Recent developments in the ongoing acquisition of Activision Blizzard by Microsoft have brought both positive and challenging news. The US court has rejected the Federal Trade Commission’s request and approved Microsoft’s $69 billion acquisition, leading to progress in the deal. However, the United Kingdom’s Competition and Markets Authority (CMA) is presenting hurdles for the acquisition, prompting negotiations between Microsoft and the CMA.
Microsoft has previously made commitments to provide new Activision Blizzard Titles for 10 years
Microsoft President Brad Smith announced that the CMA has agreed to enter negotiations with Microsoft regarding the acquisition of Activision Blizzard. Microsoft aims to address the concerns raised by regulators and assure the CMA that the acquisition will not pose any issues for the British market. Although Microsoft disagrees with the CMA’s concerns, it is willing to explore ways to amend the transaction to alleviate these concerns.
To facilitate the negotiation process, Microsoft, Activision, and the CMA have jointly submitted a request to the Competition Appeals Tribunal, agreeing to suspend litigation in the UK. The parties involved recognize that it is in the public interest to prioritize resolving the issues at hand.
It is anticipated that Microsoft may offer preferential treatment to British players in the realm of cloud gaming based on previous statements made by both parties. With ongoing discussions, Microsoft aims to reach an agreement with the UK Market Regulatory Authority and secure approval for the Activision Blizzard acquisition in the near future.
The UK Competition Authority has experessed its readiness to consider any proposed restructuring deal from Microsoft to address the concerns outlined in their final report. In April, the British CMA initially blocked the transaction, citing potential risks to the emerging cloud gaming market. However, the European Commission approved the deal in May, deeming Microsoft’s concessions on cloud gaming sufficient.
Microsoft has previously made agreements with several cloud gaming service providers worldwide, including commitments to provide games, including Activision Blizzard titles, for at least ten years.
With the current merger agreement set to expire on July 18, Microsoft is eager to push the deal forward. Failure to secure an extension beyond that date could result in a handling fee of $3 billion for Activision Blizzard. The future of the deal hinges on addressing the concerns raised by the CMA and obtaining their approval, which will determine the path forward for Microsoft’s acquisition of Activision Blizzard.
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(Via)
