Microsoft CEO Doesn't See Activision Blizzard Acquisition Being Blocked
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Microsoft CEO Doesn't See Activision Blizzard Acquisition Being Blocked
The deal still wouldn't make the corporation's gaming division larger than Tencent or Sony.
Microsoft’s CEO, Satya Nadella, has said that he doesn’t trust Microsoft’s acquisition of Activision Blizzard will be blocked via america Federal Trade Commission.
Talking to the Financial Times, Nadella said that the deal would best vicinity Microsoft as the 0.33 largest player in the video video games industry, and the fragmentation of the marketplace would prevent them from gaining a monopoly.
Microsoft Acquires Activision Blizzard: The Story So Far:
“At the quit of the day, all the analysis here needs to be executed thru a lens of what’s the class we’re speakme approximately, and what about the marketplace shape?” stated Nadella. “Even publish-this acquisition, we will be range 3 with type of low young adults [market] percentage, where even the very best player is also [in the] teens [for market] share. It shows how fragmented content introduction platforms are. And so, that’s the essential category. Yes, we will be a large player in what's a exceedingly fragmented place.”
Should the deal pass in advance, Microsoft will still be in the back of Sony and Tencent in terms of industry length.
Nadella also stated that distribution is an critical issue to don't forget, and that Microsoft is currently now not even the largest games company on its own working machine. “Also, the analysis will should expand to mention: Why are those content material groups trying to grow to be bigger? It’s because the place where the restrictions in reality are is distribution. The simplest open distribution platform for any gaming content — wager what? — is Windows . . . the largest save on Windows is Steam. It’s no longer ours. People can do any fee instrument, whereas all the different gaming distribution systems are closed.”
The Microsoft/Activision Blizzard buyout might be investigated through the FTC, which reportedly has concerns around Big Tech corporations inclusive of Microsoft. The US commission has these days sued to block predominant tech takeovers: Nvidia's buy of Arm, and Lockheed Martin's takeover of rocket engine producer Aerojet Rocketdyne Holdings.
For more on the deal, take a look at out our full breakdown.
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