Meta: Microsoft is seeking approval from regulators around the world to approve its $68.7 billion acquisition of Activision Blizzard. The deal has been approved by the the European Union (EU), but it is being blocked by the U.S. Federal Trade Commission.
Microsoft is trying to convince authorities worldwide to approve its $68.7 billion acquisition of Activision Blizzard, the largest gaming industry deal ever. The U.S. Federal Trade Commission will try to halt the deal legally. Microsoft and Activision will appeal the U.K. Competition and Markets Authority’s decision to block the deal
But, the European Union (EU) has approved Microsoft’s acquisition of Activision Blizzard, saying it will improve cloud gaming. The European Commission’s antitrust regulators are set to approve Microsoft’s acquisition of Activision Blizzard next week, with the likely date for the announcement being Monday, May 15.
Microsoft president Brad Smith has expressed his fury at the CMA’s blockage of the Activision Blizzard acquisition. Microsoft‘s faith in the country was “shaky,” Smith told the BBC. South Africa’s Competition Commission accepted the acquisition because it is unlikely to substantially prohibit or diminish competition in relevant areas. The U.K. regulator is putting Call of Duty worries aside.
The Competition and Markets Authority (CMA) has provisionally concluded that the merger will not result in a substantial lessening of competition in console gaming services. Microsoft used every means at its disposal to push its acquisition of Activision Blizzard forward, including signing a deal with Nvidia to make Xbox PC games available on the GeForce Now cloud gaming service. Microsoft and Sony met with European Union regulators in Brussels, Belgium.
Microsoft vice chair and president Brad Smith passionately made the case for the deal, ramming home Sony’s dominance in the console market, characterizing the split in global market share between PlayStation and Xbox as 70:30. At one point, Smith theatrically produced an envelope containing the 10-year contract offered to Sony.
Microsoft vice chair and president Brad Smith has announced a 10-year legal agreement to bring Call of Duty to Nintendo platforms on the same day as Xbox, with full feature and content parity. The agreement is aimed at regulators deliberating over Microsoft’s proposed acquisition of Activision Blizzard, where accessibility of Call of Duty to other platforms has been seen as a key issue.
Sony has accused Microsoft of “harassment” and Activision of “sabotage” in court documents responding to Microsoft’s subpoena of internal Sony documents. Activision chief Bobby Kotick has come out swinging against Microsoft’s acquisition of Activision Blizzard, accusing Sony of trying to sabotage the deal and refusing to return calls from Microsoft and Activision itself. The three biggest governments’ regulators are lined up against the deal, but analysts at Wedbush Securities think it’s just hot air.
The U.S. Federal Trade Commission (FTC) launched its case to halt the Microsoft-Sony transaction early to prevent European officials from approving it. On Jan. 17, Microsoft subpoenaed Sony for internal material to defend against the FTC. Microsoft want to introduce its pro-union strategy to Activision Blizzard, which has resisted unionization following the 2021 workplace culture crisis.
Microsoft launched a Washington Post ad on Jan. 6 touting its support of unions, co-signed by the Communication Workers of America. After Microsoft’s acquisition of Bethesda and ZeniMax, 300 workers unionized, and the ad continues, “We aren’t asking the FTC to ignore competition concerns.” We believe it’s crucial to investigate solutions that safeguard competition and consumers while boosting workers’ demands, economic development, and American innovation.”
