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[feynoob]

What was the "tangible" reason to block the Nvidia Arm deal?

Microsoft was against Nvidia deal, which they worked hard to block it. Here are some info about it.

The team Alaily leads aimed to torpedo Nvidia’s $40 billion bid for chipmaker Arm, a deal Microsoft believed would harm it and others in the tech industry by raising the licensing costs for Arm’s chip designs (Microsoft uses chips based on Arm designs for servers and other products). Working under the supervision of her boss, Microsoft president Brad Smith, and with Microsoft’s outside counsel at the time, Jonathan Kanter, Alaily's team crafted the arguments Microsoft put forward to urge the Federal Trade Commission to intervene and block the deal, according to someone with knowledge of the situation. Last December, the FTC filed a lawsuit against the acquisition—which other prominent tech companies also opposed—and in February, Nvidia abandoned its bid for Arm.

LONDON — Microsoft-backed Graphcore has objected to Nvidia’s $40 billion acquisition of Arm Holdings, according to a key member of the British chipmaker’s early development.

Hermann Hauser told CNBC that Graphcore has opposed the deal in a “major submission” to the U.K.’s Competition and Markets Authority.

“If Nvidia can merge the Arm and Nvidia designs in the same software then that locks out companies like Graphcore from entering the seller market and entering a close relationship with Arm,” said Hauser, who is an investor in Graphcore through his venture capital firm Amadeus Capital.

A spokesperson for Nvidia, which is planning to buy Arm from Japanese tech giant SoftBank, described the deal as “pro-competitive” on Wednesday. Arm did not immediately respond to a CNBC request for comment.

Graphcore and the CMA declined to comment. However, Graphcore CEO Nigel Toon told CNBC in December that Graphcore views the deal as anti-competitive. “It risks closing down or limiting other companies’ access to leading edge CPU processor designs which are so important across the technology world, from data centers, to mobile, to cars and in embedded devices of every kind,” he said.

These regulators have pretty far reach in terms of blocking deals on antitrust grounds. If they conclude Microsoft buying the largest 3rd party publisher in the games industry would result in reduced competition, the courts aren't going to side with Microsoft.

And MS have the ability to take this to the court, or offer concession. This is not something MS would simply give it up.

Microsoft is really shooting for the moon here in this attempt and there really isn't any precedent for this happening.

Not really. MS have high level of lawyers, and experts who they get their advice about this deal. The fact that MS is sure about it, shows how confident they are about this deal.
Plus they know any problems with deal, from their experts.

 

[BennyBlanco]

Contrarian take: Microsoft doesn't want the deal to go through.

That’s what the article is suggesting. MS is refusing to make concessions to kill the deal.

 

[Rykan]

It's going to go through no issue. I'm looking forward to Microsoft securing these franchises and adding more value to their eco system. It's going to be a hell of a time to be a MS fan.

I wouldn't worry about these articles. It's a done deal. You'll see.

I don't understand how any MS fan would want this deal to go through.

This is 70Bn USD we're talking about. Do you realise just how many studios and games MS could fund with that to create compelling content? Instead, that money will now be spend to *checks notes* keep Call of Duty off a competing platform...and maybe not even that.

 

[a multicultural team of v]

That’s what the article is suggesting. MS is refusing to make concessions to kill the deal.

Oh you are right, I didn't read all the way through.

I really should have posted about this previously because I've thought for weeks now that Microsoft doesn't want the deal to go through anymore. I just didn't want to have to explain myself lol

 

[feynoob]

I don't understand how any MS fan would want this deal to go through.

This is 70Bn USD we're talking about. Do you realise just how many studios and games MS could fund with that to create compelling content? Instead, that money will now be spend to *checks notes* keep Call of Duty off a competing platform...and maybe not even that.

$70b is not a joke money.

That money is enough to make a partnership with all publishers for up to 10 years, and make all their games day1 on gamepass. And they would still have more money left. Its enough to destroy the industry.

Buying activision ensures that they dont go belly up on the industry, and buy more big publishers. It also puts them in the eyes of regulators.

