A year and a half ago, Microsoft announced that it wants to acquire Activision Blizzard. With an acquisition value of nearly $69 billion, it would not only be Microsoft’s largest acquisition, but also by far the largest deal ever made in the gaming industry. After the acquisition, Microsoft would also get a number of huge franchises in one fell swoop, from Call of Duty and Crash Bandicoot to Diablo and World of Warcraft.
The deal drew criticism almost immediately, from competitors, Sony and regulators alike. They were concerned that Microsoft would gain too much power after the acquisition and could abuse that position to hinder competition. The viability of the deal was uncertain because of that opposition: from the US FTC who did everything they could to stop the takeover to the British CMA which even completely blocked the takeover.
In recent weeks, the matter has gained momentum and Microsoft and Activision have now entered calmer waters. The FTC lost its federal lawsuit and the CMA subsequently turned out to be open to negotiations again. Microsoft and the CMA have now paused their appeals to continue discussing the deal. This makes it increasingly likely that Microsoft’s billion-dollar deal will be completed in the coming weeks and months.
In this article we discuss the events of the past few weeks. We look at the concerns that regulators had, the lawsuit between the FTC and Microsoft, the court’s conclusions and what will happen in the coming weeks in anticipation of the UK CMA.
All studios owned by Xbox, including those owned by Activision Blizzard. Source: @Klobrille
2023-07-23 04:00:00
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