Microsoft’s long-awaited acquisition of Activision Blizzard is reportedly set to be finalized this week, according to sources cited by The Verge. On Friday, 13 October 2023, Microsoft aims to formalize a deal worth a staggering $68.7 billion. The date of the finalization reportedly coincides with the expected release of the UK Competition and Markets Authority’s (CMA) verdict on the acquisition. The CMA had previously provided a provisional approval for the deal but is now expected to provide its final and official decision this week. The final approval from the CMA will mark the end of a strenuous 20-month legal battle for Microsoft.
Despite the positive signals from the CMA, Microsoft is still facing legal challenges from the US Federal Trade Commission (FTC). The FTC, which initially sought an injunction to halt the acquisition, continues to argue that the deal poses a threat to competition. In late September 2023, an FTC spokesperson, Victoria Graham, affirmed the organization’s belief that the acquisition represents a significant antitrust concern. While the CMA approval will allow Microsoft to proceed, the FTC’s appeal and separate administrative case will prolong the legal proceedings. The decision on the appeal is expected to be announced in December 2023.
Microsoft’s ability to proceed with the acquisition is contingent upon the CMA approval. However, even with the CMA’s support, the FTC might still attempt to disrupt the deal through its administrative case. The US Ninth Circuit Court of Appeals ruling will trigger the 21-day countdown for the FTC’s administrative case, further complicating the situation. The Verge notes that the FTC has the potential to “undo” the Activision Blizzard deal using this avenue. Despite these uncertainties, Microsoft appears prepared to move forward with its plans, assuming the CMA approval is granted.
Should the acquisition proceed as expected, significant changes can be anticipated in the gaming industry in the coming weeks. Microsoft’s acquisition of Activision Blizzard will undoubtedly have far-reaching implications, particularly in the realm of cloud streaming. As one of the largest technology companies in the world, Microsoft’s foray into gaming will likely fuel innovation and further consolidate its position in the competitive gaming market. The integration of Activision Blizzard’s popular franchises, such as Call of Duty and World of Warcraft, into Microsoft’s ecosystem will provide new opportunities for cross-platform gaming and content distribution.
While the final verdict from the CMA is still awaited, Microsoft is poised to finalize its long-desired acquisition of Activision Blizzard. Despite facing legal challenges from the FTC, Microsoft seeks to overcome these hurdles and move forward with its ambitious plans. The outcome of the acquisition will not only reshape the gaming industry but also impact the future landscape of cloud streaming and digital entertainment. As the CMA prepares to make its final decision, the world eagerly awaits further details on this historic deal.
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