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Microsoft’s Activision Blizzard deal gets preliminary approval from UK regulator

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Summary

The UK's Competition and Markets Authority (CMA) has given preliminary approval for Microsoft to proceed with its $69 billion Activision Blizzard deal. Microsoft recently restructured the deal to address competition concerns, transferring cloud gaming rights for current and new Activision Blizzard games to Ubisoft. The CMA is now holding a consultation period to gain third-party feedback until October 6th, and a final decision is expected before the extended October 18th deadline. Microsoft, Activision Blizzard, and the CMA are all optimistic about the decision. The UK is the final regulatory hurdle for Microsoft's acquisition.

Q&As

What is the UK's Competition and Markets Authority's (CMA) preliminary decision on Microsoft's $69 billion Activision Blizzard deal?
The UK's Competition and Markets Authority's (CMA) preliminary decision on Microsoft's $69 billion Activision Blizzard deal is to allow the deal to proceed.

What remedies did Microsoft propose to address the CMA's competition concerns?
Microsoft proposed to transfer cloud gaming rights for current and new Activision Blizzard games to Ubisoft to address the CMA's competition concerns.

When is the consultation period for third-party feedback on Microsoft's proposed remedies?
The consultation period for third-party feedback on Microsoft's proposed remedies is until October 6th.

What is the expected date for a final decision on the deal?
The expected date for a final decision on the deal is before the extended October 18th deadline.

What are Activision Blizzard's and Microsoft's reactions to the CMA's provisional decision?
Activision Blizzard's reaction to the CMA's provisional decision is that it is a significant milestone for the merger and a testament to their solutions-oriented work with regulators. Microsoft's reaction is that they presented solutions that they believe fully address the CMA's remaining concerns and they will continue to work toward earning approval to close prior to the October 18 deadline.

AI Comments

👍 Microsoft's proposed remedies to the UK Competition and Markets Authority's concerns with the Activision Blizzard deal have been preliminarily approved! This is a significant milestone for the merger and testament to Microsoft and Activision Blizzard's solutions-oriented work with regulators.

👎 Despite the preliminary approval, the UK's Competition and Markets Authority still has limited residual concerns with the new deal. Microsoft and Activision Blizzard must still continue to work toward earning approval to close prior to the October 18th deadline.

AI Discussion

Me: It's about Microsoft's Activision Blizzard deal getting preliminary approval from the UK regulator. The Competition and Markets Authority (CMA) has given preliminary approval for Microsoft to proceed with its $69 billion Activision Blizzard deal, but there is still a consultation period open to gain third-party feedback before a final decision is made.

Friend: Interesting. What do you think the implications of the deal are?

Me: Well, if the deal goes through, it could reshape the gaming landscape. Microsoft would own one of the largest gaming companies in the world, and that could give them a lot of leverage in the market. It could also lead to fewer options for gamers as the market becomes more consolidated. On the other hand, it could also lead to more innovation as Microsoft has the resources to invest in gaming technology.

Action items

Research the CMA's consultation period and provide feedback on Microsoft's proposed remedies before October 6th.
Follow the news about the Microsoft / Activision Blizzard deal and stay up to date on the final decision before the October 18th deadline.
Consider the implications of the deal for the gaming industry and the potential impact on competition in the cloud gaming space.

Technical terms

Microsoft: A multinational technology company that develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services.
Activision Blizzard: A video game holding company based in Santa Monica, California.
Competition and Markets Authority (CMA): The UK’s competition regulator, responsible for enforcing competition and consumer protection law.
Cloud gaming: A type of online gaming that allows users to access games hosted on remote servers over the internet.
Restructured deal: A revised agreement between two parties that changes the terms of the original deal.
Consultation: A process of gathering feedback from stakeholders on a proposed plan or policy.
Remedies: Measures taken to address a problem or issue.
Final decision: The ultimate ruling on a matter, based on all the evidence and feedback gathered.