The Activision Blizzard merger has led to Microsoft appearing in court against the FTC. Hearings have now concluded, and both parties await the judge’s final decision, but Microsoft has just received another great piece of news before the court’s decision.
South Africa has cleared the Activision Blizzard acquisition without any conditions.
Why it matters: The $68.7 billion acquisition is an essential step for Xbox to ensure a robust first-party lineup against the competition. It also provides the gaming giant an edge in the mobile market.
This also means that Microsoft now has support from 39 countries on the deal.
While regulators like the CMA have blocked the $68.7 billion transaction, most countries appear to have no issues with Microsoft’s approach. Strict regulators like the European Commission have also approved after Microsoft offered various remedies.
However, countries like New Zealand have yet to make a decision. The Commerce Commission has delayed the decision twice, and the regulator is now expected to make an announcement on July 17.
As Microsoft waits for the final decision on the court hearings, approval from South Africa is great news for Activision and Xbox. Experts also believe that Xbox is likely to succeed against the FTC.
Still, this leaves out the CMA. Despite the CMA’s announcement, reports have claimed that Microsoft is already contemplating alternate methods to close the deal.
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