- Joined: Oct 2, 2015
- Last Login: Jan 19, 2022, 7:51pm EST
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- Comments: 3,484
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The way I see it is there is zero chance Microsoft walks away from over half of the CoD money out of spite.
They’re playing a bigger game than a current console gen though.
Think 10+ years in the future when most gaming is streaming instead of on a physical box under your TV.
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There is a problem if a small handful of companies buy up the rest of the industry, regardless of who is doing it.
It’s not even a small handful of companies… it’s basically just Microsoft… and they aren’t going to stop acquiriring established devs until they are forced to stop.
EA is probably the only one out of reach… all others are potentially up for grabs.
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Correct. Sony have $17B cash on hand. I’d expect a ~40% acquisition premium on those market caps, putting most within Sony’s spending power.
Also, Microsoft would outbid Sony in every case.
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You are 100% correct! I didn’t convert to USD.
- CD Projekt Red ($5B USD)
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I wonder how much YT music’s numbers are driven by YT premium?
Ad-free YouTube makes YT Music the best deal IMO…
YT Music recommendations are good, but the app isn’t as good as Spotify.
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A swoop in for them would be a bigger problem I reckon than this AB acquisition.
I don’t see Microsoft stopping the acquisitions until they are forced to stop.
It’s not about the money… they made $60B last year (enough to acquirer every dev in the list below) it’s about finding a dev that is willing to sell. I think Activision was open for talks simply because of the recent CEO drama.
They are probably in talks with every single one of these devs…
- Take Two ($19B)
- Ubisoft ($7B)
- Project Red ($19B)
- Konami ($7B)
- Capcom ($5B)
- Square Enix ($6B)
- Warner Bros (?)
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They make a lot more money from microtransaction than they do from trying to get people to buy an Xbox
Will they though? Maybe… maybe not.
How many people will get an Xbox and subscribe to GamePass to play COD?
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Sony expects Microsoft to ‘continue to ensure’ Activision games stay multiplatform
They would say that since they just got $20 billion wiped off their market cap. They have to do some kind of damage control.
Funny shower thought…
Microsoft spent $68.7 billion cash to acquire an asset worth $68.7 billion. The value of the company remained the same.
Sony, however lost $20 billion in market cap on the news… which is obviously not offset by any asset.
Thus the effective cost of Microsoft’s Activision acquisition is as follows:
- Sony $20 billion
- Microsoft $0 billion
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Agreed, Microsoft could’ve spent that money creating their own studios creating new IP’s. Instead they bought two of the biggest multiplat studios to prevent future games going to other platforms.
Thankfully "this should be blocked because I own a playstation" is not a legal argument.
However… there is no reason for Microsoft to stop at Activision/Blizzard. They will 100% just keep buying more and more studios until they are told "no".
I agree at some point they need to be stopped… just not at this point.
With 2 billions in annual profits for Activision Blizzard, it will only take about 35 years to make it a profitable purchase for Microsoft.
Microsoft aren’t losing/spending $70b.
They are transferring $70b in cash (which is currently losing value due to inflation) to a $70b asset.
Microsoft as a company still has the same value after the acquisition.
In your example the asset would have a 3% p.a return, and after 25 years Microsoft now has $140b (the asset, plus the cash it returned)
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Would prefer larger tech companies to be held liable for any security vulnerabilities they have, where they can’t show sufficient investment into security.
OSS isn’t "free", you’re just sharing the cost with the other companies using it.
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