Microsoft may shut down Activision Blizzard in the UK if CMA doesn’t approve purchase

soap opera between Microsoft And Great Britain buying Activision Blizzard I don’t stop writing chapters. bloomberg says that in the coming days Brad Smith, CEO of Redmond, will meet with UK officials to discuss the CMA veto on the acquisition. There is even an assumption that the executive branch presents the most extreme scenarios where your company would be ready to go if the decision of the regulatory authorities was not reversed.

In particular, two hypothetical cases are mentioned. First, Microsoft ignored the blockade imposed by British regulators and went ahead with the nearly $69 billion purchase. Second, Activision Blizzard is shutting down in the UK in order to circumvent the regulations of the Competition and Markets Authority.

According to the above report, Smith will meet with Jeremy Hunt, Chancellor of the Exchequer of the United Kingdom. The official in question was one of those who openly criticized the CMA’s decision to veto the Microsoft acquisition. “I would not like to interfere with their independence, but they must understand their wider responsibility,” he said. weeks ago British Government Treasurer.

However, the meeting of the chairman of Microsoft with one of the politicians who objected to the decision of the regulators, does not mean that I paved the way to unblock the conflict for Activision Blizzard. In fact, Brad Smith will also have to contend with an air of distaste for his statements after the CMA blockade, when he assured that the European Union is a better place to do business than the British territory.

“People are surprised, disappointed and trust in technology in the UK has been hit hard. There is a clear message here: the European Union is a more attractive place to start a business than the UK,” he said in a statement. BBC.

What could happen if Microsoft pulls Activision Blizzard out of the UK?

While shutting down Activision Blizzard in the UK is a last resort, it looks like Microsoft isn’t avoiding the possibility. What will be the true consequences of such a radical decision? Will players no longer be able to access the games of the California firm?

First, we must emphasize that today this is nothing more than a hypothesis. So, if this is really taken into account, in principle it may be more of a threat than a real solution. However, if Microsoft goes further and terminates Activision Blizzard in the UK, theoretically the public could continue to access their games. The point is that if those led by Bobby Kotick move to another European country, they can continue to offer their games in the United Kingdom through a distributor.

However, the possible departure of Activision Blizzard will have negative consequences for the economy and work of the British. Let’s not forget that the Californian firm has a significant presence in England, with offices in London and Slough and sales operations in Birmingham. But not only that, because Sledgehammer gameone of his studies is devoted to the saga call of Duty, has a subsidiary in Guildford. Thus, leaving the United Kingdom will have a direct impact on these transactions.

Several months of negotiations ahead

Certainly such an extreme solution today seems still far from being realized. While Microsoft may be toying with the idea of ​​turning its back on the British, there are middling resources that can get in the way. In fact, those in Redmond have already challenged the CMA’s veto and are betting that the body will reverse its original decision. Something that seems difficult today, given the circumstances, but it is a door that is not fully closed.

In addition, before the final shutdown in the UK, Microsoft will have another option. The company can create a separate entity from Activision Blizzard that complies with CMA guidelines, and thus avoid a more serious problem. Anyway, it hasn’t been put on the table yet. And everything suggests that it will take several months before a solution is found; if one is reached.