Microsoft Acquisition Deal

Microsoft Acquisition Deal

Microsoft has acquired Activision Blizzard for $69 billion in recent days, after the buyout was finally approved. In the UK and US, monopolies are not legal. The UK tried to regulate the deal, and originally blocked it. Now, however, they are allowing the deal. Microsoft is doing what it usually does to grow, in which they buy out rival companies and competition to better benefit themselves; they are becoming a monopoly. Big titles they have obtained are Candy Crush, World of Warcraft, Call of Duty and more. Buying these companies out means the Microsoft has completed Horizontal Integrations.

A monopoly is when one business owns the whole industry. An example of a monopoly is Royal Mail, and their dominance on the mail industry in the UK. Another example is Google, who has a monopoly on search engines. In monopolies, there is no competition, as they control the market on their own; they can also control ideologies, and the way people think. There is less innovation in cases of monopolies and less competition.

If there is no Sony and Nintendo, Microsoft is now a monopoly of the videogame industry, and they can control the price of everything.

Vertical Integration, Horizontal Integration

Vertical integration is the idea that a company purchases all levels of production of a product. Horizontal integration is the idea that companies buy out their competitors in the same industry. 

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