By: Economic & Finance Report
Microsoft (MSFT) is interested in acquiring video game maker Activision (ATVI). Microsoft purchasing Activision would place the software giant as the #3 video game company, after Tencent (TCEHY) and Sony (SONY). There are senators on the Hill (Capitol Hill) who are scrutinizing the deal for monopolized practices and what the deal would mean if it actually went through?
US Senators have asked the FTC to look into the specifics of the buyout. The purchase from Microsoft (MSFT) of Activision (ATVI), comes with a $68.7 billion dollar price tag. US lawmakers want to ensure all the crossroads in the deal pan out, and checked correctly; so, the American people can understand the deal correctly. The deal is a game changer for Microsoft (MSFT) who has been trying for many years to penetrate the gaming markets. To some successes they have but with deal brewing they will be able to corner the video gaming marketplace.
The deal which is significant of its kind sent shockwaves through the tech and video gaming industry. Microsoft (MSFT) paying a lot of money for ownership of a a successful gaming company such as Activision (ATVI) was definitely unprecedented; especially with the fact that Microsoft (MSFT) has been placing more resources in their cloud and cyber security divisions, the last few years. There have been clues that Microsoft (MSFT) was looking into gaming but to place a highly significant bet on Activision (ATVI) was shocking throughout the industries. The deal was so unprecedented that lawmakers are now entering the fray, asking US regulators such as the Federal Trade Commission (FTC); to look at the validation of the deal offered by Microsoft (MSFT), in its entirety.
As the Microsoft (MSFT) acquisition of Activision (ATVI) proceeds in the transition of US bureaucracy, it is not known if the deal will pass through government approval, but it does showcase the lengths corporations will go to compete in new terrain. SB
Image Source: Microsoft News