Following the UK’s Competition and Markets Authority (CMA) controversial rejection of the Activision Blizzard x Microsoft merger, the agency has imposed additional restrictions on future deals.
This restriction revolves around the newfound need for Microsoft to obtain the CMA’s written consent before acquiring an interest in Activision or any of its subsidiaries, acquiring an interest in a business that holds an Activision interest, or holding an option to acquire an interest. the aforementioned companies.
In short, the CMA requires that any future Microsoft acquisition of any aspect of Activision require its express approval first. The official interim order, first announced, states that this is done to prevent Activision or Microsoft from taking any pre-emptive action.
It’s yet another hurdle in the Microsoft x Activision Blizzard deal that’s been hanging over the industry in recent months. Only recently did the CMA choose to veto the deal, a decision that drew the ire of several senior officials, including Bobby Kotick and Microsoft’s Brad Smith.
Currently, both Activision Blizzard and Microsoft are committed to appealing against the CMA’s decision. This increased restriction is intended to deter any further action on the acquisition until a future follow-up decision is made.
Whether the two gaming industry giants can convince the CMA to change its mind without major changes to the deal itself remains a rough proposition. You must remember that the CMA made some lofty demands on Microsoft earlier this year as part of their final decision, including removing Blizzard and/or King from the deal.
The next big update on this (besides Mr Kotick continuing his fucking UK press tour) will probably be a formal appeal request. Once that happens, expect to wait several months before the CMA makes an absolutely final decision. Exciting stuff!
