Description: Big Tech giant Microsoft wants to grow bigger. Tuesday of last week Microsoft announced it is acquiring video game maker Activision in a cash deal totaling almost $69 billion. Activision’s products offer an advantage to Microsoft in the emerging virtual world. Some U.S. regulators are signalling, however, that they may take a hard look at yet another consolidation in the tech space.
Date: January 18, 2022
1) How many of your classmates are active in the gaming world? What are the most popular choices?
2) Why would a regulator be concerned about Microsoft acquiring Activision?
3) Illustration 12.4 of Wiley’s Financial Accounting: Tools for Business Decision Making provides a graphic illustrating the accounting guidelines for various strategic investments by companies. In which category does Microsoft’s investment in Activision fall?