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Microsoft, Activision push the FTC for acquisition approval

Yahoo Finance’s Daniel Howley joins the Live show to discuss the latest surrounding the pending Microsoft-Activision deal. #yahoofinance #microsoft #activision #ftc Don’t Miss: Valley of Hype: The culture that built Elizabeth Holmes WATCH HERE: Subscribe to Yahoo Finance: About Yahoo Finance: At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management

Microsoft, Activision push the FTC for acquisition approval

Microsoft and Activision are pushing the FTC to approve their pending 69 billion dollar deal Yahoo finance’s Dan Haley has been following the story and joins us now it has been an uphill battle so far yeah that’s right Michelle they’ve gotten approval in some uh regions of the world uh notably Brazil but they’re.

Facing pushback in the EU UK and the U.S and their response to the U.S uh the Federal Trade Commission filing a lawsuit to try to block the acquisition uh is out and essentially what they’re doing is laying out the same kind of case that we saw them lay out in an editorial earlier this month basically what Microsoft is saying is look you.

Know we’re trying to acquire Activision Blizzard we are the third largest of the three main console manufacturers even if we acquire Activision Blizzard for this uh 69 billion dollars we’re still going to be the third largest video game uh producer by Revenue so that would be behind tencent which is number one and Sony which is number two the big to do.

With this whole acquisition uh is two parts one is Call of Duty Activision Blizzard sells Call of Duty uh they’re the ones that publish it uh and you know it’s it’s a cash cow it made a billion dollars in 10 days for the most recent version that was on the market they have uh a mobile version they have a free to play version uh where you would buy.

Skins and that brings in money for them so it it really is a huge generator for Activision Blizzard they have other titles yes Diablo World of Warcraft but it really is the the discussion around Activision Blizzard the second aspect of that is cloud gaming and cloud gaming Services now Microsoft has the leader uh in that with its Game Pass it’s cloud.

Gaming uh is fantastic on that I use it regularly Sony also has cloud gaming very good but the catalog isn’t nearly as robust as what Microsoft is offering Microsoft would use Activision’s Call of Duty to bolster that side of things so bolster it’s Game Pass and it’s cloud gaming make it look far more appealing uh than it already is which is you know.

Frankly kind of difficult to do uh and so they see that as the future of gaming they’re looking you know 15 years down the line you know cloud gaming is going to be where it’s at so many people in the world uh game on their mobile phones uh or low power devices not everyone can go out and buy a 500 console there’s a huge Market that’s untapped uh from that.

Perspective and that’s what Microsoft is really looking to Target here Sony on the other hand uh is trying to say look Microsoft will get too much power uh this is a huge game if people end up only buying Xbox because of this game it will damage uh the Sony brand now Microsoft has said that they offered Sony 10 years of Call of Duty guaranteed.

To be released the same day and date uh as on the Xbox Sony has not responded that or hasn’t agreed to that Microsoft said it’s willing to make that legally binding they’ve already entered an agreement with Nintendo for that which doesn’t make sense because Nintendo doesn’t run Call of Duty but you know this is going to be an ongoing battle uh.

You know there’s discussions uh on both sides whether it’s good or bad for gamers yeah it’s been a while since Microsoft’s gotten this kind of attention from Regulators certainly going to be interesting to see how they navigate that thanks so much for that Dan