Can Microsoft be blocked from buying Activision?

The planned Microsoft Activision acquisition has been provisionally blocked by the UK's antitrust watchdog, the Competition and Markets Authority (CMA) …

Why can't Microsoft just buy Activision?

The European Commission has objected to Microsoft's buyout of Activision Blizzard, setting another roadblock in the purchase. Following a lawsuit by gamers over monopolizing the gaming market, Microsoft has hit another roadblock in its attempt to buy Activision Blizzard (ABK) for nearly $70 billion.

Who is blocking the Microsoft Activision deal?

But things got really interesting in early December of last year, when the FTC sued to block Microsoft from acquiring Activision Blizzard, with preliminary hearings set to begin this August.

Did CMA block Microsoft from buying Activision?

The UK's Competition and Markets Authority (CMA) has said it is opposed to Microsoft's planned purchase of games developer Activision Blizzard. The CMA said it had provisionally concluded it would result in higher prices, fewer choices and less innovation.

Will Microsoft buying Activision be approved?

Microsoft's proposed acquisition of Activision Blizzard is likely to be approved by EU regulators, Reuters reports. The software giant struck licensing deals with Nintendo and Nvidia recently, and Reuters says these deals are likely to satisfy lawmakers in Europe to help Microsoft clear its $68.7 billion deal.

Microsoft just GOT BLOCKED from Buying Activision Blizzard?! What this means for XBOX!

What happens if Microsoft owns Activision?

Activision Blizzard own the Call of Duty franchise, one of the biggest in gaming history. If Microsoft's acquisition deal closes, they will own the Call of Duty series, and be able to do whatever they want with it on their Xbox systems going forward. Microsoft could have bought other companies, but it already did.

Is the Activision deal finalized?

Apr. 28, 2022: Shareholders at Call of Duty and Overwatch 2 publisher Activision Blizzard voted overwhelmingly on Thursday to approve a $69 billion sale to tech giant Microsoft. The deal gives golden parachutes to top execs at Activision, including embattled CEO Bobby Kotick.

What happens if CMA blocks deal?

“The CMA's decision is key because if it chooses to block the deal, there is little recourse for the companies — UK courts rarely overturn a CMA merger decision,” Bloomberg Intelligence analyst Jennifer Rie said, adding that it is unlikely that the transaction will be cleared unconditionally.

Did Microsoft overpay for Activision?

Most people think that Microsoft overpaid with the $70 billion price tag on Activision Blizzard. Not necessarily. People tend to look at this as a consolidation deal, where Microsoft buying a company at a decline, which is not. The important point of the deal was to facilitate Category Acceleration.

Why does Microsoft want to buy Activision?

Buying Activision will give Microsoft ownership of many of the world's biggest games: not just Call of Duty, but others, including mobile behemoths like Candy Crush. All of those will be part of Microsoft and can be used to boost the offering of the Xbox.

Why Sony doesn t want Microsoft to buy Activision?

Microsoft and Sony have been at odds over the former's purchase of Call of Duty maker Activision Blizzard. Sony is concerned that the Windows maker might make the game exclusive to Xbox but those claims have fallen flat after Microsoft announced multi-year deals with Nintendo and Nvidia.

Why does Sony not want Microsoft to buy Activision?

Sony's Objection to Microsoft's Activision Blizzard Acquisition Explained. Sony isn't too happy about Microsoft acquiring Activision Blizzard, mostly because it could result in Call of Duty becoming a console exclusive.

How long will it take for Microsoft to acquire Activision?

Microsoft's planned acquisition of Activision Blizzard, which is a leading developer and publisher of console, online, and mobile games is expected to be completed in June of 2023.

How will Microsoft pay for Activision?

In addition, ATVI wrote in its Securities and Exchange Commission filing: “Microsoft plans to acquire Activision Blizzard for $95.00 per share in an all-cash transaction. The transaction is subject to customary closing conditions and completion of regulatory review.

Who owns overwatch now?

Blizzard Entertainment is a premier developer and publisher of entertainment software, and the company is renowned for creating some of the industry's most critically acclaimed games, including World of Warcraft®, Overwatch®, Hearthstone®, StarCraft®, and Diablo®.

Will Xbox buy Activision?

Xbox announced via its official Xbox Wire site that it would acquire Activision Blizzard for $68.7 billion. All Activision Blizzard studios which include Blizzard but also Call of Duty developers like Infinity Ward and Sledgehammer would report to Xbox head Phil Spencer.

Who owns Activision Blizzard?

The results of those talks were made public in January 2022, when Microsoft announced that it would acquire Activision Blizzard for $68.7 billion.

What is the role of the Competition and Markets Authority CMA?

Our responsibilities

we take action against businesses and individuals that take part in cartels or anti-competitive behaviour. we protect people from unfair trading practices, including in cases where unfair treatment suggests there may be a systemic market problem.

What is the probability of Activision deal closing?

Activision shares are priced now at 20 times earnings. The market is pricing in roughly a 35% to 40% probability of the deal closing.

What does Microsoft Buying Activision mean for Activision?

Microsoft says buying Activision would let it put more big titles on Game Pass - its Netflix-style subscription - and make more games for mobile phones, where there are big profits to be made.

Why did Activision sell to Xbox?

“Its vision for the transaction is simple: Xbox wants to grow its presence in mobile gaming, and three-quarters of Activision's gamers and more than a third of its revenues come from mobile offerings,” according to Microsoft.

How long is Sony's deal with Activision?

For years now, Sony has paid Activision for a Call of Duty exclusivity deal that sees PlayStation owners get special treatment in regards to the popular shooter series. That deal ends in 2024, according to Microsoft president Brad Smith.

Is Microsoft confident about Activision deal?

Xbox CEO Phil Spencer says he's confident its Activision-Blizzard acquisition deal will receive final approval from global regulatory bodies. Xbox head Phil Spencer remains confident that Microsoft's Acquisition of Activision-Blizzard will go through.

What are 2 possible benefits that Microsoft will gain if they acquire Activision Blizzard?

Microsoft claims that the Activision Blizzard acquisition gaming deal will give gamers access to "more games on more devices including Xbox, PlayStation, phones, and online". You'll also have more choice in how and where you buy games as well as with subscriptions or one-off purchases.

What would the billion Microsoft Activision deal harm to?

MUST WATCH. Washington (CNN) Microsoft's $69 billion purchase of Activision Blizzard could harm competition by letting Microsoft restrict Activision's video games to proprietary platforms such as Xbox, UK officials said Wednesday, in the latest challenge to the tech giant's blockbuster acquisition.