Will the purchase of Activision Blizzard be blocked by Microsoft? Analysts comment the agreement
The purchase of Activision Blizzard by Microsoft has completely shaken the industry and, as they say, nothing will be the same as before. However, there is a lot of uncertainty about the agreement and its most direct consequences. In fact, today there are doubts among analysts about whether a movement can be materialized from such magnitude, although in general, everyone believes there will be no problems.
The Market watch website wanted to address the issue with a series of interviews to different financial analysts. Starting with the valuation in the Blizzard Activision Bag after publicizing the agreement. According to Cowen Group, the abyss between the purchase price and the current price indicates that between investors they see a 33% probability to which the treatment is blocked . Doubts, yes, but quite margin for optimism with the most slope bureaucracy today from the rest of the technological , in relation to Alphabet (Google), Apple and Meta (Facebook).
PlayStation could submit allegations against the agreement according to analysts as it wanted to highlight the Microsoft itself yesterday, the merger would not give the Redmond giant a dominant position in the sector, while still behind in business figures regarding Tencent Games and PlayStation, but no doubt it would give an important competitive advantage and preferably to Xbox as a rival platform, something that the Japanese company could oppose during the regulatory process, according to Cowen Group, A successful agreement for your interests .
In favor of Microsoft, David Hope, partner of the Gamma Law firm. The acquisition is another example of ‘vertical integration’ [as the purchase of Bethesda by Microsoft]: A console maker takes the reins of a developer. Of course, we are facing the greatest agreement in history in the industry, but historically Courts have not been opposed to these transactions . In statements collected by IGN, Hope adds that it is very difficult for the US Department of Justice to see it as a horizontal expansion, where two direct competitors are joined, when the products are creative works, each unique in its own way.
Against Alex Herman of Public Citizen, a consumer defense organization. By no means the Federal Commerce Commission and the Department of Justice should allow this merger to be carried out. If Microsoft wants to bet on the met averse, it should invest in new technology, Do not swallow a competitor . In short, several months remain where they will have to be aware of the bureaucracy. It is expected that the operation is completed before June 2023.