 

[Mibu no ookami]

Microsoft was against Nvidia deal, which they worked hard to block it. Here are some info about it.




And MS have the ability to take this to the court, or offer concession. This is not something MS would simply give it up.


Not really. MS have high level of lawyers, and experts who they get their advice about this deal. The fact that MS is sure about it, shows how confident they are about this deal.
Plus they know any problems with deal, from their experts.

Yeah and Sony is against this deal and working to block it.

Microsoft has the ability to take this to court, but if blocked in multiple regions, will almost certainly just drop the deal as again, these regulators have broad powers to block deals.

They were confident about the deal initially, but they certainly aren't confident now. Knowing problems with deals doesn't mean they have a solution to the problem. You think Nvidia doesn't have good lawyers?

Microsoft promising to put CoD on PlayStation publicly but not legally binding is one thing, but that doesn't mean that CoD on GamePass doesn't effectively do the same thing from a competition standpoint.

 

[Jennings]

Stress is normal in these situations. One of the most stressful things a person can experience is waiting for a big purchase to go through, like buying or selling a house. All these need is to do relax and treat themselves to something nice with their billions.

 

[Three]

Read the article very well. MS and activision are confident the deal would go through.

The issue is concessions, which MS doesnt want to make.

Well if they're 'confident' then it's a sure thing.

https://www.bloomberg.com/news/arti...nfident-of-getting-regulators-ok-for-arm-deal

 

[dorkimoe]

It’s amazing to me that Microsoft is the only company that ever gets stopped from doing stuff like this. Look at every other acquisition or merger. Disney owns almost everything

 

[Represent.]

Good. Hope it falls flat on its face. MS needs to make their own fucking games, not just buy COD. Cheap and lazy as fuck.

 

[Three]

Contrarian take: Microsoft doesn't want the deal to go through.

I'd say that would be more Activision. They get $3B if it falls through.

 

[AmuroChan]

I'd say that would be more Activision. They get $3B if it falls through.

If the deal goes through, Activision gets $12B more than what their current value is. Which do you think the shareholders and board members prefer?

 

[Cyberpunkd]

Yes, it is a quintessential tabloid that any serious investor will ignore.

Looks like a hit piece. Which if you know journalists happens more often that people think.

 

[a multicultural team of v]

I'd say that would be more Activision. They get $3B if it falls through.

$3 billion is nothing really compared to the actual sale price though. Shareholders are set to be getting $95 a share when the share price if there was no deal in the first place would be $50 or less. Probably much less.

 

[Balducci30]

To be honest at this point it’s really up to Microsoft if they want this to go through - it might not be worth that 70 billion to get activision at this point if they have to make a bunch of concessions as well. If they pull out due to the hassle they’ll probably spend that money to buy a whole bunch of other shit tho

 

[MScarpa]

Better pray to god it goes through, or MS is going to moneyhat and buy anything and everything that ain't bolted down.

 

[Three]

If the deal goes through, Activision gets $12B more than what their current value is. Which do you think the shareholders and board members prefer?

The latter if it was all about just that payoff but they apparently rejected MS before until the internal turmoil so some at least did seem to want to remain independent prior. Now that internal turmoil is kind of in the past.

Anyway, I'm not saying that they actually want this. Just saying the events that have transpired since the deal announcement makes it more likely Activision want to pull out more than it would MS. What has changed for MS? They would lose $3B to boot.

 

[AmuroChan]

The latter if it was all about just that payoff but they apparently rejected MS before until the internal turmoil so some at least did seem to want to remain independent prior. Now that internal turmoil is kind of in the past.

Anyway, I'm not saying that they actually want this. Just saying the events that have transpired since the deal announcement makes it more likely Activision want to pull out more than it would MS. What has changed for MS? They would lose $3B to boot.

The macro economic climate is what has changed. ATVI is a $50 or less stock if not for this deal. MSFT is locked in at $95 a share. $3B would be a small price to pay to get out of what has become a severely inflated deal in todays market.

