Microsoft finalized its acquisition of Activision, the major video game publisher. This will be a huge addition for Microsoft’s Xbox line, and a message to other Big Tech firms.
The acquisition was originally opposed by the Federal Trade Commission. Following some concessions and a court defeat, Microsoft was allowed to proceed. The NY Times says:
But on Friday, when Microsoft closed its blockbuster $69 billion acquisition of the video game publisher Activision Blizzard after beating back a federal government challenge, the message sent by the merger’s completion was incontrovertible: Big Tech can still get bigger.
“Big Tech companies will certainly be reading the tea leaves,” said Daniel Crane, a law professor at the University of Michigan. “Smart money says merge now while the merging is good.”> Quote
While Microsoft is well known for its Xbox consoles, this moves it toward the video game content industry where constant income is easier. The Wall Street Journal reports:
Activision’s stable of bestselling franchises, including Call of Duty and Candy Crush, will strengthen Microsoft’s videogame business by more than half to above $24 billion. The additions also will move the business further away from Xbox consoles and toward gaming content that lives across platforms and devices.
It is the largest in a series of major moves by Nadella, who has used Microsoft’s financial strength to push the company into new areas, from cloud computing to social media to AI.
Microsoft is uniquely positioned to straddle the line between gaming and personal computing. While Apple and Google have tried forays in the gaming market, it does not come close to the success of Xbox.
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