The article selected for the analysis revolves around Microsoft and its acquisition of video game publisher Bethesda, which showaces economic environment, place, and price (Browne, 2021). Economic environment refers to the array of factors, which influence the decisions of companies (Aastveit et al., 2018). In Microsoft’s case, its subscription offering allows charging customers for access to games owned by Microsoft’s subsidiaries.
Bethesda is an iconic developer of bestselling titles, which will multiply Microsoft’s revenues. This is also the reason why the financial equivalent of the purchased company – the price – exceeded 7.5 billion dollars, which is the largest gaming acquisition in Microsoft’s history. A particularly peculiar aspect is the place of the deal, as both Microsoft and Bethesda are American companies and, yet, they required the clearance of the European Commission. The reason for this is that a large number of Microsoft’s and Bethesda’s customers are Europeans, whose purchases exist within the framework of the European Union antitrust law.
Aastveit, K. A., Ravazzolo, F., & Van Dijk, H. K. (2018). Combined density nowcasting in an uncertain economic environment. Journal of Business & Economic Statistics, 36(1), 131-145. Web.
Browne, R. (2021). EU clears Microsoft’s $7.5 billion acquisition of video game publisher Bethesda. CNBC. Web.