3 ms·
Yes, both companies have offices around the globe, with corporate entities all over the place. As those have to operate within the laws of the countries they're
by capableweb 3y ago
Yes, both companies have offices around the globe, with corporate entities all over the place. As those have to operate within the laws of the countries they're incorporated in, if they get blocked by some local watchdog, the acquisition wouldn't be able to be completed in that country.
More so, the merger is also discussed in the EU in general, which is a bigger market than just the UK alone, and if the acquisition gets blocked in the UK, EU watchdog will surely use that block as prior material for doing a EU-wide block.
Hence Microsoft is lobbying both the UK itself and Europe wide for making the acquisition go through.
Of course, even if the acquisition gets blocked everywhere but in the US, the US counter-part can still be acquired, but not sure how much sense that would make, they'll probably end up not going through with it at all in that case.
- Firmwarrior 3y agoIf the US part has all the talent and all the profit, seems like that'd still be a pretty viable move, wouldn't it?
- nozzlegear 3y agoOne would think the US part owns all of the IPs as well.
- nonethewiser 3y agoSeems like the main thing of value at this point. It would be great to get rid of the toxic bureaucracy milking the IP.
- fckthisguy 3y agoWhy would the US part ha e all of the talent? Are/were Activision's development teams based solely in the US? I thought they had devs elsewhere too. Might make sense if their EU/UK offices were mostly admin.
- capableweb 3y agoI don't think the US has all of neither, but especially not revenue. Asia tends to be the biggest market, with the US being the second and EU third. Usually, US has maybe half of the profits as the Asia counterpart, while EU has half of that. So if the acquisition gets blocked in the EU, they'll miss out on a ton of revenue, for sure. Not to mention the operational overhead of actually operating the machinery when the machinery is banned in the EU but not the US.
- bastardoperator 3y agoYou can see that games in other highly populated regions sell for much less. This is the 7th most popular game on steam that isn't free to play. https://steamdb.info/app/252490/ https://steamdb.info/app/252490/ 39.99 in the US, 22-23 dollars in China and India. In indonesia the game sold for as little as 13 cents a license. It is slightly higher in the EU and UK but by very little. In this case 24% of all players are American. The UK is 2%. So even with a slightly higher price, they're not getting anywhere close to the revenue that US consumers are generating. Russia has 10% of the player population and the game sells for 13 dollars. I don't think the population correlates to revenue when the game in nearly every market is going to see for less, or attract much less players.
- capableweb 3y agoAccording to sources gathered by Statista, Asia Pacific is the largest market for gaming: https://www.statista.com/statistics/539572/games-market-revenue-by-region/ https://www.statista.com/statistics/539572/games-market-reve... (in billion U.S. dollars) - Asia Pacific - 87.9 - North America - 48.4 - Europe - 32.9 - Latin America - 8.4 - Middle East & Africa - 6.8
- nonethewiser 3y agoThat’s not the question. The question is what share of revenue it is for Activision. Edit: found the numbers here https://investor.activision.com/news-releases/news-release-details/activision-blizzard-announces-fourth-quarter-and-2022-financial https://investor.activision.com/news-releases/news-release-d... Americas: 1,211 Europe and Middle East: 742 Asia Pacific: 381 Total: 2,334 So Asia is 16%.
- WorldMaker 3y agoSome of Microsoft's top game development studios, specifically right now, Rare and Playground Games are based in the UK and contribute at least some of the profit and arguably a lot of talent. (Microsoft has a really interesting history of UK game development teams, going way back, including ones they ultimately shut down such as Lionhead.)