Microsoft Closes Activision Deal
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 17 October 2023
⏱️ 31 minutes
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| 0:00.0 | The Microsoft Activision Saga is over. |
| 0:07.8 | Finally, you're listening to Motley Fool Money. |
| 0:11.6 | I'm Ricky Mulvey, joined today by Osset Sharma, Osset, good to see you, my man. |
| 0:25.1 | Ricky, good to see you, as always. |
| 0:27.9 | So almost two years after announcing a deal to the public, Microsoft has finally completed |
| 0:33.8 | its $69 billion acquisition of Video Game Maker Activision Blizzard, the largest in Microsoft's |
| 0:40.3 | history. |
| 0:41.3 | It's been a long fight. |
| 0:42.3 | What got this deal over the finish line? |
| 0:44.1 | Ricky, when you really want something in Mergers and Acquisition, as well as in life, you |
| 0:49.5 | got to make concessions, right? |
| 0:51.5 | So the two key concessions Microsoft made to get this deal over the finish line was first |
| 0:58.3 | to agree that it would keep Call of Duty, this mega franchise, on Activision's part available |
| 1:05.0 | to other platforms, and they wouldn't make it exclusive on the Xbox. |
| 1:09.4 | And I believe you and I have talked about this as of others on Motley Fool Money. |
| 1:12.8 | I'm sure most of our listeners are familiar with this Dynamics, so it won't spend too much |
| 1:15.9 | time on that. |
| 1:16.9 | The other major concession is a cloud streaming concession. |
| 1:21.1 | The Microsoft is going to grant a French gaming publisher named Ubisoft, perpetual streaming |
| 1:27.7 | rights for Call of Duty and all of their active titles, as well as those that will be released |
| 1:34.3 | by Microsoft slash Activision over the next 15 years. |
| 1:38.6 | That's a key concession, you know, a nice amount of revenue that they're foregoing, but |
... |
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