Microsoft’s Acquisition of Activision Blizzard Gets Green Light
Hey there, fellow gamers! We’ve got some exciting news in the gaming world that’s sure to make an impact on our beloved industry. The UK’s Competition Markets Authority (CMA) has given the green light for Microsoft’s acquisition of Activision Blizzard. That’s right, folks, the tech giant’s $69 billion takeover is on the verge of completion, and we could see it happen within the next few days!
A Battle of Titans
But hold on, rewind a bit. This deal didn’t come without its fair share of hurdles. Back in April, the CMA initially blocked the acquisition, citing concerns over cloud gaming competition. At the same time, Microsoft was gearing up for their first court battle with the FTC in the US. Talk about a clash of titans! They even had plans to take the decision to appeals court. However, Microsoft emerged victorious in their first fight with the FTC, which prompted them to revisit the bargaining table with the CMA. And boy, did they come prepared.
Cloud Gaming as the Game Changer
The CMA’s main concern revolved around Microsoft’s cloud gaming platform and how it could give Activision Blizzard games like Call of Duty and Diablo an unfair advantage. They were worried that these games could dominate the cloud gaming arena, leaving little room for competition. But Microsoft had a counter-argument up its sleeve. They pointed out that cloud gaming was still in its infancy and only a fraction of UK gamers were actually using it. In other words, it was like facing a boss battle with only a handful of players, and Microsoft argued that it wouldn’t have a significant impact. And guess what? The EU actually agreed with them. Talk about a plot twist!
A Fair Playing Field
So, how did they resolve this cloud gaming conundrum? Well, Microsoft came up with a solution that might just please all parties involved. They decided to sell the streaming rights to Ubisoft for the next 15 years. By doing so, they handed over control to a third party, ensuring a degree of fairness in how games are licensed between rival platforms. It’s like introducing a referee to the game, making sure everyone plays by the rules. Smart move, Microsoft!
The CMA’s Grudging Approval
Now, don’t get too excited just yet. While the CMA has given their seal of approval, it doesn’t mean they’re doing a happy dance about it. In fact, CMA chief executive Sarah Cardell made it clear that she’s not thrilled with Microsoft’s tactics. She said, “Businesses and their advisors should be in no doubt that the tactics employed by Microsoft are no way to engage with the CMA. Microsoft had the chance to restructure during our initial investigation, but instead, they insisted on measures that we told them simply wouldn’t work. Talk about a missed power-up opportunity! Dragging out proceedings like this only wastes time and money.”
On the other hand, Microsoft’s president, Brad Smith, decided to take the high road and expressed gratitude for the CMA’s thorough review and decision. Well played, Mr. Smith, well played.
The Battle Continues
Now, even though this deal is on the verge of completion, Microsoft isn’t out of the woods just yet. Remember their court battle with the FTC in the US? Well, the FTC lost that case back in July, but they’re not giving up. They’ve made it clear that they will continue to fight the acquisition, although they can’t block it from happening initially. Any action they take will be applied to the combined company. It’s like a never-ending quest for Microsoft, battling against the forces of regulation.
So, fellow gamers, keep an eye on the horizon. The gaming landscape is about to change, and we’ll be here to bring you all the exciting updates. Stay tuned!
Source: BBC