I think we are too quick to throw the “government won’t allow it” thing out there when it comes to acquisitions. Is there any law or historic precedent a transaction like that to be blocked by the government?
Yes, the US Government denied Broadcom acquisition of Qualcomm over security concerns, and Qualcomm falied to acquire NXP because the Chinese government stalled it since foreign companies who make a big profit share over there must go through their regulatory system.
EU which is considered harsh with big companies would likely block because it would grant an foreign entity a lion’s share of the overall market or the country’s industry.
If there’s anyone big Microsoft could buy, it has to be a local company as it wouldn’t be at odds much, or… a second option could be looking for one in Japan as they have plenty, but still it would have to go through a regulatory process, it’s not impossible to buy a japanese company, it’s a legend, but they have some kind of cateogory tier system introduced last year to avoid mass acquisitions/shares from foreigners.
Even if it’s not security, they could scrutinize it, Microsoft had its fair share of issues with anti-trust, and these companies represent a majority of an industry with huge value, so it is possible that they could deny it.
I know this will get laughed off but I’m hearing Xbox is acquiring TT Games, Monolith, Netherelm, Rocksteady, IOI and Avalanche. You all know I follow this stuff super close and I speculate all the time, this is not that and it’s not something I’d post without being quite confident. Bookmark this post.