After facing several hurdles, Microsoft’s acquisition of Activision-Blizzard has finally made some progress. The US$69 billion mega deal is being reviewed by authorities in several countries, including the EU, for potential competition concerns.
The recent positive statement from the British Competition and Markets Authority (CMA) is a significant step forward.
According to a press release from the CMA, the authority has updated its preliminary findings and concluded that the overall transaction would not create a significant impediment to competition in console games in the United Kingdom.
This is a positive sign for Microsoft and a major development in the ongoing saga of this mega deal. One of the major concerns surrounding this acquisition has been the potential exclusivity of Call of Duty for the Xbox console.
Competitor Sony fears that Microsoft would gain an unfair advantage if Call of Duty was withdrawn from the PlayStation. However, the CMA has stated that Microsoft would not benefit from such an action, as the cost of withdrawing Call of Duty from PlayStation would outweigh the benefits.
While this is not the final report from the CMA, this interim result is a significant step forward for the deal. The CMA’s final report is expected on April 26th, giving those involved the opportunity to present new evidence.
This positive review from the CMA could pave the way for the mega deal, but it remains to be seen what conclusions other countries and institutions will come to.
The US Federal Trade Commission, in particular, could prove to be the biggest hurdle for the deal, as it has indicated that it may try to legally prevent the acquisition.
Discussion about this post