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Forums - Gaming - It seems like King has been forgotten in the Activision acquisition talk....

My guess, and it is just a guess, is that Microsoft is prepared to divest King if regulators balk at their purchase of Activision.   Because of Candy Crush, if Microsoft keeps King, that makes them a huge player in mobile gaming, and arguably (is it arguable?) the biggest player in console and PC gaming.  So, I think there's a good chance that regulators try to force some divestitures in order to approve the acquisition.  

It is hard for me to see a case where Microsoft has any interest in making this acquisition if they have to divest any of the core Activision properties. But, I see it still making sense without King.  Further, and perhaps more significantly, have noticed very little talk about King in Microsoft's PR around this matter. That makes me think that they already know that they either want to, or will be forced to divest King.

What do you think?



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VAMatt said:

My guess, and it is just a guess, is that Microsoft is prepared to divest King if regulators balk at their purchase of Activision.   Because of Candy Crush, if Microsoft keeps King, that makes them a huge player in mobile gaming, and arguably (is it arguable?) the biggest player in console and PC gaming.  So, I think there's a good chance that regulators try to force some divestitures in order to approve the acquisition.  

It is hard for me to see a case where Microsoft has any interest in making this acquisition if they have to divest any of the core Activision properties. But, I see it still making sense without King.  Further, and perhaps more significantly, have noticed very little talk about King in Microsoft's PR around this matter. That makes me think that they already know that they either want to, or will be forced to divest King.

What do you think?

Anything's possible, but you also might just be reading too much into it.  King was featured in the announcement image of Satya Nadella's tweet, and Candy Crush was given placement ahead of Star Craft in the franchise order.

The announcement also states that the acquisition puts Microsoft 3rd in revenue behind TenCent and Sony, so there doesn't really exist a notion of this giving Microsoft any type of monopoly.  Also, the press release does mention King and Candy Crush specifically in a few places.  And special notice was given of how much of a mobile presence Microsoft gains from the acquisition.  

When the transaction closes, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony. The planned acquisition includes iconic franchises from the Activision, Blizzard and King studios like “Warcraft,” “Diablo,” “Overwatch,” “Call of Duty” and “Candy Crush,” in addition to global eSports activities through Major League Gaming...

And with games like “Candy Crush,” Activision Blizzard´s mobile business represents a significant presence and opportunity for Microsoft in this fast-growing segment.

https://news.microsoft.com/2022/01/18/microsoft-to-acquire-activision-blizzard-to-bring-the-joy-and-community-of-gaming-to-everyone-across-every-device/

Satya Nadella also specifically referenced "Candy Crush" as one of the "iconic games" that Microsoft was acquiring in the email he sent out to all Microsoft employees yesterday morning.

So you might just be reading too much into the majority references of the acquisition stating "Activision Blizzard" instead of saying "Activision/Blizzard/King".



And, there's also this quote from Phil Spencer which doesn't mention King by name, but he does state how critically important the mobile component of this acquisition is to Microsoft:

"So you look at a company like Microsoft, and we’re bringing together content and intellectual property to offset the, the distribution capabilities we don’t have on mobile devices. This is our opportunity to fight to compete on the largest platform out there in gaming, which is mobile devices, that’s critically important to us"

And again, Satya Nadella specifically referenced King by name in a call to investors, with emphasis on how "critically" important the mobile aspect of the acquisition is for Microsoft:

"Critically, this transaction significantly expands our presence in mobile, the largest segment in gaming business. Activision Blizzard’s King division is one of the global leaders in mobile gaming."

So, no, I don't think King has been forgotten at all in this transaction.  And now after more thoroughly reading through the press release, company wide e-mail, and investor's call, I feel safe in saying that Microsoft doesn't have any intention to divest King from the rest of the acquisition.  They clearly see it for the critical component that it is for expanding Microsoft's reach into the mobile space.

Last edited by Mandalore76 - on 19 January 2022

Mandalore76 said:

So, no, I don't think King has been forgotten at all in this transaction.  And now after more thoroughly reading through the press release, company wide e-mail, and investor's call, I feel safe in saying that Microsoft doesn't have any intention to divest King from the rest of the acquisition.  They clearly see it for the critical component that it is for expanding Microsoft's reach into the mobile space.

Upon further review, I think you are right.  



Erm King is most likely the reason MS wanted the whole lot. Call of Duty mobile and the games King is responsible for, make more revenue than the others.

https://www.theverge.com/2022/1/18/22889457/microsoft-activision-blizzard-acquisition-mobile-gaming-candy-crush

Since the King acquisition, mobile has become an increasingly important part of Activision’s portfolio; Call of Duty Mobile, created in partnership with Tencent, is a massive game, and Blizzard is also planning to launch a smartphone version of Diablo. During its most recent quarterly earnings statement, Activision revealed that King was its highest-grossing division, raking in $652 million in net revenue during the third quarter of 2021.


This acquisition isn't for the core games, it's to break into mobile gaming and turn gamepass into the Netflix of mobile gamers. Core game revenue is already far less than mobile gaming and the growth is with mobile gaming. So called core games started gamepass, but it will transform into mobile subscription based gaming. 200 million plus is the target for gamepass. Those playing on PC and consoles will be in the minority when it comes to gamepass of the near future.



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This is a console sales website, mobile is always overlooked bit like PC related stuff also is less popular here.






konnichiwa said:

This is a console sales website, mobile is always overlooked bit like PC related stuff also is less popular here.

I don't think its just being overlooked, I think its also being underestimated. Meanwhile the implications for the console space are being overestimated which is why we're getting threads about Sony selling Playstation and prediction that Xbox Series will sell 100m+ units

Anyway OP very good bringing attention to this. I think Gamepass on mobile has way more financial potential than on consoles, up until now there's been no push for mobile native xbox games, this could be beginning of that. Beyond that I think we'll just have to wait and see 



I'll predict right now that MS won't have to make any sort of concession with the approval with regulatory bodies (at least none that invovles divesting off any assets or promising to keep certain games multiplat).



NobleTeam360 said:

I'll predict right now that MS won't have to make any sort of concession with the approval with regulatory bodies (at least none that invovles divesting off any assets or promising to keep certain games multiplat).

Agreed. 

It's a big buy and industry changing... It isn't anywhere close to monopoly big though. 

People who think as much have no idea. 



They are the shitheads that sued anyone if they had Saga or Candy in the name. haha, fuck these assholes.



Bite my shiny metal cockpit!