According to three sources familiar with the matter, Microsoft Corp (MSFT.O) is expected to obtain EU antitrust approval for its $69 billion (roughly Rs. 5,68,094 crore) acquisition of Activision (ATVI.O) by offering licensing deals to competitors. This strategic move by Microsoft will help overcome a major obstacle in the acquisition process. In January of last year, Microsoft announced its bid for Activision, the largest bid in its history, to compete with industry leaders Tencent (0700.HK) and Sony (6758.T) in the thriving video gaming market and to enter the metaverse, a virtual online world where individuals can work, play, and socialize.
The European Commission, which will make a decision on the deal by April 25, is not expected to require Microsoft to sell any assets in order to gain approval. However, in addition to offering licensing deals to rivals, Microsoft may need to provide other remedies to address concerns from parties other than Sony. These remedies typically involve outlining the future conduct of the merged company.
Following the publication of the Reuters story, Activision shares experienced a 1.8% jump in pre-market trading and were up 2.6% in late trade.
Microsoft President Brad Smith stated last month that the company is prepared to offer licensing deals to its competitors to address antitrust concerns, but it is not willing to sell Activision’s highly profitable “Call of Duty” franchise. Smith emphasized that it is not feasible or realistic to separate one game or portion of Activision from the rest.
The EU competition enforcer declined to comment on the matter.
Microsoft expressed its commitment to provide effective and enforceable solutions that address the concerns of the European Commission. A spokesperson for Microsoft stated, “Our commitment to granting long-term, 100% equal access to Call of Duty for Sony, Steam, NVIDIA, and others preserves the benefits for gamers and developers and fosters increased competition in the market.”
Last month, Microsoft announced 10-year licensing deals with Nintendo (7974.T) and Nvidia (NVDA.O) that will bring Call of Duty to their gaming platforms, contingent upon approval of the Activision deal.
The deal is facing regulatory challenges in the United Kingdom, where the UK competition agency has suggested that Microsoft divest Call of Duty to address concerns. Additionally, the U.S. Federal Trade Commission (FTC) has requested a judge to block the deal.
In other news, after encountering difficulties in India last year, Xiaomi is gearing up to compete in 2023. The company plans to expand its wide product portfolio and reaffirm its commitment to Make in India. To learn more about Xiaomi’s strategies in India, listen to the Gadgets 360 podcast Orbital, available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music, and other podcast platforms.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
