Court Decision in Favor of Microsoft Deal Leads to Rise in Activision Blizzard Stocks
The court decision in favor of the deal between Activision and Microsoft has caused a 11% increase in Activision Blizzard’s stocks, reaching $91.83. This decision has become a significant moment for the gaming market, opening up new prospects for the company.
District Judge Jacqueline Scott Corley rejected the FTC’s arguments about causing harm to competition in the gaming industry. She stated that the FTC did not provide sufficient evidence to support their claims. Instead, the deal with Microsoft will allow Activision to expand access to popular gaming franchises, such as Call of Duty.
However, the acquisition of Activision Blizzard also raises concerns and contradictions. Competing companies, especially Sony, are worried that Microsoft will make popular Activision Blizzard game franchises exclusive to their Xbox Series X/S consoles. This could lead to increased competition between Microsoft and Sony in the gaming market.
The purchase of Activision Blizzard by Microsoft could bring several significant advantages for the latter.
Firstly, it would expand access to popular Activision Blizzard gaming franchises, such as Call of Duty, World of Warcraft, and Overwatch. These franchises have a huge audience and generate significant profits. Acquiring Activision Blizzard would allow Microsoft to strengthen its position in the gaming market and attract more players to its platforms.
Secondly, the merger with Activision Blizzard would give Microsoft access to the expertise and talents of highly skilled game developers. Activision Blizzard is one of the largest companies in the gaming industry and has numerous talented specialists. Their knowledge and experience would help Microsoft create higher quality and more innovative games.
Thirdly, as a global leader in software and services, Microsoft could provide Activision with access to new gaming development technologies and resources. This could contribute to improving the quality of Activision’s games and expanding its audience.
Fourthly, Microsoft would be able to use Activision Blizzard’s assets to develop its cloud gaming services. Activision Blizzard has its own Battle.net platform, which provides online multiplayer games and other services. This would give Microsoft additional opportunities to integrate its cloud technologies and enhance its gaming services.
Furthermore, the deal could open up new opportunities for creating exclusive content for Xbox consoles. This could attract more users to the Xbox platform and increase console sales.
However, there are also concerns that Activision may lose its independence and become dependent on Microsoft. This could lead to limitations on creative freedom and innovation within the company.
Overall, the purchase of Activision Blizzard represents a significant step for Microsoft in the gaming market. The company would be able to expand its assets, attract more players, and strengthen its position in the competitive battle with Sony. However, the success of this deal will depend on Microsoft’s ability to effectively manage the acquired assets and achieve synergy between the two companies.