 

[Lasha]

What was the "tangible" reason to block the Nvidia Arm deal?

These regulators have pretty far reach in terms of blocking deals on antitrust grounds. If they conclude Microsoft buying the largest 3rd party publisher in the games industry would result in reduced competition, the courts aren't going to side with Microsoft.

Microsoft is really shooting for the moon here in this attempt and there really isn't any precedent for this happening.

NVIDIA could withhold advancements in ARM to competitors and destroy the chip industry. Microsoft owning Activision doesn't stop the rest of the industry from making games. The two deals are incomparable.

 

[SoraNoKuni]

Wish they could actually make new things, on their own, with all that money they have.
But Nuh, better screw the market cause Phil gave a joint to Nadella.

 

[MistBreeze]

I think Microsoft as a Trilion dollars company could do much to add to gaming industry than this

They could build many studios from ground up, could invest this money on talents adding to new studios instead of buying what already there

Activision maybe the biggest publisher in industry, yes … but it is only a huge COD factory
now

Such waste on man power and studios sadly

 

[Topher]

It’s amazing to me that Microsoft is the only company that ever gets stopped from doing stuff like this. Look at every other acquisition or merger. Disney owns almost everything

What do you mean? What acquisitions attempted by Microsoft were blocked? They just both Zenimx and a number of other studios. They bought Github and LinkedIn as well. Which acquisitions were blocked?

 

[Oddvintagechap]

It’s amazing to me that Microsoft is the only company that ever gets stopped from doing stuff like this. Look at every other acquisition or merger. Disney owns almost everything

Disney had to give alot of concessions for Fox.

And paid over 20 billion extra because of third parties.

They ended up selling part of Fox Corp to these same companies that inflated the price.

The whole European assets I believe.

 

[ChorizoPicozo]

Ok.
Brazilian papers showed nothing out of the ordinary.

These "insiders and analysts" are freaking out.

Informed people and people knowing about process like this have been saying that a deal of this magnitude granted this level of scrutiny.

So.
1.Of these "insiders and analysts" are full of shit/ report is fake.

2. These "insiders and analysts" know something that "we" don't.

 

[Three]

The macro economic climate is what has changed. ATVI is a $50 or less stock if not for this deal. MSFT is locked in at $95 a share. $3B would be a small price to pay to get out of what has become a severely inflated deal in todays market.

To be honest I don't know about the value of ATVI if not for this deal. How would you go about determining that? It's currently trading above what it was since the deal was made. So since Jan would you say the deal has got worse for MS?

When they announced they were already paying 45% above value so it's not like they didn't want the inflated deal. Do you think ABK is in a poorer position today than at the beginning of the year?

I personally don't see why they wouldn't want this to go through and end up paying $3B for nothing even if we say ATVI is $50 without this deal.

Questions aren't rhetorical btw, I'm genuinely interested to know why the deal is worse for them today than when it was announced since ABK was trading for much less and they agreed on the inflated price. Want to know what makes it worth less today.

 

[PixelatedBeast]

Better pray to god it goes through, or MS is going to moneyhat and buy anything and everything that ain't bolted down.

Oh please, can you guys stop pretending like this want always the case? Your statements reads as if Microsoft didnt already have 70 bill of cash on hand to do everything else you're suggesting. They went after the big ticket, and might fail, but they have always been free to spend their money to buy exclusive deals and devs for years. Problem is their game managment sucks, which is why they went after two of the biggest Western game publishers in the industry.

 

[vaibhavpisal]

As an xbox player and gamepass user, I honestly don't care.

They bought Bethesda, that's good enough.

Acti-Blizz is like, going above and beyond. I dunno what exactly MS intends to do with it. Since gamepass growth is supposed to flatline at some point.

 

[TheKratos]

If the deal falls apart, and as a result ABK shares fall off a cliff, and they do mass layoffs, spending cuts, studio spinoffs... If all that happened and MS stepped in to buy at a lower price would regulators still say No?

Besides the stock price declining, why would all the rest happen? And yes regulators would still say no.

