Source: CNBC Television
Activision Blizzard CEO Bobby Kotick and Microsoft CEO Satya Nadella to testify today
Jun 28, 2023 · 4m 33s
https://www.youtube.com/watch?v=1Av7JkKumGI
AND MICROSOFT CEO SATYA NADELLA ARE BOTH EXPECTED TO TESTIFY TODAY IN THE FTC'S LEGAL CHALLENGE AGAINST THE COMPANY'S NEARLY $69 BILLION MERGER. STEVE KOVACH IS HERE WITH MORE ON THIS FRONT. STEVE, IS THIS FINALLY A SITUATION WHERE WE'RE GOING TO BE LOOKING AT, OKAY, THE ANSWER TO WHETHER THIS DEAL GOES THROUGH? >> SOON, SOONER THAN LATER IT IS DAY FOUR OF FIVE OF THIS FEDERAL COURT
HEARING THAT WILL LIKELY DETERMINE, LIKE YOU SAID, THE FATE OF MICROSOFT'S DEAL TO BUY ACTIVISION AND THIS IS THE BIG ONE, GUYS, CEOs OF BOTH COMPANIES ARE GOING TO TAKE THE STAND. ACTIVISION'S BOBBY KOTICK TESTIFYING IN THE MORNING PACIFIC TIME AND MICROSOFT'S SATYA NADELLA IN THE AFTERNOON UP TO NOW, THE FTC AND MICROSOFT ARGUING OVER THE DEFINITION OF CONSOLE VIDEO GAMING AND THE CLOUD GAMING MARKETS
WE HEARD FROM MICROSOFT'S GAMING BOSS PHIL SPENCER WHO FRAMED THE DEAL NOT AROUND THE EXCLUSIVE CONSOLE TITLES BUT THE OPPORTUNITIES HE SEES IN MOBILE GAMING THAT'S THE FASTEST GROWING GAMING MARKET WHERE ALL THE REAL MONEY IS AND MICROSOFT WANTS A PIECE OF IT. SPENCER ALSO TESTIFYING MICROSOFT WILL KEEP FUTURE VERSIONS OF ACTIVISION TITLES, ESPECIALLY CALL OF DUTY ON PLAYSTATION FOR AT LEAST TEN YEARS. AS FOR
NADELLA AND KOTICK'S TESTIMONY TODAY, EXPECT THE MICROSOFT SIDE TO GET BOTH OF THE MEN TO COMMIT TO KEEPING THOSE GAMES ON RIVAL PLATFORMS AND EXPECT THE FTC SIDE TO POINT TO EXAMPLES WHERE MICROSOFT HASN'T DONE THAT WITH TWO OTHER STUDIOS IT HAS ACQUIRED IN THE PAST CLOUD GAMING WILL BE THE OTHER PIECE. NADELLA AND KOTICK WILL HAVE TO DEFEND FTC ALLEGES BUYING ACTIVISION WILL GIVE MICROSOFT
AN UNFAIR ADVANTAGE IN SUBSCRIPTION GAMING SERVICES THE SAN FRANCISCO FEDERAL JUDGE WILL DECIDE THE CASE AND WILL LIKELY REACH A DECISION BEFORE THE JULY 18th DEADLINE FOR THE DEAL ARRIVES AND, GUYS, IT IS STILL NOT OVER AFTER THAT MICROSOFT WORKING THROUGH THE APPEALS PROCESS STILL WITH REGULATORS IN THE UK WHO REJECTED THE DEAL THIS SPRING. SO, HOPEFULLY BY THE END OF THE SUMMER WE'LL GET A
FINAL ANSWER. >> THE FTC IS BASICALLY SAYING WE DON'T BELIEVE YOU WHEN YOU SAY YOU'RE NOT GOING TO DO THESE THINGS HERE IS OTHER CASES WHERE YOU DIDN'T >> THIS IS BIZARRE SO MUCH BACK AND FORTH, THERE HAVE BEEN THREE DAYS OF HEARINGS SO FAR. >> IF THEY SAY THEY'RE GOING TO DO IT, CAN'T YOU HOLD THEM TO THAT >> THEY'RE SAYING IT UNDER OATH, PHIL
