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Microsoft / Activision Deal Approval Watch |OT| (MS/ABK close)

Do you believe the deal will be approved?


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poppabk

Cheeks Spread for Digital Only Future
I believe the CMA see this as some sort of emerging TV and film scenario but in my opinion that is passive whilst the interactive element of gaming with response times makes it uncertain that cloud gaming will ever have that sort of impact that it has on TV and films.
But look at TV and film streaming services - Amazon, Paramount, Fox, Disney, Warner Brothers, Comcast etc. It's not exactly a market dominated by plucky and innovative start-ups. It's dominated by legacy content owners. Sony or Nintendo could enter the cloud market at any time and rival MS because they have the content to do so. The EU decision was based on the fact that at least allowing new smaller companies access to the equivilant of say Warner Brothers back catalog for 10 years is better for competition than having them try to compete for content where they are already behind and have to outbid companies with much deeper pockets.
 

hlm666

Member
Boosteroid already has those games, which means whatever agreement ABK was demanding, they got it.

And if Nvidia is charging $$ from their customers, it is only fair they pay whatever money ABK is asking for their games.
They work the same way geforce now does you pay for a subscription to their cloud servers then link your steam/epic/ea account. They charge just like nvidia, you don't seem to understand how these cloud providers work. They don't supply games except free to play stuff (just like geforce now) and the publisher has already got your money when you bought the game on steam/epic etc.

"When you purchase a Boosteroid subscription, you get the opportunity to launch any free game on the list. If you see "payment required" in the description of a video game, it means you should buy it on Steam, Epic, Origin, etc.
You can only run a paid video game on Boosteroid if you buy it from the official distributor.
You cannot buy games from us. We do not sell them."

The EU decision was based on the fact that at least allowing new smaller companies access to the equivilant of say Warner Brothers back catalog for 10 years is better for competition than having them try to compete for content where they are already behind and have to outbid companies with much deeper pockets.
Finally someone gets it. Blocking the deal fixes nothing unless this EU ruling/remedy still gets pushed through and to all publishers aswell. These start ups are screwed without the free license, although I would like to see the 10 year time frame removed and if you have a license for said game you can stream it on anyones service without publishers able to block it.
 

feynoob

Member
Trying to learn how to do business games is hard.
I am currently doing a business sim, and I managed to lose a lot of money, due to dumb decisions.
Glad I am not a ceo of a company.
 

Topher

Gold Member
But look at TV and film streaming services - Amazon, Paramount, Fox, Disney, Warner Brothers, Comcast etc. It's not exactly a market dominated by plucky and innovative start-ups. It's dominated by legacy content owners. Sony or Nintendo could enter the cloud market at any time and rival MS because they have the content to do so. The EU decision was based on the fact that at least allowing new smaller companies access to the equivilant of say Warner Brothers back catalog for 10 years is better for competition than having them try to compete for content where they are already behind and have to outbid companies with much deeper pockets.

CMA is looking at Call of Duty combined with other Activision titles combined with Xbox titles and Microsoft's already massive presence in cloud and seeing the consolidation of cloud gaming with one massive company. There is nothing comparable to that in video streaming. Nor is there a scenario where one dominant TV or film franchise has the impact that Call of Duty has in gaming. The fact of the matter is that post-acquisition other cloud gaming providers would be dependent on Microsoft to remain relevant over the next 10 years. After 10 years is up, Microsoft can yank every one of those licenses and consolidate under Xbox Cloud Gaming.
 
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HoofHearted

Member
Finally someone gets it. Blocking the deal fixes nothing unless this EU ruling/remedy still gets pushed through and to all publishers as well. These start ups are screwed without the free license, although I would like to see the 10 year time frame removed and if you have a license for said game you can stream it on anyones service without publishers able to block it.
 

feynoob

Member
Goalus Goalus
You should have stopped.
Now the hammer is on your head.
banned spider ham GIF
 

PaintTinJr

Member
Whats rubbish is believing a small startup is going to be able to afford to pay activision for their games without the EU remedies. In the current market/system if you buy cod somewhere you can only use it on your local machine as they block all services like geforce now/boosteroid. With the EU remedy the streaming service provider doesn't need to also get permission from activision, if you have a license for cod you can use it on any of them without them having to make an agreement and possibly pay activision.

Blocking the deal doesn't actually protect startups in streaming, they are not going to have the money to outbid ms/sony/amazon/nvidia for streaming rights. They should block the deal and enforce the EU remedy on all current publishers if the goal is to help startups in the "nascent" cloud market.
That is a false equivalency.

I made no assertion that these potentially small innovative start-ups needed CoD to compete in a market where Microsoft does not to have CoD.

Realistically the only people that could genuinely offer CoD in the cloud, are ATVI either by a sub just for that game, or via B2P with a 3rd party cloud license to use a service like Geforce Now.

