Microsoft CEO Assures Investors That acquisition of Activision Blizzard is Going Well, Calls Out Sony
The acquisition of Activision Blizzard by Microsoft earlier this year stunned the entire gaming community, but the CEO of Microsoft is optimistic that the move will bring healthy competition to the video game market.
Microsoft eventually succeeded in acquiring Blizzard Entertainment on January 18th, 2022, despite the impact of the charges of sexual harassment that have dogged Blizzard Entertainment over the years. The firm hasn’t yet been integrated into Microsoft, but the process is well underway, with the anticipated purchase date being June 2023.
Microsoft CEO Satya Nadella disagrees with the many powerful individuals who have expressed worry that the purchase may impede competition and create a monopoly under Microsoft, which had only one year earlier acquired and merged Zenimax Media.
The two console behemoths are engaged in a violent arms race, and Satya Nadella thinks that if the Activision Blizzard deal goes through, Microsoft will emerge victorious. They feel extremely positively certain that they will emerge. ” we feel very, very confident that we’ll come out.”
The Federal Trade Commission and UK authorities, who are worried that Microsoft’s purchase will place smaller rivals in disadvantageous positions in the United Kingdom market, appear to be the major obstacles in the way of the project.
Microsoft CEO Satya Nadella has stated that he is extremely optimistic and “very confident ” that regulatory permission will be granted for the company’s proposed acquisition of Activision Blizzard.
The record-breaking $12.7 billion Take-Two and Zynga merger that was finalized earlier this year would be easily surpassed by the planned $68.7 billion acquisition of the Call of Duty publisher, making it the largest deal in the history of the games industry. Regulators are also now reviewing the transaction because they are concerned about antitrust risks at a time when the gaming sector is consolidating more and more.
“Of course, any acquisition of this size will go through scrutiny, but we feel very, very confident that we’ll come out,” Nadella told Bloomberg.
Due to several antitrust concerns, the UK’s Competition and Markets Authority announced last week that its investigation into the merger had formally been expanded to a second phase.
Given that Microsoft will get control of the Call of Duty franchise as part of the agreement, the watchdog is particularly concerned about the impact the deal would have on PlayStation’s capacity to compete.
According to Nadella, Microsoft is either the fourth or fifth largest player in the video gaming industry, with Sony being the largest.“So if this is about competition, let us have competition,” he said.
Microsoft’s Phil Spencer stated earlier this month that Microsoft has promised to make Call of Duty available on PlayStation for “several more years” after Sony’s current marketing arrangement with Activision expires.
During this time, Call of Duty titles launched on PlayStation will have “feature and content parity,” according to Spencer.
Sony Interactive Entertainment CEO Jim Ryan, who is wanting equal and perpetual access to future Call of Duty games, responded by labeling Microsoft’s proposal to keep the series on PlayStation consoles “inadequate on many levels.”
The current Call of Duty agreement between Sony and Activision is thought to cover this year’s Modern Warfare 2 and Warzone 2, as well as a new game from Black Ops developer Treyarch that might appear in 2024.
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