Microsoft buys Activision/Blizzard for $70B

Bedinsis

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Sterling time.
I thought the comment about Microsoft buying out the PlayStation brand was an odd one. PlayStation is a more recognizable and valuable brand than Xbox, apart from possibly in America. I expected the next logical step to be Sony buying one of the big third party studios to ensure access to their titles. Probably one of the ones whose titles are more associated with the PlayStation brand. Also: Microsoft isn't made out of money; purchasing Activision-Blizzard must've taken a big chunk from their budget; buying another big studio would only be viable if it turns out they can make the majority of that money back quickly.
 
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I thought the comment about Microsoft buying out the PlayStation brand was an odd one. PlayStation is a more recognizable and valuable brand than Xbox, apart from possibly in America. I expected the next logical step to be Sony buying one of the big third party studios to ensure access to their titles. Probably one of the ones whose titles are more associated with the PlayStation brand. Also: Microsoft isn't made out of money; purchasing Activision-Blizzard must've taken a big chunk from their budget; buying another big studio would only be viable if it turns out they can make the majority of that money back quickly.
And besides isn’t it nearly impossible for Microsoft to buy a Japanese publisher due to a law in Japan stating any foreign company can’t just buy a Japanese based studio. Besides I doubt any Japanese developer would commit economic suicide by joining up with a company who isn’t doing well in Japan.
 
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I thought the comment about Microsoft buying out the PlayStation brand was an odd one. PlayStation is a more recognizable and valuable brand than Xbox, apart from possibly in America. I expected the next logical step to be Sony buying one of the big third party studios to ensure access to their titles. Probably one of the ones whose titles are more associated with the PlayStation brand. Also: Microsoft isn't made out of money; purchasing Activision-Blizzard must've taken a big chunk from their budget; buying another big studio would only be viable if it turns out they can make the majority of that money back quickly.
I was just going to comment about it. This is where I disagree with Sterling. Sony's a big recognizable brand, plus they got money and other places to keep them funded and going. Microsoft is never buying out Nintendo either. I don't know why Sterling thinks otherwise. I've already said it, Nintendo has Pokemon and Mario. They have 99% of the constant market in japan. Plus, they buy back their own stocks every year, so they don't get bought out. Plus both of these companies are Japanese companies. It ain't happening. Also, Microsoft ain't buying Capcom, either. They still have their own personal dealings with Sony.
 

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I’m no legal expert but can Microsoft really buy another Activision size publisher without running afoul of antitrust laws?
 

Bedinsis

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hanselthecaretaker

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I thought the comment about Microsoft buying out the PlayStation brand was an odd one. PlayStation is a more recognizable and valuable brand than Xbox, apart from possibly in America. I expected the next logical step to be Sony buying one of the big third party studios to ensure access to their titles. Probably one of the ones whose titles are more associated with the PlayStation brand. Also: Microsoft isn't made out of money; purchasing Activision-Blizzard must've taken a big chunk from their budget; buying another big studio would only be viable if it turns out they can make the majority of that money back quickly.

You’re overestimating how deep Sony’s pockets are, and underestimating how deep Microsoft’s pockets are.

 
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hanselthecaretaker

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Well, here's a feature courtesy of The Escapist:

I’m no stock expert but there’s a part of that agreement that confuses me.

Despite the book-length contract, the actual mechanics of the deal are pretty simple — Microsoft agreed to buy all outstanding shares of Activision Blizzard at a rate of $95 per share. The rest of the contract basically serves one of three functions:

  1. Assertions made by the parties to assure each other that both sides are getting what they agree to. For obvious reasons, Microsoft would not agree to purchase Activision if Activision were secretly on the brink of bankruptcy, or if it had undisclosed scandals that could negatively impact the value of its assets. Likewise, both parties want to make sure that their counterpart has authority to enter the agreement.


Activison stock closed at 65.39 before this deal, and has been hovering around that range for months. Why the hell would Microsoft be paying a nearly 50% premium on this, especially given their prospective subsidiary’s recently tattered ethical history?


More from Escapist on the subject -
 
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Chimpzy

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Activison stock closed at 65.39 before this deal, and has been hovering around that range for months. Why the hell would Microsoft be paying a nearly 50% premium on this, especially given their prospective subsidiary’s recently tattered ethical history?
If I had to wager a guess, Microsoft had to somehow convince the Activision Blizzard shareholder to sell their shares, and I don't think they're the kind of people who'd do that without making some good bank i.e. no way they'd let them go for market price. So Microsoft had to sweeten the pot. And I'm also guessing those shareholders demanded $95 per share because that's roughly what the shares went for before the shit hit the fan (and they subsequently lost a lot of money), so the sale was also an opportunity to recoup their losses and cash out.
 

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This is a tricky situation to call, because while we saw that Microsoft lied about keeping all of Bethesda's properties multiplatform, Cawwa Doody is basically a money fountain, and MS's shareholders aren't going to want that spigot touched even a little bit.
We'll see how all this goes.
 

bluegate

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This is a tricky situation to call, because while we saw that Microsoft lied about keeping all of Bethesda's properties multiplatform, Cawwa Doody is basically a money fountain, and MS's shareholders aren't going to want that spigot touched even a little bit.
They will leverage their ownership of the IP in the future, no doubt about that.
 

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It’s amazing that the people behind awesome games like Nier, Astral Chain and Bayonetta made two shitty licensed games. They made a lot of great games but had to make licensed crap to keep the lights on.
 

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It’s amazing that the people behind awesome games like Nier, Astral Chain and Bayonetta made two shitty licensed games. They made a lot of great games but had to make licensed crap to keep the lights on.
They could have also, ya know, made licensed bangers.
 
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