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Microsoft dropped a bombshell announcement this morning when it announced Xbox will acquire ZeniMax Media, which includes hit studios like Bethesda, id, and Arkane. Some have wondered if this is a scenario similar to Disney acquiring Fox, but according to a legal expert, Xbox’s Bethesda acquisition is a fundamentally different kind of deal.
Following the news of Xbox’s major studio acquisition, some commenters wondered if this deal would be subject to investigation from antitrust authorities. But whereas the Disney Fox merger was an example of horizontal integration, the Xbox Bethesda deal is a vertical integration, which is more complicated from an antitrust law perspective, and historically has not been an issue for antitrust investigators in the entertainment content space.
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