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Microsoft CEO is 'Very Confident' the Activision Blizzard Deal Will be Approved

Microsoft CEO is 'Very Confident' the Activision Blizzard Deal Will be Approved - News

by William D'Angelo , posted 4 days ago / 2,726 Views

Microsoft CEO Satya Nadella speaking with Bloomberg discussed the Activision Blizzard acquisition and said he is "very confident" the deal will be approved even as the Competition and Markets Authority (CMA) in the UK will be doing a more in-depth investigation into the deal.

"Of course, any acquisition of this size will go through scrutiny, but we feel very, very confident that we’ll come out," said Nadella.

Nadella added that Microsoft is the fourth or fifth biggest competitor in the video game industry and Sony as the number one player has made several recent acquisitions. "So if this is about competition, let us have competition," he said.

Microsoft CEO is 'Very Confident' the Activision Blizzard Deal Will be Approved

The Microsoft CEO believes that Microsoft will be able to cope with a weaker economy and rising inflation, and at the same time help its customers endure. 

"The constraints are real—inflation is definitely all around us," he said. "I always go back to the point that in an uncertain time, in an inflationary time, software is the deflationary force."

Microsoft will work on "ensuring that our customers are able to do more with less," said Nadella. "So in terms of outlook, I am optimistic about Microsoft’s value proposition. I’m optimistic about our share, but we are not immune from anything that is a macroeconomic headwind."


A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.


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57 Comments
CaptainExplosion (3 days ago)

I can't believe how long this takes. It's ridiculous, AND a double standard. Disney wasn't ever investigated for THEIR mass media acquisitions.

  • +13
VAMatt (3 days ago)

I find it very amusing that gamers are arguing about how these mega businesses should be investing their money. These businesses exist for one reason only: to create shareholder value. The executives in these companies have a fiduciary duty to do as good a job of that as they can. It is literally their job to make investments that return as much value to their shareholders as possible. It is the only job that they have. Everything else stems from that basic task.

If MS is sitting on a giant pile of cash in a low interest rate environment, making basically no money with it, and they spot a whale like Activision, floundering in the ocean because of the workplace scandals, it is literally their job to use that money to catch that giant whale and extract value from it.

Society has decided that that is the right thing for them to do. We have even assigned them that duty by law. They must make the decisions that are best for their shareholders. Sitting on a bunch of cash that's making 1% a year when an opportunity to make way more money comes along would make them bad managers of the company, poor stewards of their shareholders' money, and in the most egregious cases could actually be a legal dereliction of their fiduciary duty.

  • +8
DonFerrari VAMatt (2 hours ago)

That much is certainly true. They are buying because they expect the best ROI, not due to good of heart or evilness.

  • 0
Jumpin (3 days ago)

It doesn’t look like any of the response comments are actually responding to the article. Is there some mass infection of a reading comprehension disorder?

  • +3
twintail Jumpin (2 days ago)

Discussions can evolve, especially with a story that has involved a long string of updates over the past few months.

Not every comment needs to address the article directly, as long as they are contextually part of the larger discussion at hand.

I wouldn't worry about it.

  • +1
Dante9 (14 hours ago)

Of course it will. Money talks and bullshit walks. They are just going through the motions.

  • 0
Qwark (4 days ago)

Yup buying a few small studios and Bungee for less than 4 billion grand total is totally the same as buying a 69 billion publisher. People tend to forget that the Bethesda acquisition has not really paid of yet in 2021. So Xbox studios with the combined revenue of both Bethesda and ActiBliz are probably already quite a bit larger than Playstation in 2024, if this deal gets through somewhere in Q1 or Q2 in 2023.

  • -4
SKMBlake Qwark (4 days ago)

Bungie*

  • 0
Mnementh Qwark (3 days ago)

The revenue of Bethesda is already counted and MS+Beth+ActiBlizz still ends up behind Sony and Tencent and maybe some others.

  • +3
SKMBlake (4 days ago)

In 2 days he will say "we're barely an indie team"

  • -6
Qwark SKMBlake (4 days ago)

Their profits are comparable to an Indie game dev compared to Apple. Their revenue might be a bit lower in some years, but their profit tends to be bigger than that of the big 3 combined.

https://www.visualcapitalist.com/visualizing-apples-rise-to-the-top-of-the-gaming-business/

Which is a fair reason to make this deal go trough. This is also why Apple probably will never buy PlayStation. Investing in IOS games is way more profitable and console gaming is going to die in a decade or 2 anyway.

