A Microsoft acquisition of Activision has been in the works since January 2022. Since that time, the tech company has fought an uphill battle against the Federal Trade Commission in the US and other regulators across the world, over the $68.7 billion deal. The most recent decision in the FTC case led to a federal judge precluding the commission from blocking the sale of Activision. This ruling meant that Microsoft could continue to push forward in the merger and work toward convincing any remaining countries this will be a good deal for everyone.
As of now, there are only two countries remaining to be persuaded in favor of the Activision acquisition. The most recent approval from New Zealand leaves only the United Kingdom and Australia to make a decision. Once these remaining two countries come into the fold, Microsoft can start putting the final touches on the massive purchase.
Although the most hesitant countries have taken their time in evaluating the Activision deal, Microsoft does not appear to be pressuring them into a decision. The company also issued a response to the New Zealand decision saying:
“We appreciate the thoughtful consideration by the New Zealand Competition Commerce Commission of our acquisition of Activision Blizzard and welcome its decision to clear the deal unconditionally,” it said. “This acquisition will ultimately benefit the gaming industry and gamers and we will continue to work toward closing the deal.”
The Activision Blizzard merger is going to be a major game changer for Microsoft. It will give titles like Call of Duty, Spyro, Crash Bandicoot, Sekiro, etc. more prominence on Xbox and potentially exclusivity in the future. The company does not want to cause problems that will further prolong the multibillion dollar transaction, however after such a long time the tech company is surely ready to finish things up.
Why Are These Countries Holding Up the Acquisition Process Between Microsoft and Activision?
The countries that have held out on approval have been mostly critical of the potential danger an Activision deal could have on the gaming industry. Console and cloud-based gaming services will certainly feel the ripple effect of such a move. Australia recently suspended its review of the deal in February citing engagement with “overseas regulators.” The suspicion is this relates to the Competition and Markets Authority based in the UK. The United Kingdom has also cited potential damage to competition if the deal were to close.
Nevertheless, since only two countries remain, it only seems to be a matter of time before the acquisition of Activision is officially closed. These are important markets Microsoft wants on board, with decisions to be made very soon. Since Australia has been suspended for over half a year, the deal could very well go into 2024. However, there will now be increased pressure to respond now that New Zealand has ruled in favor of Microsoft.
What do you think of the Activision acquisition by Microsoft? Should the transaction be allowed to go through or are the hold out countries doing the right thing? Leave a comment and let us know your thoughts on the issue.
Source: NME
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