Microsoft is on the verge of completing its eagerly anticipated $68.7 billion deal to acquire Activision Blizzard. According to insider sources speaking to The Verge, the finalization of the agreement is expected to take place on Friday, October 13, 2023. The chosen date coincides with the decision-making timeline of the UK Competition and Markets Authority (CMA), which is set to release its official verdict on the acquisition after months of deliberation.
In late September 2023, the CMA provisionally approved the acquisition following an appeals process. The review panel concluded that Microsoft had adequately addressed concerns about potential monopoly in the cloud streaming sector. While the initial approval was not deemed final, it was widely anticipated to remain unchanged before the expiration of the decision deadline in early October.
Although the CMA has not yet disclosed its final verdict, it is expected to do so this week, ahead of the firm deadline on October 18, 2023. Microsoft, confident in an early conclusion, has prepared for the formalization of the acquisition by Friday. If this unfolds as predicted, the weeks ahead will witness significant changes as Microsoft commences the acquisition process.
A Resolution to a Prolonged Legal Battle
The finalization of the deal signifies the end of a protracted legal battle that has spanned 20 months and involved various global regulatory bodies. Notably, Microsoft is engaged in an ongoing dispute with the US Federal Trade Commission (FTC) over the impending acquisition. Despite an initial rejection of an injunction to halt the Activision Blizzard purchase, the FTC remains determined to challenge the deal.
Victoria Graham, a spokesperson for the FTC, expressed the organization’s belief that the acquisition poses a threat to healthy competition. The FTC’s efforts to overturn the deal will continue in the coming weeks, although Microsoft’s progress with the acquisition hinges on the approval from the CMA. The resolution of the FTC’s initial appeal is projected to be finalized in December 2023, well after the upcoming deadline. In addition, an administrative case against Microsoft may proceed once the US Ninth Circuit Court of Appeals delivers its ruling, potentially further complicating the situation.
While The Verge notes that the FTC could potentially disrupt the Activision Blizzard deal through this process, current indications suggest that Microsoft’s plans are progressing smoothly.
As the CMA prepares to announce its final verdict, the anticipation surrounding Microsoft’s acquisition of Activision Blizzard heightens. Should the approval be granted as expected, Microsoft will enter a new phase, ushering in significant changes for both companies. The months-long legal battle with global regulatory bodies, including the ongoing challenge from the FTC, remains a hurdle for Microsoft. Nonetheless, the company’s determination to proceed with the acquisition remains strong.
Stay tuned for further updates as the CMA’s final verdict is revealed, shedding more light on the future of Microsoft and Activision Blizzard.
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