Microsoft’s takeover of Activision Blizzard continues to experience twists and turns. After having fought the takeover vehemently, Sony would now be open to negotiation. Behind this change of position, a secret flight to Seattle.
Legal battles, political battles, the international scene and even secret flights and last-minute negotiations: the record takeover project of Activision Blizzard by Microsoft sometimes looks like a real spy movie.
The last chance negotiation?
Joost van Dreunen, a university professor of commerce in the United States, was able to obtain exclusive information on one of the latest developments in the case. A Sony team would have taken one of the firm’s private jets to fly to Seattle, where Microsoft and Xbox are headquartered. This is the first flight of its kind in 18 months and it has since been confirmed by the private jet tracking applications that have caused so much ink to flow in recent months. It should be noted, however, that the Bungie studio, acquired by Sony in 2022, is also in the region.
According to Joost van Dreunen, the challenge of this negotiation would be for Sony to obtain access to the license call of duty ” in perpetuity », that is to say without time limit. The firm previously refused to sign a contract with Microsoft promising it access to the famous franchise for 5 years and then 10 years. A contract signed by Nintendo and that Valve did not consider necessary.
For Microsoft, the signing of such an agreement with its number one competitor in the game console market could greatly facilitate ongoing negotiations with the European Union and especially the United Kingdom. The latter suggested to Microsoft the complete separation of the activity call of duty of the takeover project, but had shown itself to be open to this type of agreement signed with competitors. A very rare opening for the British authority, and therefore an opportunity for Microsoft.
A big challenge for PlayStation
For Sony, the challenge is to ensure good access to the franchise, whether the takeover project succeeds or not. As it stands, and without a signed agreement between Microsoft and Sony, the PlayStation manufacturer could really lose access to call of duty on its platform when it was given the opportunity to secure its access for 10 years. As Joost van Dreunen notes, if Microsoft follows the CMA’s recommendation and ends up separating the business call of dutyfrom the rest of Activision-Blizzard, the market would end up with a new independent company tasked with call of duty . This new company would undoubtedly be keen to make new exclusivity agreements, at leaston additional content (DLC) of future gamescall of duty. And, on this kind of auction, Sony would be poorly armed against a still very determined Microsoft.
Sony would also probably like to avoid too much involvement in the lawsuit between the FTC and Microsoft. The two video game giants have been battling for several weeks to determine which confidential documents Sony, and perhaps juicy for Xbox, will have to reveal at trial. Becoming Microsoft’s ally on the file would undoubtedly help to calm this battle.
Activision still very confident
On the sidelines of the announcement by the United Kingdom of its fears on the takeover project, the boss of Activision Blizzard, Bobby Kotick, has sent an internal memo to his teams by being very confident. The man accused of threatening a subordinate with death and covering up harassment cases at the company explains in this memo that preparations for the integration of Teams into Microsoft will continue.
As we continue to prepare for closing, you will begin to receive notifications or requests for information from your colleagues on the integration planning team. This is all part of the normal onboarding process to prepare for business continuity on the first day after closing the deal.
One thing is certain, this memo and Microsoft’s negotiations show that the two companies are not ready to abandon their merger project. The file should evolve greatly in the coming days.
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