This week, we asked the Invstr Community what their opinion is on the UK’s action to block Microsoft’s acquisition of Activision. The winner, with over a third of the votes, was the 36 percent of Invstrs who believe that the regulators’ action to prohibit the $75 billion acquisition was correct. The reason behind the ban of the deal relies upon the idea of free competition, ad that one major video game company has the power to limit growth and innovation as it holds much of the market share. In 2008, Activision partook in its own merger with Blizzard Entertainment, forming the now well-known company Activision Blizzard; by acquiring Activision Blizzard, several believe Microsoft will be far too big for other video game companies to compete with. In second place, we have the 29 percent of Invstrs who believe that free markets have the capacity to decide fairness, and both companies should be allowed to conduct any deal that is appropriate. Some believe federal regulation can harm exactly what it is attempting to protect: competition. By disallowing companies to make deals, they can in turn be seen as crafting the competitive landscape, deciding which players get to control said amounts of market share.
In third place, we have the 20 percent of Invstrs who favor the deal, and moreover believe the acquisition will expand access to gaming. In the fast-growing world of video games, several bright people and companies lack the capital or infrastructure to develop and market their ideas to the mainstream. With the fiscal power a $2 trillion company like Microsoft has, the chances can increase for new and innovative ideas to not only turn into a finished product but be accessible to millions of people across the globe. To close out the podium, we have the 15 percent of Invstrs who don’t really know if the takeover should be blocked or not, as they do not play video games. Despite the rapid increases in the popularity of video games, there is a disproportionate amount of people who still do not play video games regularly and forfeit the knowledge behind such a large takeover. However, it is arguable that this industry has the potential to completely shape the future of entertainment, and a deal as large as Microsoft’s can alter the horizon for all video game development.
Do you think Microsoft and other companies should have free access to the deals they conduct? Have fun and see you next time with more poll results!
- The Invstr Team 🙂
