Recent court proceedings involving the FTC and Microsoft have inadvertently brought to light some intriguing possibilities concerning acquisitions in the gaming world. An email from Phil Spencer, the head of Xbox, from 2020 offers invaluable insights into Microsoft’s prospective acquisition targets.

FTC v Microsoft Trial: The Background

At the heart of the court clash between the FTC and Microsoft is the latter’s intent to acquire Activision Blizzard. The FTC aims to prevent this acquisition. Such high-profile legal encounters often see inadvertent revelations of confidential company information, and this case is no different.

Phil Spencer’s Email: A Treasure Trove of Information

An email, dated 2020, penned by Phil Spencer and subsequently leaked during the trial proceedings, offers a candid look into Microsoft’s acquisition aspirations. The email, accessed by The Verge, sheds light on the companies that Microsoft had set its sights on. Most notably, Spencer referred to Nintendo as the most appealing gaming company that Microsoft could potentially acquire.

However, what’s equally intriguing is an offhand remark towards the end of the email. Spencer notes that Microsoft’s Board of Directors has perused detailed write-ups on both Nintendo and Valve. Furthermore, they seemed to be “fully supportive on either if the opportunity arises.”

While the bulk of the email predominantly focuses on Nintendo, the mere mention of Valve suggests that the prospect of acquiring Valve was actively discussed within Microsoft’s corridors. Although Valve wasn’t the primary target when compared to Nintendo, it undeniably held a place on Microsoft’s acquisition radar.

Valuation Details: An Analytical Perspective

Another leaked snippet, highlighted by industry expert Piers Harding-Rolls, offers an analysis of the estimated valuation of various gaming giants. In 2021, Microsoft pegged Valve’s valuation at approximately $6.5 billion. In contrast, Nintendo’s worth was estimated at a more substantial $15.1 billion. Leading the pack was Tencent, with a staggering valuation of $32.8 billion.

Conclusion

The world of gaming is rife with collaborations, mergers, and acquisitions. As companies continue to expand and diversify, the quest for strategic acquisitions remains paramount. The recent revelations from the FTC v Microsoft trial underscore this ongoing trend. While the future remains uncertain, one thing is clear: the gaming industry is in for some dynamic shifts and potential collaborations. Time will tell how these speculative acquisitions might reshape the gaming landscape.

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