This week, there was a rumor going around with Microsoft planning to offer $16b to buy Valve Corp., the private owner of Steam gaming platform. As a longtime Steam user from my college days, I am really, really skeptical it’s going to happen for various reasons.
First, Microsoft closed its $68b purchase of Activision Blizzard last year, after successfully fighting off a legal challenge from the Justice Dept. When you have a major company purchase like this, the buyer and seller needs time to integrate their operations, including ongoing projects/developments, employees, internal communication systems, payroll, etc. If this integration completes within five years, that would be fast in my view. So based on the timeline alone, Microsoft isn’t going to swallow a second gaming company like Valve anytime soon.
Second, if you’re an investor, you know that the hottest buzz surrounds AI, and Microsoft has done its part by backing OpenAI and integrating its AI products and services. Since investors and senior managements are prioritizing AI integration, why would they take a detour with Valve? Again, the timing isn’t right for Microsoft.
Third, Valve isn’t losing money. Its Steam platform brings in plenty of revenues, and the company will soon release a second version of its Steam Deck portable gaming system. Frankly, $16b might not be enough to convince its private owners to sell the company.
Based upon these considerations, I don’t see any momentum from Microsoft to buy Valve., or the private ownership to sell. This rumor sounds like a dream with no basis in reality.
Musings of an Amused Writer 