The ongoing debate surrounding Microsoft’s potential acquisition of Activision Blizzard for $68.7 billion is set to continue for a bit longer. Due to time constraints, the United Kingdom’s Competition and Markets Authority (CMA) has granted itself an additional six weeks to thoroughly review Microsoft’s “detailed and complex submission” arguing in favor of the merger. The CMA now plans to reach a decision by August 29th, although it hopes to do so sooner.
Microsoft initially announced its intention to purchase Activision Blizzard for $95 per share in January 2022. The CMA launched an investigation into the merger last autumn and released an inquiry report this April, highlighting concerns about the potential negative impact on competition in cloud gaming services within the UK. The regulatory agency went so far as to state that prohibiting the merger would be the only effective solution to address the “substantial lessening of competition” (SLC) and mitigate any resulting adverse effects.
Recent developments have seen the CMA and Microsoft put their legal battle on hold in an effort to find a compromise. Microsoft President Brad Smith expressed his disagreement with the CMA’s concerns but acknowledged the potential for modifying the transaction to address them in a manner acceptable to the regulatory authority.
In the United States, Judge Jacqueline Scott Corley recently denied the Federal Trade Commission’s (FTC) request for a preliminary injunction that would have scuttled the deal between Microsoft and Activision Blizzard. However, the FTC has filed an appeal with the Ninth Circuit Court of Appeals seeking to halt the acquisition temporarily.
Overall, the saga surrounding Microsoft’s potential acquisition of Activision Blizzard continues as regulatory authorities and legal battles shape the future of this controversial merger.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
