Board 8 > Microsoft will have to convince people like ELIZABETH WARREN to BUY Activision!

(+) Yeah! (+)

Microsoft is buying Activision Blizzard for a massive 69 billion which is about what Disney bought Fox with that 70 billion blockbuster deal and is the biggest deal Microsoft has made thus far if it is approved and they will have a long year how to convince legislators such as Elizabeth Warren to approve the deal.

Although Congress and the Senate may look different next year should Republicans regain power though they are not friendly on tech as of late either

The hope is that Microsoft creates a metaverse of gaming with huge franchises as Minecraft and Halo and now Call of Duty and World of Warcraft

Microsoft says there are 3 billion gamers worldwide and will grow to 4.5 billion by 2030

It has been rumoured for long that Microsoft would be making another big purchase though rumours of it being a Japanese studio such as Sega did not occur though this one fits the bill of that other acquisition

This deal is certainly going to get a lot of scrutiny by the FTC and Congress with a statement by CEO Satya Nadella sending a letter to FTC head Lina Khan and the rest of the biden administration antitrust enforcers that reads "I know it seems like we are swallowing up a lot of the games business but don't think of this as consolidation in an important history, think of it as competition against facebook in a nw industry".

Washington is already focusing big and small on the tech industry but has largely left Microsoft alone..until now with the 70 billion price tag have many in politics questioning the long term effects of these large scale purchases.

The deal also has a 3 billion breakup fee, that is cash that Microsoft will have to pay Activision if the merger is stopped by regulators which seems to signal confidence that they will get this through...

Microsoft has been movign away from its console business with low margin boxes consumers buy for 300 to its netflix style subscription model of Gamepass which is only 15 a month to play its vast gaming library but is certainly to increase in price as all other streamers are already raising prices year after year.

Microsoft will also inherit the mess CEO Bobby Kotick has created in his hiding of sexual harassment claims and workplace toxic culture. He is expected to step down as CEO once the merge is approved.

Once again it only happens if regulators sign off and a few years ago when Washington was prety much giving tech companies the go ahead to buy whatever they want and few paid attention but now a lot of people are sounding the alarm on how much bigger big tech is getting and if this will be a good deal.

It may not look the same when all is said and done as the company may have to spin off some studios or have concessions in order to get approval

If the purchase goes through, Microsoft will jump ahead of Nintendo and into 3rd place as the biggest publisher in the world behind Tencent and Sony

https://i.imgur.com/wAWOYoql.jpg
https://i.imgur.com/IyAwICOl.jpg
https://i.imgur.com/QWKqvKk.jpg