Microsoft-Activision deal: Gamers sue to stop merger

LewisBraham

Interesting development here as this is the largest gaming acquisition ever, valued at $69 billion:

https://bbc.com/news/business-64047809

However, Microsoft is defending the proposed acquisition. "This deal will expand competition and create more opportunities for gamers and game developers as we seek to bring more games to more people," according to a spokesman.

Almost two weeks ago, the Federal Trade Commission (FTC) raised similar concerns in their complaint. The US business watchdog said Activision was one of a small number of top video game developers that made high-quality games for multiple devices.....

.....This has become one of the most-high profile legal fights to emerge from US President Joe Biden's pledge to take a harder line against monopolies.

yogibearbull

Strange lawsuit on behalf of individual game-players.

Of course, there is the lawsuit by the FTC. MSFT is hoping to make deals with other game-makers (Sony, etc) and convince the FTC and/or the court to clear the merger.

Almost 20% discount in ATVI price from $95 deal price shows substantial uncertainties in the outlook for the merger.
https://stockcharts.com/h-sc/ui?s=ATVI&p=D&b=5&g=0&id=p34856353424

LewisBraham

The suit isn't strange if you consider whether Microsoft, which owns XBox, will allow users of Sony Playstation to continue playing updated versions of extremely popular Activision games like Call of Duty after the merger is done. Microsoft's promise to allow Call of Duty specifically to be on Playstation for ten years should alleviate some of those fears. But there are also World of Warcraft, Guitar Hero and others.

yogibearbull

UK rejects MSFT-ATVI deal. MSFT will appeal.
https://www.cnbc.com/2023/04/26/britain-blocks-microsoft-acquisition-of-activision-blizzard.html