The World Bank criticized Microsoft for wasting money to buy Activision-Blizzard, so it should give $69 billion to the poor

Bank Global Governance believes that the acquisition of Activision-Blizzard is likely to bring a spearhead of private investment to countries with more difficult financial backgrounds.

David Malpass – World Bank Administrator – criticizes Microsoft’s acquisition of Activision-Blizzard for $69 billion. That money, he said, could very well be spearheading the private sector into struggling finances in poorer countries.

Malpass questioned whether the deal was the best allocation of capital, and pointed out that a large amount of capital would go into the bond market. Malpass is not directly criticizing Microsoft, he is referring to Microsoft’s ability to simply access huge amounts of capital when poorer countries do not have similar loans to fuel their innovation and development. .

He marveled at the scale of Microsoft’s $69 billion acquisition of Activision-Blizzard because it far exceeded the $23.5 billion cash contribution agreed in December by more affluent nations to the Community Association. At the International Development and Innovation Council, the Global Bank’s fund is dedicated to the poorest countries – about $8 billion a year (over three years).

Microsoft’s acquisition will cause a large amount of capital to be distributed among advanced financials, further building on already innovative and thriving real estate and infrastructure, and pre-existing confidence, for example. Malpass is lovingly asking rich countries to rein in bond markets to free up loans for other reasons.

It is true that what you say may sound reasonable, that the market is run in a way that makes the wealthy companies rich does not stop there, but in the case of Microsoft’s deal it was a complete transaction. in cash, consuming about 53% of their cash hoard. That means monetary policy has no significant impact on the deal.

Summary of main ideas:

– David Malpass – Global Bank Administrator – criticizes Microsoft’s acquisition of Activision-Blizzard for $69 billion.

– He added that the money is most likely invested in the struggling finances of poorer countries.

– He criticized Microsoft’s ability to simply access huge amounts of capital when poorer countries do not have similar loans to promote their innovation and development.

Source MSPowerUser compiled GVN360