Microsoft may soon have one less hurdle to face in its attempts to acquire publishing giant Activision Blizzard, with a new report indicating that the UK’s Competition and Markets Authority, or CMA, is set to announce its support for the deal this week. The news of the CMA’s apparent willingness to approve the high-profile acquisition comes just days after Lina Khan, chair of the US Federal Trade Commission, clarified the FTC’s opposition to Microsoft’s acquisition of Activision Blizzard in statements before Congress.
First announced by the technology giant in January 2022, Microsoft’s plans to acquire Activision Blizzard have been met with pushback from some international regulators as well as many gamers. The largest video game acquisition in history if approved, the deal would see Microsoft gaining control not only of popular PC and console franchises like Call of Duty and Diablo, but also of the massive mobile gaming publisher King. While the proposed acquisition continues to face resistance from regulators in several countries, the tide appears to be turning in Microsoft’s favor. Last week South Africa approved the Activision acquisition, making it the latest country to throw regulatory support behind the deal.
According to new reporting by the Financial Times, the United Kingdom could be next in line to grant approval to Microsoft’s acquisition of Activision Blizzard. As part of a round-up of the expected business news of the week, Financial Times reporter Jonathon Moules notes that the UK’s Competition and Markets Authority is set to issue a ruling on Wednesday on whether it will approve the massive deal. Though it will be impossible to know with certainty how the regulatory body will rule until Wednesday, Moules states that “the CMA is expected to support it.” If approved by the CMA, Microsoft will have cleared one of the largest hurdles still remaining in the way of its acquisition of Activision Blizzard.
Although Microsoft will still need approval from the US Federal Trade Commission as well as other international regulatory bodies before it can close the deal, receiving the CMA’s blessing would represent a huge step forward for the proposed acquisition. Microsoft hasn’t been resting on its laurels while waiting for the deal to be approved, though, with the company continuing to make agreements to expand its reach in the global gaming market. As part of the latest such deal, Microsoft announced a 10-year cloud gaming partnership with UK mobile provider EE earlier this month.
The future of Microsoft’s acquisition of Activision Blizzard is still up in the air, with the very real possibility that the whole thing could still fall apart, but if the CMA approves the merger later this week as expected it will bring the controversial deal one step closer to becoming a reality. And while this latest news is unlikely to be welcomed by Microsoft’s biggest competitor, Sony, continuing to throw shade at Microsoft and Nintendo in patents might help the rival gaming giant blow off some steam.
Source: Financial Times