Microsoft’s proposed acquisition of Activision Blizzard has hit its biggest stumbling block yet, with the United Kingdom’s Competition and Markets Authority (CMA) having officially blocked the deal in light of concerns over how it could impact competition and innovation in the cloud streaming market. Microsoft has said that it remains “fully committed” to the acquisition and will be appealing the CMA’s decision, and Activision Blizzard is, as you would expect, on the same page.
In a publicly published statement, Activision Blizzard CEO Bobby Kotick has said that the CMA blocking the acquisition is “far from the final word” on the deal, and that Microsoft and Activision Blizzard remain confident.
“Today, the Competition and Markets Authority (CMA), a regulatory agency in the UK, decided not to approve our merger with Microsoft. This isn’t the news we wanted – but it is far from the final word on this deal,” Kotick wrote. “Alongside Microsoft, we can and will contest this decision, and we’ve already begun the work to appeal to the UK Competition Appeals Tribunal. We’re confident in our case because the facts are on our side: this deal is good for competition.”
Kotick went on to say that should Microsoft’s acquisition of Activision Blizzard be approved, it go to “benefit employees, the broader UK tech workforce, and players around the world.”
“The UK hopes to grow its leadership position in technology, and a combined Microsoft-Activision would accomplish exactly that,” Kotick wrote. “At a time when the fields of machine learning and artificial intelligence are thriving, we know the UK market would benefit from Microsoft’s bench strength in both domains, as well as our ability to put those technologies to use immediately. By contrast, if the CMA’s decision holds, it would stifle investment, competition, and job creation throughout the UK gaming industry.”
The proposed acquisition is facing potential issues elsewhere as well, with the United States’ Federal Trade Commission having filed an antitrust lawsuit against Microsoft and the European Commission also investigating the deal. Allegedly, reports have claimed that the latter is likely to approve the deal, but until recently, that’s what was being reported about the CMA as well.
UK Block is “Far from the Final Word” on Microsoft Deal – Activision Blizzard CEO
Source: News Beginning
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