No matter how much some people would like to see Microsoft buy out Activision Blizzard and then toss Bobby Kotick to the side, the fact is it just may not happen. Today, Bloomberg reported that Activision Blizzard shareholders are currently trading the company’s stock 25% less than the $95 per share offer Microsoft has put forth. This is apparently a signal that the shareholders don't believe the deal will be going through.
The problem isn’t with either company, per se. In fact, the shareholders are due to vote on it today and are expected to approve the deal (UPDATE: The vote was approved with over 98% approval)– despite some being opposed due to the "Golden Umbrella" Kotic is supposed to walk away with being a cool $22 million. Instead, the fear is that the antitrust enforcers of the Biden administration will shut it down. Or, if not that, delay it a good bit – which is also not entirely beneficial to the companies. And, even if it does get past the US government, there are still other countries to worry about.
To pass in the States, the deal will first have to make it past the Federal Trade Commission. Currently, the organization is led by an advocate "for a more forceful approach to reviewing deals", Lina Khan. In addition, the focus of that force is the bigger technology companies and they've already managed to block deals involving companies like Nvidia, Lockheed Martin, and Aerojet Rocketdyne. Concerns are that they will at least make the effort to do the same thing here. That said, other people aren't all that worried about it.
One analyst, Michael Pachter, even set the odds of a lawsuit happening at 10% and the chances of winning if it did happen at 0%. This has to do with how difficult it is to define the market the merger would create. As for the general sense of worry among others, he believes this to have more to do with a "lack of familiarity with the video-game industry" than anything of real concern.
Note: Activision Blizzard is still under investigation by the state of California for serious harassment charges. CEO Bobby Kotick is alleged to have known about such actions within his company – and performed some himself – and shielded the perpetrators from consequences.
- Always Online Podcast: Pantheon's Art Style About-Face, Metzen And Warcraft, And Epic's Epic Layoffs Ep 491
- FTC Renews Challenge Of Microsoft's $69 Billion Purchase Of Activision Blizzard
- Always Online Podcast: Microsoft Buying Nintendo, EverQuest 3, And KFC in FFXIV w/ Special Guest Ginger Prime Ep 490
About the Author
QuintLyn is a long-time lover of all things video game related will happily talk about them to anyone that will listen. She began writing about games for various gaming sites a little over ten years ago and has taken on various roles in the games community.
Kakao Games' Dysterra To Enter Global Beta Soon, And It's Super Easy To Get In
Getting in is as easy as clicking 'Request Access' on the game's Steam page.By QuintLyn Bowers - 1 year ago
You May Enjoy
BitCraft Has A Shiny New Trailer Showcasing The World And Music Of The Sandbox MMORPG
Alpha testing has also been confirmed for early 2024.By Troy Blackburn - 6 days ago
Here's When New World’s "Rise of the Angry Earth" Expansion Launches Today
Mounts, baby...and probably a few server issues...fingers crossed.By Matthew D'Onofrio - 1 day ago
New EVE Online Expansion, "Havoc," And Multiplayer FPS EVE Vanguard Unveiled During EVE Fanfest 2023
EVE Vanguard is a multiplayer FPS module that uses Unreal Engine 5.By Matthew D'Onofrio - 1 week ago
Riders Republic Adds Skateboarding As A Sport And Offers Free Weekend
This expansion also features a new area.By Matthew D'Onofrio - 1 week ago
SAG-AFTRA Members Authorize Strike Against Video Game Developers
That doesn’t mean it’s happening just yet.By QuintLyn Bowers - 1 week ago
As The 2023 Champions Are Crowned, The Fate Of The Overwatch League Is In Question
Florida Mayhem may be the last team to win the title.By QuintLyn Bowers - 2 days ago