Microsoft proposes compromise over Activision Blizzard deal to EU
Microsoft has proposed a compromise to the European Union in hopes of winning approval for its planned acquisition of Activision Blizzard. Here’s what we know so far.
What’s the situation?
The European Commission launched an antitrust investigation into Microsoft’s acquisition of Activision Blizzard in late 2022. The deal is valued at $69 billion and includes mobile gaming company, King.
Why is Microsoft proposing a compromise?
Industry watchers have predicted Microsoft would need to address the EU’s concerns about the deal since November 2022. To ease these concerns, Microsoft has offered a series of remedies in a formal concession package.
What happens next?
The EU will seek feedback from consumers and Xbox rivals before making a ruling on the proposed merger. The provisional deadline for a ruling is May 22, though that date has already been pushed back twice.
What’s the likely outcome?
Half of Xbox rivals expressed concern about the Activision Blizzard deal in a recent UK Competition and Markets Authority investigation. However, Microsoft has a strong track record of getting its mergers approved by the European Commission, with nine out of ten previous acquisitions receiving approval.
What about the union’s support for the deal?
The Communications Workers of America, a major North American union, recently supported the Microsoft takeover in a letter to the EU, claiming it would positively impact labor markets. However, the EU’s probe is solely focused on determining whether owning the Call of Duty maker would give Xbox too much power in the video game publisher and console manufacturer intersection.
What’s the bottom line?
Microsoft is seeking a compromise with the European Union to win approval for its acquisition of Activision Blizzard. The EU will seek feedback before making a ruling, but Microsoft has a strong track record of getting its mergers approved. We’ll have to wait and see what concessions Microsoft has offered to address the EU’s concerns.
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