Microsoft and Activision respond to CMA’s block on acquisition

The CMA announced its final decision on Microsoft's proposed acquisition of Activision Blizzard today, moving to block the deal based on concerns around the future of the cloud gaming market. As you would expect, Microsoft and Activision have been quick to issue statements, with Activision going as far as to brand the UK as ‘closed for business'. 

Microsoft's statement is level-headed, acknowledging the decision today and confirming plans to appeal:

“We remain fully committed to this acquisition and will appeal. The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom. We have already signed contracts to make Activision Blizzard’s popular games available on 150 million more devices, and we remain committed to reinforcing these agreements through regulatory remedies. We’re especially disappointed that after lengthy deliberations, this decision appears to reflect a flawed understanding of this market and the way the relevant cloud technology actually works.”

If the deal has to go through the appeals process, then the deadline for closing would need to be extended. If both parties remain committed to pushing forward, the deal may not close until sometime in 2024.

In a statement given to GI.biz, an Activision spokesperson gave a less measured statement: “The CMA’s report contradicts the ambitions of the UK to become an attractive country to build technology businesses. We will work aggressively with Microsoft to reverse this on appeal. The report’s conclusions are a disservice to UK citizens, who face increasingly dire economic prospects. We will reassess our growth plans for the UK. Global innovators large and small will take note that – despite all its rhetoric – the UK is clearly closed for business.”

This specific statement is markedly different to the one CEO Bobby Kotick published publicly on the Activision Blizzard substack, which simply notes that he believes a combined Microsoft-Activision would work well for the UK tech sector and games industry, while expressing frustration in the lengthy regulator process.

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KitGuru Says: It sounds like both Microsoft and Activision Blizzard want to take this deal as far as they can, which likely means a big delay in closing while the case moves through the courts. 

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