Microsoft's acquisition of Activison Blizzard

[On Demand]

This whole thing makes it look like the FTC caught wind of whatever capitulation was happening in the UK when they filed for a preliminary injunction.

Thank god that Marcus Smith was as unamused by the farce that is this adjournment request as everyone else.

Relevant tweets from Derek as I wasn't able to follow along live.

Why can't we see the new deal?


Marcus Smith casts doubt on new deal being materially different. Beard later argues it's in relation to what is being acquired (within ABK?), not who is acquiring whom.


Whatever happened must have happened in the last 3 weeks, or the parties aren't squeaky clean


CMA needs to prove to the judge that there have been material changes in circumstances or special reasons under section 41-3 of the enterprise act, which they cannot do at this stage (see first tweet)


The relevant legislation


Basically, the CMA's decision might not be consistent with its proposed order (to block) and parties will be arguing in court over the old order while a restructured deal is being considered.

What's confusing to me is how the new deal applies to the proposed order and decision relating to the old deal. I understand why the CMA does not want it quashed (legal precedent), and I have to imagine it's explained somewhere else in the legislation.

It's claimed that this course of action is not in response to the FTC's failure in court, though you can see Microsoft and ABK lawyers arguing that the FTC is relevant (comity?) which the judge disagrees with. He also wants to understand why the late June adjournment was opposed - which is why I said earlier that what happened must have happened in the last 3 weeks, because otherwise it looks suss:



What I was evidently wrong about was fervour of the CMA's dedication to protecting consumers. It could be an air of impartiality and abidance by their duty, but they're clearly leaning towards receiving notice of a restructured deal from Microsoft, determining it to be a new relevant merger situation, and waving it through based on concessions Microsoft has indicated they will be making throughout their discussions with CMA on a workable path that preempts SLC concerns. The whole "we don't know what we'll do" act is just that.

Shenanigans from top to bottom.

 

[historia]

True, Sony can do a mix of cash, stocks, etc. It doesn't have to be 100% cash. But I personally don't see what acquiring EA or T2 brings them vs. simply investing in them, doing more partnership deals with them, and buying lots (preferably majority) shares into those publishers. You get effectively all the same things outside of claiming the revenue of those companies as your own in fiscal reports.

Sony buying Take-Two would be pretty self-destructive for me. They cannot manage a big publisher with thousands of labors, that would add a lot of deadweight. Same for EA, same for Ubisoft.

 

[PlacidusaX]

So what's happening now?

 

[Gods&Monsters]

This is referring to me. The toughest part is and was always ostensibly the CMA, not the FTC. What confidence Microsoft had was evidently off the back of backroom dealings with the CMA and provisional assurances that their new plan would work.

My stance was perfectly fine with the information we had at the time given that the deal as it currently stands is blocked. The reeeing about how the deal was guaranteed to close before the deadline was delusional as it violates the law.

This adjournment means the CMA can consider the new deal without parties arguing about the validity of the order for the old deal. It's not an approval of any deal, though I now anticipate that's where this is headed, unfortunately.

What I still don't understand is that MS had until June 18 to submit a new deal to the CMA but the CMA said they didn't see the deal yet (just some talk). The deadline is over for that.

I hope the press in UK will roast the CMA to know what happened. Some pressure groups for consumers rights or something.

 

[On Demand]

You've done a great job keeping everyone actually informed with what is going on. and in tune with reality.

Yes he really has. They were one of the most level headed person about this whole deal.

 

[Johnic]

So allow me to summarize what happened today.

"Your Honor, we have a new deal in mind, so would you please let it go through until tomorrow."

"OK, can we see the deal?"

"About that...".

Make it make sense.

 

[On Demand]

What I still don't understand is that MS had until June 18 to submit a new deal to the CMA but the CMA said they didn't see the deal yet (just some talk). The deadline is over for that.

I hope the press in UK will roast the CMA to know what happened. Some pressure groups for consumers rights or something.

Oh I can definitely see an investigation happening because of this. The Judge immediately saw that nothing was making any sense as to why the CMA decided to change their whole tune now.

 

[Swift_Star]

So allow me to summarize what happened today.

"Your Honor, we have a new deal in mind, so would you please let it go through until tomorrow."

"OK, can we see the deal?"

"About that...".

Make it make sense.

"MS paid us some billions in cash"

 

[FatKaz]

Yes he really has. They were one of the most level headed person about this whole deal.

Indeed he has. His insight has always been grounded in reality.

Nobody could have predicted what happened today. Even the CAT judge was baffled.

 

[Gods&Monsters]

I never said they saw the deal. People are acting like this process is because of corruption and if the result favors MS, it's corrupt.

Nobody is saying they should not investigate the new deal but there is NO DEAL and the CMA lawyers were fighting HARD to cancel their final report and trash all the work they did for months. Even the judge is completely flabbergasted about why they want to stop this so bad. This is not normal.

Yes he really has. They were one of the most level headed person about this whole deal.

Also some justice for @KiryuRealty he was always right about the process but he was banned unfortunately I don't know why

 

[Jim Ryan]

So what's happening now?

I have no idea, I signed a document and everybody got mad at me.

 

[Dabaus]

I’d love to know what’s in the new deal that made Sony and the cma fold at the same time.

 

[Zzero]

Also some justice for @KiryuRealty he was always right about the process but he was banned unfortunately I don't know why

Justice? He spent months arguing that the merger was dead and MS was just wasting people's time. And here we are, watching the deal go through with, it seems, likely only a minor structural change to the UK version of Gamepass.

 

[FatKaz]

I’d love to know what’s in the new deal that made Sony and the cma fold at the same time.

Yeah should be interesting.

Unlike the EC they will need to justify their rational for why they think it addresses their concerns to the public.

 

[Gods&Monsters]

Justice? He spent months arguing that the merger was dead and MS was just wasting people's time. And here we are, watching the deal go through with, it seems, likely only a minor structural change to the UK version of Gamepass.

What we are witnessing is not the regular procedure. He couldn't know the CMA would make an about-face at the last minute, begging the judge to let MS close the deal.

The CMA needs to change their logo to Microsoft. Who's going to do it on their Wiki?

 

[reziel]

Yeah should be interesting.

Unlike the EC they will need to justify their rational for why they think it addresses their concerns to the public.

Didn't the judge adjourn the deal though?

 

[Danja]

For some reason the CMA decided to bend over backwards to get this deal through before tomorrow. They said MS offered a new deal but didn't present that new deal to the court. Judge decided to let it go through and had the CMA approve the new agreement later. basically both MS and the CMA appeared in court, asking for it to go though based on an agreement they didn't present the judge.

The argument is basically "Trust me it's good".

The judge also trashed the CMA because they all of a sudden were willing to get it through ASAP, after months of asking to block it.

Is there a transcript of what the judge said?

 

[FatKaz]

Didn't the judge adjourn the deal though?

Eventually they will have to publish their report.

 

[Plextorage]

Even the judge is completely flabbergasted about why they want to stop this so bad. This is not normal.

Corruption is... NORMAL

 

[Muddasar]

You are aware just because Microsoft succeeds in a merger doesn't mean Sony will, right?

They have a 4:1 advantage in Europe. How does the EC allow Sony the opportunity to own GTA. Xbox didn't have a console SLC because they are a distant competitor. Sony is the market leader by multiple times.

Tell me you don’t actually believe the drivel you just wrote.