Microsoft boss plays down potential Activision Blizzard buyout block

Satya Nadella has downplayed the likelihood of Microsoft’s enormous $69bn Activision Blizzard buyout being blocked by the US Federal Trade Commission.

In an interview with the Financial Times, Nadella said the deal should be viewed in the context of the video games industry market – where Microsoft is not top dog.

Far from gaining a monopoly, he suggested, Microsoft would simply be a “big” player in a “fragmented” market.

When the deal is expected to be completed next year, Microsoft will be valued third in terms of video games industry players – behind both Sony and Tencent.

“At the end of the day, all the analysis here has to be done through a lens of what’s the category we’re talking about,” Nadella said. “And what about the market structure? Even post-this acquisition, we will be number three with sort of low teens [market] share, where even the highest player is also [in the] teens [for market] share. It shows how fragmented content creation platforms are. And so, that’s the fundamental category. Yes, we will be a big player in what is a highly fragmented place.