Enterprise Value
Activision Blizzard $53.57B
Nintendo $41.86B
EA $35.09B
George Soros's fund buys Zynga, exits Activision in Q1
New Majority Gives F.T.C. a Chance to Push an Aggressive Agenda
FTC's Lina Khan two-for-two in merger block attempts after Lockheed calls off deal
(Feb 3) Nadella - We don’t need to make any concessions to gain regulatory approval
(Feb 9) Call of Duty and “Other Popular Activision Blizzard Titles” Will Continue to Launch for PlayStation and Switch Beyond Existing Agreements
The Agencies measure market share based on projected revenues in the relevant market. i.e: Sony (platform) and Activision Blizzard (publisher) are the console market leaders in America, followed by Microsoft and EA.
The antitrust world is separated into two antagonistic camps, opposed to each other in their doctrines, and policies. The new structuralist regime,
in order to prevent big mergers, is trying to replace the consumer welfare standard with an “effective competition” standard.
FTC withdraws vertical merger guidelines
2020 guidance withdrawn to prevent industry and judicial reliance on unsound economic theories; FTC to work with DOJ to update merger guidance
Former Vertical Merger Guidelines
“These Vertical Merger Guidelines outline the principal analytical techniques, practices, and enforcement policies of the Department of Justice and the Federal Trade Commission (the “Agencies”) with respect to a range of transactions often described as vertical mergers and acquisitions.1 The relevant statutory provisions include Section 7 of the Clayton Act, 15 U.S.C. § 18, Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§1–2, and Section 5 of the Federal Trade Commission Act, 15 U.S.C. §45. Most particularly, Section 7 of the Clayton Act prohibits any merger or acquisition if, “in any line of commerce or in any activity affecting commerce in any section of the country, the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly.” This provision applies to vertical mergers, as Congress made plain in the 1950 amendments to the Clayton Act.”
Mergers often present both horizontal and vertical elements, and the Agencies may apply both the Horizontal Merger Guidelines2 and the Vertical Merger Guidelines in their evaluation of a transaction.
1.Evidence of Adverse Competitive Effects
2. Market Definition, Market Shares, Market Concentration
3. Unilateral Effects
4. Input foreclosure and raising rivals’ costs
5. Coordinated Effects
Horizontal Merger Guidelines
1.Evidence of Adverse Competitive Effects
2.Targeted Customers and Price Discrimination
3. Market Definition
4. Geographic Market Definition
5. Market Participants
6. Market Shares
7. Market Concentration
8. Unilateral Effects
9. Innovation and Product Variety
10. Powerful Buyers.
