The UK CMA dealt a major blow to Microsoft’s proposed acquisition of Activision Blizzard as it blocked the deal earlier this week. The antitrust regulator reveals that it is not the first time the tech giant tried to gobble up another game company and failed.
In its final report, the CMA revealed that Microsoft “attempted” to purchase an unnamed mobile developer – a studio that is not involved in the Activision-Blizzard merger. This new development is surprising given that Microsoft has been vocal about wanting to acquire Candy Crush developer King, a subsidiary of Activision Blizzard.
“We note Microsoft’s submission that Activision has significant strength in mobile gaming, and consider that the presence of Activision’s games on any mobile gaming store would enhance its competitiveness,” the report said.
However, we also consider that this could be achieved by less anti-competitive means than the Merger, and Microsoft could acquire ‘attractive content and experience with player engagement and acquisition’ by buying a different mobile games publisher.
The report, in the interest of transparency, adds that “This appears to have been Microsoft’s strategy – it attempted to buy [REDACTED] in [REDACTED], and said [REDACTED].” Thank you, that sure clears things up!
While the identity of the mobile studio has not been revealed, many speculate that it is Zynga. Former Xbox boss Don Mattrick became the CEO of Zygna after leaving Microsoft in 2013. The former Xbox executive left the company after the disastrous launch of the Xbox One.
Fans speculate that the connection between Microsoft and Mattrick could have led to a negotiation. The former Xbox executive could have facilitated talks and helped along even after his departure from the company.
Take-Two Interactive announced that it was acquiring Zynga for $12.7 billion around the same time that Microsoft revealed its own plans to buy Activision Blizzard in January 2022. The merger between Take-Two and Zynga was completed in May 2022.
The UK CMA’s position on the attempted acquisition is interesting. The competition regulator believes that Microsoft could have bought any other mobile developer if its aim was only to strengthen its mobile and cloud gaming capabilities.
Microsoft has frequently said that the purpose of the deal was the company’s desire to be a dominant player in the mobile and cloud gaming sphere. We gather that the UK CMA would have approved a deal if it was a different studio.
Sony would not have opposed a deal involving Microsoft and a mobile developer. If Activision Blizzard divested King and sold it to Microsoft, it would have had a smoother approval process as the only part of the deal that Sony opposed was Microsoft gaining control and subsequently making Call of Duty an exclusive title.
According to Microsoft, the Activision-Blizzard acquisition saga is not yet over.