The revenue stream from B2P and MTX is so great that without haemorrhaging money - as Microsoft would need to for a gamepass offering - the only viable cloud options are third party or a first party offering from ATVI where no extra mouths are being feed and revenue streams are retained - but with bigger player base - or increased for the convenience of instant play without a 500GB install, and with ATVI's advantage of never letting users own the single player game
 
Thanks for letting me know Einstein 🤣
Then what's the point in posting about this imaginary pressure the eu's decision is putting on the cma, Einstein? You know, the pressure that only exists in your and other xbox fanboys minds?
If you do in fact know that the cma has nothing to do with the eu, then there was no point in what you posted. Of course you were fully aware of that, and posted it anyway.
 

Ar¢tos

Member
These start ups are screwed without the free license, although I would like to see the 10 year time frame removed and if you have a license for said game you can stream it on anyones service without publishers able to block it.
Sure, sure, and how does it work?

You buy an Activision game on psn, then play the game on Xbox and buy a DLC on Xbox store, then later continue playing it on GeForce Now?

Can you spot the problem with that?
 
- July 18th 2023: The end of the second extension and final outside date in the merger agreement. If MS quits by that date they have to pay a termination fee of $3,000,000,000; if they don't, they'll have to renegotiate the outside date with ABK.

If I'm understanding this correctly. They can avoid paying it if they extend or renegotiate the deal with ABK right?

That 3 billion is only guaranteed if they don't do anything.
 

Riky

$MSFT
Then what's the point in posting about this imaginary pressure the eu's decision is putting on the cma, Einstein? You know, the pressure that only exists in your and other xbox fanboys minds?
If you do in fact know that the cma has nothing to do with the eu, then there was no point in what you posted. Of course you were fully aware of that, and posted it anyway.

It only exists in Xbox fanboys minds yet is being picked up by mainstream press like The Times.

 

Heisenberg007

Gold Journalism
If I'm understanding this correctly. They can avoid paying it if they extend or renegotiate the deal with ABK right?
Yes, but temporarily, at least unless the CMA reverses its decision.
That 3 billion is only guaranteed if they don't do anything.
There is more to it.

They pay 3 billion when the deal is abandoned, which happens on July 18.

MS and ABK can get together and create a new acquisition agreement that essentially extends the deadline. However, it's not as simple as that comes with a few caveats:
  • ABK will have to have their shareholders sign off on the acquisition one more time.
  • ABK will now not settle for $3 billion. They will likely ask for $5B, $6B, or more as the next penalty.
  • ABK shareholders will also likely ask for more than $95 per share now.
  • Statistically, the chances of the deal going through (the chances of CAT making the CMA reverse their decision) is less than 5%. So someone at Microsoft will have to be the one to propose to the BoDs to buy ABK at more than $95 per share and pay them $6 billion in penalty if the acquisition fails (the chances of which is more than 95%). And ABK will have to convince their shareholders to say not to $3 billion now.
  • And while all of this is happening, ABK cannot operate normally as they were independent. There may very well be a period where ABK does not have any marketing agreement with anyone (MS or Sony) for Call of Duty -- which will affect their revenue as well as their shareholders' decision.
And if they can't get the new agreement, the deal is off on July 18 and MS must pay $3 billion.
 
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Yes, but temporarily, at least unless the CMA reverses its decision.

There is more to it.

They pay 3 billion when the deal is abandoned, which happens on July 18.

MS and ABK can get together and create a new acquisition agreement that essentially extends the deadline. However, it's not as simple as that comes with a few caveats:
  • ABK will have to have their shareholders sign off on the acquisition one more time.
  • ABK will now not settle for $3 billion. They will likely ask for $5B, $6B, or more as the next penalty.
  • ABK shareholders will also likely ask for more than $95 per share now.
  • Statistically, the chances of the deal going through (the chances of CAT making the CMA reverse their decision) is less than 5%. So someone at Microsoft will have to be the one to propose to the BoDs to buy ABK at more than $95 per share and pay them $6 billion in penalty if the acquisition fails (the chances of which is more than 95%). And ABK will have to convince their shareholders to say not to $3 billion now.
  • And while all of this is happening, ABK cannot operate normally as they were independent. There may very well be a period where ABK does not have any marketing agreement with anyone (MS or Sony) for Call of Duty -- which will affect their revenue as well as their shareholders' decision.
And if they can't get the new agreement, the deal is off on July 18 and MS must pay $3 billion.
Bill Murray Thank You GIF by filmeditor


That clarified a lot of things for me. I appreciate the explanation.
 
You think? 🤣

Yeah they have plenty of experts that advise them on this. I will admit that while they didnt predict the CMA blocking the deal they probably know their chances of getting it though. The payoff is probably massive for them which is why they are pushing it despite their chances.

Why do you believe they are still pursuing this? Its because they think they can still complete it.
 
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Bernoulli

M2 slut
Yes, but temporarily, at least unless the CMA reverses its decision.

There is more to it.

They pay 3 billion when the deal is abandoned, which happens on July 18.

