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Machiavellian on 01 May 2023
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Ryuu96 said:

When the deal dies, Microsoft should just pull an OpenAI.

Microsoft’s Quasi-acquisition of OpenAI: Clever Circumvention of Antitrust Scrutiny?

Deal structure review

The main features of the expected deal, along with prior agreements, include:

  • Profit-sharing: Under the expected deal terms, Microsoft receives 49% of OpenAI’s future profits once OpenAI pays back its early investors.
  • Exclusive licensor: In 2020, Microsoft becomes the exclusive licensor to OpenAI’s GPT-3 model.
  • Exclusive cloud vendor: In 2019, as part of the $1 billion investment, Microsoft becomes OpenAI’s exclusive cloud provider, valued at more than hundreds of millions of dollars per year. Today, OpenAI models depend on Microsoft software and hardware to run, making it hard for OpenAI to switch to a different cloud vendor.

Can't go this extreme, I think regulators would slap them down, but maybe halfway...Like a 10-15% stake in some companies.

I take back that Microsoft would be allowed to acquire Sega now because CMA's statement is that even a "moderate" increase in Microsoft's cloud would pose an SLC so that should basically rule out every single large IP, Lol.

After the deal is killed as well, Microsoft can't attempt to acquire ABK for another 10 years at minimum as per CMA's rules.

Maybe just take a stake out, work closely with King to bring some Xbox IP to Mobile, a joint partnership between Xbox and Activision to bring a Mobile Store out and of course profit sharing and such, that is if ABK doesn't just sell either way.

Would this not basically rule out any company from any large purchase.  If they are trying to protect the cloud market that would exclude any company from making any big purchases if they have any cloud presence.  

Could be that MS could just do the same thing with ABK, invest a large amount of money into their business and gain enough shares where they may not have controlling interest but enough to direct the company to what they want.  That also could be a path forward.