Microsoft Reportedly Considers Drastic Steps to Get Around CMA's Block on Acti-Blizz Purchase

One of the hottest topics in the game industry of the last several months is Microsoft's attempts to acquire Activision Blizzard. The two sides are in agreement, but a deal of this magnitude must be approved by the regulatory authorities of various countries. Most of them have already given their seal of approval to the deal, but one exception turned out to be the British Competition Authority, which issued a refusal. The Redmond giant intends to appeal, but if rumors are to be believed, it also has a rather drastic Plan B in case this fails.

1. The source of these reports is Bloomberg, so it is rather reliable information.
2. According to Bloomberg, one option that is being seriously considered is to withdraw all Activision Blizzard games from the UK gaming market.
3. In this way, Microsoft could take over the publisher without getting wrapped up in a decision by the British Competition Authority.
4. A meeting is expected to take place next week, to be attended by Microsoft's business director Brad Smith and Jeremy Hunt, who is responsible for financial matters in the office of UK Foreign Secretary Liz Truss.
5. The topic of this meeting is expected to be Microsoft's acquisition of Activision Blizzard. Brad Smith is to present, among other things, details of the approval the European Commission has given for the transaction. It is subject to a number of conditions designed to allay concerns about the deal's impact on competition in the game market.
6. The fact that reports of the possible withdrawal of Activision Blizzard's games from the UK market come just days before this meeting is unlikely to be coincidental, and may be part of a strategy to put pressure on the government.
7. However, the threat itself may not be a pure bluff, as the UK market, although large, is probably not worth sacrificing such a big deal as Activision Blizzard acquisition.

Recall that the Microsoft announced plans to acquire Activision Blizzard in January last year. The company has encountered some problems in gettind the deal accepted due to concerns from various authorities that the popularity of Call of Duty could be used to reduce competition in the game market. Therefore, the Redmond giant has signed agreements with a number of companies (including Nintendo and Nvidia) with commitments to release new installments of CoD on their platforms.

It is worth mentioning at the end that British CMA is not the only obstacle to the deal. Also unfavorable to the acquisition is the US Federal Trade Commission (FTC). This case will find an end in the courtroom, with an evidentiary hearing to be held on August 2, this year.

1. Microsoft - official website
2. Activision Blizzard - official website