MS and ABK can get together and create a new acquisition agreement that essentially extends the deadline. However, it's not as simple as that comes with a few caveats:
  • ABK will have to have their shareholders sign off on the acquisition one more time.
  • ABK will now not settle for $3 billion. They will likely ask for $5B, $6B, or more as the next penalty.
  • ABK shareholders will also likely ask for more than $95 per share now.
  • Statistically, the chances of the deal going through (the chances of CAT making the CMA reverse their decision) is less than 5%. So someone at Microsoft will have to be the one to propose to the BoDs to buy ABK at more than $95 per share and pay them $6 billion in penalty if the acquisition fails (the chances of which is more than 95%). And ABK will have to convince their shareholders to say not to $3 billion now.
  • And while all of this is happening, ABK cannot operate normally as they were independent. There may very well be a period where ABK does not have any marketing agreement with anyone (MS or Sony) for Call of Duty -- which will affect their revenue as well as their shareholders' decision.
And if they can't get the new agreement, the deal is off on July 18 and MS must pay $3 billion.
i do wonder how it will playout if Activision has no marketing deal with anyone, will COD sales be impacted a bit or is it like GTA that need no marketing
until now we haven't seen how is Activision without a marketing deal

and seeing the quality of their games i want them to have a drop in revenue for COD to wake up and improve the game because these last few years they are trash
 
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Banjo64

cumsessed
Mods are on a roll with the bans. We want an astroturfer-free zone.

To be fair, I don't think Times main audience is on Youtube.
The Times haven’t pushed this video on any of their mainstream channels as far as I can see, which backs up the original point. There is no external pressure.

This could well be going through guys, after reading that it seems the CAT are going to take the CMA to the cleaners.
No one should take you seriously reading your comments in this thread. Funny, look who you’re quoting in that post, hope you aren’t yet another sock account.
 

gothmog

Gold Member
If I'm understanding this correctly. They can avoid paying it if they extend or renegotiate the deal with ABK right?

That 3 billion is only guaranteed if they don't do anything.
Breakup fees are usually pretty cut and dried. Renegotiated deals would make the original deal void. The concept of them is around the effort to even merge. There's thousands of man hours and resources burned in order to go through due diligence and such. The merger I was a part of cost $300 million dollars when it fell through. They had stationary, new paint, and building signs all ready to go which was all garbage after the deal ended.
 
I'm just going to make a promise to everyone on this deal. No matter if it goes through or denied I won't harass anyone over this. I'll respect whatever decision is made.

I personally don't know where this is going to go since its flipped several times since it was announced. All I know is that its in a difficult place but it can still go through. No idea what the outcome will be like.

Just don't take it to hard if it fails or is approved. Its definitely not worth having a meltdown over.

Bob Ross Inspiration GIF
 
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Mods are on a roll with the bans. We want an astroturfer-free zone.


The Times haven’t pushed this video on any of their mainstream channels as far as I can see, which backs up the original point. There is no external pressure.


No one should take you seriously reading your comments in this thread. Funny, look who you’re quoting in that post, hope you aren’t yet another sock account.
OK buddy, move along.
 

Heisenberg007

Gold Journalism
i do wonder how it will playout if Activision has no marketing deal with anyone, will COD sales be impacted a bit or is it like GTA that need no marketing
until now we haven't seen how is Activision without a marketing deal

and seeing the quality of their games i want them to have a drop in revenue for COD to wake up and improve the game because these last few years they are trash
It'll certainly have a negative effect. If it weren't gonna have any impact, they'd not be doing these marketing deals in the first place.
 

Riky

$MSFT
I keep explaining to you that this being in the public sphere is the worst thing for the deal. The British Political system is an entirely different beast but you refuse to understand it.

I'm English, I understand it perfectly.

This was a podcast originally so the views on YouTube is pretty irrelevant, point is the rejection of the deal has got wrapped up with Brexit and is not just in the mind of "Xbox Famboys" at all and I've provided proof.
 

Banjo64

cumsessed
I'm English, I understand it perfectly.

This was a podcast originally so the views on YouTube is pretty irrelevant, point is the rejection of the deal has got wrapped up with Brexit and is not just in the mind of "Xbox Famboys" at all and I've provided proof.
You’ve provided proof that a major publication found it worthy of covering in their d-tier content service with an audience of a few thousand people. It definitely is in the mind of Xbox fanboys and not based in reality in any way. Microsoft tried to push that angle in the immediate aftermath, alongside the rest of the toys they threw out of the pram. It didn’t stick though, because no one cares.
 

feynoob

Member
I'm English, I understand it perfectly.

This was a podcast originally so the views on YouTube is pretty irrelevant, point is the rejection of the deal has got wrapped up with Brexit and is not just in the mind of "Xbox Famboys" at all and I've provided proof.
Mate, british people arent bright (no offense guys). They are like mini americans.

CMA wont get pressured by that, because they are seperate entity. The goverment cant intervene their decision other than CAT. And EU decision means nothing to them, as Xbox is big in UK, compared to EU.

It will all come down to how good that Arsenal fan lawyer is. (I still cant believe he is representing Mancity, even though he is an arsenal fan).
 
Mate, british people arent bright (no offense guys). They are like mini americans.

CMA wont get pressured by that, because they are seperate entity. The goverment cant intervene their decision other than CAT. And EU decision means nothing to them, as Xbox is big in UK, compared to EU.

It will all come down to how good that Arsenal fan lawyer is. (I still cant believe he is representing Mancity, even though he is an arsenal fan).
Mini Americans? Are you unwell?
 
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