It’s a small earthquake that has just happened in the middle of the video game. The CMA has announced its wish to block the agreement between Microsoft and Activision, even though monkeys suggested the opposite. Microsoft reacted very quickly, and it’s Activision’s turn to communicate officially on the subject.
“We will continue to advocate for an agreement with Microsoft”
Brad Smith, president of Microsoft, has confirmed that the company will appeal the decision made today by the CMA. But it’s obviously bad news for Activision too, as evidenced by the stock price. Activision Blizzard, Inc. (ATVI) which is already losing 11% of its value in pre-market opening.
Activision boss Bobby Kotick said he was going to fight for the takeover to go ahead, even getting “personally” involved, he said. Here is the email sent by Bobby Kotick to Activision employees.
The team,
Today, the Competition and Markets Authority (CMA), a regulatory agency in the United Kingdom, decided not to approve our merger with Microsoft. It’s not the news we wanted, but it’s far from the last word on this agreement.
Along with Microsoft, we can and will challenge this decision. We have already started the process of appealing to the British Competition Appeals Tribunal. We are confident because the facts are on our side: this agreement is good for competition.
The UK hopes to strengthen its leadership position in technology, and a Microsoft-Activision merger would do just that. At a time when the fields of machine learning and artificial intelligence are booming, we know that the UK market would benefit from Microsoft’s firepower in both areas, as well as our ability to put these technologies implemented immediately. On the other hand, if the CMA’s decision is upheld, it would stifle investment, competition and job creation across the UK gambling industry.
This merger is a complex process, and I know I’m not the only one frustrated by the obstacles and delays. We’re used to a corporate culture that moves quickly to achieve big goals, so it’s hard not to be able to get things done at our usual energetic pace. We will continue to champion our cause, as we know this merger will benefit our employees, the entire UK tech workforce and stakeholders around the world.
I will do everything I can personally to defend ourselves and help regulators understand the competitive dynamics of our industry. What gives me confidence is that whether we stand alone or united with another company, we are one of the strongest companies in our industry, ready to continue growing and leveraging our incredible intellectual property. .
Thank you for continuing to work hard and focus, and for continuing to connect and engage our players around the world. This is the best time to work in our field, and you all represent the best in our industry. We’ll be sure to update you on the next steps as they happen.
With all my gratitude,
Bobby
When we look carefully at the press release, we note here a very first inflection in the discourse of conquest publicly displayed in recent months. “What gives me confidence is that, whether we are alone or united with another company, we are one of the strongest companies in our sector (…) ready to continue to grow and take advantage of our incredible intellectual property. »
With this single sentence, the boss of Activision already leaves a way out in the event that the takeover could not be done, and reassures his employees that whatever happens, the future will be fine.
