To say it has been a struggle for Microsoft to complete its buyout deal of Activision Blizzard is an understatement. The deal has been met with denials, appeals, leaks and more. Well, today it appears that the Microsoft can breathe a sigh of relief and that their Activision deal can be completed.
In April, the UK’s CMA basically blocked the deal from completing based on their “Final Report” which had many concerns about a Microsoft monopoly on cloud gaming in the UK. Microsoft and Activision agreed to move the close date back to October 18th and work with the UK’s CMA on fixing the deal. According to the CMA, they said that they have “identified limited residual concerns with the new deal” but the remedies that Microsoft has put forward to them (Ubisoft controlling cloud gaming for Call of Duty, Overwatch and Diablo) the CMA has “provisionally concluded should address these issues.”
While this is just a provisional approval, it paves the way for final approval from the CMA by October 6th. The final need for the Microsoft Activision deal to be done is that Microsoft needs to offer some sort of enforcement mechanism so that the CMA can check to make sure they are adhering to the terms of the new deal with them. Sarah Cardell, CEO of the CMA stated in a press release that “The CMA’s position has been consistent throughout–this merger could only go ahead if competition, innovation, and choice in cloud gaming was preserved.” “In response to our original prohibition, Microsoft has now substantially restructured the deal, taking the necessary steps to address our original concerns. It would have been far better, though, if Microsoft had put forward this restructure during our original investigation. This case illustrates the costs, uncertainty and delay that parties can incur if a credible and effective remedy option exists but is not put on the table at the right time.”
So as of now, the completion seems to be a formality and the folks at Microsoft and Activision should be excited for this. What do you think about this Microsoft Activision deal finally appearing to be done? Let us know in the comments below or on our Twitter account by clicking here. Stay tuned to Culture Splat for more content!
