The most expensive merger in the technology world is coming to an end
Microsoft and game empire Activision Blizzard are approaching the stage of completing a $69 billion deal, the largest in the technology sector.
On July 16, Microsoft signed an agreement with Sony to ensure that Activision Blizzard's popular Call of Duty franchise remains on the PlayStation platform for at least a decade if the merger is successful. Sony is considered the most important factor in preventing the US software company from taking over Activision Blizzard. The new deal could ease concerns around the potential impact on the gaming sector, particularly on exclusivity.
Microsoft logo displayed on a smartphone, behind is Activision Blizzard logo. Photo: Reuters
Two days earlier, the US court denied the request of the US Federal Trade Commission (FTC) to stop the deal. In April, the FTC filed a lawsuit to block Microsoft's plan to buy Activision Blizzard on the grounds that the US software company could create a monopoly position, causing adverse effects on competitors.
In Europe, Microsoft has also overcome some major hurdles, such as being approved by the European Commission through the merger process. The final difficulty lies with the British government, when the country's Competition and Markets Authority vetoed the agreement in April. However, in a statement on July 13, they decided to give Microsoft the opportunity to take measures. to convince them to agree.
On July 17, the London Court of Appeal began considering allowing Microsoft to buy Activision Blizzard. Meanwhile, the US software company is said to be giving up some of its cloud gaming business to speed up the deal.
In January 2022, Microsoft announced to spend 68.7 billion USD to buy Activision Blizzard - a game company based in California. This is the largest merger in the technology sector, surpassing the event Dell bought EMC for $ 67 billion in 2016. The amount also far exceeds the $ 26 billion Microsoft spent to buy LinkedIn.
The technology world said that if successful, the deal will help Microsoft have more advantages in the game field. They will become the third-largest game company globally after China's Tencent and Japan's Sony. Activision Blizzard is one of the largest game studios with more than 10,000 employees worldwide, attracting 400 million monthly users in 190 countries. The company owns many hit games like Warcraft, Diablo, Overwatch, Call of Duty, and Candy Crush Saga .
However, over the past time, Microsoft has continuously encountered barriers from global regulators, mainly the US and Europe. If it fails, Microsoft could have to pay a $3 billion "breakup" fee. The deal is expected to be completed this month.
Bao Lam (according to Bloomberg )
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