Learn about Microsoft's $75bn acquisition of Activision Blizzard and its implications for the gaming industry. Explore Microsoft's legal strategies and their transformation from a tech industry bully to embracing regulation. Delve into the potential regulatory concerns in the cloud computing industry.
Microsoft's $75 billion acquisition of Activision Blizzard solidifies its position as a major player in the gaming industry and raises concerns about future regulatory scrutiny.
Microsoft's transformation from a combative tech industry bully to a cooperative company that engages with regulators has been crucial in its successful acquisition of Activision Blizzard.
Deep dives
Microsoft's successful $75 billion takeover of Activision Blizzard
Microsoft has acquired Activision Blizzard, gaining control of popular video games like Call of Duty and Candy Crush. The $75 billion deal is a significant milestone for Microsoft and the gaming industry, especially considering the historically challenging relationship between big tech companies and regulators. It took nearly two years to close the deal, and Microsoft's legal and policy maneuvering played a crucial role in its success. The acquisition positions Microsoft as a major player in the gaming industry and raises questions about future regulatory scrutiny.
Microsoft's transformation from a tech industry villain
Microsoft's image has evolved from being a dominant force facing antitrust challenges in the 1990s to a tech company that has adopted a more cooperative approach with regulators. The shift in strategy began in 2002 when Brad Smith became Microsoft's general counsel. Smith emphasized personal contact, resolving issues, and shaping regulations to benefit Microsoft. This change in approach, coupled with the company's expansion into new markets and increased revenue, has allowed Microsoft to largely fly under the radar in the regulatory spotlight.
Brad Smith's pivotal role in Microsoft's regulatory success
Brad Smith, Microsoft's legal and government affairs head, has played a crucial role in the company's dealings with regulators. He has led Microsoft's efforts to resolve previous antitrust cases, establish direct communication with regulators, and shape regulations in favor of the company. Smith's strategic approach includes personal contact, such as visiting regulators in person, and establishing Microsoft's presence at international organizations like the United Nations. However, Microsoft's increased power and presence in the cloud computing industry may bring them under closer scrutiny by regulators in the future.
In the 1990s, Microsoft was seen as a tech industry bully. Once viewed as combative and ruthless in the eyes of regulators, the company underwent an image makeover in the decades since. Now, the FT’s Richard Waters explains how Microsoft’s transformation pushed their $75bn acquisition of video game publisher Activision Blizzard over the line earlier this month.