Potential Multi-Billion Dollar Deal: UK on Brink of Historic Microsoft-Activision Blizzard Acquisition

Microsoft is currently in talks with the UK's Competition and Markets Authority (CMA) regarding its planned acquisition of Activision Blizzard. This highly anticipated $69 billion deal has garnered significant attention within the gaming industry, as Microsoft seeks to bring popular franchises like Call of Duty, World of Warcraft, and Diablo under the Xbox umbrella. While the purchase is going through the necessary regulatory processes, there has been both support and opposition concerning the potential impact of the completed deal on the gaming industry as a whole.

However, the Microsoft/Activision Blizzard merger faced a significant hurdle when the CMA voted against the deal in April, citing concerns about Microsoft gaining a monopoly in the cloud-based gaming sector. This decision faced criticism from UK Chancellor of the Exchequer Jeremy Hunt in the following month. In response, Microsoft has appealed the CMA's ruling, highlighting five grounds of misinformation and claiming that the authority failed to consider the company's proposed measures to address the concerns raised.

As per VGC's report, the CMA has decided to temporarily halt its legal proceedings regarding the Activision Blizzard acquisition to engage in discussions with Microsoft. Earlier today, a spokesperson for the CMA declared that the UK regulatory authority is open to considering any proposals from Microsoft that address its concerns pertaining to cloud gaming. All parties involved have collaborated to issue a joint statement to the Competition Appeal Tribunal, agreeing to suspend all litigation until a resolution is reached.

Microsoft is on the verge of finalizing its acquisition of Activision Blizzard outside of the UK. Today, a judge ruled in favor of Microsoft in its legal dispute against the Federal Trade Commission, allowing the deal to proceed in the United States unless appealed. Approvals have also been granted in China, the European Union, and other countries such as Brazil, Japan, South Africa, and Ukraine.

The acquisition of Activision Blizzard by Microsoft is still a contentious issue, particularly with console rival Sony expressing concerns about its impact on PlayStation's access to profitable franchises like Call of Duty. Nevertheless, Microsoft is actively addressing the various legal obstacles to complete this potentially transformative deal with Activision Blizzard, and approval from the UK's CMA may be imminent.

Source: VGC