Microsoft Activision Acquisition: UK regulators scrutinising $59.8 billion deal

Microsoft’s acquisition of Activision Blizzard has hit a roadblock, as British regulators attempt to force the two companies to confirm there will be no competitive monopoly in the gaming industry.

The Associated Press reports that the deal would restrict the amount of competition that is found within gaming.

Microsoft are attempting to purchase the rival company for $69 billion, which equates to £59.8 billion.

Activision Blizzard owns a huge amount of IPs within gaming, including some of the most famous games on the market.

Call of Duty, Crash Bandicoot, Guitar Hero, Spyro The Dragon, Tony Hawk, Overwatch, World of Warcraft and Candy Crush all fall under the Activision Blizzard banner.

As per their Wikipedia page, Activision Blizzard had a revenue of $8 billion in 2021 and has assets that total $25 billion.

The Competition and Markets Authority in the UK has released a statement citing concerns that “Microsoft’s anticipated purchase of Activision Blizzard could substantially lessen competition in gaming consoles, multi-game subscription services, and cloud gaming services (game streaming).”

Microsoft, of course, operates Xbox Game Studios, and produces the Xbox Series X/S, while owning IPs such as Halo, Gears of War, and Forza.

The statement from CMA, who opened their investigation in July, also reads: “Following our Phase 1 investigation, we are concerned that Microsoft could use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals, including recent and future rivals in multi-game subscription services and cloud gaming.”

Brad Smith, who is Microsoft’s President, has confirmed that the company are willing to work alongside CMA “on next steps and address any of its concerns”.