deal break apart. In the end it all depends if you invest long term or not.

Lol wut?

It's one of the 4 pillars of the market that every fund is based on.

Apple isn't either I guess, but if both fail the market would lose billions.

 

[Fess]

Lol wut?

It's one of the 4 pillars of the market that every fund is based on.

Apple isn't either I guess, but if both fail the market would lose billions.

FAANG
Facebook, Amazon, Apple, Netflix, Google.

I know it should be updated, should be;
Meta, Amazon, Apple, Microsoft, Alphabet.
MAAMA
I did not come up with that btw, totally read it on an economy site lol

 

[Kagey K]

FAANG
Facebook, Amazon, Apple, Netflix, Google.

I know it should be updated, should be;
Meta, Amazon, Apple, Microsoft, Alphabet.
MAAMA
I did not come up with that btw, totally read it on an economy site lol

I know, it just doesn't make sense.

MS and Apple are the big two and everything else is kind of centered around them.

 

[Ass of Can Whooping]

When did my opinion change? $7b felt like a lot at the time but obviously now it’s been dwarfed by Activision and Bungie it is looking like tremendous business.

He does love his strawman arguments

 

[Kagey K]

I have a pile of money riding on this deal, so I think I'm more invested than getting some games on gamepass

 

[Negotiator101]

It’s not like it would change anything throughout this generation anyway so why any meltdowns?
Personally I hope it won’t go through, not as a fanboy but as a stock owner. I think they’re paying far too much and I don’t see the point if they’ll be in shackles afterwards. Could secure Gamepass releases without buying the whole publisher. In the end it could end up being their final acquisition, they’ll have all eyes on them after this one. And with Sony’s contracts they won’t get CoD exclusivity until next gen anyway, who knows if people even like CoD by then, so what’s the point?
They should pull out.
If they must buy studios they could acquire some smaller studio already doing work for them, like Asobo after the awesome work with MS Flight Sim.

It's a huge move for the future, Microsoft are well aware this is a long game and that's how they've been playing this since GP launched. They already have the largest first party of the big 3 and this acquisition would further strengthen that while giving them one of the biggest IP's in all of gaming.

Obviously you're correct that having certain restrictions placed on them is not ideal but they're well aware that this would be the case. If it's beyond what they had strategically planned then I'm sure they will walk away from the deal but I'd wager that won't happen and this deal will go through early next year.

 

[Fess]

I know, it just doesn't make sense.

MS and Apple are the big two and everything else is kind of centered around them.

Yeah it is what it is. I consider stepping out a bit because I’m just not into long term investments, I frequently buy and sell to pay for my hobbies, if there is a risk I’ll ride down a slope I usually lower my investments to not have to wait out a return from a market reaction dip. I know long term is relatively safe for MS though.

 

[Kagey K]

Yeah it is what it is. I consider stepping out a bit because I’m just not into long term investments, I frequently buy and sell to pay for my hobbies, if there is a risk I’ll ride down a slope I usually lower my investments to not have to wait out a return from a market reaction dip. I know long term is relatively safe for MS though.

Its going to be sideways for a bit. I cashed out of some just to get a car and do some renovation we had been avoiding.

They seem like lower risk better investments than the next bit.i might have got it totally wrong though and it bounces like it did in March 2020.

 

[Ass of Can Whooping]

Yeah it is what it is. I consider stepping out a bit because I’m just not into long term investments, I frequently buy and sell to pay for my hobbies, if there is a risk I’ll ride down a slope I usually lower my investments to not have to wait out a return from a market reaction dip. I know long term is relatively safe for MS though.

Depends on when you actually buy them. A lot of people buying at the top are going to be waiting a long time to see any decent return. If any.

 

[Bernardougf]

I was thinking of starting a gofundme page for Sony. In their last earnings call they really showed how dire their situation is right now

So clever... your mama must be really proud of her little genius accountant who knows how business really work and also is an expert in argumentation

 

[Fess]

Depends on when you actually buy them. A lot of people buying at the top are going to be waiting a long time to see any decent return. If any.

Which top?
Long term it’s really just noise on a graph, unless the company at large roll out some epic fail strategy things are going to go up eventually.

Short term, where I’m at, things are a looking less optimistic though. I’m still up since the last purchase but the trend for the year is down, not sure what to do, could cash out and rebuy at the next drop.

 

[Ass of Can Whooping]

Which top?
Long term it’s really just noise on a graph, unless the company at large roll out some epic fail strategy things are going to go up eventually.

Short term, where I’m at, things are a looking less optimistic though. I’m still up since the last purchase but the trend for the year is down, not sure what to do, could cash out and rebuy at the next drop.

Maybe. They could also perform like Intel which has yet to recover from the dotcom crash