Microsoft may be considering taking Activision Leaving the UK to not have to deal with countries blocking its takeover.
Considering it was a $70 billion deal, the entire Microsoft attempt to buy Activision Blizzard was always going to be a lengthy process, with the main hurdle being getting approval from various regulators in many regions. Microsoft hit some snags in April when the UK’s Competition and Markets Authority (CMA) decided to block the merger, and the tech giant was apparently not happy about it. Now, according to a new report from Bloomberg, Microsoft appears to be considering some pretty extreme options to get the deal, including pulling Activision outright from the UK (paywall, thanks VGC).
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Microsoft President Brad Smith will reportedly meet UK Chancellor of the Exchequer Jeremy Hunt next week to express his dismay at the CMA’s decision to block the deal, according to reports. Microsoft also confirmed that Smith will be traveling to London, where he is currently scheduled to give a talk on “the potential of artificial intelligence and the need for thoughtful regulation of it.” A spokesman said private talks are also being held to resolve other issues, “including the proposed acquisition of Activision Blizzard, as we remain committed to finding creative and constructive ways to resolve remaining regulatory issues.”
Specifically, the report states that Smith plans to meet with Microsoft’s legal representatives to discuss how it plans to respond to the CMA’s decision, with the most “extreme” options being to pull Activision outright from the UK market, or to bypass the ruling and go ahead with the deal altogether. In theory, by moving Activision’s operations somewhere in Europe outside the CMA’s jurisdiction, it could continue to sell games in the UK through distributors, the VGC noted.
Microsoft has filed an appeal against the CMA, which will be heard at the end of July. With a deal this big, it’s no surprise that Microsoft would go to great lengths to get it through, so who knows where it might go next.