Xbox |OT|

[EpicRandy]

Ryuu96 said:

EpicRandy said:

True, but, IMO  it's another argument as to why MS should just pause their Xcloud Initiative globally and close the deal. The breakup fee alone already amount to several year worths of XCloud revenue after all. 

I'm thinking MS could just be waiting for the EU to approve and maybe some other market too, then they'll "pause" Xcloud globally and close over the FTC. Also, MS could just license their XCloud server to a third party and contract them to offer the same experience with GPU essentially making CMA conclusion a non-standing issue and still be feature complete on GPU and still be able to bring some revenue from Xcloud technologies.

Anyway Still think it's unlikely, something like 25%, but the more I think about this route and all the possibilities MS would have to mitigate any losses and the undeniable extreme benefits of closing the deals the more I think MS would be very dumb not to shelve Xcloud for 4-5 years.

There's no way around it now though, CMA has blocked the deal, Microsoft can't offer anymore concessions until it goes through CAT first and that will go way beyond the merger agreement date, negotiations with CMA are finished and can't be re-opened. As long as they don't have CMA's approval, they can't close the deal.

Idas estimated that the breakup fee would increase to $5bn-$8bn and looking at Activision-Blizzard's current market cap, Microsoft acquired them at a 45% premium back then for $69bn cash so if we use the same 45% premium, they'd now be acquiring Activision-Blizzard now for $96bn if I've got that right, Lol.

In addition, Microsoft's market share actually increased when the news broke of CMA blocking the deal so I wonder if MS shareholders even want ABK.

If that's true that's messed up, I mean why would ring-fencing even be a thing and just plain leaving the problematic market that has been identified not be adequate? IMO, that's not another remedy proposal that's just complying with the conclusion at face value.