Full breakdown of Microsoft acquiring Activision-Blizzard for ~$70B+ | E1363

This Week in Startups

Jason Calacanis

Technology

4.4 • 1.3K Ratings

🗓️ 19 January 2022

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

Microsoft has announced its intention to make the largest tech acquisition ever by buying Activision-Blizzard for ~$75B ($68.7 when you net out Activision's cash). This is Microsoft's 3rd major gaming acquisition as it attempts to build the “Netflix for Gaming" with its Game Pass service.

We cover the details of the deal: what the combined company will look like, how this fits into Microsoft's metaverse strategy, Microsoft's commitment to change the Activision-Blizzard culture, the $3B “breakup fee” that Activision is on the hook for if deal falls through, the potential challenge from the FTC and more!

(00:00) Jason & Molly introduce the show
(01:48) The terms of the Activision-Blizzard acquisition
(03:17) Satya Nadella's Metaverse strategy
(04:52) Microsoft's growing gaming universe and subscription offering
(07:05) Key titles across Activision-Blizzard's gaming units
(08:34) Vanta - Get get $1,000 off automating your SOC 2 at https://vanta.com/twist
(09:56) Game Pass metrics
(10:44) Activision Blizzard's recent history of sexual harassment scandals
(11:40) Will the FTC allow the acquisition to go through?
(13:41) The unique $3B breakup fee that was worked into this deal
(15:45) Why the breakup fee may be linked to the harassment investigations
(17:55) Dataiku - Create transparent, repeatable, and scalable AI and analytics programs. Visit https://dataiku.com to learn more.
(18:53) Why Jason doesn't think this deal will be struck down for antitrust
(21:45) How Lena Khan may approach this differently than previous FTC chairs
(22:45) Could regulation sabotage American competitiveness?
(26:52) Should American companies be prized if they are actively avoiding taxes?
(28:42) Ourcrowd - Check out the deal of the week at https://ourcrowd.com/twist
(29:45) Molly and Jason play "Armchair Corporate Development"
(37:54) Jason and Molly take an audience question - Can there be another Google?

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FOLLOW Molly: https://twitter.com/mollywood

Transcript

Click on a timestamp to play from that location

0:00.0	Hey, everybody. Hey everybody. It's gonna be a great full-new show. Molly is back
0:05.8	From her coronavirus
0:08.5	Vacation I lived you survived your back you lasted eight days. You felt terrible
0:14.0	You know on the ninth day already calling in sick in the second week a really unbelievable
0:20.2	Really your back that's all that matters
0:23.4	Right up top the big news story of
0:26.8	2022, I mean
0:29.3	This may remain the biggest tech story of the year. It's certainly
0:35.7	For crying out loud Microsoft announced that it's buying the troubled and yet historic game studio
0:42.1	Activision Blizzard for 69 billion dollars. We think it's like 75 billion all-in that it'll end up being the biggest tech acquisition of all-time
0:52.1	That or regulators let it go through
0:54.1	We'll talk about that as well stick with us. It's gonna be a great show
0:59.3	This week in startups is brought to you by
1:02.8	Vanta compliance and security shouldn't be a deal breaker for startups to win new business
1:09.0	Vanta makes it easy for companies to get a sock to report fast
1:13.4	Twist listeners can get $1,000 off for a limited time at vanta.com slash twist
1:20.2	Data IQ allows companies to leverage one central solution to design deploy and manage AI and analytic applications
1:29.2	Visit data IQ to learn more and
1:32.3	Our crowd helps you invest early in pre IPO companies alongside professional VCs
1:38.6	If you're interested in investing you can join our crowd for free at ourc
1:44.8	owd.com slash twist
1:48.5	Okay, Microsoft has announced they would be acquiring Activision Blizzard in an all-catch deal for 75
	...

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