SPENCER AND OFFERING SIGNED AGREEMENTS, ENFORCEABLE BY A COURT, TO PUT CALL OF DUTY ON THESE PLATFORMS. THE SONY -- THERE IS A PRERECORDED DEPOSITION FROM THE SONY BOSS JIM RYAN WHO IS THE HEAD OF PLAYSTATION, ARGUING, WELL, THERE ARE SOME TITLES THEY HAVEN'T INCLUDED ON THAT BUT EVERYONE IS FOCUSING ON THIS CALL OF DUTY THING THEY OFFERED AND -- >> SOUNDS LIKE WE'RE JUST GOING TO
KICK AND SCREAM AND SAY NO? >> BASICALLY THAT'S BASICALLY -- LOOK, SONY IS BY -- MICROSOFT DOES HAVE A POINT HERE SONY IS BY FAR THE MARKET LEADER IN CONSOLE GAMING. AND IT IS KIND OF IRONIC TO HEAR THE MARKET LEADER BY A MILE COMPLAINING THAT THEY'RE GOING TO, YOU KNOW, HAVE AN UNFAIR ADVANTAGE BY BUYING ACTIVISION SO, THAT'S WHAT'S BEING QUIBBLED OVER RIGHT NOW WE'RE
GOING TO HEAR FOR THE FIRST TIME IN DEPTH NADELLA AND KOTICK DEFEND THIS ACQUISITION AND DEFEND AGAINST THE ALLEGATIONS FROM THE FTC, WHICH ECHOES WHAT WE HAVE SEEN IN THE UK AS WELL IT IS -- DOESN'T IT MAKE SENSE THE IRONY HERE, ALSO, IS, BECKY, THE DAY THE DEAL IS ANNOUNCED A YEAR AND A HALF AGO, LINA CON, THE FTC CHAIR AND THE ANTITRUST BOSS, THEY
CAME OUT WITH THIS IDEA THAT WE WANT TO SQUASH THESE MEGAMERGERS BEFORE THEY CAN EVEN GROW. THEY REALLY WANT TO PREVENT THIS IDEA OF ANOTHER INSTAGRAM HAPPENING WHERE A FACEBOOK CAN COME IN AND BUY A COMPETITOR BEFORE THEY CAN GROW INTO THE NEXT BIG THING AND ANNOUNCED THE SAME DAY THAT MICROSOFT ANNOUNCED THIS ACQUISITION AND THAT'S WHY WE'RE SEEING SO MUCH -- >> ACTIVISION BLIZZARD IS
HARDLY INSTAGRAM. >> THEY'RE PAYING $69 BILLION, NOT $1 BILLION BUT THIS IDEA OF A MEGADEAL SCARES REGULATORS RIGHT NOW. AND, LOOK, EVEN IF THEY LOSE, WHAT WE HEAR FROM THAT -- >> MAKES THEM MAD. >> MAKES THEM MAD. WHAT WE HEAR FROM THAT SIDE IS, EVEN IF WE LOSE A CASE LIKE THIS, IT IS STILL A WIN BECAUSE -- >> WE MESSED THINGS UP. >> WE
MESSED THINGS UP WE PUT A CHILL ON M&A. WE HEAR FROM CEOs ALL THE TIME SAYING WE RECONSIDERED BUYING COMPANIES BECAUSE WE DON'T WANT THE HEADACHE MICROSOFT GAVE THEMSELVES 18 MONTHS TO CLOSE THIS DEAL, AND THEY'RE STILL FACING THIS AND RUNNING RIGHT UP TO THE DEADLINE. >> SAID THAT
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