Thursday, June 8, 2023

Microsoft faces a growing threat of pulling out of the Activation purchase

Although you can and will appeal, the outlook for Microsoft’s purchase of Activision looks bleak, and we don’t say why. DFC Intelligence, a market research and consulting company, as part of a recent release, did a quick analysis of the situation, painting complex if not impossible possibilities.

DFC Intelligence believes Microsoft has options, but You will have to make promises that you probably don’t want to make. And the real problem is that any promise that requires monitoring is outside the scope of the CMA, further complicating matters.

Acceptance of Microsoft’s measure would essentially require some degree of regulatory oversight by the CMA. instead, Avoiding mergers would effectively allow market forces to operate And shape cloud gaming growth without all this regulatory interference.

That’s how the CMA lays out its argument, one that, by the way, is new, and gives little leeway to Xbox. So DFC Intelligence has concluded The risk of Microsoft going out of business increases significantly.

The question is to what extent Microsoft is willing to compromise to seal the deal. The DFC now believes that the CMA may demand that Microsoft offer more than it is prepared to offer. There is a growing danger that Microsoft will pull out of the purchase.

It should be noted that CMA was proposed as one of those solutions, without the purchase of Activision. Duty and without Blizzard, but Microsoft turned down that suggestion.

What happens if Microsoft withdraws its offer and when might it do so

The merger agreement between Activision and Microsoft sets out several key dates, April 18th and July 18th being two of them. These are the dates by which both companies expect (or expect) to be able to finalize the agreement. The first of them has already passed, and everything indicates that the merger may not happen for the second either. If it does, it leaves the window open for Microsoft to take it out, even if Activision will have to pay compensation of $ 3 billion, There is also a possibility that both the companies may fix a new deadline.

World Nation News Desk
World Nation News Desk
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