Microsoft-Activision Deal Likely to Reach Final Decision in EU by May 15
The much-talked-about deal between Microsoft and video game publisher Activision Blizzard, which was announced in January, may finally reach its final decision in the European Union (EU) by May 15, according to sources aware of the matter. The deal has already been approved by the US Securities and Exchange Commission (SEC) and the Committee on Foreign Investment in the United States (CFIUS).
The proposed deal, which is valued at $68.7 billion (roughly Rs. 5,11,000 crores) will make Microsoft one of the biggest players in the video game industry. If approved by regulators, Microsoft will acquire popular video game franchises such as Call of Duty, World of Warcraft, and Diablo.
The EU antitrust regulators have been reviewing the deal since March, and sources suggest that a decision is likely to be reached soon. The UK’s Competition and Markets Authority (CMA) is also expected to make a decision on the deal around the same time.
The main concern of the regulators is that the deal would give Microsoft dominance over the video game industry, which may lead to unfair competition and higher prices for consumers. However, sources suggest that Microsoft has offered to resolve some of the issues raised by the regulators, including allowing rival platforms to access its Xbox network.
If the deal is approved, it would be the biggest acquisition in Microsoft’s history and will give the company access to over 400 million gamers. The acquisition would also help Microsoft compete with rival video game companies such as Sony and Nintendo.
According to sources, Microsoft is seeking to expand its presence in the gaming industry and has been exploring potential acquisitions for some time. Activision Blizzard, with its popular video game franchises, was a prime target for Microsoft.
The impact of the deal on the gaming industry would be significant. Analysts suggest that Microsoft’s acquisition of Activision Blizzard would result in the consolidation of the industry, making it difficult for smaller players to compete. However, others argue that the deal would lead to increased innovation and investment in the gaming industry.
In conclusion, the Microsoft-Activision deal is likely to reach its final decision in the EU by May 15, which would make Microsoft one of the biggest players in the video game industry. While there are concerns around the deal’s impact on competition and price, Microsoft has offered to address some of the concerns raised by regulators. If approved, the acquisition would give Microsoft access to over 400 million gamers and help the company compete with rival video game companies. The deal would also have a significant impact on the gaming industry, with some analysts predicting both positive and negative outcomes.