Microsoft’s $69 billion acquisition of Activision Blizzard was first announced last January, but its completion is still dragging on. The business must be approved by the competition authorities of several countries (or groupings such as the EU and the like), and although countries such as Japan and South Africa have already given the go-ahead, the largest divisions are still waiting. However, one of them has already made public his decision, according to Bloomberg magazine. Microsoft clearly didn’t like it.
The UK Competition Authority (CMA) said it would block the acquisition, primarily due to cloud gaming, where the CMA believes competition would be hit hard by the acquisition.
“Microsoft already has a very strong position and lead in cloud gaming, and this deal will further bolster that lead, potentially weakening new and innovative competitors.” said Martin Coleman, head of the independent panel of experts that handled the case. According to the CMA, the acquisition will result in higher prices, fewer choices and less innovation for UK players.
Microsoft itself reacted almost immediately to the decision, which it plans to appeal.
“We remain committed to this acquisition and will be appealing.” declared This is stated in a statement by Microsoft President Brad Smith. “The CMA decision rejects a pragmatic solution to the problem of competition and discourages technological innovation and investment in the UK.”
We remain fully committed to our acquisition with @ATVI_AB and is appealing today’s CMA determination. Here is our statement. pic.twitter.com/ylvDP5RUqQ
— Brad Smith (@BradSmi) April 26, 2023
Activision Blizzard CEO Bobby Kotick had this to say: “This is not the news that we wanted (to hear), but there is no final word on this deal yet. Together with Microsoft, we will be challenging this decision and have already begun work on an appeal to the UK Competition Court of Appeal. We are convinced that we are right because the facts are on our side: this agreement is good for competition.”
In addition to various statements, there was also a reaction in the stock market, not yet open today, but already she fell the value of Activision Blizzard shares by more than 10%.
Activision Blizzard shares are currently down more than 10% in pre-trading. pic.twitter.com/xjEzeVaBOJ
— Tom Warren (@tomwarren) April 26, 2023
Source :Indian TV
