You might have heard the buzz around the hefty acquisition Microsoft has been keen on. Yes, the US$68.7 billion deal to snatch up Activision Blizzard is nearing its conclusion. An informed source has shared with The Verge that Microsoft has circled Friday, October 13, on the calendar as the day they reveal to the world that the meticulous 20-month journey to acquire the home of Call of Duty, Activision Blizzard, has finally reached its end.
However, a notable entity holds the key to whether this deal will sing or sink – the UK’s Competition and Markets Authority (CMA). It’s the same regulatory body that played a spoiler earlier this year. However, a change of heart may be in the offing. Microsoft’s latest move to shift cloud gaming rights for present and upcoming Activision Blizzard titles over to Ubisoft has warmed the CMA to the deal, granting it a preliminary nod of approval.
Now, the CMA is in the home stretch of its decision-making, with today being the last day for gathering external opinions on whether Microsoft should get the green light for this merger. The final say from the CMA is slated for next week, and unless there’s a last-minute curveball, Microsoft should be home and dry with its deal.
A sigh of relief if CMA nod comes through
The original deadline for this grand acquisition was stretched to October 18. Still, suppose the stars align, and Microsoft manages to seal the deal next week. In that case, this 20-month saga of regulatory hoops and hurdles across Europe and the US will be wrapping up a bit earlier than anticipated.
Earlier this year, the cold shoulder from the CMA came due to cloud concerns in the UK, just a few weeks before the EU gave its blessing, albeit with some cloud concessions from Microsoft. The bumpy ride continued with the FTC taking a swing at blocking the acquisition in the US last year. The attempt to secure a preliminary injunction to bar Microsoft from moving ahead with the Activision Blizzard acquisition landed flat during a gruelling five-day stretch of evidence and discussions in July in the case titled FTC v. Microsoft.
FTC is not backing down just yet
Despite the setback, the FTC isn’t bowing out. An appeal is in motion at the Ninth Circuit Court of Appeals, with a judgment anticipated in early December. The FTC is also gearing up to restart its administrative case against Microsoft’s proposed merger with Activision Blizzard. This chapter is set to unfold 21 days after the Ninth Circuit hands down its verdict and will be held in a virtual setting. The FTC has a fleeting chance to unravel Microsoft’s Activision Blizzard deal, assuming it gets the go-ahead on time, though it’s poised to be arduous.
