Microsoft to Acquire Gamemaker Activision
Facts
- Microsoft announced that it will pay almost $69 billion to acquire Activision, maker of the some of the world's most popular video games.1
- Sexual harrassment and discrimination allegations have plagued Activision and its subsidiary Blizzard Entertainment, depressing the company's value and making it attractive to bidders.1
- Microsoft explained the deal as part of an effort to grow in the 'metaverse,' the emerging world of virtual and augmented reality that has captured the imagination of tech giants like Meta (Facebook).1
- The merger will be subject to the scrutiny of antitrust regulators in major markets including the U.S., the E.U., and China.2
Sources: 1New York Times and 2One America.
Narratives
- Pro-establishment narrative, as provided by One America. The merger--and others like it--will be a potential bonanza for hedge funds and other firms focused on event-driven and merger-arbitrage investment strategies.
- Establishment-critical narrative, as provided by RT. This is more than twice as much money as recently pledged to fight poverty in the world's poorest countries. The rich world is investing in the well-funded entertainment industry while poor countries struggle with poverty, disease and climate change.