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Microsoft-Activision Blizzard Buyout Approved in New Zealand, UK Decision Awaits

August 8, 2023
in Entertainment
Microsoft-Activision Blizzard Buyout Approved in New Zealand, UK Decision Awaits
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New Zealand has approved Microsoft’s proposed $69 billion buyout of Activision Blizzard, with a crucial UK decision still waiting in the wings.

New Zealand’s Commerce Commission granted clearance for Microsoft to buy the Call of Duty maker, declaring the buyout is unlikely to substantially lessen competition in any New Zealand market.

“While Activision games, in particular Call of Duty, are popular with New Zealand gamers, our enquiries did not find that they are likely to be ‘must have’ in order to compete with Microsoft in New Zealand,” commission chair Dr John Small said.

Microsoft responded in kind. “We appreciate the thoughtful consideration by the New Zealand Commerce Commission of our acquisition of Activision Blizzard and welcome its decision to clear the deal unconditionally,” a Microsoft spokesperson told IGN. “This acquisition will ultimately benefit the gaming industry and gamers and we will continue to work toward closing the deal.”

Microsoft vice chair and president Brad Smith has also tweeted to point out New Zealand’s approval means Microsoft has the all-clear in 41 countries. “We will continue to work to resolve outstanding concerns and bring this deal to a close,” Smith added.

With today’s approval from New Zealand, we’re cleared to move forward with our acquisition of Activision Blizzard in 41 countries. We will continue to work to resolve outstanding concerns and bring this deal to a close. https://t.co/PwoJj490Ah

— Brad Smith (@BradSmi) August 8, 2023

Perhaps the most important outstanding concern is a decision from the UK’s Competition and Markets Authority (CMA). Last month, Microsoft sent its final submission to the CMA, outlining why it believes the organisation should reconsider its block on the deal.

The 13 Biggest Franchises Microsoft Will Own After the Xbox and Activision Deal

In April, the CMA announced its “Final Report” on the acquisition, citing competition concerns around cloud gaming in the UK. Since then, Microsoft has defeated the U.S.’s Federal Trade Commission (FTC) in court, obtained approval from key regulator the European Commission, and secured an agreement with console rival Sony for the provision of Activision games on PlayStation for a decade.

The CMA is the last obstacle Microsoft must navigate in order to get the deal signed. The CMA originally said no to the deal, but the Competition Appeal Tribunal (CAT) paused Microsoft’s appeal against the decision to allow it and the CMA to negotiate a new proposal.

Microsoft and Activision Blizzard then postponed their merger deadline for three months to allow more time for the deal to gain approval from the CMA. Microsoft must therefore complete its acquisition of Activision Blizzard by October 18 or pay several billion dollars in a reverse termination fee.

The CMA warned earlier in July that Microsoft could be hit with a whole new merger investigation when it submits its new proposal, but the company is seemingly confident the deal will finally go through by October 18. The $68.7 billion deal was announced in January 2022, meaning it’s so far taken 18 months to go through. The CMA will make its final decision on August 29.

Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at [email protected] or confidentially at [email protected].

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : IGN – https://www.ign.com/articles/microsoft-activision-blizzard-buyout-approved-in-new-zealand-uk-decision-awaits

Tags: BlizzardentertainmentMicrosoft-Activision
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