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I can see how people stuck in the past might think this is a great move, but this is one of the worst deals in the history of business, and while it definitely won't kill Microsoft, people are probably going to be fired over this.
Activision made $2.2 billion profit in 2020. It's not that bad an investment, once you get rid of all the bad press around the company.
Anyway, I think rather than targeting any specific game or IP, this was more about getting a bunch of product to sell MS's Game Pass to more people. They've already got 25 million people paying them monthly fees, and they're expecting this purchase to help that grow.
Last edited by smitty3268; 19 January 2022, 03:51 AM.
Vivendi was the holding company for Blizzard just the same as Zenimax is the holding company for Bethesda, that doesn't mean that it's not actually Blizzard and Bethesda running the show, It's just the holding company was created to separate the controlling studio from people they bought out.
Then why the closure of BN under Vivendi and not before if they were not running the show?
Not to mention that there were a ton of IP from other companies that Blizzard bought out like Sierra who had previously been one of the biggest game developers and publishers and was highly regarded.
Blizzard never bought Sierra Online, it was Comp-U-Card International that bought it along with Davidson (I'll be honest, before double checking now, I thought Davidson had bought Sierra).
They often start that way. The question is more whether the CEO (and others in the executive team) will be transitioned to an advisory roll after a year or so, and then will choose to spend more time with their family sometime later (taking their cash and stock options). It is all carefully choreographed in advance with such large acquisitions, although the details are behind various NDA agreements so the rest of us can only see the results far after the completion of the process.
Bobby Kotick is 100% gone as soon as this deal closes, or almost immediately after. You can tell by the way everyone is so quiet about exactly what his role will be in the new company, and everyone is confirming it unofficially already.
It's just that a deal this big takes a long time to go through, so he'll be here until then. Sounds like summer 2023 is when they hope to be done.
What part of the library was worth $69 billion to block from other platforms?
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I can see how people stuck in the past might think this is a great move, but this is one of the worst deals in the history of business, and while it definitely won't kill Microsoft, people are probably going to be fired over this.
No idea what the reasoning is. I was just throwing out some possibilities. I do know a businessman who, when he had the cash, bought out his nearest competitor simply to get rid of them. His business was still doing well, last time I checked, and I would imagine that that is a tactic used by more than just that one businessman.
You're not thinking like a multinational business, or a C-suite trying to consolidate control over a market. To pare down the competitors, someone at Microsoft obviously considers it a reasonable price to pay. Microsoft (and many other "Big" companies) have seen their valuations increase dramatically thanks to SARS-Cov-2, so whether or not it's a good idea.... time will tell. It seems mostly a mind-share thing. WoW is big (although I never understood why), Starcraft has a near fanatical fanbase, particularly in Korea... hm, that might be part of it; further expansion into Asia. And if it does cost them enough to fatally damage the company? Someone will bail them out (a la Microsoft and Apple) or outright buy them, so there are no downsides for the Microsoft C-suite.
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