Recently the CMA unexpectedly blocked Microsoft’s Activision Blizzard acquisition, and that day is said to be the darkest day for Microsoft in Britain. Most fans and even analysts were expecting CMA to approve the deal, but the regulars believe that the deal could affect the cloud gaming market.
The point may hold validity, given that the future lies in the cloud gaming market. However, many companies have come out to support Microsoft against the CMA’s decision since then. Nvidia GeForce Now is one such company, while others like Boosteroid are also supporting Microsoft.
Even after the deal was blocked, Microsoft signed a 10-year agreement with Nware for cloud gaming. But Microsoft getting its way with the merger seems unlikely, as CMA’s final report has revealed more information.
On one page of the final report, it has been stated that CMA will have to prevent any future mergers between Activision and Microsoft for 10 years unless circumstances change.
While the deal appears to have been prevented for 10 years, there may still be hope for Microsoft.
The document has stated that the merger will not be blocked for 10 years if the circumstances were to change. We can not think of what change in circumstances could persuade the CMA, but this could be a tiny ray of hope for Microsoft.
However, Microsoft has also decided to appeal the decision. If the company cannot succeed in court, the gaming giant’s hopes of owning Activision Blizzard will not be achieved within this console generation.
Still, regulators like the European Commission and the FTC have not announced their decision. The former is due to decide later in May, and approval could be the turning point that Microsoft needs for the merger.
What do you think of the merger potentially being blocked for ten years? Do you believe CMA’s decision was reasonable?
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