Sunday , June 23 2024
Home / Crypto news / Microsoft Nears Completion of $68.7B Activision Blizzard Deal

Microsoft Nears Completion of $68.7B Activision Blizzard Deal

Summary:
The approval came after the FTC in the United States initially filed a lawsuit to block the Activision Blizzard acquisition last year. According to a Friday report from The Verge, Microsoft Corp (NASDAQ: MSFT) is edging closer to finalizing its proposed .7 billion acquisition of Activision Blizzard, with an expected announcement set for next week. The US-based tech giant has earmarked October 13 as the potential closing date for the deal. The long-awaited acquisition, which has been in the works for over 20 months, is subject to approval from the UK’s Competition and Markets Authority (CMA), the regulatory body responsible for strengthening business competition in the nation. Microsoft Secures First Approval from the CMA Microsoft initially announced its plans to acquire

Topics:
Chimamanda U. Martha considers the following as important: , , , , , , ,

This could be interesting, too:

Suraj Manohar writes Increasing Negative Interest in BTC as Its Price Struggles to Find Upward Momentum

Suraj Manohar writes Ripple Faces Securities Suit in California

Bhushan Akolkar writes Revolut Seeks to Sell 0 Million Worth of Shares at B Valuation

Maria Konash writes Santiment: Bitcoin Experiencing “Extended Level” of FUD on X

The approval came after the FTC in the United States initially filed a lawsuit to block the Activision Blizzard acquisition last year.

According to a Friday report from The Verge, Microsoft Corp (NASDAQ: MSFT) is edging closer to finalizing its proposed $68.7 billion acquisition of Activision Blizzard, with an expected announcement set for next week. The US-based tech giant has earmarked October 13 as the potential closing date for the deal.

The long-awaited acquisition, which has been in the works for over 20 months, is subject to approval from the UK’s Competition and Markets Authority (CMA), the regulatory body responsible for strengthening business competition in the nation.

Microsoft Secures First Approval from the CMA

Microsoft initially announced its plans to acquire Activision Blizzard, along with all of its studios and franchises, including the Call of Duty game, in January last year.

The fintech giant agreed to pay $95 per share to purchase the video game company, totaling approximately $68.7 billion, marking its highest acquisition since its inception. However, the deal was contingent on approval from the CMA.

The proposed acquisition faced several setbacks from regulators across the United States and Europe. Earlier this year, the UK business competition regulator initially blocked the company’s plans, citing concerns related to cloud computing.

To address these concerns, the tech giant restructured the deal, transferring cloud gaming rights for both current and future Activision Blizzard games to Ubisoft. This adjustment secured preliminary approval from the CMA in September.

Microsoft Could Close Acquisition Deal Next Week

Sources familiar with the matter disclosed that, as of today, the CMA’s deadline for gathering opinions on granting consent for the deal expires, and a final decision from the regulator is expected to be reached next week.

If all goes as planned, Microsoft will successfully close the deal, ending a protracted process marked by regulatory approvals and disputes across Europe and the United States.

The two companies had earlier agreed to extend the deal deadline until October 18. However, with CMA approval underway, the deal may not reach a deadline before closing.

The UK is not the only jurisdiction where Microsoft faced regulatory scrutiny. The European Union approved the acquisition in May, with the company making significant cloud-related concessions.

The approval came after the Federal Trade Commission (FTC) in the United States initially filed a lawsuit to block the Activision Blizzard acquisition last year. The agency also filed to temporarily restrain the company from the deal in June.

Despite their efforts, the FTC failed to secure a preliminary injunction against the company during a strenuous five-day hearing in July, known as FTC vs Microsoft.

FTC Plans to Reopen Its Case against Microsoft

While the outcome of that hearing is currently under appeal with the Ninth Circuit Court of Appeals, the FTC is also planning to resume its administrative case against Microsoft’s proposed acquisition.

The administrative case will commence 21 days after the Ninth Circuit rules on the FTC’s appeal, and the hearing will be held virtually. Should Microsoft’s deal close on schedule, the FTC faces a formidable challenge in attempting to undo the acquisition.

Meanwhile, in a recent interview with GameBeat, Activision President Rob Kostich expressed his optimistic outlook for the Call of Duty franchise as it approaches integration into the Microsoft family.

Kostich believes Call of Duty is poised to benefit significantly from Microsoft’s extensive resources and technology offerings.

“Being able to tap into Microsoft’s technology and suite of tools would benefit our teams to create an even greater, more immersive experience for our players. Ultimately, it’s about bringing our development team’s creative vision to life in this hyper-competitive environment,” Kostich stated.

The Activision boss sees a wealth of opportunities on the horizon for Activision Blizzard, describing the acquisition as an “extraordinary opportunity” for the gaming giant.

Business News, Deals News, Market News, News
Chimamanda U. Martha

Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.

Leave a Reply

Your email address will not be published. Required fields are marked *