Microsoft is also considering “extreme” option to withdraw Activision from the UK market if deal doesn't get approved

[John Elden Ring]

The surprise decision in April by the UK's Competition and Markets Authority to block Microsoft's planned $69 billion acquisition of Activision Blizzard may cause Microsoft to take some rather extreme (some might say desperate) measures to press on with the purchase.

A new report from Bloomberg, citing unnamed sources, claims Microsoft President Brad Smith is heading to London next week. Part of his trip will be to discuss Microsoft's options with the legal team that's representing the company in its appeal with the CMA. Bloomberg states:

One extreme option could be to bypass the UK order and press ahead with the deal, or withdraw Activision from the UK market, one of the people said, confirming earlier reports by regulatory news outfit Mlex.

The article added that Smith reportedly will also meet with members of the CMA, along with UK Chancellor of the Exchequer Jeremy Hunt next week.

 

[Killer_Sakoman]

Deal is dead

 

[anonpuffs]

Lmaoooo

 

[Cool hand luke]

Surprise decision to Microsoft, logical and expected decision to sane observers.

 

[Alabtrosmyster]

I can't wait to see them do just that.

 

[ghostz]

The tears of Sony shills is going to create a new ocean. The deal was never in jeopardy.

 

[Nhomnhom]

 

[Cool hand luke]

The tears of Sony shills is going to create a new ocean. The deal was never in jeopardy.

Lmao. Deal is dead and I'm gonna rub it in your face for eternity.

 

[anonpuffs]

The tears of Sony shills is going to create a new ocean. The deal was never in jeopardy.

Guess I just imagined Microsoft crying to anyone who would listen for the last 6 months then.


Such confidence

 

[Gediminas]

Yeah, fuck contracts, they do what they want to do fuck one of the biggest market too

Who is writing this nonsense? 5 years old?

 

[BigMclargeHuge]

The tears of Sony shills is going to create a new ocean. The deal was never in jeopardy.

Whatever you say, sleepy.

 

[Deleted member 417]

The tears of Sony shills is going to create a new ocean. The deal was never in jeopardy.

How would that work? Microsoft leaves its second biggest market for Sony and Nintendo to dominate, while forcing the UK to make a viable alternative to Windows and Office, yet it will be Sony that will be crying?

The only tears shed will be those of joy and laughter when the UK govt makes trillions for their windows alternative, that they will sell to the rest of the world.

But sure, Sony fans will be the ones crying.

 

[Gamernyc78]

The tears of Sony shills is going to create a new ocean. The deal was never in jeopardy.

Sleepy??? Is that you????

 

[Sircaw]

 

[Yobo]

Nobody cares to explain how this works?

Activision pull out of the UK
Bobby has somehow convinced shareholders that pulling out for the third biggest market for them is a good move
Still get fined by CMA because their guidance specifically ruled against preemptive actions

An interim order published yesterday by the organisation details new restrictions on either firm "acquiring an interest" in the other.

Under the CMA's order, Microsoft and Activision will need to secure prior written consent from the regulator before either one:

• acquires an interest in the other company or any of its subsidiaries, e.g. investing in each other's development studios
• acquires an interest in another business that holds an interest in the other company
• hold an option to acquire an interest in either of the above

The CMA said these restrictions have been added "for the purpose of preventing pre-emptive action" from either Microsoft or Activision Blizzard.

Microsoft themselves probably get pulled up again for conspiring with Activision to pull out of the market and need to prove they had nothing to do with it
Other lawsuits follow for breach of contract, probably from Sony who has marketing deals with Activision
Microsoft ruins their reputation with the whole UK gaming market for taking away all COD games
CMA sets their sights on the rest of Microsoft for future actions
All future acquisitions get blocked too
FTC get hand delivered more ammunition to block it in the US

 

[FatKaz]

Did somebody forgot to change brads diaper again?

 

[Swift_Star]

ABK can’t pull out of the UK. The vast majority of King is on the UK.
Whole business and governments use windows. They can’t and won’t leave the UK.

 

[Yurinka]

MS can't bypass regulators like CMA and FTC.

The only thing MS could do would be to make some strucural changes such as don't buying the CoD part or putting CoD in fair conditions in ALL cloud gaming platforms (forever instead of 10 years only and paying their platform holders their 30% instead of the 0% in their current 10 years deals).

Another thing they could do is to completely remove the MS company and subsidiaries from USA and UK and to stop selling games, consoles and game subs in USA and UK. Which won't happen because they won't move thousands of employees they have there to other countries and because these two countries represent maybe the majority -or almost- of their gaming business.

MS will try to pressure as much as possible and will fight as hard as possible when appealing the CMA and FTC decisions, but they have very low chances of succeeding so will end taking the L and will move on.

 

[Loy310]

The tears of Sony shills is going to create a new ocean. The deal was never in jeopardy.

Foss?

 

[ethomaz]

MS can't bypass regulators like CMA and FTC.

The only thing MS could do would be to make some strucural changes such as don't buying the CoD part or putting CoD in fair conditions in ALL cloud gaming platforms (forever instead of 10 years only and paying their platform holders their 30% instead of the 0% in their current 10 years deals).

Another thing they could do is to completely remove the MS company and subsidiaries from USA and UK and to stop selling games, consoles and game subs in USA and UK. Which won't happen because they won't move thousands of employees they have there to other countries and because these two countries represent maybe the majority -or almost- of their gaming business.

MS will try to pressure as much as possible and will fight as hard as possible when appealing the CMA and FTC decisions, but they have very low chances of succeeding so will end taking the L and will move on.

The phase do to show structural changes already passed.
They can't do that anymore to make the deal get appoved.