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Is Microsoft's Acquisition of Activision Blizzard a Wise Move? – Motley Fool

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Microsoft‘s (NASDAQ:MSFT) announcement that it would be acquiring embattled gaming company Activision Blizzard (NASDAQ:ATVI) took a fair share of investors by surprise. In this segment of Backstage Pass, recorded on Jan. 19, Fool.com contributors Rachel Warren and Danny Vena discuss.

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Rachel Warren: It’s no secret that Activision Blizzard, it’s had its fair share of troubles lately. The company has been the subject of multiple legal investigations. There’s been ongoing calls for the resignation of embattled CEO Bobby Kotick.

For anyone who is wondering, Kotick is expected to remain CEO of the company through the transition according to reports by CNBC. The Wall Street Journal has reported, however, that Kotick is expected to resign once the deal goes through. We’ll see what happens there.

This $68.7 billion purchase by Microsoft is set to conclude in the company’s fiscal 2023. That deal is set to be the largest deal in tech history.

Another landmark move by Microsoft. According to CNBC, and I quote, “The deal also plays into a long-term vision for Microsoft as it competes with Meta to build technologies to create a virtual world called the metaverse. In fact, Microsoft CEO Satya Nadella was the first big tech CEO to publicly acknowledge the value of the metaverse months before Meta CEO Mark Zuckerberg. ‘Today, virtual worlds are dominated by gaming, but the hope is they expand to cater to other demographics and replace a lot of traditional social networking activity online’. Nadella said in a call on Tuesday, ‘When we think about our vision for what a metaverse can be, we believe there won’t be a single decentralized metaverse.'”

So the article says “that means Nadella sees an opportunity for many software makers to create many different virtual worlds in the future instead of one dominant company”, aka Meta, controlling the metaverse. What do you guys think of this deal? The Wall Street Journal has said the acquisition could, “Power Microsoft’s Netflix-of-gaming aspirations.”

Is there another major acquisition that you think could be on the horizon in 2022? Danny?

Danny Vena: I think it’s really interesting that they decided to say the Netflix of gaming. That sounds a little bit click-baity to me. That’s just one Fool’s opinion. I think this is a really good move for Microsoft. If you look at the success that they have had, maximizing subscriptions, look at what they’ve done with Office 365 and with TurboTax. Sorry, not TurboTax. [laughs] That was the wrong one. [laughs]

Rachel Warren: It’s that time of the year, though. [laughs]

Danny Vena: I know I’ve got taxes on the brain. I’m an accountant, so that’s how that goes.

Rachel Warren: I feel your pain.

Danny Vena: [laughs] But yeah, I mean, if you look at what Microsoft has done with 365, turned it into a subscription-based product and something that they’re garnering these continuing revenue streams that will go on forever. Yeah, I actually have heard several of the news outlets mention the potential for the metaverse. Microsoft is certainly a company that has the resources to build out a presence.

I think that might be stretching it a little bit. I’m more like what Nadella said. I think that there’s a lot of potential out there for the metaverse to be a lot of little things rather than one big thing. From the point of view of Activision, Activision had more than a decade of stellar growth. The stock went up ridiculous amounts, but that growth was already fading before the pandemic.

I think the problem with that is that the company was really dependent on those big boom and bust cycles of releasing these big new iterations of popular games. I think what Microsoft is most likely to do is find a way to turn these into subscriptions, which is something the company is really good at doing.

I think turning these assets into continuing revenue streams fits right in with what Microsoft as well. As far as what major acquisition could I see on the horizon for 2022, my crystal ball is in the shop.

I certainly would have not foreseen Activision being a takeout target. But that said, if you look at tech stocks, their values are down, their stock prices are down 50%from their highs in November. I mean, there’s so many of them.

Roku is one example that I just recently wrote about. This makes these companies a lot more digestible to these big tech companies. I would be looking at any tech company that’s down 50% or more as potentially being a takeout target.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Here is how to prepare your online accounts for when you die

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Google’s partnership with AI startup Anthropic faces a UK competition investigation

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LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

The Canadian Press. All rights reserved.

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Kuwait bans ‘Call of Duty: Black Ops 6’ video game, likely over it featuring Saddam Hussein in 1990s

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DUBAI, United Arab Emirates (AP) — The tiny Mideast nation of Kuwait has banned the release of the video game “Call of Duty: Black Ops 6,” which features the late Iraqi dictator Saddam Hussein and is set in part in the 1990s Gulf War.

Kuwait has not publicly acknowledged banning the game, which is a tentpole product for the Microsoft-owned developer Activision and is set to be released on Friday worldwide. However, it comes as Kuwait still wrestles with the aftermath of the invasion and as video game makers more broadly deal with addressing historical and cultural issues in their work.

The video game, a first-person shooter, follows CIA operators fighting at times in the United States and also in the Middle East. Game-play trailers for the game show burning oilfields, a painful reminder for Kuwaitis who saw Iraqis set fire to the fields, causing vast ecological and economic damage. Iraqi troops damaged or set fire to over 700 wells.

There also are images of Saddam and Iraq’s old three-star flag in the footage released by developers ahead of the game’s launch. The game’s multiplayer section, a popular feature of the series, includes what appears to be a desert shootout in Kuwait called Scud after the Soviet missiles Saddam fired in the war. Another is called Babylon, after the ancient city in Iraq.

Activision acknowledged in a statement that the game “has not been approved for release in Kuwait,” but did not elaborate.

“All pre-orders in Kuwait will be cancelled and refunded to the original point of purchase,” the company said. “We remain hopeful that local authorities will reconsider, and allow players in Kuwait to enjoy this all-new experience in the Black Ops series.”

Kuwait’s Media Ministry did not respond to requests for comment from The Associated Press over the decision.

“Call of Duty,” which first began in 2003 as a first-person shooter set in World War II, has expanded into an empire worth billions of dollars now owned by Microsoft. But it also has been controversial as its gameplay entered the realm of geopolitics. China and Russia both banned chapters in the franchise. In 2009, an entry in the gaming franchise allowed players to take part in a militant attack at a Russian airport, killing civilians.

But there have been other games recently that won praise for their handling of the Mideast. Ubisoft’s “Assassin’s Creed: Mirage” published last year won praise for its portrayal of Baghdad during the Islamic Golden Age in the 9th century.

The Canadian Press. All rights reserved.

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