Full breakdown of Microsoft acquiring Activision-Blizzard for ~$70B+ | E1363
Jan 19, 2022
Microsoft's massive acquisition of Activision-Blizzard for roughly $75 billion aims to reshape the gaming industry and enhance Game Pass offerings. The discussion highlights Microsoft's strategic push towards a 'Netflix for Gaming' model and their commitment to change the controversial culture within Activision-Blizzard. Key topics include the unique $3 billion breakup fee and potential regulatory challenges from the FTC. There's also speculation on how this deal might impact smaller gaming companies and the future landscape of consumer choices in gaming.
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insights INSIGHT
Microsoft's Gaming Ambitions
Microsoft is aggressively expanding its gaming dominance by acquiring Activision Blizzard.
This acquisition includes major franchises like Call of Duty, World of Warcraft, and Candy Crush.
insights INSIGHT
Microsoft's Metaverse Vision
Microsoft envisions a "river of entertainment" where content and commerce flow freely, accessible to all.
They believe in supporting multiple metaverse platforms, not a single centralized one.
question_answer ANECDOTE
Halo and Call of Duty Unite
Microsoft's acquisition of Activision Blizzard brings both Halo and Call of Duty under one roof.
This combination could significantly impact the gaming landscape, especially for first-person shooter fans.
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Microsoft has announced its intention to make the largest tech acquisition ever by buying Activision-Blizzard for ~$75B ($68.7 when you net out Activision's cash). This is Microsoft's 3rd major gaming acquisition as it attempts to build the “Netflix for Gaming" with its Game Pass service.
We cover the details of the deal: what the combined company will look like, how this fits into Microsoft's metaverse strategy, Microsoft's commitment to change the Activision-Blizzard culture, the $3B “breakup fee” that Activision is on the hook for if deal falls through, the potential challenge from the FTC and more!
(00:00) Jason & Molly introduce the show
(01:48) The terms of the Activision-Blizzard acquisition
(03:17) Satya Nadella's Metaverse strategy
(04:52) Microsoft's growing gaming universe and subscription offering
(07:05) Key titles across Activision-Blizzard's gaming units
(08:34) Vanta - Get get $1,000 off automating your SOC 2 at https://vanta.com/twist
(09:56) Game Pass metrics
(10:44) Activision Blizzard's recent history of sexual harassment scandals
(11:40) Will the FTC allow the acquisition to go through?
(13:41) The unique $3B breakup fee that was worked into this deal
(15:45) Why the breakup fee may be linked to the harassment investigations
(17:55) Dataiku - Create transparent, repeatable, and scalable AI and analytics programs. Visit https://dataiku.com to learn more.
(18:53) Why Jason doesn't think this deal will be struck down for antitrust
(21:45) How Lena Khan may approach this differently than previous FTC chairs
(22:45) Could regulation sabotage American competitiveness?
(26:52) Should American companies be prized if they are actively avoiding taxes?
(28:42) Ourcrowd - Check out the deal of the week at https://ourcrowd.com/twist
(29:45) Molly and Jason play "Armchair Corporate Development"
(37:54) Jason and Molly take an audience question - Can there be another Google?
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