Disillusionment after US success
British slow down Microsoft in Activision takeover
07/12/2023, 7:25 p.m
After the decision of a US court, the trees seem to grow into the sky for a short time for Microsoft. The next day, however, the takeover of Activision Blizzard is again a long way off. The British competition authority does not want to lift its veto on the deal.
Microsoft faces lengthy investigations in the UK over its takeover of video game giant Activision Blizzard. The British competition authority CMA made it clear that its veto on the deal could not be reversed so easily. Companies could no longer offer further concessions once an investigation was completed, the CMA stressed. Instead, you would have the option of restructuring the takeover – but this could necessitate a completely new competitive review.
The resistance of the British antitrust authorities is the last hurdle for the mega deal, which costs around 69 billion dollars. On Tuesday, Microsoft was a big step closer to success: a judge in San Francisco rejected the US government’s request to block the deal with an injunction. As a result, Microsoft and Activision Blizzard decided to suspend the appeal process against the CMA veto in Great Britain for new negotiations with the competition authorities.
Microsoft and Activision Blizzard announced the acquisition in January 2022. The Xbox group Microsoft wants to secure popular video games such as “Call of Duty”, “Overwatch” and “Candy Crush” with the acquisition.
Microsoft and Activision Blizzard originally set July 18 as the deadline for closing the deal. You can also make a new appointment – but this could involve new negotiations on the terms. If the deal fails, Microsoft will have to pay Activision Blizzard a $3 billion penalty.