Microsoft’s landmark acquisition of Activision Blizzard hit a dead end last month when UK’s CMA blocked it. But, according to the reports, there’s some good news on the horizon, as the European Union is set to give its approval to the deal.
The merger, valued at a staggering $69 billion, is a significant deal for gaming. Regardless of how it ends, it will transform the gaming industry if it already hasn’t. However, if it’s indeed approved by the EU, then expect to see a significant leap forward in the merger process.
The EU consent represents a critical step in the buyout. The union’s regulatory body has the authority to block and modify transactions that it deems harmful to competition within the European Economic Area. However, it appears that Microsoft and Activision Blizzard have successfully navigated these potential hurdles. The exact date of the approval announcement hasn’t been confirmed yet but it’s expected to come out next week.
For Microsoft, the deal with Activision Blizzard represents a major opportunity to expand the Xbox gaming platform.
Acquiring Activision Blizzard would bring a host of popular franchises like Call of Duty, Overwatch, and World of Warcraft under the Xbox umbrella, giving owners an extensive library of content that could make the Game Pass even better than it already is.
This is a strategically sound move for Microsoft as it focuses on expanding its gaming division, even if the CMA might not see it this way.
However, while it’s worth noting that the EU’s approval is significant, the merger still needs the green light from several other regulatory bodies from around the globe. These include the Federal Trade Commission in the United States and the UK’s Competition and Markets Authority. Both are still reviewing the deal, with the latter specifically poised to receive an appeal from Microsoft after its earlier decision to block the buyout.
Despite this, the anticipation around the industry is palpable, and many are watching from afar as the gaming landscape is headed towards a major shake-up.
Just keep in mind that a similar report emerged last month before UK’s CMA made its surprising decision.
Speaking of Microsoft, Xbox Game Studios CEO, Phil Spencer, recently admitted that the company isn’t interested in “out consoling” Sony and Nintendo after admitting that the Xbox One had lost to the PlayStation 4.
It remains unclear if Spencer won’t change his mind about trying to beat Sony and Nintendo if the Activision Blizzard deal is finalized and pushed through.
