Microsoft is currently facing an uphill battle in its proposed acquisition of Activision Blizzard. The UK CMA has a provisional report on the deal that concludes that the merger is potentially harmful to competition and gamers in the UK.
Microsoft and Activision Blizzard may be scrambling to find ways to remedy the situation. Activision Blizzard has reportedly reached out to Sony, the most vocal opposition to the landmark deal. However, Activision Blizzard CEO Bobby Kotick claims that Sony is not returning its phone calls.
According to Kotick, this behavior runs contrary to the relationship between the two companies in previous years. This also shows regulators how much the console maker values Activision Blizzard as a business partner.
“Sony’s not on the phone to us; in fact, they’re not returning our phone calls,” Kotick said. “One of the things that is surprising to us is that this is the time where, ordinarily, we would be talking about the future and new opportunities together for partnership, and they just haven’t been returning our phone calls.”
He adds, “And so, I don’t know that we’re as valuable as maybe they’ve represented to the regulators that we are.”
Kotick’s latest revelation comes a day after the UK CMA published its provisional findings on the $69 billion deal between Microsoft and Activision Blizzard. The CMA has suggested the exclusion of the Call of Duty franchise from the merger or parts of the Activision Blizzard franchise as a remedy to have the deal approved.
Earlier in the week, Kotick also spoke to the media and said that the antitrust regulators in the US, UK, and EU do not know the gaming industry. The Activision executive went on to claim that if the deal does not push through, the UK’s dream of becoming the Silicon Valley of Europe will make them Death Valley instead.
Sony may also not be interested in discussing a deal with Activision Blizzard and Microsoft after receiving a series of scathing statements from the latter. Last month, Microsoft executive Frank X. Shaw said that Sony’s Jim Ryan was lying to the EU Commission. In December, Microsoft’s Phil Spencer also claimed that Sony wants to grow by making Xbox smaller.
It is expected that Microsoft and Activision Blizzard will be filing a response to the provisional findings. A response hearing may also take place.
Microsoft has repeatedly offered Sony a ten-year deal to keep the Call of Duty franchise on the PlayStation platform. The tech giant has even offered to add Call of Duty to PS Plus to sweeten the deal. However, Sony has not accepted any offer from Microsoft.
Microsoft and Activision Blizzard may need to change their strategy as the UK CMA findings include cloud gaming as part of the areas that the regulatory body is concerned about. Nvidia and Google, both players in the cloud gaming space, have also voiced their concerns over the deal.
Microsoft and Activision Blizzard have until July to complete the deal before the parties need to renegotiate the terms of the acquisition.
