Microsoft's Activision-Blizzard Acquisition Clears Major Hurdle From UK Regulatory Body
Image Source: GamePressure
As Microsoft seeks to acquire Activision Blizzard with a $69 billion buyout, the company has faced many obstacles, particularly in the US, the UK, and the EU. The Federal Trade Commission in the US filed an antitrust lawsuit to block the deal, while the EU has expressed doubts about the acquisition. However, in a major turn of luck, the UK’s Competition and Markets Authority has dropped its key concern.
The CMA’s concerns were centered around the Call of Duty franchise. They believed that the deal would turn the popular FPS games into a Microsoft exclusive. The company countered that claim by showing a deal with Nintendo and Nvidia to bring the games to their console and cloud gaming platforms.
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Image Source: GameSpot
In light of this new evidence, the CMA announced, “While the CMA’s original analysis indicated that this strategy would be profitable under most scenarios, new data (which provides better insight into the actual purchasing behaviour of CoD gamers) indicates that this strategy would be significantly loss-making under any plausible scenario. On this basis, the updated analysis now shows that it would not be commercially beneficial to Microsoft to make CoD exclusive to Xbox following the deal, but that Microsoft will instead still have the incentive to continue to make the game available on PlayStation.”
This change of course may be enough to inspire the EU to accept the deal. The CMA has until April 26 to announce their final decision. Even if the EU and the CMA approve the deal, Microsoft and Activision still have some hurdles to get past. Sony, despite receiving a similar offer to bring the entire Call of Duty franchise to its platforms, remains strictly opposed to the deal, and the FTC’s lawsuit is still in place. Many in the gaming and market communities have faith that the deal will go through, as shares of Activision rose after the CMA’S latest announcement. Other countries that have approved the deal include Chile, Brazil, Serbia, and Saudi Arabia.
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