Microsoft and CMA agree to negotiate Activision Blizzard acquisition

It's clear Microsoft is willing to flex its negotiation muscle. After all, they have a track record of winning. Having defeated an FTC injunction to halt the deal in the United States, they're not averse to legal battles. Yet, Microsoft's move to temporarily suspend litigation in the UK indicates a shift in tactics. This willingness to explore different paths to the same end game has revealed a subtle, yet profound strategy on Microsoft's part.

The decision to hold the litigation has been jointly communicated to the Competition Appeal Tribunal (CAT), the body that oversees CMA decisions. While the tribunal still needs to greenlight the agreement, the likelihood of the CAT acting as a rubber stamp in this situation seems plausible. It seems more beneficial for both parties to hash out their differences over a negotiation table than in a courtroom.

In light of this announcement, the previous closing date for the Microsoft-Activision deal, set for July 18, may witness a minor delay. However, given the scale of the transaction and its potential implications for the gaming market, a short-term extension seems reasonable. Besides, Activision Blizzard has voiced its unwillingness to a long-term delay, adding a bit of pressure to the negotiation timetable.

While the recent announcement hints at a potential thawing of relations between Microsoft and the CMA, the final verdict is still hanging in the balance.

As the world eagerly watches this corporate chess game unfold, one thing is clear: a resolution is in the public interest.

Ultimately, the Activision Blizzard acquisition will have a profound impact on the cloud-gaming market, a crucial segment in the evolving digital landscape. But like all major corporate moves, it's not just about the players directly involved. It's about the ripples that this deal will send through the industry, the stakeholders, and the consumers. As such, this compromise isn't just about Microsoft and the CMA - it's a negotiation that will decide the future of gaming.