Fresh from a layoff bloodbath that cost over 2,500 jobs, Microsoft is already thinking about dropping the big bucks on more acquisitions
The business world stops for no one, I suppose.
Businesses don't care about their employees beyond their output.
That’s because employees are seen as a liability, while holdings are seen as value.
Basically, employees need to be paid, so having a lot of employees hurts your company value. But owning immaterial things helps company value, because you don’t need to pay for ideas beyond the initial investment.
So headlines like these are common any time a company is looking to boost their stock. Lay off a bunch of employees to reduce cash out, use that freshly gained cash to buy intellectual properties (or buy the companies that own that IP) and then sit on the IP because actually using it would require employees like the ones you just laid off. You don’t care about actually leveraging the IP, because simply owning it is what gives you the value bump. You’re not worried about income from those IPs yet, because you’re just trying to make the company larger with the existing cash you have access to.
They are just buying IP and killing the talent?
I smell microshit and Nokia repeat
Regulators are too busy doing corruption?
I swear they approved these deals subject to conditions.
Things are about to get a whole lot less regulated too. I hope you like poison in your drinking water!
Regulation? In the US?
Not in this timeline.
surely not in my cuntry, boy
Microsoft sees Sony with many in-house developers who create AAA hype and profit, like Naughty Dog or Guerilla Games, and they want the same. But instead of growing their own teams, like Sony did, they are buying any reasonably sized developer with the hope that the purchase doesn't affect the final product. Microsoft has been very hands off with the studios that it buys, except Bethesda because Todd needs a babysitter, which reflects this approach of owning but not controlling the studio.
Microsoft doesn't seem to think that firing the people who make the games we love, like Tango Softworks and Arkane, will cause any harm to their brand because they are the monolith Microsoft.
They break the conditions and pay a fine a fraction of the size of the acquisition itself.
Even so any progress the government made is going to evaporate days after the Orange Idiot takes office
I recently found out Nokia required Nokia phones. so we've got that going for us, which is nice.
Acquire studios
Don't make any new games
What's this strategy is called?
Monopoly
Stock market.
Say the line Bart!
Embrace, Extend, Extinguish
They unfortunately forgot the second step and went straight the extinguish.
The march towards three megacorps running the entire economy continues now that Donnie’s back. It was nice having four years of resistance to unfettered acquisitions.
My company just did the same thing. Just layed off 15% of staff because of some bad quarters but is now looking into mergers and acquisitions because they think/know the senile microphone abuser will let tech consolidation run wild.
Capitalism forces companies to make stupid fucking decisions?!?! shocked Pikachu face
Scum. Learn to code, Microsoft.
Wait… if corps are people, have they now got anorexia?
OOO HYEAH IM ACQUIRINGGGGGGG
From Bloomberg
“We definitely want to be in the market, and when we can find teams and technology and capability that add to what we’re trying to do in gaming at Microsoft, absolutely we will keep our heads up,” Spencer said. Still, there’s nothing “imminent” and very large deals are probably off the table at present as the company is spending a lot of time absorbing Activision Blizzard employees, he said.
