In January of this year Microsoft signalled its intent to purchase Activision Blizzard, as allegations concerning the company’s culture of sexual harassment starting gaining traction.
Said deal is yet to pass regulatory approval and now the United Kingdom’s Competition and Markets Authority (CMA) has confirmed that it too will be looking into the proposed acquisition, which is estimated to be worth $68.7 billion.
The CMA’s involvement is not concerned so much with the culture at Activision Blizzard, but rather what implications this would have for the gaming industry and its adjacent sectors.
As we already know, Microsoft has been on a bit of a spending spree of late, snapping up studios and publishers, but one the size of Activision Blizzard would indeed make the company one of the biggest players in the market, despite the several issues plaguing ActiBlizz.
“The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services,” the CMA outlined in a press statement.
“To assist it with this assessment, the CMA invites comments on the transaction from any interested party,” it added, with closure of public comment listed for 20th July.
Should the CMA find anything that is cause for concern, it could push for a further probing of all parties involved by 1st September. If that occurs, it would put a spanner in any works that Microsoft has ironed out to date, and could prolong the acquisition.
As such, it would be a serious test of the company’s resolve and appetitive to acquire.
Whether the CMA has the authority to bring an end to the deal completely should it determine an antitrust element to the acquisition, remains to be seen, but the board members and shareholders of ActiBlizz will be hoping nothing is flagged, especially as they wish to get the deal over the line.
