Microsoft can expect to see its attempt at buying Activision Blizzard for nearly $70 billion to receive approval from a certain regulatory authority in the United Kingdom.
The CMA is conducting a thorough investigation of how the acquisition could impact the UK gaming market, gathering its data from various parties, including industry experts, competitors, and the consumer. For the most part, the CMA has had an opposing stance on the deal until recently. Now, reports suggest the CMA will approve the deal under certain conditions to address concerns about the adverse effect of the merger on the industry.
Microsoft has lobbied to buy Activision Blizzard for over a year. If successful, the Xbox manufacturer would gain ownership of several best-selling franchises, including Call of Duty, Warcraft, Starcraft, Diablo, and Candy Crush.
Under the new management, Microsoft would gain a stronger foothold in the gaming industry, potentially putting itself a step ahead of Sony and Nintendo.
Microsoft has gone to great lengths to defend its interests from accusations by Sony and others. The tech giant believes it can give consumers access to a wider range of high-quality titles, among other benefits. But, this hasn’t stopped analysts from raising questions about how Microsoft could use its newfound “power” to undermine competition. Some argue that the deal could to higher prices and a lack of market diversity, which aren’t great for consumers.
Nevertheless, Microsoft is still under the firm belief that the acquisition is good for all parties involved. The company has guaranteed that it will continue to support the multi-platform nature of the vast majority of Activision Blizzard properties.
Of course, the CMA isn’t the only regulatory body that needs to okay the buyout. The European Commission and the US FTC will still have to green-light the purchase. However, as the CMA is one of the biggest hurdles Microsoft has faced so far, the regulator’s decision will have a significant impact on the gaming industry.
Overall, the potential approval of the mega-merger marks a significant development in the gaming industry that will have a decades-long impact. While there are still valid concerns about how it may have a negative effect on the competition and innovation, gamers stand to benefit from the purchase if Microsoft can put its money where its mouth is. As the approval process rolls on, it will be interesting to see how everything develops and how the end result will shape the future of the gaming industry.