  • +8
SKMBlake Qwark (4 days ago)

You got downvoted for another comment but got upvoted for this, people don't know how to react with. you

  • +1
Kakadu18 SKMBlake (3 days ago)

How about downvoting and upvoting based on the content of the comment?

  • +1
SKMBlake Kakadu18 (3 days ago)

Nah nobody does that here

  • -3
DonFerrari SKMBlake (2 hours ago)

Well, it was either him or Phill that said CoW is almost irrelevant =p

  • 0
Blood_Tears (4 days ago)

Sony is the largest? Tencent would be the largest and he knows that. It's interesting all of the sudden that Sony is a rival and at the start of the gen MS said Sony wasn't their competitor at all. He also said they were the market leader for 3 quarters in a row. We all know they are just playing possum and trying to pretend they are the little guy to the regulators in order to get this deal passed.

  • -6

Well you know numbers are a real thing, right? Like you cannot just make up statements like that, out of your hat cause you like them better lol

  • Sony is the largest... Not sure where you are coming from with Tencent (they are second based on revenues) and are very well known by the industries unless you are living in another reality.
  • They are not "playing" anything; they are smaller and even after the acquisition is completed they will still be third and by a good margin. Again, numbers don't lie; it is a fact.
  • If he said they were the market leader, it is probably backed up by numbers too; and he probably did not talk about ww if it is the case but probably for a specific region or maybe GamePass and that model.
  • +10
Qwark Blood_Tears (4 days ago)

Well if that's their belief they should buy more publishers. I think when both deals are done and new games are releasing Microsoft revenue will be bigger than PlayStation in 2024. They could always buy Take 2, Capcom or EA to make sure though.

  • -5
2zosteven Qwark (4 days ago)

Microsoft 2021 revenue $168.088B

  • +6

You realize you are posting a quote from Microsoft... And at the same time insist on saying they are wrong. Which one is it then; when it goes along your agenda you 'believe' Microsoft; and when it does not you call them liars? :) Come on now.

nd it is because one person during an interview says something that numbers/revenues are not real. As I said; revenues are PUBLIC. There is really nothing you can make up about that.

  • +2

Tencent's Gaming Division makes more revenue than PlayStation. That is fact, I don't know why you said they aren't. https://twitter.com/zhugeex/status/1506564412425089025?lang=en

  • +7

Exactly, it's been reported many times before. It's common knowledge.

  • +7

People heavily underestimate how much they own in the gaming space and how much money they get from China. Most of their money comes from PC and Mobile. This is why Sony and Microsoft are putting games on PC and investing in Mobile.

  • +1
Dallinor Imaginedvl (3 days ago)

Gaming Revenue 2021:

  1. Tencent: $32.2 billion
  2. Sony $24.87 billion
  3. Microsoft: $16.28 billion
  4. Nintendo $15.30 billion
  5. Netease $13.74 billion

    You know numbers are a real thing, right?

  • +9
ArtX Blood_Tears (4 days ago)

Change Sony for Playstation. They don't need play possum because everybody know well of their infinity money.

  • 0

You twist words worse than MS lol. MS never said Sony wasn't a competitor. They said if Amazon, Google, Apple really wanted to get into gaming they could disrupt the gaming space quite a bit.

  • 0
Qwark Blood_Tears (4 days ago)

No longer main rivals doesn't mean not a competitor anymore. Like PlayStation and Nintendo probably also don't see eachother as main rivals, but sure as hell are still competitors.

  • +1

It doesnt say anything about Sony not being a competitor. The article proves my point. Thanks!

  • +2

Again, in your article, they said the main rival in what the industry is going to be like is based on Microsoft's strategy (cloud and GamePass-like service) where Microsoft believes the money is.
This OP is about Sony and how they are the main competitor in the game publishing area (which is what Activision is, a publisher).
You are really just twisting words around... And mixing everything.

  • +1

Apple already gets a gigantic amount of revenue from gaming, and not just on Mac and mobile as there are also people playing games on TV sets via Apple TV units too.

  • +1

I agree Tencent is larger, but less well known. He is right though that MS is fourth and Sony is ahead.

  • +2
Brimac19 (4 days ago)
  • -13
KratosLives (3 days ago)
  • -16
ClassicGamingWizzz (4 days ago)
  • -17