UK watchdog to probe Microsoft’s $68Bn Activision Blizzard acquisition

UK watchdog to probe Microsoft’s $68Bn Activision Blizzard acquisition

The Competition and Markets Authority (CMA), the UK’s competition watchdog, is reportedly investigating American technology heavyweight Microsoft’s £50.5 billion ($68.7 billion) acquisition of Activision Blizzard, the controversial gaming company behind renowned videogames such as Call of Duty and Candy Crush .

As per Microsoft CEO Satya Nadella, the all-cash acquisition will allow the Xbox creator to enter the mobile gaming market while also helping it play a crucial role in the development of several metaverse platforms.

If the deal gets the go-ahead, Microsoft will become the third-largest gaming company in the world by revenue. It is to be noted, however, that numerous competition regulators are presently looking into the deal.

The CMA stated that it will be communicating with its international counterparts whenever necessary and that it plans to reach a decision on the Phase 1 of its investigation in approximately 40 working days, or on September 1st, 2022.

At the conclusion of the Phase 1 probe, the regulator will have arrived at the decision whether the proposed merger would hurt competition; if so, it will then need to start a thorough Phase 2 investigation.

Activision's stock has fallen by roughly 40% since reaching a record high last year, when claims of rampant sexual harassment as well as other wrongdoings at the company’s campuses first made headlines.

Microsoft announced that Activision CEO, Bobby Kotick, will remain in the position despite calls for his resignation from employees due to the way he handled the aforementioned claims.

Activision reported that while it was still working to fix the issues, it had fired or demoted more than 36 employees and penalized another 40.

Meanwhile, Microsoft’s takeover offer was perceived as giving it an advantage over its strong console competitor, Sony, the manufacturer of the PlayStation, because of its extensive game catalog.

Microsoft’s latest gaming investments include the $7.5 billion purchase of Mojang Studios, the company behind the popular video game Minecraft.

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.