Activision Blizzard purchase may require new UK investigation

After legally defeating the US FTC, Microsoft Working full steam ahead to get UK approval to buy Activision Blizzard. Yesterday he took the first step by announcing a truce with the British Competition and Markets Authority (CMA) to negotiate a possible solution to the dispute between them. However, new complications may appear on the horizon.

The CMA has made it clear that, despite its goodwill gesture with Microsoft, it is maintaining its stance on buying Activision Blizzard for the time being. In addition, he stressed that since the final report had already been published, the Americans could not make further concessions to lift the blockade. What they can do is propose a restructured dealalthough it would force you to go back to zero and start a new investigation.

Subjecting the purchase of Activision Blizzard to another investigative process is clearly not to Microsoft’s taste. The Redmonds play their chips to close the deal before the July 18 deadlineand they know that a new regulatory investigation could take months. And time is money.

While both companies are heavily involved in approving the deal, there are nuances that should not be overlooked. For example, if the agreement expires next week and no renewal is reached, Microsoft will have to pay Activision Blizzard $3 billion to release its obligations. Something that will certainly not happen, knowing everything that has passed from January 2022 to the present day.

Having said all that, yesterday’s rapprochement between CMA and Microsoft surprised more than one. Sources Reuters claim that after the FTC error, The British regulator wants to get out of the “embarrassing situation”. In the end, the United Kingdom was left as the only major jurisdiction trying to block the agreement, unlike the European Union and the United States.

Microsoft moves its chips to get CMA to approve Activision Blizzard purchase

It is not yet known that Microsoft will offer CMA to change its position and approve the purchase of Activision Blizzard. In accordance with CNBCthose from Redmond suggested “little retreat” associated with cloud gaming. And although no further details are mentioned, the sentence makes sense. In particular, given that the main question of the British was about business cloud games.

It is also a reality that, having received the approval of Europe and overcoming the obstacles of the United States, large-scale restructuring in the UK alone does not appear to be a viable strategy. Especially if the possible changes end up causing new regulatory issues in territories where the agreement has already been approved.

Brad Smith, president of Microsoft, assured that they are analyzing “how the transaction can be modified” to accommodate it for CMA requirements. It will be necessary to see how to decant this proposal. Although a radical way out is not ruled out: the completion of the agreement without the approval of the UK and closure of offices, studios and logistics operations of Activision Blizzard in the UK. This will hit the economy and labor market hard, but will not affect the spread of their games there.