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Microsoft is creating a new subsidiary called "Vault" that will be merged with and into Zenimax.

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Marano

Marano

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Mar 30, 2018
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Rio de Janeiro

EUR-Lex - 52021M10001 - EN - EUR-Lex

eur-lex.europa.eu eur-lex.europa.eu

Microsoft acquires within the meaning of Article 3(1)(b) of the Merger Regulation sole control of the whole of ZeniMax. The concentration is accomplished by way of a merger pursuant to which a newly created Microsoft subsidiary ('Vault') will be merged with and into ZeniMax.


A lot more insight into the deal in the link.
 
Dhruvenator

Dhruvenator

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Aug 29, 2019
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M&A person here - it's a way to continue to operate some of these businesses as limited integration companies. Consider Vault like a legal entity in name only
 
elenarie

elenarie

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Jun 10, 2018
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Yea this is basically the same approach that we are taking with Codemasters. Where there will be a subsidiary established called Codex Games that would handle the integration.

No idea what the actual legal or management reasons for these things are, though.
 

alphacat

One Winged Slayer
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Oct 27, 2017
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Vault is must be where they're planning to store Sega and Paradox too
 
ginge

ginge

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Jul 23, 2020
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T0kenAussie said:
I was hoping there was an actual vault of dormant IPs being transferred to zenimax to work on :(
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I like to think that they have a big wheel of fortune wheel with all their dormant ips on it, if a studio isnt sure what they want to do next they get to spin the 'wheel of ip' to see what they are handling next


(I would unironically like to see this be an e3 event )
 
nekkid

nekkid

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Oct 27, 2017
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Our work did/is doing something similar. Separate entity while the acquired business is gradually merged piecemeal into the main company.
 
Dhruvenator

Dhruvenator

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T0kenAussie said:
Does this mean zenimax would fall under Microsoft proper and not xbox proper in structures?
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Kinda - So MS already considers many of its acquired studios as "LIC"s - limited integration companies. These studios are to be essentially left alone, not fully integrated within the XBOX first party studio lineup. Zenimax definitely falls into this category.

By creating Vault, Microsoft could do a lot of things - some interesting and some totally boring. You can create a new legal entity prior to close to begin some of the integration work so when close does happen, it doesn't take as long to get people ramped up. They could use "vault" as a landing spot for all future acquired businesses that shouldn't be fully integrated (think publishers/not developers) Vault on its own could have 0 employees prior to zenimax OR it could have a group of employees with a specific strategic mission that lines up with zenimax's importance to MS. Maybe Vault will be where games are made for multiple platforms - not just MS/PC.

M&A is fun! haha .. and complicated
 
T0kenAussie

T0kenAussie

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Jan 15, 2020
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UnderTheKillingSun said:
The question is though, at the end of everything who does Zenimax/Bethesda report to? Phil? Satya? Nobody?
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satya probably for the time being. they still will have performance metrics. also gives them a little more wiggle room to piecemeal exclusive / multiplatform content but I'm guessing the splash screens will say zenimax and not XGS for a while longer
 
DopeyFish

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Oct 25, 2017
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T0kenAussie said:
Does this mean zenimax would fall under Microsoft proper and not xbox proper in structures?
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where the company operates doesn't matter

but it means they are going to continue to operate it as a company separate from microsoft, like linkedin or github

so in other words, it's going to remain as a separate publishing label
 
SpottieO

SpottieO

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Oct 25, 2017
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There is zero chance that Zenimax rolls up to anyone other than Phil. Establishing Xbox as its own division and then bringing in gaming acquisitions and placing them hierarchically outside of Xbox makes no sense.
 
Sargerus

Sargerus

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10k said:
The fallout of this will be huge.
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kd53tJu.jpg
 
T0kenAussie

T0kenAussie

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Jan 15, 2020
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Dhruvenator said:
Kinda - So MS already considers many of its acquired studios as "LIC"s - limited integration companies. These studios are to be essentially left alone, not fully integrated within the XBOX first party studio lineup. Zenimax definitely falls into this category.

By creating Vault, Microsoft could do a lot of things - some interesting and some totally boring. You can create a new legal entity prior to close to begin some of the integration work so when close does happen, it doesn't take as long to get people ramped up. They could use "vault" as a landing spot for all future acquired businesses that shouldn't be fully integrated (think publishers/not developers) Vault on its own could have 0 employees prior to zenimax OR it could have a group of employees with a specific strategic mission that lines up with zenimax's importance to MS. Maybe Vault will be where games are made for multiple platforms - not just MS/PC.

M&A is fun! haha .. and complicated
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i see, thanks for your help :)

yes M&A is the new hotness especially with embracer and MS being so active
 
HgS

HgS

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Dec 13, 2019
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T0kenAussie said:
Does this mean zenimax would fall under Microsoft proper and not xbox proper in structures?
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a corporate structure, beyond some legal requirements for boards, certain positions etc., isn't a legal construct with any meaning. Era et al assign way too much meaning to this stuff.

You could take the entire Microsoft org chart and make everyone from Cloud to Windows to Office report to Todd Howard and it wouldn't say anything in a legal sense about anything.
 
Camonna Tong

Camonna Tong

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Mar 2, 2018
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UnderTheKillingSun said:
The question is though, at the end of everything who does Zenimax/Bethesda report to? Phil? Satya? Nobody?
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Phil. This is practically labels like how Disney has Pixar, LucasFilm, and Marvel. XGS and Bethesda are both labels. Bethesda being it's own label is why there won't be job losses as they not integrating into XGS like Double Fine and the other acquired developers that report to Booty. Pete Hines will probably report to Phil. If not him one of the other VPs.
 
Bosch

Bosch

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May 15, 2019
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The best thing for this deal and Bethesda Studios is if they keep them separate from Xbox.
 
Dhruvenator

Dhruvenator

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Adrifi said:
That's why I said "possibly", because we don't know how deep the integration will be exactly. Bethesda could be fully integrated in 4 or 5 years for all we know.
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They would be smart not to! Phil/Matt and Satya have all come out publicly talking about the importance of leaving businesses in tact - that's the thinking with Ninja Theory, DoubleFine etc.
 
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