Microsoft CEO Is Confident About Activision Deal Approval, Handling of Economy (bloomberg.com) 14
Microsoft Chief Executive Officer Satya Nadella said he's confident the company can gain regulatory approval for its $69 billion purchase of Activision Blizzard even in the face of an in-depth regulatory probe in the UK. From a report: "Of course, any acquisition of this size will go through scrutiny, but we feel very, very confident that we'll come out," he said in an interview with Bloomberg Television. Nadella's prediction puts him at odds with investors' skepticism about the deal. While Activision rose Thursday, outperforming a slump in tech stocks, Wednesday's close of $75.32 still left the company more than 20% below the offer price -- a signal of massive doubt that Microsoft will ever be able to consummate the transaction. Microsoft is either the No. 4 or No. 5 competitor in the video game industry, depending on how you count, Nadella said. And the No. 1 player, Sony Group, has made several recent acquisitions. "So if this is about competition, let us have competition," he said.
The UK's Competition and Markets Authority said earlier this month that it decided to kick-start a longer review, a move that was expected after the CMA flagged concerns that the deal could lessen competition in the markets for consoles, subscriptions and cloud gaming. The combination with Activision -- which owns franchises such as Call of Duty, World of Warcraft and Guitar Hero -- will make Microsoft the world's third-largest gaming company. Nadella also expressed optimism that Microsoft can cope with a weaker economy and rising inflation -- and help its customers endure as well. "The constraints are real -- inflation is definitely all around us," he said. "I always go back to the point that in an uncertain time, in an inflationary time, software is the deflationary force."
The UK's Competition and Markets Authority said earlier this month that it decided to kick-start a longer review, a move that was expected after the CMA flagged concerns that the deal could lessen competition in the markets for consoles, subscriptions and cloud gaming. The combination with Activision -- which owns franchises such as Call of Duty, World of Warcraft and Guitar Hero -- will make Microsoft the world's third-largest gaming company. Nadella also expressed optimism that Microsoft can cope with a weaker economy and rising inflation -- and help its customers endure as well. "The constraints are real -- inflation is definitely all around us," he said. "I always go back to the point that in an uncertain time, in an inflationary time, software is the deflationary force."
That's his job. (Score:3)
To be confident, is a CEO's job. If he'd start waffling that maybe this wasn't such a good idea after all, maybe, you know, then he'd be out of a job really quickly.
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Indeed. His statement is completely meaningless.
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Bobby's going nowhere. He'll still run the company, from everything that's come out/he's said.
UK PLC (Score:1)
UK current gov't is now being run by rabidly pro-corporate anything goes morons, now is a good time for companies to merge into monopolies, this lot won't stop them unless someone literally takes them to court to get them to do the job they are supposed to be doing.
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It's a good thing the CMA has nothing to do with the current government, then.
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Gov't can always stick it's nose in, change the current regulatory leader etc, I wouldn't put it past this lot to try.
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Too much effort :P
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Mod, How is this off-topic you fucking Tory moron, this is about monopolies and my post is about the fact that the current Govt. in charge are ultimately responsible for monopolies. Don't use mods because of your political ideology, idiot.
How does that work for shareholders? (Score:2)
Are individual shareholders bought out at the offered price? If you think they're going to prevail, this seems like a good time to buy.
Ok, but what does this even mean? (Score:2)
"I always go back to the point that in an uncertain time, in an inflationary time, software is the deflationary force."
I feel like that one needs some explaining? Historically, we've had most periods of inflation without computer software playing a measurable role at all. (People weren't even buying pre-made "off the shelf" software products during the high inflation of the 1970's, for example.)
Is this supposed to be an argument that software can be priced however they see fit, because it's an "intangible"
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Let's say the real message: "We can charge whatever the hell we want, you can't do anything about it, and the regulators are in our pocket and they will not stand in our way."
Note: you can cut and paste this statement an use it whenever a corrupt non-competitive monopolistic company screws you over.
You're welcome.