The British competition watchdog said that it is considering if the proposed transaction between the tech major and the video game holding company will result in a significant reduction in competition within any market or markets in the UK for services or goods
Microsoft signed an all cash-deal in January 2022 to acquire Activision Blizzard. (Credit: efes from Pixabay)
The UK Competition and Markets Authority (CMA) has launched a phase 1 investigation into the previously announced Microsoft’s $68.7bn acquisition of US-based video game holding company Activision Blizzard.
The British competition watchdog said that it is considering if the deal would lead to a significant reduction in competition within any market or markets in the UK for services or goods.
For helping with the assessment, the CMA is seeking comments on the proposed acquisition from any interested party. The last date for filing the comments is 20 July 2022.
The regulator has set itself a deadline of 1 September 2022 whether to refer the deal for a phase 2 probe or not.
The all-cash deal between Microsoft and Activision Blizzard was announced in January 2022. As per the terms of the transaction, Microsoft will pay $95 per share to shareholders of the publicly-listed Activision Blizzard.
In April this year, Activision Blizzard’s shareholders approved the deal. Over 98% of the shares voted at the firm’s special meeting were voted in favour of the proposed transaction.
A month before that, the US Federal Trade Commission (FTC) sought more data from Activision Blizzard and Microsoft pertaining to the antitrust review of their deal. Microsoft president Brad Smith had previously revealed that the tech major will file for approval of the deal in 17 jurisdictions.
Subject to customary closing conditions and regulatory reviews, the deal was originally expected to close in fiscal year 2023.
By acquiring Activision Blizzard, Microsoft hopes to become the third-largest gaming company in the world on the terms of revenue, behind Tencent and Sony.
The acquisition includes franchises from the Activision, Blizzard, and King studios that include Call of Duty, Diablo, Warcraft, Overwatch, and Candy Crush apart from global eSports activities through Major League Gaming.