After the decision of the CMA to prevent the takeover of Activision Blizzard by Microsoft, the studio takes up arms.
The affair of the takeover of Activision Blizzard by Microsoft is like More beautiful life : It’s been going on for far too long. Excuse us for this dodgy comparison, and let’s get back to the facts. In January 2022, the firm that owns Xbox announced its desire to buy the American studio and publisher for nearly 70 billion dollars. The transaction is, even today, still not concluded, and it may never see the light of day.
Microsoft takeover of Activision Blizzard blocked
A few hours ago, Activision Blizzard shared information that could well go in favor of its acquisition by Microsoft. But first of all, let’s remember the latest twist. This Wednesday, April 26, the CMA prevented the acquisition from being concluded. His verdict was eagerly awaited, and his decision therefore had the effect of an earthquake. To justify it, the British regulatory body explains that it fears that this acquisition “does not change the future of the growing cloud gaming market”. According to her, this would lead to less innovation and choice in the video game market, which would obviously go against the interests of players.
Remember that in parallel, Sony is also opposed to the takeover. The Japanese giant fears unfair competition, and sometimes puts forward dubious arguments for this. Anyway, that’s not the end of this whole thing. Far from it, even, given the latest announcement from Activision Blizzard.
The studio will appeal and prepare the ground
In an effort to immediately respond to the CMA’s decision, Activision Blizzard has decided to release its first quarter 2023 financial results today. And as much to say it right away, these are very impressive. Between January and March, its turnover thus amounted to 2.4 billion dollars, for a net profit of 740 million dollars. Blizzard’s major licenses (Diablo, Overwatch, Warcraft), and in particular the mobile game Diablo Immortal, have enabled it to increase its turnover by 62%. This figure is limited to 28% for Activision, which can count on the significant sales of Call of Duty: Modern Warfare II.
Activision Blizzard recalls in passing that it “outstanding performance”. He also asserts that “each of (its) key intellectual properties continues to grow year over year”. Finally, the studio tackles the CMA and announces its decision to support Microsoft on appeal.
Our agreement with Microsoft benefits competition, consumers and job creation in markets around the world, particularly in the UK. The CMA i report does not reflect these realities. We will work vigorously with Microsoft to overturn it on appeal.
Activision Blizzard (via GamesHub)
As of yesterday, Microsoft announced its desire to appeal. She also denounces “poor understanding of the market” from the CMA. And it goes without saying that the excellent results of Activision Blizzard are a strong argument in favor of its acquisition. The case could well know yet another twist If it is proven that jobs are being created thanks to him in the United Kingdom, the case could well have the right to yet another twist.
