Microsoft Made a Big Move in Activision Blizzard Deal [Update]
The finalization of Microsoft's purchase of Activision Blizzard is closer than ever. This is evidenced by a statement released by the UK Competition and Markets Authority.
Update - comment from Microsoft and Activision Blizzard.
As expected, both Microsoft and Activision Blizzard are very pleased with CMA's announcement (via CNBC). Representatives of the Redmond giant expressed gratitude for the UK Competition and Markets Authority's "rigorous and thorough assessment of the evidence." They further offered to continue working with the regulatory body to address any concerns officials may have.
"We appreciate the CMA’s rigorous and thorough evaluation of the evidence and welcome its updated provisional findings.
This deal will provide more players with more choice in how they play Call of Duty and their favorite games. We look forward to working with the CMA to resolve any outstanding concerns."
In turn, Activision representative said that the CMA's announcement demonstrates "a better understanding of the console gaming market, showing a commitment to supporting gamers and competition."
"Sony's campaign to protect its dominance by blocking our merger cannot overcome the facts, and Microsoft has already presented effective and enforceable remedies to address each of the CMA's remaining concerns. We know that this deal will benefit competition, innovation and consumers in the UK," he added.
Original message
Microsoft's efforts to finalize a deal to buy Activision Blizzard have been intensifying for more than a year now. However, standing in the way of achieving the American's desired goal are all sorts of international authorities, who are keeping a close eye on the whole matter and analyzing the possible negative impacts of the merger on the gaming market.
- While a number of authorities have already managed to give a positive opinion, the deal has so far seems to be hampered most strongly by the UK's Competition and Markets Authority (CMA). However, in light of recent reports, even the controlling authority from the Isles is increasingly convinced of the merits of the merger.
- In a recent statement issued by the CMA, it was reported that the concerns about making the Call of Duty series exclusive to Xbox and thus disrupting competition in the market, have been allayed and are no longer an issue..
"Having considered the additional evidence provided, we have now provisionally concluded that the merger will not result in a substantial lessening of competition in console gaming services because the cost to Microsoft of withholding Call of Duty from PlayStation would outweigh any gains from taking such action," said the chairman of the CMA's independent panel of experts, Martin Coleman (via Competition and Markets Authority).
Although the statement may bring Microsoft significantly closer to finalizing the deal, it does not mean that it will definitely happen. This is because the Brits remain concerned about the negative impact of the merger on the cloud gaming market. It remains to be patient and await further information.
