©Reuters. Microsoft believes that Sony and Nintendo will benefit from the acquisition of Activision
The planned acquisition of a leading video game publisher and console manufacturer has faced regulatory hurdles. The acquirer was taking steps to help move the deal forward, including creating a new landing page.
What You Should Know While facing regulatory hurdles, Microsoft Corporation (NASDAQ:) launched a new page to share information about its planned acquisition of Activision Blizzard, Inc. (NASDAQ:NASDAQ:).
Microsoft outlined its vision that gaming has “more choice and more games for people everywhere.”
The new website, which was highlighted by IGN, described the Activision Blizzard acquisition as part of Microsoft’s strategy to help gamers.
“We want to enable people to play anywhere, anytime, on any device. And developers deserve more options to create, distribute and monetize their innovative games. When we do this, we all win,” Microsoft said.
The company has claimed that it created the website to share more information about the gaming industry and how the planned $68.7 billion ($95 per share) acquisition fits into Microsoft’s gaming strategy.
The company stressed that the acquisition is positive for gamers, game creators and the gaming industry in general.
The company argued that the acquisition will provide more games on more devices, including Xbox, Playstation by Sony (TYO:) Group Corp (NYSE:SONY) and mobile phones.
The company has added that the acquisition may provide more revenue streams and a fair market for game creators along with more ways to make games reach more gamers.
For the gaming industry, Microsoft has claimed that more competition in the mobile space would be good as the sector was dominated by a few major players.
Microsoft also saw the deal as “increasing competition in traditional gaming, where Sony and Nintendo will continue to be the biggest.”
Why It Matters Microsoft’s acquisition of Activision Blizzard has already faced and likely will face further hurdles to approval due to regulatory concerns.
Acquiring the company could reduce competition in the space and also help the company that owns the Xbox console make games exclusive and take them away from rivals.
Comments on the website noted that Sony Group Corp (NYSE:SONY) and Nintendo Co (TYO:) (OTC:NTDOY) could benefit from the overall growth of more games in the space. Dealreporter recently shared that Sony met with European regulators about the acquisition.
Gamers were initially concerned about the acquisition, which would make franchises like “Call of Duty,” which is owned by Activision Blizzard, exclusive to the Xbox console in the future. Reviews listed on the website paint a picture that the acquisition will lead to more games on more devices. This could be published to help show that the company will not make exclusive games for Xbox.
“Giving gamers a choice in how they play their games makes gaming more accessible and leads to larger, more vibrant gaming communities. Choice is just as important for developers,” Phil Spencer, CEO of Microsoft Gaming, said on the site, adding: “Developers benefit from having a diversity of distribution and business models for their games. Choice opens up opportunities for innovation and allows the industry to grow.”
Microsoft president Brad Smith has commented that the acquisition could help eliminate friction between gamers and game creators.
Microsoft also included a section that the agreement will provide an “emphasis on positive workplace culture.” This comes as Activision Blizzard has faced concerns about the work environment. Microsoft’s comment could be a way of showing that the acquisition could help turn the company around.
ATVI Price Movement Shares of Activision Blizzard rose 0.86% to $75 on Tuesday at market close versus a 52-week range of $56.40 to $86.90.
Photo: Gorodenkoff via Shutterstock
Do you want to trade like a pro? Proof FREE the Premium Newsletter 4 in 1 from Benzinga Spain with shares, breakouts, cryptocurrencies and options.
Read the article also in Benzinga Spain
#Microsoft #believes #Sony #Nintendo #benefit #acquisition #Activision #Benzinga #Spain