Microsoft recently announced that it has purchased Activision Blizzard for $68.7 billion. The deal caused shock waves in the gaming industry and the stock market. For example, Sony’s market capitalization dropped by nearly $20 billion a day after the news. Finally, in a somewhat unorthodox move, the World Bank had to share its views on the big deal.
According to a report by Reuters, World Bank President David Malpass criticized Microsoft’s takeover of Activision Blizzard as “a questionable capital allocation at a time when poor countries are struggling to restructure debt and grapple with COVID-19 and poverty.”
Malpass said at an online event: “It makes one think. Is this a good allocation of capital?’ You know, a large amount of capital is flowing into the bond market. A very small part of the world has access to this type of bond financing, while too much capital is clogged in developed countries, especially central bank reserve assets used to support long-term bond purchases. Refugee flows, ongoing malnutrition. To address this, more money and growth needs to flow into developing countries.”
Malpass criticized the financial structure of developed countries, but avoided mentioning the countries that did not contribute enough to the World Bank.
Based on the entire conversation, it is possible to say that Malpass wants companies like Microsoft to invest in the developing world instead of spending tens of billions of dollars to acquire other companies. What do you think about this? You can share it in the comments. . .
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