Microsoft Activision Deal May Fall Apart Amid Strict Scrutiny, According to Insiders
Given that Activision Blizzard’s recent purchase by Microsoft has come under increasingly stringent examination from a number of regulatory and antitrust authorities in the UK, US, and EU, it seems as if the tides may be changing for Microsoft and this deal. Some insiders are starting to fear that this transaction could blow up and never take place in the first place.
Insiders who spoke to the New York Post said that Microsoft didn’t anticipate this scrutiny from market regulators. It and Activision Blizzard are really in strife behind the scenes despite both businesses’ assertions that the merger will close due to the mounting pressure. Currently, the Call of Duty franchise’s exclusivity is the main issue. Microsoft has already said that this game brand would not be kept exclusive to PlayStation, but they would also not be required by law to do so. For the regulators, this is a deal-breaker.
Microsoft has been presenting a very negative image of itself and Xbox to support its case for buying the Call of Duty business. The corporation has disclosed that PlayStation and Sony are its main competitors, that Cloud gaming isn’t the future of gaming, that Xbox systems are still sold at a loss, and other information that makes them seem to be the underdog.
We still don’t know what will happen on November 8 when we learn more about whether the European Commission will approve the deal’s entry into the next phase. Microsoft has worked on taking the required actions to make the purchase go through, a representative for the company told the Post in a statement. According to the terms of the agreement, Microsoft will be required to pay Activision Blizzard $3 billion if the European Commission, UK’s Competition and Markets Authority, or the American Federal Trade Commission disapprove the transaction.
We are all interested in how this agreement will come out since things have taken an intriguing turn. When new information becomes available, we’ll keep you informed.
