Why is Activision acquiring King for ~6 billion dollars? What is the benefit for the company?
King is a foreign firm so Activision can use money that was mostly sitting in low return bonds (and didn't have many other legal uses without paying a large tax bill). King makes money, so Activision will gain King's earnings (about $500 million last year). Activision gets experienced mobile deve…
The Short Answer
King is a foreign firm so Activision can use money that was mostly sitting in low return bonds (and didn't have many other legal uses without paying a large tax bill). King makes money, so Activision will gain King's earnings (about $500 million last year). Activision gets experienced mobile developers and marketers which they can combine with their own very well known gaming assets to hopefully create the next big thing in mobile gaming. Activision gets access to a massive userbase who are different from their typical customer.
Analysis
Key Concepts: Activision, king, money
This explanation focuses on activision, king, money and spans 87 words across 4 sentences. At 21% above the average History explanation (72 words), this is one of the more thorough answers in this category, reflecting the complexity of the underlying question.
What This Answer Covers
The explanation opens with: “King is a foreign firm so Activision can use money that was mostly sitting in low return bonds (and didn't have many oth” It then elaboratesultimately building toward a complete picture across 4 connected points.
How This Compares in History
Ranked #166 of 500 History questions by answer depth (top 34%). This falls in the detailed tier — above average depth. The explanation goes beyond surface-level but keeps things accessible.
Frequently Asked Questions
Is there a simple explanation for why activision acquiring king for ~6 billion dollars? what is the benefit for the company?
King is a foreign firm so Activision can use money that was mostly sitting in low return bonds (and didn't have many other legal uses without paying a large tax bill). King makes money, so Activision will gain King's earnings (about $500 million…
How detailed is this explanation compared to similar History questions?
This is an above-average answer at 87 words, ranked #166 of 500 History questions by depth. The key concepts covered are activision, king, money.
What approach does this answer take to explain activision acquiring king for ~6 billion dollars? what is th?
The explanation uses direct explanation across 87 words. It is categorized under History and addresses the question through 1 analytical lens.