Sunday, June 4, 2023

Microsoft’s purchase of Activision could be locked in for 10 years

After Microsoft presented its denial against the purchase of Activision Blizzard, The CMA in the United Kingdom has assured that it will halt operations for a decade if the appeal by the company in charge of Xbox fails., This pause may determine whether the deal will go through, as the 10-year hold on that purchase gives time for things to change a lot: “Our general practice is to avoid future mergers between the parties for the next ten years.” would be for “, in the absence of a change in circumstances”.

Although the CMA gave different reasons why it decided to position itself against the purchase of Activision Blizzard and King, the one that stood out was that Industry demands status quo Guaranteeing that Microsoft’s purchase may have no advantage over competition in the cloud game.

Microsoft’s purchase could be blocked for at least 10 years

Furthermore, if the purchase is not made in full, Microsoft should pay 3000 million euros to Activision Blizzard, money that will help Bobby Kotik’s company get $ 18 billion in cash, although the above CEO specified in an interview that his view is that the agreement should be successful. Microsoft President Brad Smith made a statement after learning of the CMA’s refusal: “We remain committed to this acquisition and will appeal the CMA’s decision, which provides a practical way to address competition concerns and discourages technological innovation and investment in the UK.” Said this.

“We have signed contracts to make Activision Blizzard games available on an additional 150 million devices. We are disappointed that after long deliberation, this decision reflects a misunderstanding of this market and the way gaming technology actually works. does.” on the cloud”. It remains to be seen whether Microsoft’s appealAt the decision of the CMA, manages to reach a good port so that the operation is not blocked,

World Nation News Desk
World Nation News Desk
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