 

[Boglin]

Put your money where your mouth is, buy ATVI stock right now, it’s currently trading well below the sale price. In this age of inflation and overall uncertainty it’s free money.

I'm pretty sure he said in the past that he has already bought 30-40k worth of shares.

 

[Auto_aim1]

Well, it was not going to be easy to buy it.

 

[drganon]

I didnt foresee so much chatter about this. I figured this deal would go through no problem.

Everyone celebrating this deal falling through is going to be in for a rude awakening when MS goes and buys franchises we actually give a shit about. Like Resident Evil, Final Fantasy, GTA, Red Dead, and yes Assassins Creed. You dont want Ubisoft getting bought out by Microsoft. They make like 50% of the games released every year.

If they're having a hard time closing the Activision deal, going after others would be just as difficult. Assuming any of them want to sell anyway. Most publishers aren't as in a world of shit as they are.

 

[Banjo64]

It’s that toothless posturing CMA man.

I’ve read some bad, bad takes on this scrutiny. Those people RN;

 

[meernakh]

Dont we have a topic for news (or whatever this article is) regarding the buyout

 

[SenjutsuSage]

Anyone who tells you there is a zero chance this gets blocked is entirely delusional.

CMA, EU, and FTC are all likely to take a strong look at this and any one of them could block the deal.

Zero chance. I didn't stutter. We shall see where we are by May or June next year.

 

[ptuck874]

Found the article. Its very hillarious.

The best highlight.

https://www.foxnews.com/opinion/china-wants-take-over-your-xbox


I cant finish the rest. my kidneys needs a rest.

The circus never ends

dude, I heard Sony gave Fox the tip to do this story...

 

[Barlow]

- Decision from New Zealand (November 11th), although there could be a new delay..

https://comcom.govt.nz/case-registe...microsoft-corporation-activision-blizzard-inc​

Decision due by (extension to 3 February 2023)​

 

[Draugoth]

Activision Blizzard Merger with Microsoft Could Fall Apart According to Insiders

Several insiders are losing their confidence regarding the Activision Blizzard and Microsoft merger deal after increased scrutiny.

wccftech.com

According to insiders that talked with the New York Post, Microsoft certainly didn't expect this level of scrutiny from market authorities. In fact, the increasing pressure has left both it and Activision Blizzard at odds behind the scenes despite both companies' insistence that the deal will go through.

The brass tacks at this point are regarding the exclusivity of the Call of Duty franchise. While Microsoft has stated before that this game series will not be kept from PlayStation, they also wouldn't be legally obligated to keep the franchise not exclusive, and that is where the dealbreaker begins to set in for the regulators.

 

[Interfectum]

 

[Tiago Rodrigues]

 

[theStartupSound]

That’s okay, just buy something cooler than this.

Like IOI and the dev of Limbo and Inside. Will be peanuts instead

 

[SlimySnake]

Posted yesterday.

 

[LiquidMetal14]

Lake Titicaca

 

[proandrad]

Rare win for consumers if this falls apart.

 

[Fuz]

We can only hope.

 

[azertydu91]

Lake Titicaca

 

[skit_data]

I’d be very surprised if MS didn’t expect the kind of scrutiny the deal is facing. I mean, the EU haven’t even gotten started yet.

 

[Ezekiel_]

I think there's an OT for this

Makes sense that this huge ass acquisition would get some extensive scrutiny.

Edit : Removed huge ass gif

 

[Foilz]

It shouldn't fall through. Acti wants to sell, ms wants to buy, be done with it. Make them put in writing cod won't be exclusive but will be allowed on gamepass. Then everyone wins.

Personally I would dump the acti deal and snatch up Capcom and ubi or Capcom and someone with a large catalogue of titles. They don't even have to be AAAA titles. Just a big catalogue . Like a digital revolver type of pub

 

[feynoob]

Why are people posting this shit?
We went over this yesterday.

 

[feynoob]

Topher
It seems I was right yesterday. People seem to looking for reactions.