Analysis of the acquisiton of Activision Blizzard, Inc., by Microsoft Corporation and the potential risks on competition

Details

Supervisors

Johnen, Johannes

Faculty

Faculté des sciences économiques, sociales, politiques et de communication

Degree label

Master [120] en sciences économiques, orientation générale, à finalité spécialisée

Abstract

his Master's thesis analyzes the acquisition of Activision Blizzard, Inc. by Microsoft Corporation, a transaction valued at \$68.7 billion, marking it as the largest tech acquisition to date. The thesis investigates the potential implications of this merger on the competitive landscape of the video game industry, particularly focusing on the development and publishing of AAA games, cloud gaming, and the broader ecosystem of platforms and distribution channels. It examines both horizontal and vertical dimensions of the acquisition, assessing concerns related to market power, potential foreclosure of rivals, and the impact on consumer choice and innovation. The analysis is grounded in the context of a rapidly evolving industry characterized by significant technological advancements and shifting business models. The findings suggest that while the merger could lead to efficiencies and bolster Microsoft's competitive position, it also raises significant antitrust concerns that warrant close scrutiny from regulatory authorities. This Master's thesis provides a comprehensive assessment of the merger's potential impact on effective competition, contributing to the broader discourse on antitrust policy in the digital economy.