Achievement unlocked
Microsoft powers up with Activision
Good morning, avid gamers. This is your Stock Market Rundown for October 19th, 2023. Thanks for plugging in. Let’s get going:
TODAY’S TOP STORY: GAME ON 🎮
Crash Bandicoot and Clippy just became coworkers. Nearly two years after the deal was announced, Microsoft has finally closed its $69 billion acquisition of video game maker Activision Blizzard.
It’s the biggest deal in the history of the gaming industry, and hands Microsoft ownership of top franchises like Call of Duty and World of Warcraft. Execs are probably toasting with Mountain Dew Code Red in crystal champagne flutes.
To consummate the deal, Microsoft lined up approvals from antitrust authorities in more than 40 countries. But then they had to face the final boss: the US Federal Trade Commission.
The FTC sued to stop the deal, fearing it would harm competition and hurt gamers. (Bet you never thought the government cared about gamers, other than the FBI agent surveilling your Discord server.) After hearing testimony from both CEOs, a federal judge sided with Microsoft.
Activision’s blockbuster franchises like Overwatch 2 and Diablo IV beef up the content library for Microsoft’s Xbox Game Pass subscription service. That lets them better face off against Sony’s Playstation in the battle royale of the Best Buy aisle.
As for Activision Blizzard CEO Billy Kotick, he had 400 million reasons to want this acquisition to close. Thanks to his stock ownership, this deal is a nine-figure windfall for him. Good game.
SO WHAT ELSE IS GOING ON?
What diet? PepsiCo raised its 2023 profit forecast, as customers are happily swallowing price increases on Cool Ranch Doritos and Cucumber Lime Gatorade.
Dreaming of a retirement condo in Fort Myers or Sarasota? Better bring a bucket. Insurance premiums on Florida homes are skyrocketing due to hurricanes.
The parent company of Louis Vuitton reported a sales slowdown as Chinese spending moderated. If you wanna help ‘em out, consider a $530 beach towel—you can really never have too many beach towels.
Frugal youth: a Bank of America poll found that GenZ Americans are coping with inflation by cooking at home rather than dining out, and paring back clothes shopping. Meanwhile, Boomers actually upped their spending by 5%. Who’s eating avocado toast now, Boomers?
That’s it for today, my friends; see you bright and early tomorrow morning. Yours in capitalism, The Axe