Microsoft’s acquisition of Activision has not only upset the gaming world, but also the financial world. No wonder, given that we’re talking about a deal of nearly $70 billion, a gargantuan figure.
The news has inevitably come to the ears of David Malpass, the President of the World Bank, who has not been enthusiastic about what he considers a waste of money. During a speech at the Peterson Institute for International Economics, Malpass pointed out that the figure Microsoft intends to spend is well above 23.5 billion dollars that the richest nations of the Earth will donate over the next three years to the International Development Agency,
Microsoft is clearly not a nation, but Malpass has had much to say about it. “You should ask yourself, ‘Wait a minute, is this the best way to spend the capital?’ This will end up in the bond market. You know, a large amount of capital is destined to flow into the bond market. This creates a situation where a huge amount of capital is allocated to parts of the world already rich in capital – advanced economies – going to build again and again on the top of existing infrastructure and buildings.”
Malpass is concerned about the good of developing nations, so he would prefer that such high figures follow a very different course: “If we want to stop the flow of refugees, the malnutrition that continues to advance and so on, we should be able to get more money into the country
In fiscal year 2020 Microsoft donated services and technologies (Office 365, Azure, etc.) worth $1.9 billion to humanitarian and non-profit organisations, the United Nations and other agencies around the world. Every year, it also engages in charitable causes, but the money allocated to these purposes is not comparable to the value of the acquisition of Activision.