Microsoft's acquisition of Activision Blizzard is being investigated by UK regulator
by Adam Fitch ·
UK regulator Competition and Markets Authority is officially looking into the proposed acquisition of Activision Blizzard by Microsoft.
The investigation: The regulator announced on July 6 that it was launching an inquiry into the transaction.
- The CMA's inquiry will determine whether it considers the proposed acquisition will create an environment that includes a "substantial lessening of competition" within the market.
- As such, it's welcoming third-party opinions on the deal until July 20. The deadline for the first phase of the inquiry has been set as September 1.
- Should the CMA come to the conclusion that the transaction would be anti-competitive then it would subsequently dig deeper into things and allow both Activision Blizzard and Microsoft to propose changes to mitigate the concerns.
The acquisition: The $68.7B acquisition was announced in January 2022.
- Microsoft anticipates that the transacting will close in its 2023 fiscal year, starting July 2022.
- The deal was approved by Activision Blizzard's shareholders in April 2022 with over 98% of votes being favorable towards the proposition.
- Before any major strides in the acquisition can be made, the parties will have to receive approval from the appropriate regulatory boards and firms — such as the CMA.